Accrol on track for full year

AIM-listed loo roll manufacturer Accrol Group said on Monday that it remains confident in its outlook for the full year.

The group said it has made good progress since the start of this financial year, with trading in line with its expectations.

In the six months to the end of October, it continued to win new business with existing customers in addition to the previously announced new £10m contract gain, which it confirmed to be Lidl.

Accrol said installation of two high-speed converting lines in its new 168,000 sq. ft. manufacturing facility in Leyland is well underway and will increase its total capacity to 143,000 tonnes a year.

The company said it continues to follow its hedging policy to mitigate adverse movements in sterling versus the US dollar and the euro. Following its significant purchase of dollars ahead of Brexit, it has increased its facilities and continues to closely monitor its forward currency positions.

“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.”

At 1240 GMT, Accrol shares were up 3.4% to 121.50p.