James Cropper plc, the Kendal-based paper and packaging company, said full-year revenue and profit fell due to lower demand and energy surcharges.

The company reported revenue down 21% to £103 million, while adjusted operating profit more than halved to £2 million.

Its shares fell 2.4% on the London Stock Exchange.

In its review of the year, the company said: “We announced in January that some of our most promising growth opportunities, not least those in hydrogen and fuel cells, are taking longer to bear fruit than previously expected due to delayed market growth. At the same time, we reported that difficult market conditions across the Paper & Packaging business were expected to continue through the second half of the year.”

James Cropper CEO Steve Adams said: “After a strong first half that showed continued momentum on the previous year, difficult market conditions during late 2023 and early 2024 across both businesses required a concerted effort to protect prices and margins and to focus on productivity and cost savings. This was achieved whilst also concluding the significant restructuring of our Paper & Packaging business and adopting a completely new continuous running operating model for the first time.”

Looking forward, the company said it is targeting mid-to-high single-digit annual revenue growth and an increase in adjusted operating profit margin to high single digits over the medium term.