Interim Results

Cropper(James) PLC
21 November 2000



                         James Cropper PLC

                      'Specialist Paper Makers' 
                           Interim Results 
               for the 26 weeks ended 30th September 2000 
 

                       Half Year to        Half Year       Full Year to
                      September 2000     September 1999     March 2000 
 
* Profit before tax        £0.5m             £1.4m             £3.1m 
* Earnings per share        3.6p             11.0p             24.8p 
* Dividend Interim          1.8p              1.8p              6.3p 
* Gearing                    19%               20%               20% 
 
* Good performance in TFP and Converting Divisions 
 
* Considerable early progress in joint fuel cell development programme
  between TFP and Johnson Matthey 
 
* TFP's fire retardant product Tecnofire 2000 has passed stringent fire tests
  in USA resulting in encouraging early orders 
 
* Impact of currency and increasing pulp and fuel costs have moved
  Papermaking Division into a small loss in first six months 
 
* Measures continue to be taken to reduce costs and improve customer service
  to counter competitive pressures on Papermaking Division 
 
* Alun Lewis appointed as Chief Executive as the roles of Chairman and Chief
  Executive are separated. James Cropper will continue to serve as Chairman. 
  
'There is little respite in prospect in the short term for the Papermaking
Division although it is probable that pulp prices are close to their peak as
hopefully are fuel prices. We are making every effort to restore margins......
but we doubt whether these will be sufficient to avoid further Papermaking
losses in the next few months.' 
 
'We expect Technical Fibre Products to make significant progress in the
second half year with new business in composites and fire protection products
coming through in this period.' 
 
'Overall the Group is financially strong, with low borrowings and two of its
three businesses performing well.' 

J A Cropper, Chairman


FULL STATEMENT ATTACHED

Enquiries: 
John Denman, Finance Director               Alan Cooke
James Cropper PLC                           Citigate Dewe Rogerson
Today: 020 7282 8000 (8.00am - 11.00am)     Today: 020 7282 8000
Thereafter: 01539 722002                    Thereafter: 0121 631 2299
                                            Mobile: [phone]



                              -2-
 
James Cropper PLC 
Interim Results 
for the 26 weeks ended 30th September 2000 
 
 

STATEMENT BY THE CHAIRMAN, J A CROPPER

Despite the continuing good progress of the Converting Division and Technical
Fibre Products, the Group has had a difficult opening half-year with the core
Papermaking Division turning in a small loss for the half-year.
 
Group turnover is unchanged from 1999 at £26.2m but profits before tax have
fallen to £459,000 (1999 £1,413,000) and earnings per share to 3.6p (1999
11.0p).
 
The interim dividend is being maintained at 1.8p.
 
Papermaking Division 
We have been forecasting difficult conditions for the Papermaking Division
since this time last year. Until June this year we managed to mitigate the
effect of the weakness of the Euro and the rapidly rising price of pulp with
more efficient running of the paper machines and a slight increase in demand.
However in recent months the demand for speciality paper has been weak and we
have not yet been able to increase our paper prices sufficiently to restore
our margins. In addition, wood pulp prices have continued their relentless
rise, the price of our main fuel, gas, has risen by over 50%, and the US
dollar has strengthened by over 15% against sterling, increasing wood pulp
prices even further. The current trading conditions are the most difficult
that we have experienced for a very long time.
 
Converting Division 
The upward trend in operating profit continues with productivity improvements
and some volume increases alleviating the increasing cost of raw materials.
 
Technical Fibre Products 
The product development programme has now started to come to fruition with
both turnover and operating profit accelerating. The agreement signed in May
with Johnson Matthey for the development and supply of materials to be
incorporated into fuel cell products underlines the longer term potential of
the business. The volatility of the oil price and the political situation in
the Middle East adds to the importance of developing this alternative and
environmentally clean source of energy.
 
Tecnofire 2000, our branded passive fire protection product, has recently
passed a stringent series of fire door tests in the USA which gives us
confidence that this will lead to substantial sales for this product in the
future. Early orders are encouraging.
 


                                   -3-
 
Outlook 
There is little respite in prospect in the short term for the Papermaking
Division although it is probable that pulp prices are close to their peak as
hopefully are fuel prices. We are making every effort to restore margins
through paper price increases but in the present low inflationary climate it
is not easy to secure such increases. We are continuing our efforts to
improve efficiency and reduce costs but we doubt whether these will be
sufficient to avoid further Papermaking losses in the next few months.
 
Converting Division continues to be busy and progress made to date should
continue in the second half year.
 
We expect Technical Fibre Products to make significant progress in the second
half year with new business in composites and fire protection products coming
through in this period.
 
Overall the Group is financially strong, with low borrowings and two of its
three businesses performing well.


