LONDON (Alliance News) - Accrol Group Holdings PLC said Monday it expects its annual results to improve on the year prior as its transformation programme has left the toilet tissue maker in a stronger position.
For the year ended April, the AIM-listed firm anticipates revenue around GBP119 million. This is down from the GBP139.7 million reported the year prior, but is "broadly unchanged" on a like-for-like basis after the firm exited a "number of low margin contracts" during the year.
Sales from Accrol's core toilet tissue business increased 12% to GBP85 million from GBP76 million the year prior.
Adjusted pretax loss is expected to be between GBP2.5 million and GBP3.0 million, compared to GBP11.2 million the year before. Exceptional costs are anticipated to be between GBP7.5 million and GBP8.0 million, primarily due to turnaround costs.
Adjusted earnings before interest, taxes, depreciation and amortisation are forecast around GBP1 million, compared to a GBP5.8 million loss the year year before.
This improved Ebitda performance was despite the "substantial" impact of foreign exchange headwinds and raw material cost rises during the year. Together, the cost of currency movements and higher raw material prices was GBP10 million more than the year before.
More positively, net debt was tamed "faster than anticipated", Accrol added, standing at GBP27.1 million. This was lower than the GBP33.8 million reported the year prior and the GBP29.6 million forecast previously.
"I am very pleased to report that we finished financial 2019 in a much stronger position, following the conclusion of a transformational restructuring, and that the new financial year has started well," Accrol Chair Dan Wright said.
"The group is now enjoying the full benefits of the structural cost savings achieved in financial 2019, achieving an acceptable level of margin for a business of its type," Wright added. "Our management team is confident of delivering further profitable revenue growth and creating new exciting opportunities for the group. I look forward to reporting further details of our progress when we announce the final results in September."
Shares in Accrol were 1.0% lower at 25.75 pence on Monday.
Accrol Gp (ACRL)