Accrol posts strong six-month growth

Blackburn-based independent tissue converter has posted double-digit growth and a multi-million-pound increase in profits in its most recent half-year results.

The figures, which relate to the six months ended 31 October 2022, show a 64 per cent increase in revenues, up to £121m, and a £2.5m increase in pre-tax profit, up to £3.2m, compared to the first half of 2022.

The growth was reported against a backdrop of rising costs and ongoing supply chain difficulties, and far outstripped average growth across the sector.

Gareth Jenkins, chief executive officer of Accrol, said: "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.

"The group continues to demonstrate its resilience against the challenges of input cost inflation, and we successfully leveraged our supply position with customers to recover all additional costs incurred in the Period.

"The group delivered a notable 14 per cent volume growth in the period, against an overall market which grew by just 1 per cent. This was achieved by offering the consumer great value products which suit every budget. Our strengthened supply model and established relationships with the retailers will ensure that the Group is well positioned to deliver strong results in difficult market conditions."

AIM-listed Accrol also announced that adjusted net debt at 31 October 2022 was lower than anticipated at circa £30.5m. Adjusted net debt at the full year end remains on track with market forecasts, which were lowered at the time of the trading update to less than 1.5x EBITDA.

Revenues and adjusted EBITDA growth for the year ending 30 April 2023 are marginally ahead of expectations at £230m and £15.5m respectively.