Accrol revenues up 52 per cent as market share grows

Blackburn-based paper products manufacturer Accrol has increased annual revenues to £241.9m while now accounting for more than one-fifth of the total market.

The revenues, for the year ended 30 April 2023, are up 52 per cent over last year's £159.4m. Accrol has also reported that market share has grown from 19.5 per cent to 21.5 per cent.

All product ranges achieved growth, resulting in the company's overall volume of sales increasing by 7.7 per cent.

A key driver of the growth has been the acquisition of Welsh manufacturer John Dale. Sales of its water industry-approved flushable wet wipe have increased by 59 per cent over the year, and 169 per cent since joining the group in 2021.

The group's subscription model for its plastic-free Oceans brand increased revenues by 45 per cent. Volume of toilet roll sales were up 2 per cent, kitchen towel up 20 per cent and facial tissue up 53 per cent.

Accrol reported an adjusted profit before tax of £6.5m, up from the previous year's £1.1m. 

Looking ahead, Accrol predicts that while tissue prices fall due to supply chain pressures, EBITDA for the current financial year will be ahead of the board's prior expectations.

Dan Wright, executive chairman of Accrol, said: "The group has delivered a very strong set of results of which we are very proud. The management team successfully navigated and mitigated the well-reported and substantial inflationary pressures on a broad range of input costs, through further process efficiencies and by engaging constructively with our customers to pass-on these additional costs.

"We have a strong, market leading position, with a clear focus on remaining the lowest cost producer of any scale. Our product mix is strengthening margins and cash generation is growing. We are, therefore, confident that our FY24 EBITDA will be ahead of initial board expectations."