Revised Banking Arrangements & Operational Update

RNS Number : 6644M

Accrol Group Holdings PLC

01 May 2018

 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

1 May 2018

Accrol Group Holdings plc

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

AIM: ACRL

REVISED BANKING ARRANGEMENTS, OPERATIONAL UPDATE AND CURRENT TRADING

Revised Banking Arrangements

Further to the information provided in the Trading Update announced on 19 March 2018 and following constructive discussions with its lender, Accrol announces that a number of matters regarding the Group's borrowing facilities have been agreed as outlined below:

·      EBITDA covenants tests in respect of the periods ended 30 April 2018 and ending 31 July 2018 have been waived;

·      the scheduled reduction in the limit of the Revolving Credit Facility which was due to occur on 30 April 2018 has been deferred until 31 October 2018; and

·      indicative terms have been established for the lease funding of the new conversion line being installed at the Leyland plant in the next three months, which will allow the business to service major new business wins.

These revised banking arrangements, which are subject to the Company complying with certain undertakings to the lender during May 2018 (with which the Board expects to be able to comply) will help to support the growth of the business and enable the new management team to pursue the business recovery plan.

Operational Update

The Group is pleased to announce that it has recently entered heads of terms on the exit from the onerous central distribution hub in Skelmersdale. This planned exit is expected to have a positive impact on annualised profits, as previously reported, of at least £5 million.

Current Trading

The Company continues to trade in line with current market expectations.

For further information, please contact:
Accrol Group Holdings plc
Gareth Jenkins, Chief Executive Officer	Tel: [phone]
Martin Leitch, Interim Chief Finance Officer	Tel: [phone]
Zeus Capital Limited (Nominated Adviser & Broker)
Dan Bate / Andrew Jones	Tel: [phone]
Dominic King / John Goold	Tel: [phone]
Belvedere Communications Limited
Cat Valentine ([e-mail])	Tel: [phone]

Notes to Editors

Accrol Group Holdings plc, based in Lancashire, is a leading tissue converter and supplier of toilet rolls, kitchen rolls and facial tissues as well as other tissue products to the UK's largest retailers. 

Accrol operates from three sites:

·      A manufacturing, storage and distribution facility in Blackburn;

·      A facial tissue plant, also in Blackburn; and

·      A manufacturing, storage and distribution facility in Leyland.

 

END

 

 

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