Accrol Share Discussion Threads

[haroldthegreat] 05/10/2017 10:57

Disco Dave did you know about the accident ?
DiscoDave4 - 13 Aug 2017 - 14:43 - 132 of 153 - 0
Thanks TexasPete - Looks like their fx hedging helped to sustain their gross margin and mitigate increased costs associated with additional headcount, but unless sterling strengthens (pulp is traded in US$) or customers increase retail prices then it doesn't sound like they will be able to maintain margins.
Whilst revenue increased 14% their costs/expenses are outpacing growth in revenue, thus their operating profit reduced 12% and operating profit margin has reduced c 2%.
Still a sound business but may just sit on my hands a while longer with this one.
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No longer sitting on my hands, have chopped them off as far as ACRL goes......has the makings of a profit warning coming IMO.

[bookbroker] 05/10/2017 10:55

Harold - clearly there should have been a caveat in the IPO statement about this case, but it is largely irrelevant in the bigger picture, it’s more the falling margin and rising debt at issue!

[haroldthegreat] 05/10/2017 10:52

Doesn't one have insurance against accidents.? Or can't one get cover against fines ?what was the nature of the incident ?

[jonwig] 05/10/2017 10:46

sailastra - perhaps you're right: I apaologise. In defence, when I read the statement at 7:00 it looked a bolt from the blue so I checked out the accounts - after all, I might have invested, and wanted to be sure whether I had or hadn't missed anything.

Anyway, Liberum have issued a note this morning and on balance suggest the profits fall may be sufficient to trigger bank covenants. This looks plausible, as these are often written in terms of EBITDA margins.

[deltrotter] 05/10/2017 10:38

Looks like they are behind on things

[sailastra] 05/10/2017 10:37

Jonwig, why comment when you have no idea, the statement says that they are unable to pass on rising costs to their big customers what we are waiting for is detail...Like you I do not own these but could very well have...But unlike you I am not prepared to gloat....
Good luck to those that do hold...The company appeared more than investable...This is the shape of things to come I fear...We should all take care, this market will take no prisoners..

[croasdalelfc] 05/10/2017 10:33

Accrol were in the running for IPO of the year 6 months ago -

[jonwig] 05/10/2017 10:30

I was just being droll, of course, bookbroker. A nice man delivers it at just the time we request. He insists he's only delivering to us, but my wife says he's having me on.

The press are already sharpening their wit. We'll be seeing a lot more of it.

FT: Toilet roll maker wiped off the market ...

[bookbroker] 05/10/2017 10:20

U must be a Waitrose man Jonwig in that case, or maybe Whole Foods or perhaps u do do ur weekly shop in the Harrods Food Hall, Lidl/Aldi rock especially for hygiene rolls! I’ll visit now and again, do not have any particular preference to where except Farm Foods!

[eastbourne1982] 05/10/2017 10:01

Steve Crossley.

How much did this guy get when this was floated ?

[value viper] 05/10/2017 08:55

bb, the last update was LESS than a month back on 7/ 9/17 and was in line !!

shocker to be hit with this this morning

[bookbroker] 05/10/2017 08:52

Seems strange to suspend the stock, unless the situation is so dire, last trading statement not more than two months back offered no suggestion of the question of solvency, this could reopen at 25p!

[eastbourne1982] 05/10/2017 08:37

Without suspension these would have been down 50% on that shocking update.

Yet another very very dodgy ipo.

[keyno] 05/10/2017 08:27

Could this be the H&S incident?

[1pvh] 05/10/2017 08:24

Sold the majority of mine on Sept 7th after announcement at what I thought was a very good price considering.What I can't understand is why I still kept a few. Been doing this job a long time and still learning!!Hope for all the people who work at Accrol here in Lancashire are ok.

[saucepan] 05/10/2017 08:18

Looking back on recent posts - a few of you read this well and saw the warning signs; well done. I myself dodged a bullet here. I held briefly post IPO but decided ACRL was too pedestrian and boring!

[destinybagoshite] 05/10/2017 08:15

its only got one client

[broadwood] 05/10/2017 08:05

Trading in Accrol Group's shares has been suspended on AIM while the board considers clarifies the company's financial position.

The company said it was currently experiencing more challenging trading conditions which were having a significant effect on the trading performance for FY18.

It said the factors were likely to have less of an impact on the company's trading performance in FY19.

The company has faced continued increases in input costs and it said the anticipated inflation recovery through product price increases had delivered less than planned to date.

In addition, the delay in price increases will have a reduced positive impact on the current financial year.

It also said:

- The Company had also incurred higher than anticipated costs in relation to the operational changes associated with preparing the business for growth. The company believed these changes would deliver improved performance over the longer term.

- The board had recently been advised that a Health and Safety incident, which occurred prior to the company's AIM IPO, may now result in a more significant fine being imposed by the Health and Safety Executive (HSE) than was previously anticipated. Whilst this was not expected to impact on trading, based on advice received by the company's legal advisers, any resulting fine may have a material impact on the company's cash position.

It said that while the revenue expectations for FY18 remained broadly in line with market forecasts, the board had reviewed its expectations of the group's performance.

Based on current market conditions, the board now anticipated that earnings would be significantly below existing market forecasts for the current financial year, and as a consequence net debt would be correspondingly higher at year end.

It said that in view of this, the board would review the dividend in respect of the current financial year.

It said that following the appointment of Gareth Jenkins as CEO on 11 Sep, the voard commenced a wide-ranging review of the company's operations with a view to improving its margins and its overall financial performance.

[boydduk] 05/10/2017 08:05

so much for trying to find a boring AIM share.

[destinybagoshite] 05/10/2017 07:54

Simon Thompson in IC said it is worth 200p

I say give it lots of bleach needed and then whack it with a bog brush