Accrol Group Holdings PLC Trading Update (4750Z)
May 16 2023 - 2:00AM
UK Regulatory
TIDMACRL
RNS Number : 4750Z
Accrol Group Holdings PLC
16 May 2023
16 May 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
Accrol Group Holdings plc
("Accrol, the "Group" or the "Company")
TRADING UPDATE
FY23 results at least in line with market expectations &
FY24 margins improving
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 2023 ("FY23" or the
"Period"), which are scheduled to be released in late September
2023.
The Board is pleased to report that the Group's results for FY23
are expected to be at least in line with current market
expectations.
Since the Interim Results on 24 January 2023, the Group has
continued to perform strongly, gaining further market share through
its great value product range, broad retailer base, and new routes
to market. The Group has successfully navigated and mitigated the
well-reported and substantial inflationary pressures on a broad
range of input costs through further process efficiencies and by
engaging constructively with its customers to pass-on these
additional costs.
FY23 highlights
-- Adjusted EBITDA* expected to be at least in line with market
expectations
-- Revenues ahead of market expectations at GBP241.8m (FY22:
GBP159.5m) - up 52%
-- Adjusted net debt at 30 April 2023 lower than last year at
GBP26.8m (FY22: GBP27.5m) - c.1.7x EBITDA (FY22: 3.0x) and
is expected to reduce to less than 1.0x in FY24 through strong
cash generation
-- Group volumes increased by 7.7%, compared to an overall flat
tissue market with market share increasing to 21.5% (19.5%
FY22)
-- Strong ESG progress with significant and tangible advances
in all targeted areas
-- Gross margins continued to improve throughout the year with
increased volumes in higher value products - the strong growth
in the water industry approved flushable wet wipe business
is especially pleasing
(*) Adjusted EBITDA is defined as profit before finance costs,
tax, depreciation, amortisation, separately disclosed items and
share based payments.
Outlook
-- The Group is well positioned as it enters FY24 with margins
expected to improve back towards pre-pandemic levels at
a faster rate than previously reported as the Group benefits
from the significant investments made over the last few
years and the improving revenue mix
-- Prices are expected to soften in the year ahead, while volumes
are expected to grow ahead of the overall private label
sector
-- With all major capital investments now completed, the Group
expects adjusted net debt to reduce to less than 1.0x in
FY24
-- The business has a further 20% of production capacity to
support continued volume growth going forward
Paper Mill
The Group's preparation for its investment in a paper mill is
progressing and we remain on track for the mill to be operational
and positively impacting the business in the second half of 2025.
Further updates will be provided in due course. As previously
announced, the funding of this investment will come from existing
cash reserves.
Gareth Jenkins, Chief Executive Officer of Accrol, said:
"Accrol is significantly well invested and fully automated. With
our enviable customer base, broadening revenue streams, spare
capacity and excellent levels of customer service, the Group is
very well placed to take further advantage of the changing dynamics
in consumer spending, which is particularly evident in the tissue
market.
"We are pleased with the outcome for FY23 and look forward to
the year ahead and beyond with increasing confidence."
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 Tel: +44 (0) 20 7408 4090
Broker)
Malachy McEntyre / Mark Percy / James
Thomas
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 six manufacturing sites,
including four in Lancashire, which together supply c.21.5%
(volume) of the UK tissue market valued at cGBP2.5bn 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/
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END
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