Accrol FY earnings in line despite weaker-than-expected sales growth
Accrol Group Holdings
38.80p
16:39 24/05/24
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.
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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.