Accrol Share Discussion Threads

[warranty] 12/1/2022 10:32

Oh dear “strategic review” which is rarely good news. Until there’s more clarity on that I’m staying out!!

[arbus5000] 12/1/2022 09:24

I've picked up a few hundred shares. A bit of an over-reaction - the trend rate of sales was always going to fall, and rising costs. Acroll remains well placed though until bidets are no longer considered taboo :P


Would be interesting if the Morrocan reel manufacturer is still a shareholder / was the one responsible for the surcharge as mentioned in the update.

[john09] 12/1/2022 09:20

The price relatively ok? Are you on smack

[value viper] 12/1/2022 09:20

Shame about further pressures on business - fairplay to you guys that held off investing.Interesting thus far to see price relatively ok - indicative that bad news very much already baked in - institutional holders are sticky and buyers come In seemingly now for the future - balance sheet robust is key - now strategic review of business - this could mean one or two things ....

[stevieweebie2] 12/1/2022 09:03

And yes buywell, re your point on TR's yes ive been doing this long enough now, they come in three's ;) so they say.

[buywell3] 12/1/2022 09:02

Things seem to be getting worse chartwise

at times like these imo better waiting for a bottom on the chart to form


free stock charts from uk.advfn.com


Good luck

[scemer] 12/1/2022 08:59

Stevie agree with your views i believe they are on top and the company is not in a pre turnaround position which would be a concern

[stevieweebie2] 12/1/2022 08:44

Hi BW
No but Mills will be better hedged this year hence not quite as much pressure to pass down to convertors like accrol, as ports become slowley unlocked materials will flow better, also raw material costs have peaked at the moment after a steller run last year, as I said previoisy and Accrol state,its a timing issue, they are well behind the 8 ball as the yanks say as they have been unable to pass costs on fast enough, again while inflations here to stay IMHO for this year at least I belive they will be better placed at least to have started to get ahead of the market. all IMHO no adice intended.

[buywell3] 12/1/2022 08:33

Well called stevieweebie

Must be others like this coming that have got caught out on production costs

Do you expect gas prices and other supply costs to resolve in 2022?

This was profit warning number one was it not ?

Remember what they say


free stock charts from uk.advfn.com

This share is in a downtrend mode since the start of 2021


dyor

[stevieweebie2] 12/1/2022 08:31

okay im in again, that 20k buy at 23.2 was mine. lets see what 12 months does to the share price

[stevieweebie2] 12/1/2022 07:21

There we go. As previously stated.

[masurenguy] 12/1/2022 07:09

Profit Warning !

Trading Update

Accrol provides the following trading update for the current financial year ending 30 April 2022.

In the period since the Company's last trading update of 20 October 2021, the Group has experienced further inflationary pressure on input costs including pulp prices, supply chain costs and most significantly energy costs. In light of these cost increases, the Group has implemented further cost efficiencies and has engaged with all its customers successfully securing substantial price increases, over and above those secured in mid-2021 and, as a result, the Board was confident of meeting its revised expectations for FY22.

However, unavoidable surcharges to parent reel prices, relating to exceptional energy price increases, have very recently been levied on the Company, which will significantly impact margins. The management team has experience of successfully managing inflationary pressures and the Board is confident that this is a timing issue and that further cost increases, including these recent surcharges, will continue to be passed on successfully to Accrol's customers. The underlying business is in good shape and the Board remains confident in the medium-term prospects for the Group.

Despite continued supply chain disruption, particularly at ports, around the world and specifically in the UK, the business continues to manage customer supply well, having secured and maintained additional stocks in paper and finished goods. In FY22, revenue is now expected to grow by 17% to c.GBP160m (FY21: GBP136.6m), generating adjusted EBITDA(1) of c.GBP9.0m (FY21: GBP15.6m) with margin recovery anticipated in FY23. The Group continues to operate well within its existing banking covenants and has more than sufficient liquidity to meet its existing and future needs.

In light of the above and the short-term but inherent volatility of earnings experienced in the current year, the Board has concluded that it is now appropriate for Accrol to conduct a full strategic review of its business. Such review will be designed to capitalise on the evident strength of the business' market position, its balance sheet, and its solvency, underpinned by significant banking support, to ensure that the shareholder value is optimised. A further update will be provided with the Groups H1 2022 results, which will be announced on 18(th) January 2022.

[value viper] 12/1/2022 07:09

Hhmm shame Indeed further cost pressures etcStrategic review now - no need for more funds is very important Gonna end up a sitting duck for a takeover possiblyThese pressures will mean in timeI wonder though how long this business may remain independent

[coolen] 11/1/2022 21:57

Anyone heard an update comment from Gervais Williams at Miton who was glowing about this stock several times during 2019 ?

[riviera1069] 11/1/2022 18:45

The way it is at the moment we could have excellent news and it could still dive. Interesting though and a company that I would like to be involved in.We will wait and see. I think it's an easy 50% gain for a patient investor providing no nasties.

[arbus5000] 11/1/2022 16:12

i'm not privy to any inside information but i think there will be a surprise to the upside.

[stevieweebie2] 11/1/2022 15:06

Hi Riv
I have no position ATM, it looks cheap but Im not privvy to financials so this could soar or plummet on Tuesday. either way ill be watching.

[masurenguy] 11/1/2022 14:49

Now at a 22 month low - just watching, still no position.

[riviera1069] 11/1/2022 14:43

Yep, my thoughts exactly. We will see later.Are you back in now or awaiting the update also.

[riviera1069] 11/1/2022 13:14

Some large sells this morning going into next weeks update.Hasn't moved the share price Still waiting on the sidelines.

[husbod] 05/1/2022 18:02

Cheers steevie Your point about them not being able to produce their own tissue concerns me as presumably if they have to pay inflated prices for their raw materials it somewhat detracts from their main strength as it used to be namely the provider of cheap or at least very competitively priced products.The rest of your post is certainly positive though so will keep watching.

[stevieweebie2] 05/1/2022 16:46

Hus
they aquired the old John Dale site in NWales last year for not a lot of money and while wet wipes are not the height of fashion they can be manufactured to be more recyclable, they will squeeze a lot of value out of this site.
also old LTC site is like new as the Tejanis have not long left really, all lines are state of the art still.
with Leyland and BBurn sites they are the largest independant tissue convertor in the UK currently I believe.
They are hamstrung at the moment as they have no mill so they either pay the price for the parent reels or they get no tissue.
hence I dont expect steller results but they are asset rich and the markets on their doorstep in the UK adn we are still nett importers I think, ill be buying into any fall.
just want to see if it breaks 30 as you say its a falling knife at the moment, the fact that the shares are dropping into results is also a red flag for me but no advice intended.

[husbod] 05/1/2022 16:33

So what would change your mind given your knowledge of the market on the ground and in particular your comments in your earlier post.Still watching but seems like a falling knife atm.

[stevieweebie2] 05/1/2022 16:16

18th.
watching and waiting.
they will be reeling from costs which they are unable to pass on fast enough and a supply chain thats unable to cope.
excellent long term prospects so ill be back in if the opportunity presents itself.