Shares of Blackburn-based toilet roll and tissue maker Accrol Group fell about 13% on Tuesday after it published a trading update ahead of its final results for the year ended April 30, 2021, which are scheduled to be released in July 2021.
“Adjusted earnings are expected to be in line with expectations, despite a lower than anticipated increase in sales in the year, resulting from consumer COVID-19 panic-buying of branded products in the early stages of the pandemic,” said Accrol.
“Sales across the whole industry have been depressed in recent months, while consumer stockpiling unwound.
“Accrol’s market share continued to rise in FY21 and is now 16%, compared to 13% in FY20.
“Given the ongoing focus on operational improvement and the group’s strong market positioning, the board is increasingly confident in the prospects for the business, and this is demonstrated by the further investment in manufacturing capacity (detailed below).”
Accrol said its revenues for the year increased 1.5% to £136.8 million.
Accrol CEO Gareth Jenkins said: “I am pleased to report a continued improvement across the enlarged group, and I am particularly proud of our employees, who have responded magnificently, keeping all our operations open and maintaining the highest standards in service and product quality for our customers.
“The integration of LTC, which is now complete, has delivered some fantastic results that will benefit the wider group in the long term.
“In this pandemic year, we have fully automated our largest factory, installed a business-wide operating system, and grown our margins further.
“We now have a business capable of benefitting further, as the UK exits lockdown, and we remain excited about the future for the group.”