(Alliance News) - Accrol Group Holdings PLC on Wednesday reported a widened loss for its recent financial year, despite also reporting an increase in revenue.
Lancashire-based Accrol is an independent tissue converter, producing private label toilet roll, kitchen roll and facial tissue products for most of the UK's major grocery retailers.
The group posted revenue for the year ended April 30 of GBP136.6 million, a 1.4% rise from GBP134.8 million the prior year.
However, pretax loss for the year was GBP2.6 million, widened from GBP1.9 million the year before, driven by higher administration expenses.
The proposed final dividend for the financial year is 0.50 pence, demonstrating the board's confidence in the future prospects of the business compared to the prior year when Accrol decided against a dividend.
"With our market share at 15.9% and the management team's ability to deliver strong returns, Accrol is increasingly well positioned to benefit in a value-conscious world, post-pandemic, and to capitalise on the recovery in tissue volumes and improving discounter sales," said Executive Chair Dan Wright.
"With no further significant capital requirements for the Tissue Converting division and the group able to use its own resources for its planned investment in a mill, due to be operational by 2024, the group is in a very strong position to continue to grow," added Chief Executive Gareth Jenkins.
Shares in Accrol Group were down 1.8% at 44.67 pence each in London on Wednesday afternoon.
By Amrit Sahota; newsroom@alliancenews.com
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Accrol Gp (ACRL)