Blackburn-based toilet roll and tissue maker Accrol Group said its revenue rose about 17% to £159.5 million in the year ended April 30, 2022, while adjusted profit before tax fell to £1.1 million from £9.1 million.
Accrol said it took the “difficult but prudent decision not to propose a final dividend” for FY22.
“The current market environment favours a more risk averse approach, especially around securing our supply chain and access to raw material, and this remains our short-term priority,” said the firm.
“Clearly, any easing of these pressures will make a return to dividends much more likely.”
The firm said new customers have been secured through increasing product diversity — notably Amazon, Unitas, Spar, Ocado and Sainsbury’s.
Accrol said that group revenue was up 76% in the first quarter of its new financial year compared to Q1 of FY22, driven by price increases (48%) and volume growth (28%).
Accrol CEO Gareth Jenkins said: “Accrol is unrecognisable from the business which floated in 2016. It is resilient, agile, and strong.
“The cost of living crisis, being faced by UK consumers, is driving demand for great value products across the board.
“The demand for private label tissue, which started to rebound in FY22, has accelerated rapidly since our financial year end.
“Private label comprised 50% of total UK sales volumes in FY22, and this has continued to grow since the start of May 2022 with private label now holding a 54% market share.
“Accrol volumes currently comprise over 32% of this private label market.
“The index linked pricing agreements we have put in place over the last 12 months, combined with the quality of our products, the efficiency of our operations and the capacity we have built into the business, have ensured Accrol is best placed in its market to capitalise on the opportunities.
“While remaining conscious of the very significant ongoing macro uncertainties, we look forward to FY23 and beyond with continued confidence.”