UK-based Tissue Converter Accrol Provides Trading Update for year ended April 30, 2020

Accrol, the UK's leading independent tissue converter, has announced the following trading update ahead of its final results for the year ended April 30, 2020.

The Group continued to perform well in the final quarter, achieving accelerating monthly exit run-rates in line with the Board's expectations. Accordingly, the results for FY20 are expected to be in line with market expectations.

Total revenues in FY20 were circa £133.8 million (US$165.5 million) with core revenues increasing during the period by 13.7 percent to £132.7 million (US$164.1 million) (FY19: £116.7 million [US144.3 million]), compared with overall market growth of circa 8 percent.

With margins significantly recovered and core revenues at record levels in FY20, the Group has entered the new financial year in a stronger position than ever before and is well positioned to continue delivering sustainable profitable growth.

Further improvements to quality and service have been made in recent months. The Board is confident that this will help Accrol secure higher-value business over the longer term. In addition, the Group's rapid response to the unprecedented consumer demand experienced in March, as lockdown measures tightened, has reinforced its strengthening relationships across its UK retail customer base. Whilst some increases in input costs are expected in the near term, as a result of the COVID-19 pandemic, the Board is confident that the Group's new business model is robust and structured to enable the swift management of fluctuating prices.

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