REG - Accrol Group Hldgs - Half Year Trading Update

Accrol groupAnnouncement

22/11/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231122:nRSV2041Ua&default-theme=true

RNS Number : 2041U  Accrol Group Holdings PLC  22 November 2023

 

22 November 2023

Accrol Group Holdings plc

("Accrol, the "Group" or the "Company")

 

HALF YEAR TRADING UPDATE

Strong performance with margins and volume continuing to grow

 

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 EBITDA(1) for FY24 of at least £21m;

 

·     Adjusted net debt(2) 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
                                                             (https://url.avanan.click/v2/___mailto:accrolpr@belvederepr.com___.YXAxZTpzaG9yZWNhcDphOm86M2MwYTQzNTFkNjBlNWI1NDY2ZDFlOGIzNGQ3MTQ2NTk6NjplZDQ5Ojk3ZmU0NGJlODE2ZDNiMDY2MTFjZmNmNjcyYWE3MDMwY2YzZWU3MGQxNjlkOGFkMzY3ZmE4NzA1ZGEyNWY4MmU6cDpU)

 

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
(https://url.avanan.click/v2/___http:/www.accrol.co.uk/___.YXAxZTpzaG9yZWNhcDphOm86M2MwYTQzNTFkNjBlNWI1NDY2ZDFlOGIzNGQ3MTQ2NTk6Njo0YzVkOmEwY2Q0OTZhMWE2YTM0NjE1YjlkMjAyNGQ1ZmI2M2FhNjlmZTFkZjE5Mzk5OTdiNjA3Zjk3MzBkMTBmOTU4ZWM6cDpU)
.

 

Link for Accrol Today video: https://www.accrol.co.uk/our-business/
(https://url.avanan.click/v2/___https:/www.accrol.co.uk/our-business/___.YXAxZTpzaG9yZWNhcDphOm86M2MwYTQzNTFkNjBlNWI1NDY2ZDFlOGIzNGQ3MTQ2NTk6NjoxZGMxOmJjYmM3OTRhZjZiZGRhOTUxZmJiZDU4YmUwYmMzYzgxOTBlZDlkMTVkMzkxMDIzMWI0NDNiMTEwZGExMTg1ZDg6cDpU)

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTNKDBKKBDBADB