James Cropper (AIM:CRPR) has reported adjusted EBITDA of £8.9m for the year ended 28 March, up 33% from £6.7m the prior year and ahead of the Board's expectations.
Group revenue rose 3.6% to £102.9m, from £99.3m in the prior year, as the AIM-listed advanced materials and paper packaging group navigated challenging export conditions to the US.
Advanced Materials delivered record revenue of £39.8m, up 11.5%, driven by demand in hydrogen coatings, though the company flagged an expected short-term decline in that business unit's revenue in the new financial year following a strong prior comparator.
Paper & Packaging held revenue broadly steady despite losing a significant customer, returning to EBITDA profitability in the second half after restructuring, a shift to a five-day manufacturing pattern, and efficiency gains in raw material use and energy costs.
Net debt fell to £8.1m from £12.9m, cutting the net debt to EBITDA ratio to 0.9x from 1.9x, with a new debt facility committed early in the new financial year.
The Board placed a temporary hold on dividends during the year to prioritise balance sheet strength, and no final dividend will be recommended at the 2026 annual meeting.
"I am pleased at the progress being made, particularly on strengthening our Balance Sheet and the significant positive momentum in Paper & Packaging, which we expect to continue into the current year," said chief executive David Stirling.
Trading in the first quarter of the new financial year has started positively, with a strong order book supporting Paper & Packaging's recovery, the company said.
