(Alliance News) - Accrol Group Holdings PLC on Tuesday said it had seen sales rise less-than-expected in the year, with sales across the industry depressed in recent months as consumer stockpiling unwound.
The toilet roll, kitchen roll and facial tissue products manufacturer said substantial progress had been made on gross margins in its financial year ended April 30, ahead of market expectations, though adjusted earnings were in line with expectations.
Accrol posted full-year revenue up 1.5% to GBP136.8 million, from GBP134.8 million in the prior year. While volumes on a like for like basis declined by 3.9%, against a total market decline of 5.5%.
The group said that with growing momentum in the grocer sector, it is well-placed to capitalise on consumers returning to discounters, as lockdown restrictions ease and volumes normalise.
Looking ahead, Blackburn-headquartered Accrol said that it viewed the future with confidence, but noted it expects "volumes across the UK tissue sector to normalise in 2022's second half". It added that its main market, the discounters, should "grow strongly as the UK returns to pre-pandemic shopping patterns".
Accrol said it intends to restore dividend payments and expects to propose a final dividend of no less than 0.5 pence per share
Shares in Accrol were down 13% at 54.00p in London on Tuesday afternoon.
By Will Paige; willpaige@alliancenews.com
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Accrol Gp (ACRL)