FCA launches investigation into Accrol statements

Just a day before the release of its half-year results, Accrol Group Holdings announced that it was being investigated by the Financial Conduct Authority.

The AIM-listed toilet paper maker said on Monday that it was being investigated over certain statements it made to the market between 1 April 2017 and 20 November 2017.

"Accrol is cooperating fully with the FCA," it said.

In a trading update earlier this month, the company warned that it would take a hit from the weakening of the pound against the US dollar and increasing tissue prices. It said on 8 January that these reduced the group's profitability in the first half of FY19 by around £5m and that should the current USD exchange rate and higher tissue prices prevail, there would be a further impact on input costs of around £3.5m for the second half.

On the 5th October 2017 - within the time period for which it is being investigated - Accrol issued a profit warning and suspended trading in its shares.

It said at the time that earnings would be "significantly" below existing market forecasts for the year amid "more challenging" trading conditions.

At 1522 GMT the shares were down 2.1% to 11.7p.