Accrol FY earnings in line despite weaker-than-expected sales growth

Tissue convertor Accrol said on Tuesday that adjusted earnings were projected to be in line with expectations, despite a lower than anticipated increase in sales resulting from consumer Covid-19 panic-buying in the early stages of the pandemic.

Accrol noted that sales across the whole industry had been depressed in recent months, while consumer stockpiling unwound, with total revenues increasing 1.5% to £136.8m in the trading year ended 30 April and volumes declining 3.9% on a like-for-like basis, against a total market decline of 5.5%.

The AIM-listed group did note that its market share had increased from 13% to 16% and pointed out that it had also continued to increase its share with discount retailers, despite a sector decline of 12% in the year.

Net debt was cut from £18.1m to £14.6m on a pre-IFRS16 basis.

Chief executive Gareth Jenkins said: "In this pandemic year, we have fully automated our largest factory, installed a business-wide operating system, and grown our margins further. We now have a business capable of benefitting further, as the UK exits lockdown, and we remain excited about the future for the group."

As of 1310 BST, Accrol shares had slumped 12.90% to 54.0p.