(Alliance News) - Accrol Group Holdings PLC on Tuesday said it will bring back its dividend this financial year, with the facial tissue products manufacturer expecting annual results in line with market expectations.
In its first half ended October 31, Accrol's revenue slipped 4.3% year-on-year to GBP62.3 million from GBP65.1 million.
The company did, however, narrow its interim pretax loss to GBP503,000 from GBP3.0 million a year earlier.
Sales costs were down 9.0% from the prior year to GBP47.5 million and distribution costs fell 22% to GBP4.3 million.
Accrol in November acquired LTC Group, a UK-based tissue converter, for an enterprise value of up to GBP41.8 million.
The integration of the new unit is progressing "better than expected", the company said.
"With margins continuing to improve, LTC contributing positively and the business continuing to deliver strong organic growth, the board is confident that the group is fully on track to deliver a strong second half performance and results for financial 2021 will be at least in line with market expectations," Accrol added,
"As a result, the board is delighted to announce its intention to restore dividend payments earlier than it anticipated."
The company will propose a final payout of "no less" than 0.5 pence per share.
Accrol axed its final dividend in the year ended April 2018 and has not made a payout since. Back in January of last year, it said it intended to begin paying dividends again in the medium term, assuming its performance remained in line with board expectations.
Accrol shares were 4.8% lower at 69.50p each in London on Tuesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Accrol Gp (ACRL)