Blackburn-based toilet roll and tissue maker Accrol Group said it is “firmly on track to deliver FY24 results in line with the board’s expectations” and, following the acquisition of Severn Delta Limited, “now expects to outperform its previous expectations for FY25.”
Announcing its results for the six months ended October 31, 2023, Accrol said: “The board is pleased to report that the group performed strongly in H1 FY24.
“While revenue reduced as expected, as prices eased following the significant inflationary-led increases in FY23, branded volumes continued to grow in our key markets, rising by 45% in H1 FY24, and margins returned to pre-pandemic levels rising by 930bp to 27.3%.”
First-half revenue fell 17.2% to £100.3 million.
“This decrease in revenue represents an easing of prices offered to customers following significant inflationary pressures in FY23,” said the firm.
“The group remains on course to deliver FY24 revenue in line with the board’s expectations at £205m.”
Accrol returned to a profit before tax in the first half (£400,000) — an improvement of £1.3 million.
The firm said its private label market share increased to 55% in the period and is still growing against the traditional brands.
Accrol executive chairman Dan Wright said: “Over the last four years, Accrol has been transformed as an organisation into a leading manufacturer of private label, own branded and now licensed tissue products to the UK market.
“Our state-of-the-art businesses are in an incredibly strong position to benefit from the rapid and significant growth in the in these markets, and we have considerable further capacity to drive these opportunities.
“The growth in our branded range and the partnerships we are developing, to bring high quality valued licensed products with global brands, continues to strengthen our pricing and margin improvement.
We look forward with increased confidence to the continued growth of the business.”