Final Results

Cropper(James) PLC
18 June 2002

Issued on behalf of James Cropper PLC

Date: Tuesday 18th June 2002     Embargoed: 7.30am



                               James Cropper PLC

                              Preliminary Results

                       for the year ended 30th March 2002


                                                                        2002                2001


  • Operating Profit/(Loss)                                            £2.4m             (£0.3m)

  • Profit/(Loss) before tax                                           £1.5m             (£0.8m)


    After investment write down of £0.3m in 2002

  • Earnings per share                                                  9.2p              (7.9p)

  • Dividend

                                                                       
        Final                                                           5.2p                4.5p                +16%

                                                                        
        Total                                                           7.0p                6.3p                +11%

  • Gearing                                                              27%                 34%

  • Operating profit in Papermaking £1.0m compared to prior year loss of (£1.7m)
    due to lower pulp and energy costs

  • Strong final quarter surge in Technical Fibre Products ('TFP') sales as the 
    US market recovered

  • Record operating profit in Converting up by 11% to £1.1m

  • Steady progress on fuel cell development with Johnson Matthey

  • Papermaking recovery plan shows continued progress

  • Total dividend up 11%


'I am delighted to report that the Group has recovered strongly'.

'The financial position of the Group has strengthened markedly during the year
with all three businesses trading profitably and strong cash flow reducing
borrowings, with gearing closing at 27%'.

'TFP's operating profit of £314,000 as against £504,000 last year conceals a
sharp recovery in the final quarter of the year'.

'TFP's increase in volume and profitability in the fourth quarter of last year
continues with further good progress expected this year'.

'All Divisions will continue to make strenuous efforts to increase volumes,
reduce costs and bring operating efficiencies to the fore. This along with
anticipated capital expenditure being covered by depreciation is expected to
have a favourable effect on cashflow and further reduce the Group's borrowings'.

                                                         James Cropper, Chairman
Enquiries:
Alun Lewis, Chief Executive
John Denman, Group Finance Director                       Alan Cooke
James Cropper PLC                                         Citigate Dewe Rogerson
Today: 020 7282 8000 (9.00am - 1.00pm)                    Today: 020 7282 8000 (9.00am - 1.00pm)
Thereafter: 01539 722002                                  Thereafter: 0121 455 8370 / 07767 771533

                                      -2-



                               JAMES CROPPER PLC

                              Preliminary Results

                       for the year ended 30th March 2002



STATEMENT BY THE CHAIRMAN, MR JAMES CROPPER

The Past Financial Year

I am delighted to report that the Group has recovered strongly. Group operating
profit was £2,426,000 compared to an operating loss of £260,000 in the previous
year. After an amount written off investments of £293,000 relating to our
investment in Pacofa, profit before taxation was £1,526,000 against a loss
before taxation of £779,000 last year.

The return to profitability was principally due to the Papermaking Division
trading profitably throughout the year benefiting from significant reductions in
direct costs. The Converting Division has continued its traditionally
satisfactory performance with the sixth consecutive year of profit growth since
the major investment in a new facility in 1995. Technical Fibre Products was
adversely affected by the global industrial slowdown but since Christmas, sales
and profits have recovered strongly.

Dividends

In view of these improved results, the Board has decided to recommend that this
year's dividend should be increased by 11% overall with a final dividend of
5.2p, making the total dividend 7.0p for the year. The dividend is covered 1.3
times by earnings.

The financial position of the Group has strengthened markedly during the year
with all three businesses trading profitably and strong cash flow reducing
borrowings, with gearing closing at 27%.

Papermaking Division

Papermaking was affected by the economic slowdown in most markets worldwide. It
was a creditable performance that the Division's turnover was only down by 1%.

There was a significant reduction in the costs of raw materials. This was
principally due to woodpulp and energy costs falling after their very rapid
escalation over the past two years. The cost of northern softwood pulp fell
rapidly from $710 per tonne in February 2001 to $460 per tonne in August. Since
then prices have remained relatively unchanged although the Division is now
seeing some upward pressure in the pulp price.

