James Cropper plc, the Kendal-based Advanced Materials and Paper & Packaging group, said its trading for the 18-week period ended July 27, 2024, is in line with the board’s expectations “albeit behind the performance seen over the same period last year where Advanced Materials fuel cell revenue was particularly strong.”

In a trading update to coincide with its AGM, Cropper said that whilst the luxury packaging market remained soft, order intake levels in Paper & Packaging pointed to continuing recovery over the current financial year.

“The group has made a positive start to the financial year, with performance over the period showing recovery from the challenging market conditions experienced in the second half of FY24,” said the Kendal firm.

“Trading is in line with the board’s expectations, albeit behind the performance seen over the same period last year where Advanced Materials fuel cell revenue was particularly strong. 

“New sales opportunities in the Advanced Materials business remain strong, where investment continues to be made in our hydrogen electrolyser business to build capacity to meet anticipated demand.

“Whilst the luxury packaging market remains soft, order intake levels in Paper & Packaging point to continuing recovery over the current financial year, where the business has secured some new key contracts. 

“The board remains confident in the mid-term prospects of both the Advanced Materials and Paper & Packaging business, and its full year expectations remain unchanged.”

James Cropper CEO Steve Adams said: “We have made a positive start to the financial year across both Advanced Materials and Paper & Packaging, with revenue run-rates and profitability improving against the performance seen during difficult market conditions in the second half of FY24.

“We continue to focus on adding value for our customers and remain resolute in the delivery of our accelerated growth strategy under our recently repositioned James Cropper branding.”