TIDMACRL
RNS Number : 0409Q
Accrol Group Holdings PLC
07 September 2017
The information contained within this announcement is deemed by
the Company 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.
Accrol Group Holdings plc
Appointment of Chief Executive Officer and Trading Update
Accrol Group Holdings plc (the "Company" or "Accrol"), the
AIM-listed leading independent tissue converter, announces that
Gareth Jenkins has been appointed as Chief Executive Officer with
effect from 11 September 2017.
Gareth joins the Company having spent 24 years at DS Smith plc,
one of Europe's leading packaging companies manufacturing
corrugated solutions for the retail, FMCG and industrial markets.
He spent the last four years as Managing Director of the UK &
Ireland packaging division and has extensive strategy, commercial,
M&A and operational experience, gained in both the UK and in
Europe.
Gareth will replace Steve Crossley, who is leaving the Company
and stepping down from the Board with immediate effect to pursue
other interests.
The Board confirms that the Company continues to trade in line
with market expectations in terms of revenue, with profitability
being broadly in line with market expectations.
Peter Cheung, Chairman of Accrol, commented: "We are very
pleased to be joined by someone of Gareth's calibre, and we look
forward to benefiting from his wealth of experience built during a
24 year career at DS Smith plc. I would like to thank Steve for the
contribution that he has made to Accrol, in particular his
contribution to a successful IPO, and we wish him well for the
future."
Information on Gareth required to be disclosed under Schedule
Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies:
Gareth Paul Jenkins, aged 49, is not currently a director of any
other company.
In addition, Gareth has held the following directorships in the
past five years:
-- DS Smith Business Services Limited
-- DS Smith Corrugated Packaging Limited
-- DS Smith Display Holding Limited
-- DS Smith Packaging Limited
-- CREO Retail Marketing Holdings Limited
-- CREO Retail Marketing Ltd
-- CREO Property Limited
-- TRM Packaging Limited
-- TRM Trustees Limited
-- The Stone Trough Company Ltd (dissolved via voluntary strike-off on 18 March 2014)
Gareth has no interests in the share capital of Accrol Group
Holdings plc.
There is no further information on Gareth required to be
disclosed under Schedule Two, paragraph (g) (i)-(viii) of the AIM
Rules for Companies.
For further information
please contact:
Zeus Capital Limited (Nominated
Adviser & Joint Broker)
Dan Bate / Andrew Jones Tel: +44 (0) 161
831 1512
Dominic King / John Goold Tel: +44 (0) 20 3829
5000
Liberum Capital Limited
(Joint Broker)
Clayton Bush / Chris Clarke/ Tel: +44 (0) 20 3100
Lucy Sharma / Dominik Götzenberger 2222
Camarco (Media enquiries)
Jennifer Renwick / Kimberley Tel: +44 (0) 203
Taylor 757 4994
Notes to Editors
Accrol manufactures toilet rolls, kitchen rolls and facial
tissues as well as other tissue products. The Company operates out
of c. 900,000 sq. ft. of manufacturing, storage and distribution
facilities across Lancashire. Accrol currently manufactures
approximately 18 million units per week and supplies some of the
UK's largest retailers, providing both Accrol branded and Private
Label products (being goods produced under a customer's own brand
or under a non-branded or less well-known brand name ("private
label")).
The Group's competitive advantage lies in its market
positioning, operational process and flexibility. Key components of
the business model are:
Production process - The Directors believe the Group obtains a
competitive advantage through its model of acquiring and converting
the large tissue reels that are Accrol's raw materials ("Parent
Reels") as opposed to manufacturing Parent Reels from pulp and
recycled fibre and subsequently converting. This requires a lower
fixed overhead and provides flexibility in Parent Reel sourcing
which allows the Group to take advantage of favourable pricing
opportunities and production technology advancements, especially in
a market of excess supply.
Technology and converting lines - Accrol has invested c.GBP18.2
million over the last three years with c. GBP4.0 million committed
to a new machine for delivery in March 2018. The Group currently
has 17 converting lines in operation providing capacity of
approximately 143,000 tonnes per annum. The Group's operating
machinery allows conversion of a wide variety of tissue grades,
adding flexibility to the Parent Reel sourcing process and allowing
manufacture of a wide range of product types.
Manufacturing private label products - The majority of Accrol's
products (84 per cent. of revenues in the year ended 30 April 2017)
are private label and whilst the Group also develops and supplies
branded products, the ability to supply customers with goods under
its own brand has allowed penetration into retailers operating in
the discount market ("Discounters") and the UK's largest retailers
("Multiples"). Accrol can launch a new private label product within
six weeks of instruction from a retailer.
Production flexibility - Accrol is able to manufacture toilet
rolls, kitchen rolls, facial tissue and certain products used
outside a consumer's home ("Away from Home" or "AFH"), providing a
"one-stop shop" solution for customers in the tissue market. The
ability to produce these goods and supply Multiples, Discounters,
local retailers and wholesalers ("Independents") and the AFH market
is a competitive advantage and the Directors do not believe any
competitors can offer the same flexibility across all of these
market channels.
Macro-economic impact on raw material prices - There is
currently a global over-supply of both pulp and Parent Reels, with
additional capacity forecast to be brought on stream through to
2019. As such, Parent Reel prices are currently relatively low and
are expected to remain so for the foreseeable future. Low Parent
Reel prices allow Accrol to manufacture at a lower cost, enhancing
margin and providing pricing flexibility to win new orders.
Overcapacity drives increased flexibility of supply and provides
Accrol with a choice of pricing and technology when sourcing Parent
Reels.
Market positioning - Having won a number of contracts with
Discounters in recent years and benefitting from the organic growth
within this market, the Directors believe Accrol is well positioned
to take advantage of the growth in the discount market and
Multiples' increased focus on private label products.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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