Accrol Share Discussion Threads

[cwa1] 04/1/2017 08:28

Morning All

I was reasonably impressed by what I saw here. Things sound fairly promising to me, so I decided to take a modest maiden stake here. Will keep an eye out for it now and wish all holders the best of fortune, good luck all.

[melody9999] 04/1/2017 08:26

agreed paleje - nice summary

[paleje] 04/1/2017 08:05

Happy enough with that, confident for FY, divi on track for 6p, hedging has paid off and been extended, Lidl trading ahead, evaluating further growth opps both in UK and Europe and they have an expanded production facility to cope. Squeeze on consumer spending expected to work in favour, acknowledge that if fx remains at current level prices increases are inevitable but they will affect all suppliers.

All in all good management and good prospects imo.

FD deserves his skiing holiday:)

[keyno] 15/12/2016 16:36

I'm taking the bringing forward of results as a Good Thing.

Or then again, maybe the FD wants to go on an only recently scheduled skiing holiday...........

[nurdin] 15/12/2016 12:26

Bar those trades marked 'C' ,all those trades in the sell column are actually buys.I have added today so I know :o)

[nurdin] 14/12/2016 21:28

Still under the radar of most.The interims, which I expect to be forecast beating, will hopefully raise its profile and help create a decent following

[paleje] 12/12/2016 12:24

Equity Dev research note out today, not sure if paid for, decent anyway

[shauney2] 07/11/2016 10:53

The CEO purchase gave me the confidence to hold my majority after top slicing.Just bought the slice back on that statement.

[paleje] 07/11/2016 09:34

Unexpected update but welcome, interims brought forward to early from mid Jan per the website a good sign too, they're on the ball.

[melody9999] 07/11/2016 08:13

The CEO purchase post Brexit and the currency hedging provides comfort.

"We remain confident in the outlook for the full year and that the strong cash flows generated by the business will support our progressive dividend policy and underpin our continued growth."

[paleje] 03/11/2016 10:40

Yep seems to be spluttering a bit and Interims not till mid Jan.

Unfavourable fx could be bothering peeps, they did say they hedged after the Brexit result but didn't say how much so we're left guessing. The CEO purchase a couple of months back was substantial so I don't think there's trouble ahead but maybe a bit flatter than anticipated?, then again lots prices will be going up in the new year so they'll probably be able to offset most of the currency hit. Imo.

[davr0s] 03/11/2016 08:52

Shame but that's me out. Looks like trend up broken for the time being

[nurdin] 30/9/2016 09:50

Dipped my toe here.Boring but solid growth ahead.

I could be accused of bottom fishing but that is not the case here :o)

[davr0s] 29/9/2016 18:52

CEO spent £130k on shares - nice vote of confidence. Price action looking very good IMO

[paleje] 02/9/2016 07:35

RNS increasing capacity with new premises in anticipation of growing orders from both discounters and majors. Unfussy confident communicators I like these.

[keyno] 25/8/2016 20:35

No dividends to be paid this side of year end April 2017 MrMark01.

[mrmark01] 25/8/2016 19:26

good loo rolls too. picked up a pack of 9 from b&m for £2

no tripple velvet, but means the mrs doesn't use half a roll every time to makes a visit ;)

[mrmark01] 25/8/2016 19:24

boring old share, just keeps going up... making profits and paying divi's...

boring boring boring...

[tromso1] 08/8/2016 08:23

Breaking out to a new high.

[davr0s] 07/8/2016 15:11

Thanks - just discovered that myself ! Much better

[pastybap] 07/8/2016 12:39

The majority of debt is being paid off by the £60m+ from the recent listing. Ratio should be more like 1x to 1.5x at year end.

[davr0s] 06/8/2016 20:51

I like the story, but the thing that caught my eye was debt which is 4x profits which seems a bit high. Anyone any views on this?

[keyno] 05/8/2016 11:14

Investor's Chronicle still have this as a buy.

[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.