Half Year Trading Update

Accrol Group Holdings PLC

22 November 2023

 

22 November 2023

Accrol Group Holdings plc

("Accrol, the "Group" or the "Company")

HALF YEAR TRADING UPDATE

Strong performance with margins and volume continuing to grow

Accrol (AIM: ACRL), the UK's leading independent tissue converter, announces the following trading update ahead of its Half Year Results for the six months ended 31 October 2023 ("H1 FY24" or the "Period"), which are scheduled to be released in late January 2024.

The Board is pleased to report that the Group performed strongly in H1 FY24:

·     Volume growth continued throughout the Period;

·     Margins returned to pre-pandemic levels, quicker than forecast, with the Board now expecting Adjusted EBITDA¹ for FY24 of at least £21m;

·     Adjusted net debt² at 31 October 2023 was £25.5m (H1 FY23 £30.5m), as a result of strong cash generation, driven by the operational efficiencies of the business. The Board now anticipates that adjusted net debt will be close to 1x EBITDA by the full year end.

The Group continues to demonstrate its strong market position, building on its strong customer base and market-leading products, and is well positioned to deliver further growth.

Gareth Jenkins, Chief Executive Officer of Accrol, said:

"We are clearly very pleased with this performance. We continue to deliver by having great quality and value products which meet every consumer's budget. Our strong relationship with the retailers and our robust supply model are ensuring we can continue to deliver a strong set of results in a changing market environment."

1	Adjusted EBITDA is defined as profit before finance costs, tax, depreciation, amortisation, separately disclosed items and share based payments
2	Adjusted net debt excludes operating type leases recognised on the balance sheet in accordance with IFRS 16

Market expectations as at 21 November 2023 for FY24 (Shore Capital & Zeus): revenue of £205m, adjusted EBITDA of £20.5m, adjusted profit before tax of £10.8m and net debt of £20.1m.

For further information, please contact:
Accrol Group Holdings plc
Dan Wright, Executive Chairman	Via Belvedere Communications
Gareth Jenkins, Chief Executive Officer
Chris Welsh, Chief Financial Officer
Zeus (Nominated Adviser & Broker)
Dan Bate / Jordan Warburton	Tel: [phone]
Dominic King	Tel: [phone]
Shore Capital Stockbrokers (Joint Broker)	Tel: [phone]
Malachy McEntyre/ Mark Percy / James Thomas / Isobel Jones
Belvedere Communications Limited
Cat Valentine	Tel: [phone]
Keeley Clarke	Tel: [phone]
	[e-mail]

Overview of Accrol

Accrol Group Holdings plc is a leading tissue converter and supplier of toilet tissues, kitchen rolls, facial tissues, and wet wipes to many of the UK's leading discounters and grocery retailers across the UK. The Group now operates from five manufacturing sites suppling the UK tissue wet wipes market valued at c£2.7bn at retail sales value.

For more information, please visit www.accrol.co.uk.

Link for Accrol Today video: https://www.accrol.co.uk/our-business/

 

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