Accrol's trading update ahead of half year results detail that volume growth continued during the period, margins returned to pre-pandemic levels, quicker than forecast; CEO credits performance to strong relationship with retailers, robust supply model

Sample article from our Tissue & Hygiene

December 13, 2023 (press release) –

Accrol (AIM: ACRL), the UK's leading independent tissue converter, announces the following trading update ahead of its Half Year Results for the six months ended 31 October 2023 ("H1 FY24" or the "Period"), which are scheduled to be released in late January 2024.

 

The Board is pleased to report that the Group performed strongly in H1 FY24:

 

·     Volume growth continued throughout the Period;

 

·     Margins returned to pre-pandemic levels, quicker than forecast, with the Board now expecting Adjusted EBITDA1 for FY24 of at least £21m;

 

·     Adjusted net debt2 at 31 October 2023 was £25.5m (H1 FY23 £30.5m), as a result of strong cash generation, driven by the operational efficiencies of the business. The Board now anticipates that adjusted net debt will be close to 1x EBITDA by the full year end.

 

The Group continues to demonstrate its strong market position, building on its strong customer base and market-leading products, and is well positioned to deliver further growth.

 

Gareth Jenkins, Chief Executive Officer of Accrol, said:

 

"We are clearly very pleased with this performance. We continue to deliver by having great quality and value products which meet every consumer's budget. Our strong relationship with the retailers and our robust supply model are ensuring we can continue to deliver a strong set of results in a changing market environment."

 

1

Adjusted EBITDA is defined as profit before finance costs, tax, depreciation, amortisation, separately disclosed items and share based payments

2

Adjusted net debt excludes operating type leases recognised on the balance sheet in accordance with IFRS 16

 

Market expectations as at 21 November 2023 for FY24 (Shore Capital & Zeus): revenue of £205m, adjusted EBITDA of £20.5m, adjusted profit before tax of £10.8m and net debt of £20.1m.

 

For further information, please contact:

 

 

 

Accrol Group Holdings plc

 

Dan Wright, Executive Chairman

Via Belvedere Communications

Gareth Jenkins, Chief Executive Officer

 

Chris Welsh, Chief Financial Officer

 

 

 

Zeus (Nominated Adviser & Broker) 

 

Dan Bate / Jordan Warburton

Tel: +44 (0) 161 831 1512

Dominic King

Tel: +44 (0) 203 829 5000

 

 

Shore Capital Stockbrokers (Joint Broker)

Tel: +44 (0) 20 7408 4090

Malachy McEntyre/ Mark Percy / James Thomas / Isobel Jones

 

 

 

 

Belvedere Communications Limited

 

Cat Valentine

Tel: +44 (0) 7715 769 078

Keeley Clarke

Tel: +44 (0) 7967 816 525

 

accrolpr@belvederepr.com

 

Overview of Accrol

 

Accrol Group Holdings plc is a leading tissue converter and supplier of toilet tissues, kitchen rolls, facial tissues, and wet wipes to many of the UK's leading discounters and grocery retailers across the UK. The Group now operates from five manufacturing sites suppling the UK tissue wet wipes market valued at c£2.7bn at retail sales value.

 

For more information, please visit www.accrol.co.uk.

 

Link for Accrol Today video: https://www.accrol.co.uk/our-business/

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

 

END

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

More from our Tissue & Hygiene Coverage
See our dashboard in action - schedule an demo
Jason Irving
Jason Irving
- SVP Enterprise Solutions -

We offer built-to-order tissue & hygiene coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.