The overall effect of the reduction in the cost of sales and efficiency
improvements has been an increase in the operating profit to £1,043,000 from a
loss last year of £1,725,000. Papermaking's capital investment requirements
during the year were relatively low and were focused primarily on safety
improvements.

The Division's broadly based recovery plan continues with considerable scope for
efficiency improvements both in raw material usage and working practices still
to flow through.

Converting Division

Converting reached a milestone in its history with operating profits above
£1,000,000 for the first time after six years of successive growth with
operating profits up to £1,069,000 from £961,000. There has been a small
increase in turnover, with efficiency improvements and product mix contributing
towards an increase in margins.

Technical Fibre Products

TFP's operating profit of £314,000 as against £504,000 last year conceals a
sharp recovery in the final quarter of the year. During the first six months the
global industrial slowdown affected sales with results just above break even.
The terrorist attack on the United States in September forestalled any recovery
in the third quarter. However after Christmas confidence rapidly returned
leading to a most welcome turnaround in the division's fortunes in the final
quarter of the year. Turnover increased substantially generating the majority of
TFP's profit in the last three months. Business in the United States is now
recovering strongly. Our joint development of fuel cell components with Johnson
Matthey continues to make steady progress.



continued...

                                      -3-



Pacofa

Since 1989 the Group has held a 35% holding in Pacofa, a converting company
located near Lille, France. In recent years its performance has been
disappointing. The Directors have decided to take the prudent step of writing
down the cost of the investment by £293,000 to reflect more closely its current
recoverable value.

Outlook

The focus and efforts of the Papermaking Division will be very much directed in
the current year towards growing turnover. Papermaking's management will explore
and develop new business both in traditional niche markets as well as the
potential in more volume-related products. Further benefits from plans to
improve efficiencies and reduce costs are expected to flow through in the coming
year but could be dampened by an upward movement in the cost of pulp.

Converting Division continues to perform well in its key market areas of display
board and picture mount board. Efficiency gains, particularly those from the
recent investment in a board-wrapping machine, are helping to enhance the
Division's margins.

TFP's increase in volume and profitability in the fourth quarter of last year
continues with further good progress expected this year.

All Divisions will continue to make strenuous efforts to increase volumes,
reduce costs and bring operating efficiencies to the fore. This along with
anticipated capital expenditure being covered by depreciation is expected to
have a favourable effect on cashflow and further reduce the Group's borrowings.


                                                                   James Cropper

                                                                        Chairman

                                      -4-



                               JAMES CROPPER PLC

                              Preliminary Results

                       for the year ended 30th March 2002



Group Profit and Loss Account

for the 52 weeks ended 30th March 2002


                                                      2002                                  2001
                                                        £'000      £'000          £'000        £'000      £'000

                                             £'000
Turnover - continuing operations                                  54,451                                 54,242
Change in stocks of finished                                                                                173

goods and work in progress                                         (551)
Own work capitalized                                                 370                                    378
Other operating income                                               389                                    397
                                                                  54,659                                 55,190
Raw materials and consumables                        (26,648)                               (30,217)
Other external charges                                (7,998)                                (7,656)
Staff costs - normal                      (13,989)   (13,989)                  (13,552)     (13,932)

        - exceptional                            -                                (380)

Depreciation                                          (3,598)                                (3,645)
                                                                (52,233)                               (55,450)
Operating profit/(loss) - continuing                               2,426                                  (260)
operations

Income from fixed asset investments                                   22                                     30
Interest receivable and similar income                                29                                     35
Amounts written off investments                                    (293)                                      -
Interest payable and similar charges                               (658)                                  (584)

Profit/(loss) on ordinary activities                                                                      
before
taxation                                                           1,526                                  (779)
Tax on profit/(loss) on ordinary                                   (760)                                    121
activities

Profit/(loss) on ordinary activities                                 766                                  (658)
after
taxation

Dividends paid and proposed:
Interim paid 1.8 p
(2001 1.8p)                                             (150)                     (150)
Proposed final 5.2 p
(2001 4.5p)                                             (435)                     (377)
                                                                   (585)                                  (527)
Amount set aside to/(from) reserves                                  181                                (1,185)
Earnings per Ordinary Share of 25p
Basic                                                               9.2p                                 (7.9p)
Diluted                                                             9.2p                                 (7.9p)

                                      -5-



                               JAMES CROPPER PLC

                              Preliminary Results

                       for the year ended 30th March 2002

Balance Sheets

As at 30th March 2002


                                                 Group                                 Company
                                         2002                  2001            2002                     2001
                                        £'000                 £'000           £'000                    £'000
Fixed assets
Tangible assets                        26,981                27,927          24,941                   25,892

Investments                               445                   738             445                      738
                                       27,426                28,665          25,386                   26,630

Current assets
Stocks                                  5,375                 6,223           4,704                    5,379
Debtors                                11,709                12,888          10,995                   12,392
Cash at bank and in hand                   75                     2           1,573                      308
                                       17,159                19,113          17,272                   18,079
Creditors (amounts falling due
within one
year)                                 (9,473)              (12,340)         (8,477)                 (10,049)
Net current assets                      7,686                 6,773           8,795                    8,030

Total assets less current              35,112                35,438          34,181                   34,660
liabilities
Creditors (amounts falling due
after more
than one year)                        (4,542)               (5,188)         (4,542)                  (5,188)
Deferred Taxation                     (4,088)               (3,949)         (3,847)                  (3,781)
                                       26,482                26,301          25,792                   25,691
Capital and reserves
Called up equity share capital          2,090                 2,090           2,090                    2,090
Share premium account                     454                   454             454                      454
Revaluation reserve                       226                   292             226                      292
Profit and loss account                23,712                23,465          23,022                   22,855
Equity shareholders' funds             26,482                26,301          25,792                   25,691

                                      -6-



                               JAMES CROPPER PLC

                              Preliminary Results

                       for the year ended 30th March 2002



Group Cash Flow Statement

For the 52 weeks ended 30th March 2002


                                                       2002                                 2001
                                               £'000              £'000              £'000             £'000

Cash flow from operating activities                               5,661                                3,333

Returns on investments and servicing of
finance
Interest received                                 29                                    35
Interest paid                                  (505)                                 (356)
Interest element of finance lease rental       (198)                                 (266)

payments
Dividends received                                22              (652)                 19             (568)

Taxation                                                           (40)                                (670)

Capital expenditure
Purchase of tangible fixed assets            (2,750)                               (4,400)
Asset disposal proceeds                           98            (2,652)                  3           (4,397)
Equity dividends paid                                             (527)                                (527)

                                                                  
Net cash inflow/(outflow) before financing                        1,790                              (2,829)

Financing

New debt due beyond a year                     1,500                                 4,000
Repayment of bank loans                      (1,203)                                 (661)
Capital element of finance lease payments      (625)              (328)              (880)             2,459
Increase/(decrease) in cash in the year                           1,462                                (370)

                                      -7-



                               JAMES CROPPER PLC

                              Preliminary Results

                       for the year ended 30th March 2002




        1.     Basic earnings per share have been calculated on the profit after
        taxation of £766,000 (2001: loss £658,000) divided by the weighted
        average number of Ordinary shares in issue during the period of
        8,359,114 (2001: 8,359,114).

        2.     The dividend will, if approved, be paid on 16th August 2002 to
        all shareholders on the Register on 26th July 2002.

        3.     The financial information set out above does not constitute the
        statutory accounts for the years ended 30th March 2002 and 2001.
        Statutory accounts for 2001 have been delivered to the Registrar of
        Companies and those for 2002 will be delivered following the Company's
        Annual General Meeting. The auditors have reported on these accounts,
        their reports were unqualified and did not contain statements under
        section 237 (2) or (3) of the Companies Act 1985.

        4.     The Annual Report and Accounts for 2002 will be posted to
        shareholders on 12th July 2002 and will also be available on request
        from the Company's registered office, Burneside Mills, Kendal, Cumbria
        LA9 6PZ.

        5.     The Annual General Meeting of the Company will be held at 10.30am
        on Tuesday, 6th August 2002 at the Bryce Institute, Burneside, Kendal,
        Cumbria.




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