LONDON (ShareCast) - (Sharecast News) - Paper products and materials company James Cropper reported first-half revenue of £49.8m on Tuesday, rising from a restated £34m a year earlier, as its adjusted operating profit grew to £2.5m from £1.6m.

The AIM-traded firm said its adjusted profit before tax totalled £2.3m for the half-year ended 25 September, rising from £1.3m in the first half of the 2021 financial year, while its profit before tax was £1.9m, compared to nil a year earlier.

Basic and diluted earnings per share were 16.2p, swinging from losses of 0.2p per share in the prior first half.

The board declared a dividend of 2.5p per share, up from the nil distribution it made at the half- and full-year results in the prior financial year.

Looking at the balance sheet, net borrowings widened to £9.6m, from £5.2m at the end of the first half of the 2021 financial year, while equity shareholders' funds totalled £32.3m, up from £27.3m.

Its gearing after the effects of an IAS 19 deficit was 30%, compared to 19% a year ago, while capital expenditure in the period grew to £2.9m from £1.4m year-on-year.

"The group has experienced a 47% increase in revenues in the first half, returning to pre-pandemic levels, with both TFP and Colourform performing above this level, and paper demonstrating a strong recovery," said chairman Mark Cropper.

"Plans are in place to establish an additional electrolyser line in the US as the hydrogen market surges and the 50% increase in TFP's non-woven lines is now operational.

"Paper sales are projected to be ahead of pre-pandemic levels by the start of 2022, with a strong demand for recycled fibre content and responsible sourcing."

Cropper said the Colourform business was attracting brands seeking plastic-free sustainable packaging across the wines, spirits, beauty, and fragrance sectors.

"We are committed to being operationally carbon neutral by 2030 and to significantly reducing carbon through our entire supply chain by 2035," Mark Cropper added.

"Building on strong foundations, the newly-defined environmental, social and governance (ESG) committee is developing targets against all our ESG strategic intents."

The company was investing "significantly" in "people, innovation and capability", he explained, in a bid to ensure that over the long term, the company could sustain growth across all of its businesses.

"In the nearer term, the full-year results are anticipated to show strong growth from the pandemic."

At 1120 GMT, shares in James Cropper were up 10.2% at 1,350p.

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