CRPR

Cropper (James) PLC

Basic Resources First-pass screen £31m

360/1000 Overall fit

AI beneficiary 35% 30

Operating leverage 25% 50

Valuation 25% 30

Downside protection 15% 38

First-pass take

No direct AI exposure; energy-transition tailwinds (hydrogen, batteries) are indirect. Advanced Materials shows strong operating leverage (3% revenue growth → 17% profit growth) but is only 36% of revenue; Paper & Packaging (64% revenue) is loss-making with four consecutive annual losses. Just lost a significant merchant customer post-year-end. Net debt £12.9m (1.9x EBITDA, improving) with restructured loan terms suggests lender caution. Going concern tight rather than robust.

Flags

loss-makingturnaround-storycustomer-concentrationcyclical-aerospace-defenceenergy-transition-not-aino-valuation-datacovenant-sensitiveleverageasset-impairmentsnew-ceo-feb-2025