FCA investigating troubled Accrol

The Financial Conduct Authority is investigating Blackburn-based tissue paper firm Accrol over public statements the company made during 2017.

Accrol floated on the AIM stock exchange in 2016, but has endured a torrid time since.

The FCA investigation covers the period of 1 April 2017 and 20 November 2017, during which the company lost its CEO, cut 89 jobs, was suspended from trading its shares and then pitched to raise £18m in funding.

The company stated that it is cooperating fully with the FCA.

The announcement came just one day before Accrol released its six month trading figures, showing a steep decline in earnings.

For the six months to October 31, 2018, turnover decreased from £72.3m to £57.6m. Pre-tax losses grew from £6m to £9m.

In addition, chief financial officer Steve Townsley has left the company for health reasons, to be replaced in an interim capacity by Hannah Argo.

Hannah has extensive experience in senior financial roles gained with a number of global Blue Chip FMCG and Pharma businesses, including Alliance Boots, Robert McBride and latterly Tulip UK.

Despite the bad news, Accrol's chairman Dan Wright remained positive about the future.

He said: "The business has changed beyond recognition since February 2018 and will exit the current financial year in a much stronger position operationally than it has ever been in before.

"We have delivered a highly complex restructuring, whilst absorbing a 29 per cent increase in average tissue prices and now expect to deliver profit for the full year to 30 April 2019.

"Knowing the scale and complexities of the task in hand, I am very pleased with the outcomes achieved internally to date. My only disappointment is that, as previously announced, we are, in effect, three months behind where we expected to be on the financial recovery. He added: "I believe Accrol has a bright future. I am confident that we are through the main challenges that the business faced in this difficult period and the signs going forward look positive."