Accrol Group Holdings PLC Trading Update and Notice of Results (5999B)

TIDMACRL

RNS Number : 5999B

Accrol Group Holdings PLC

10 June 2019

The information contained within this announcement is deemed by the Group to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

10 June 2019

Accrol Group Holdings plc

("Accrol" or the "Group")

TRADING UPDATE AND NOTICE OF RESULTS

The Board of Accrol is pleased to announce the following trading update ahead of its results for the full year ended 30 April 2019 ("FY19"), which will be announced on 3 September 2019.

Following the conclusion of the restructuring, the Group performed well in Q4 and in line with the management's strategic turnaround objectives, achieving and maintaining acceptable levels of monthly profitability on an Adjusted EBITDA level.

Total revenues in FY19 were c.GBP119 million, broadly unchanged on a like for like basis against the prior year, as the Group exited a number of low margin contracts. Sales in the Group's core toilet roll product, however, increased by c.12% year on year to c.GBP85 million from GBP76 million in FY18. Adjusted EBITDA was c.GBP1 million, representing a c.GBP7 million improvement on the prior year despite the substantial impact of FX and material cost headwinds which increased by an estimated c.GBP10 million. Adjusted loss before tax is expected to be in the range of GBP2.5 million to GBP3.0 million. Exceptional costs, primarily associated with the turnaround process, are expected to be in the range of GBP7.5 million to GBP8.0 million. Net debt was reduced faster than anticipated, finishing the year at c.GBP27.1 million, c.GBP2.5 million lower than the previously anticipated level of c.GBP29.6 million, ensuring that the Group comfortably fulfilled on its banking commitments.

Dan Wright, Chairman of Accrol, said:

"I am very pleased to report that we finished FY19 in a much stronger position, following the conclusion of a transformational restructuring, and that the new financial year has started well. The Group is now enjoying the full benefits of the structural cost savings achieved in FY19, achieving an acceptable level of margin for a business of its type. Our management team is confident of delivering further profitable revenue growth and creating new exciting opportunities for the Group. I look forward to reporting further details of our progress when we announce the Final Results in September."

 
For further information, please contact: 
 
Accrol Group Holdings plc 
Dan Wright, Executive Chairman              Tel: [phone] 
Gareth Jenkins, Chief Executive Officer 
 
Zeus Capital Limited (Nominated Adviser 
 & Broker) 
Dan Bate / Andrew Jones                     Tel: [phone] 
Dominic King / John Goold                   Tel: [phone] 
 
Belvedere Communications Limited 
Cat Valentine ([e-mail])  Tel: [phone] 
Keeley Clarke ([e-mail])     Tel: [phone] 
Llew Angus ([e-mail])           Tel: [phone] 
 

Notes to Editors

Accrol Group Holdings plc, based in Lancashire, is a leading tissue converter and supplier of toilet rolls, kitchen rolls and facial tissues, as well as other tissue products, to major discounters and grocery retailers throughout the UK. Accrol operates from three sites:

 
 --   A manufacturing, storage and distribution facility in Blackburn; 
 --   A facial tissue plant, also in Blackburn; and 
 --   A manufacturing, storage and distribution facility in Leyland. 
 

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June 10, 2019 02:00 ET (06:00 GMT)