Accrol Group Holdings PLC Trading Update (0320M)
May 06 2020 - 2:00AM
UK Regulatory
TIDMACRL
RNS Number : 0320M
Accrol Group Holdings PLC
06 May 2020
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.
6 May 2020
Accrol Group Holdings plc
("Accrol", the "Group" or the "Company")
TRADING UPDATE
For the full year ended 30 April 2020
Accrol (AIM: ACRL), the UK's leading independent tissue
converter, announces the following trading update ahead of its
Final Results for the year ended 30 April 2020 ("FY20" or the
"Period").
The Group continued to perform well in the final quarter,
achieving accelerating monthly exit run-rates in line with the
Board's expectations. Accordingly, the results for FY20 are
expected to be in line with market expectations.
FY20 financials
Total revenues in FY20 were c.GBP133.8 million with core
revenues increasing during the Period by 13.7% to GBP132.7 million
(FY19: GBP116.7 million), compared with overall market growth of
circa 8%. Net debt(1) continued to reduce ahead of market
expectations, ending the Period at GBP17.9 million, compared with
GBP24.8 million at 31 October 2019 and GBP27.1 million at 30 April
2019.
COVID-19 update
The Group initiated a rapid and early response to the global
spread of COVID-19, implementing a management strategy throughout
the business to protect the health and wellbeing of its people:
-- All at risk employees were self-isolated at home from 20
February 2020;
-- Social distancing was implemented for factory-based employees;
-- Increased cleansing facilities and protocols were established
across all sites; and
-- All office-based staff were moved to working from home at
lockdown.
The Board is pleased to report that this strategy is working
well and that strong levels of productivity have been maintained
throughout the lockdown restrictions. There has been no requirement
to furlough employees.
Outlook
With margins significantly recovered and core revenues at record
levels in FY20, the Group has entered the new financial year in a
stronger position than ever before and is well positioned to
continue delivering sustainable profitable growth.
Further improvements to quality and service have been made in
recent months. The Board is confident that this will help Accrol
secure higher-value business over the longer term. In addition, the
Group's rapid response to the unprecedented consumer demand
experienced in March, as lockdown measures tightened, has
reinforced its strengthening relationships across its UK retail
customer base. Whilst some increases in input costs are expected in
the near term, as a result of the COVID-19 pandemic, the Board is
confident that the Group's new business model is robust and
structured to enable the swift management of fluctuating
prices.
Overall, the Company is in a much-improved financial position
with considerable headroom on its banking covenants. The reduction
in net debt is expected to continue and remain comfortably below 2x
net debt to EBITDA in the full year ending 30 April 2021
("FY21").
The Board views the future with increasing confidence but
remains mindful of the uncertainty and challenges which the
COVID-19 pandemic continues to place on organisations globally.
What is clear however, is that demand for the Group's new range of
higher-value products, combined with further improved quality and
consistently high level of service, put the Company in a strong
position as it enters FY21.
The announcement of the Group's FY20 results is scheduled for
early September 2020, assuming no delay to the audit process
resulting from the COVID-19 situation.
(1) Pre-IFRS 16
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 / Jordan Warburton Tel: +44 (0) 161 831 1512
Dominic King / John Goold Tel: +44 (0) 203 829 5000
Liberum Capital Limited (Joint Broker)
Clayton Bush Tel: +44 (0) 20 3100 2222
Edward Thomas
Belvedere Communications Limited
Cat Valentine Tel: +44 (0) 7715 769 078
Keeley Clarke Tel: +44 (0) 7967 816 525
Llew Angus Tel: +44 (0)7407 023 147
accrolpr@belvederepr.com
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. The business
operates from four sites in Lancashire:
-- A manufacturing, storage and distribution facility in Blackburn;
-- A storage and administrative centre in Blackburn;
-- A facial tissue plant, also in Blackburn; and
-- A manufacturing, storage and distribution facility in Leyland.
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END
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