AGM Statement

Cropper(James) PLC
07 August 2003


Issued by Citigate Dewe Rogerson Ltd, Birmingham

Thursday, 7 August 2003

IMMEDIATE RELEASE





                               JAMES CROPPER PLC

                        CHAIRMAN'S STATEMENT TO THE AGM

                            THURSDAY, 7 AUGUST 2003





At today's Annual General Meeting, James Cropper, Chairman told shareholders:


Given the continuing subdued international economic climate I have to report a
difficult opening quarter for the Group and the Paper Division in particular.


Paper Division volumes were down in export markets in the first quarter however
overall Divisional turnover was at the same level as last year. I indicated to
shareholders in the Annual Results Statement on 17 June 2003 that the Paper
Division would be adversely affected by further increases in pulp prices in the
first quarter. This has proved to be the case. The price of pulp averaged US$470
per tonne in the last financial year. In the final quarter it escalated rapidly,
passing US$520 per tonne at the year-end, to peak at US$560 per tonne in the
first quarter of the current year. The price has now weakened as I anticipated
in my Statement and is now at US$530 per tonne. Divisional profitability should
recover if the price of pulp continues to fall further.


The weak US$ is still impacting adversely on the profitability of sales to the
USA by both Converting and Technical Fibre Products Divisions. However,
Technical Fibre Products is trading at a similar level to last year.


The slowdown in demand for marketing, advertising and promotional materials in
the UK and European markets is continuing to depress sales of display board by
the Converting Division.


Therefore given the performance in the first quarter, together with increased
National Insurance contributions, insurance premiums and effluent treatment
charges, Group results for the full year will be significantly lower than last
year and below current market expectations.


The Divisional management teams are focused on profit improvement through
business development, vigorous cost control and greater efficiency in the medium
term. Two export markets are emerging which hold considerable potential for the
Paper Division. Firstly, sales to China have doubled in the past three years.
The Division had intended to attend three major trade exhibitions in China this
year but unfortunately two of these were cancelled because of the SARS outbreak.
Despite this, the Board believes that the Chinese market presents major
prospects in the medium term.   Secondly, following the recent appointment of a
new agent in the USA sales to this market are also encouraging.  The immediate
priority for the Converting Division is its restoration to previous levels of
profitability and progress is being made in implementing cost reduction
measures. Technical Fibre Products is focused on developing markets for fire
protection and surface engineering materials and bringing to market materials
for incorporation into fuel cell components. The potential of these markets in
the long term is exciting.


In the absence of unforeseen circumstances it is the Board's intention to
maintain the level of the dividend reflecting both the confidence we have in the
future prospects of the Group and the strength of the Group's balance sheet.



Enquiries:
Alun Lewis, Chief Executive
John Denman, Group Finance Director              Alan Cooke
James Cropper PLC                                Citigate Dewe Rogerson
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