Accrol shares up 10% as it raises prices

Shares of Blackburn-based toilet roll and tissue maker Accrol Group rose about 10% on Tuesday after it published a trading update saying it has “successfully navigated the substantial inflationary pressures on input costs, including pulp, energy, and supply chain … through significant price increases and further process efficiencies.”

In a trading update, Accrol said its revenue, adjusted EBITDA, and adjusted profit before tax for FY22 are expected to be in line with market expectations.

Accrol said total revenues in FY22 increased by 17% to £159.4 million.

It said it believes market consensus for the year ended April 2022 to be revenue of £160 million, adjusted EBITDA of £9 million and adjusted profit before tax of £1 million, and the for the year ended April 2023, revenue of £185 million, adjusted EBITDA of £15 million and adjusted PBT of £7 million.

Accrol said it now expects its revenue for the year ending April 30, 2023to be in the range of £200 million to £220 million “as a result of the successful recovery of all input cost increases.”

Accrol CEO Gareth Jenkins said: “This has been the most challenging period in the industry that I have experienced, with tissue pricing reaching unprecedented levels, driven by energy prices and supply constraints.

“We have successfully recovered these increased input costs to date and are confident we can continue to recover any further rises through innovation, efficiency and our supportive retailer customer base.

“We have a well invested business and exit the year in a strong position both operationally and commercially.”