Accrol signs tissue supply deal with 'major retailer'

Tissue paper maker Accrol said it had signed a new contract with a “major global retailer” that will provide revenues of more than £10m a year at manufacturer's selling price.

Under the deal, AIM-listed Accrol will supply toilet paper, kitchen rolls and facial tissues.

Accrol said that if consumer expenditure fell after the UK's decision to leave the European Union, it was possible that the move towards non-discretionary economy and private label products would accelerate.

“If this happens, Accrol believes it is well positioned to benefit as over 50% of sales are generated from the discount market segment and the Company is primarily focused on supplying private label products to both discount and multiple retailers,” the company said in a trading update.

“The company remains significantly hedged against adverse currency movements for the financial year ending 30 April 2017. Moreover, whilst only two months of this financial year have passed, the directors are comfortable with market forecasts and continue to see opportunities in the market.”