James Cropper plc, the Kendal-based paper and packaging company, said it agreed temporary amendments to the covenants on its UK banking facility with its lenders up to the end of this year “to ensure sufficient headroom is retained going forwards”.

Its shares rose 12% on the London Stock Exchange. The shares have more than halved in the last 12 months as the company struggles with inflation and a dip in demand.

The company said the covenants will revert to previously agreed levels after the end of this year. It said its lenders have confirmed their support for the company, “recognising the trading conditions experienced in the second half of FY2024.”