Accrol first-half revenue up 64% to £121m

Shares of Blackburn-based toilet roll and tissue maker Accrol Group rose about 10% on Monday after it published a strong trading update ahead of its half year results for the six months ended October 31, 2022.

Accrol said first-half revenue rose 64% to £121.1 million, with volumes increasing 14% in the period.

“The board is pleased to report that the group performed strongly in H1 FY23, delivering substantial growth in volume, revenue and profit, as well as further strengthening its market position,” said the Blackburn company.

“The group continues to demonstrate its resilience against the challenges of input cost inflation, successfully leveraging its supply position with customers to recover all additional costs in the period.”

In its outlook, Accrol said: “The group’s main market, the discount retailers and private label products continue to grow strongly, driven by the cost-of-living crisis.

“The group has delivered substantial growth in the period and the board is increasingly confident that the growth trajectory of the business is sustainable.

“The volume growth in H1 FY23 is expected to continue as consumers move away from high-cost, low-value branded products in search of best-value.

“Whilst mindful of the wider economic uncertainties, the group’s model is robust, and the board considers the group to be on track to deliver results for the full year ended 30 April 2023 at least in line with market expectations …”

Accrol believes market consensus for FY23 to be revenue of £213.5 million, adjusted EBITDA of £15 million, adjusted profit before tax of £7.1 million and net debt of £26.3 million.

Accrol CEO Gareth Jenkins said: “We are clearly very pleased with these set of results where we have seen volume growth of 14% against a flat overall UK market performance over the same period.

“We have delivered this by having great quality and value products that meet every consumer’s budget.

“Our strong relationship with the retailers and our robust supply model is ensuring we can continue to deliver a strong set of results in a difficult market environment.”