Accrol Share Discussion Threads

[twistednik] 28/7/2016 14:28

From the equity development note:

"Although Accrol sources its parent reels from overseas suppliers, both it and UK mills are both subject to relatively similar forex exposure risk. Around 70% of the cost of producing a parent reel is pulp and a similar proportion of the cost of Accrol’s finished goods is tissue, both generally traded in USD. In order to hedge this risk operationally Accrol’s sources via a smaller number of mills and typically, takes over 50% of their output. That provides it with some scope to use its leverage with suppliers to push down the USD/tonne rate to protect its margins."

In other words, Brexit may cause some major short term margin pressure on the business once their current hedges expire. With most their costs of material in USD and the large movement since Brexit, they are going to have to push price increases through to 'discount' chain customers.

This is easier said than done in my experience and may have a material impact on future profitability.

[melody9999] 28/7/2016 11:59

and today all buys at 114.9p....but showing as sells

[melody9999] 26/7/2016 08:43

joined in this morning. all buys at 115p

[paleje] 25/7/2016 09:28

ED have updated their note, no target price but PER 10 with 5% divi well covered seems good value.

[tini5] 22/7/2016 09:12

Good set of results, surprised there's no movement.

[mrmark01] 18/7/2016 22:30

Up you go...

Maiden results out 22nd July. GLA

[mrmark01] 08/7/2016 14:22

Big dirty small cap spread though...

[mrmark01] 08/7/2016 08:59

Yep - has the makings of a good long term hold. 6% divi...

[shauney2] 08/7/2016 07:55

ACRL,

nice contract win and positive trading update.

In the event that there is a period of reduced consumer expenditure following the UK's decision to leave the European Union, it is possible that the move towards non-discretionary economy and private label products will accelerate. If this happens, Accrol believes it is well positioned to benefit as over 50% of sales are generated from the discount market segment and the Company is primarily focused on supplying private label products to both discount and multiple retailers.

The Company remains significantly hedged against adverse currency movements for the financial year ending 30 April 2017. Moreover, whilst only two months of this financial year have passed, the directors are comfortable with market forecasts and continue to see opportunities in the market. Results for the year ended 30 April 2016 will be announced on 22 July 2016.

[dice1950] 20/6/2016 07:24

Majedie’s Citywire AA-rated UK equity team have torn a few sheets off the recent £90 million Alternative Investment Market flotation of tissue manufacturer Accrol Group (ACRL).
20th June 2016

[postmanpat11] 13/6/2016 19:30

And there's a detailed 15 page Equity Development note. I downloaded it from Research Tree but you can also get it direct from Equity Development I think...

The front page is already pasted above but the full note well worth a read.

[dlku] 13/6/2016 16:19

A pre-IPO investor cashed out 500,000 shares @110p after the open this morning.




Yuk!

[sphere25] 10/6/2016 16:09

Got to invest here haven't you?

Certainties in life: death, taxes and bogroll surely?

[paleje] 10/6/2016 10:22

I agree with the uneven playing field but there was a piece by Simon Thompson on Tues about this IPO, he would have had access to all the info available, and it's pretty positive. I can't print the lost but his conclusion:-

"Risks and rewards

Of course, there are risks with any investment and the main ones to consider here are: potential loss of a major client given the high concentration of customers; a spike in paper reel prices, which would hit margins; the impact of currency volatility on overseas earnings, albeit that Accrol hedges its exposure; entry of new competitors into the discounter market; and the most immediate one, Brexit. The main impact of the UK leaving the EU would be a hike in raw material input prices on imported paper reels if sterling falls heavily against the US dollar and euro as economists predict would be the case. However, the company could mitigate this negative factor by sourcing its paper reels from UK suppliers.

I would also flag up that the senior management team, although highly experienced, has been with the company for a short tenure. Chairman Peter Cheung was appointed only 18 months ago, finance director James Flude took up his position in January 2015, and chief executive Steve Crossley has just joined the company. That said, they have more than 70 years of combined industry experience and both Mr Crossley and Mr Flude held prominent roles at Northern Foods. I note that non-executive director Steve Hammett has over 25 years' experience with Tesco, both in the UK and internationally.

Finally, the broker to the issue is Zeus Capital, the same firm that floated Safestyle (SFE), Watkin Jones (WJG), Flowtech Fluidpower (FLO) and Epwin (EPWN), all of which have proved decent investments if you followed my advice to buy at the time of those flotations. I seriously think we could clean up with Accrol too, which is why the shares are well worth investing in close to the placing price of 100p. My initial target price of 130p could prove conservative. Buy"

[dice1950] 10/6/2016 10:12

10 JUNE 2016 • 7:44AM
Telegraph.co.uk
Loo roll maker Accrol goes public with £93m float

Dan Bate, director at Zeus Capital, added: “The Hussain family has built up a successful business since it was founded in 1993 and will be stepping ...

[ramridge] 10/6/2016 10:08

The practice of giving information to small fries like us is shameful. For an IPO, the company is only obliged to issue an admission document on the first day of dealing on a public website, normally their own. However this document is often released to brokers and insti's at least a week before the first dealing date.

Is this a level playing field? You figure it out.

In the case of this IPO, I went to the company's website yesterday and day before. No joy. Today they only released the document at around 09:45, when dealings had already started at 08:00, You can find it here:

www.accrol.co.uk/investor-relations/admission-documents/

The dice is loaded against us in many ways. This is just one of the many ways the fat cats ensure they have a healthy lunch leaving the crumbs under the table for us.

[rhomboid] 10/6/2016 09:49

Does anyone know the story behind Nisaic Ltd , set up last month by the Hussain's at the same registered office with the activity TBA ?



Thx

[cashandcard] 10/6/2016 09:45

You can always go to companies house website and pay a small fee to see previous results and financial statements Cash

[spob] 10/6/2016 09:41

Information about "public" offerings is never released to the "public" until the offering has completed

Go figure

The public market was not set up for the public

it was set up for the benefit of the financial elites