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Accrol Group Hldgs (ACRL)

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Monday 10 June, 2019

Accrol Group Hldgs

Trading Update and Notice of Results

RNS Number : 5999B
Accrol Group Holdings PLC
10 June 2019
 

 

 

The information contained within this announcement is deemed by the Group to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014.  Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

 

10 June 2019

Accrol Group Holdings plc

("Accrol" or the "Group")

 

TRADING UPDATE AND NOTICE OF RESULTS

 

The Board of Accrol is pleased to announce the following trading update ahead of its results for the full year ended 30 April 2019 ("FY19"), which will be announced on 3 September 2019.

 

Following the conclusion of the restructuring, the Group performed well in Q4 and in line with the management's strategic turnaround objectives, achieving and maintaining acceptable levels of monthly profitability on an Adjusted EBITDA level.

 

Total revenues in FY19 were c.£119 million, broadly unchanged on a like for like basis against the prior year, as the Group exited a number of low margin contracts. Sales in the Group's core toilet roll product, however, increased by c.12% year on year to c.£85 million from £76 million in FY18. Adjusted EBITDA was c.£1 million, representing a c.£7 million improvement on the prior year despite the substantial impact of FX and material cost headwinds which increased by an estimated c.£10 million. Adjusted loss before tax is expected to be in the range of £2.5 million to £3.0 million. Exceptional costs, primarily associated with the turnaround process, are expected to be in the range of £7.5 million to £8.0 million. Net debt was reduced faster than anticipated, finishing the year at c.£27.1 million, c.£2.5 million lower than the previously anticipated level of c.£29.6 million, ensuring that the Group comfortably fulfilled on its banking commitments.

 

Dan Wright, Chairman of Accrol, said:

 

"I am very pleased to report that we finished FY19 in a much stronger position, following the conclusion of a transformational restructuring, and that the new financial year has started well. The Group is now enjoying the full benefits of the structural cost savings achieved in FY19, achieving an acceptable level of margin for a business of its type. Our management team is confident of delivering further profitable revenue growth and creating new exciting opportunities for the Group. I look forward to reporting further details of our progress when we announce the Final Results in September."

 

 

For further information, please contact:

 

 

 

Accrol Group Holdings plc

 

Dan Wright, Executive Chairman

Tel: +44 (0) 1254 278 844

Gareth Jenkins, Chief Executive Officer

 

 

 

Zeus Capital Limited (Nominated Adviser & Broker) 

 

Dan Bate / Andrew Jones            

Tel: +44 (0) 161 831 1512

Dominic King / John Goold

Tel: +44 (0) 203 829 5000



Belvedere Communications Limited

 

Cat Valentine ([email protected])

Tel: +44 (0) 7715 769 078

Keeley Clarke ([email protected])

Tel: +44 (0) 7967 816 525

Llew Angus ([email protected])

Tel:  +44 (0)7407 023 147

 

Notes to Editors

 

Accrol Group Holdings plc, based in Lancashire, is a leading tissue converter and supplier of toilet rolls, kitchen rolls and facial tissues, as well as other tissue products, to major discounters and grocery retailers throughout the UK.  Accrol operates from three sites:

 

·

A manufacturing, storage and distribution facility in Blackburn;

·

A facial tissue plant, also in Blackburn; and

·

A manufacturing, storage and distribution facility in Leyland.

 


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 [email protected] or visit www.rns.com.
 
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