Accrol performs 'well' following restructuring

Tissue maker Accrol Group told investors on Monday that it had "performed well" and in line with its turnaround objectives following the conclusion of its restructuring programme.

Accrol achieved and maintained "acceptable levels" of monthly profitability on an underlying basis, with total revenues for the year coming in broadly unchanged on a like-for-like basis at £119m after exiting several low margin contracts.

Sales of the group's core toilet roll product increased by 12% year-on-year to £85m in the year ended 30 April and adjusted EBITDA came to roughly £1m - a £7m improvement on the prior year despite FX and material cost headwinds increasing by an estimated £10m.

Accrol now expects to record an adjusted pre-tax loss of £2.5m to £3m, while exceptional costs, primarily associated with the turnaround process, were estimated to be £7.5m to £8m.

On the other hand, Accrol did cut its net debt faster than anticipated, finishing the year at around £27.1m - £2.5m lower than the previously anticipated level of £29.6m.

Chairman Dan Wright 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."

As of 1005 BST, Accrol shares had ticked up 0.96% to 26.25p.