                                       -4-

                               James Cropper PLC 
                                Interim Results 
       Group Profit and Loss Account for the 26 weeks ended 30 September 2000 
 
 
                               Half-year to     Half-year to     Full year to 
                              September 2000   September 1999     March 2000 
                                   £'000           £'000             £'000 
 
Turnover                          26,290          26,211            53,365 
 
Operating Profit                     674           1,711             3,640 
 
Other non-operating income            19              13                26 
 
Net interest payable and            (234)           (311)             (606) 
similar charges 

Profit on ordinary activities        459           1,413             3,060 
before taxation 

Taxation                            (161)           (495)             (988) 
 
Profit on ordinary activities        298             918             2,072 
after taxation 

Dividend                            (150)           (150)             (527) 
 
Retained Profit for the period       148             768             1,545 
 
Earnings per share - basic           3.6p           11.0p             24.8p 
and diluted (Note 3)

Dividend pence per share (Note 4)    1.8p            1.8p              6.3p 



                                     -5-

                              James Cropper PLC 
                               Interim Results 
                    Group Balance Sheet as at 30 September 2000 
 
                               September 2000     September 1999     March 2000 
                                    £'000            £'000            £'000 
 
Tangible assets                    27,085           27,560           27,174

Investments                           738              738              738 

Fixed assets                       27,823           28,298           27,912 

Stocks                              6,100            5,622            5,898

Debtors                            11,367           11,038           12,187

Cash at bank and in hand              212              181               32 

Current assets                     17,679           16,841           18,117

Creditors (Amounts falling due    (11,171)         (10,309)         (11,563)
within 1 year)   

Net current assets                  6,508            6,532            6,554 
 
Total assets less current          34,331           34,830           34,466
liabilities

Creditors (Amounts falling         (2,882)          (4,365)          (3,188)
due after more than 1 year)  

Deferred taxation                    (966)            (911)            (943) 

                                   30,483           29,554           30,335 

Called up share capital             2,090            2,090            2,090

Share premium account                 454              454              454

Revaluation reserve                   329              471              329

Profit and loss account            27,610           26,539           27,462 

Capital and reserves               30,483           29,554           30,335 




                                     -6-

                              James Cropper PLC 
                               Interim Results 
       Group Cash Flow Statement for the 26 weeks ended 30th September 2000 
 
 
                                Half-year to     Half-year to     Full year to 
                               September 2000   September 1999     March 2000 
                                   £'000             £'000            £'000 
 
Operating Profit                     674             1,711            3,640 
Depreciation charges               1,740             1,641            3,204 
Increase in stocks                  (202)             (347)            (623) 
Decrease/(Increase) in debtors       820               541             (623) 
Decrease in creditors               (125)             (436)            (414) 
 
Cash flow from operating           2,907             3,110            5,184 
 activities
Interest received                      7                27               37 
Interest paid (including            (111)             (205)            (662) 
 interest element of finance 
 leases)   
Dividends received                    19                13               13 
Tax paid                            (266)              (42)            (924) 
Purchase of tangible fixed assets (1,652)             (943)          (2,146) 
Proceeds of disposal of tangible 
  fixed assets                         -               118              147 
Equity dividends paid               (377)             (343)            (493) 
                                    _______________________________________
 
Net cash inflow before financing     527             1,735            1,156 
 
Financing
 Repayment of bank loans            (295)           (2,119)          (2,399) 
Capital element of finance lease 
  payments                             -                 -             (790) 
                                    _______________________________________
  
Increase/(Decrease) in cash in 
  period                             232              (384)          (2,033) 
                                    _______________________________________
  

Reconciliation of net cash flow to movement in net debt 
 
                                   £'000             £'000           £'000 
 
Increase/(Decrease) in cash for 
  the period                         232              (384)         (2,033) 
Decrease in debt and finance leases  295             2,119           3,189 
                                     _____________________________________
Movement in net debt in the period   527             1,735           1,156 
Net debt at start of period       (6,125)           (7,281)         (7,281) 
                                  ________________________________________
Net debt at end of period         (5,598)           (5,546)         (6,125) 
                                  _________________________________________



                                        -7-
 
 
                                   James Cropper PLC 
                                    Interim Results 
                                         Notes 
 
 
1     The summarised results for the half-year ended 30th September 2000,
which have not been audited or reviewed, have been prepared in accordance
with the accounting policies adopted in the accounts for the year ended 1st
April 2000.

 
2     The financial information set out above does not constitute statutory
accounts within the meaning of the Companies Act 1985. The figures for the
year to 1st April 2000 are an extract from the full accounts for that year
which have been filed with the Registrar of Companies and on which the
auditors gave an unqualified opinion.
 
3     Earnings per share for the six months ended 30th September 2000 has
been calculated on the profit available for distribution and on 8,359,114
(1999 8,359,114) Ordinary Shares, being the weighted average number of shares
in issue during the period.
 
4     The interim dividend of 1.8p per Ordinary Share will be paid on 12th
January 2001 to holders on the register at the close of business on 22nd
December 2000.
 
5     The above information is being sent to all shareholders and is
available from the Company's registered office.