UK’s Accrol Group Releases Half Year Trading Update

Accrol, the UK's leading independent tissue converter, announces the following trading update ahead of its Half Year Results for the six months ended 31 October 2023 ("H1 FY24" or the "Period"), which are scheduled to be released in late January 2024.

The board is pleased to report that the group performed strongly in H1 FY24:

Volume growth continued throughout the Period;
Margins returned to pre-pandemic levels, quicker than forecast, with the Board now expecting Adjusted EBITDA₁ for FY24 of at least £21m;
Adjusted net debt₂ at 31 October 2023 was £25.5m (H1 FY23 £30.5m), as a result of strong cash generation, driven by the operational efficiencies of the business. The board now anticipates that adjusted net debt will be close to 1x EBITDA by the full year end.

The group continues to demonstrate its strong market position, building on its strong customer base and market-leading products, and is well positioned to deliver further growth.

Gareth Jenkins, CEO of Accrol, said:

"We are clearly very pleased with this performance. We continue to deliver by having great quality and value products which meet every consumer's budget. Our strong relationship with the retailers and our robust supply model are ensuring we can continue to deliver a strong set of results in a changing market environment."

₁Adjusted EBITDA is defined as profit before finance costs, tax, depreciation, amortisation, separately disclosed items and share based payments

₂Adjusted net debt excludes operating type leases recognised on the balance sheet in accordance with IFRS 16

Market expectations as at 21 November 2023 for FY24 (Shore Capital & Zeus): revenue of £205m, adjusted EBITDA of £20.5m, adjusted profit before tax of £10.8m and net debt of £20.1m.

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