Tissue maker sees two thirds of market value wiped out

Tissue maker Accrol has suffered a further setback following the lifting of suspension of trading in its shares on the AIM as two thirds of its market value was wiped out.

This followed the announcement of an £18m share placing yesterday (Monday, November 20) which heralded the return to trading in shares of the Blackburn toilet roll manufacturer.

Accrol shares were trading at 66% down at 44.55 pence in the afternoon. The company valued at £40m also announced 89 job losses last week as part of a restructuring programme initiated by newly-appointed chief executive Gareth Jenkins.

Five of its directors, including chairman Peter Cheung and Jenkins, are themselves investing £200,000 in the share placing.

Accrol is also awaiting sentencing in January after pleading guilty to a health and safety offence which led to an employee suffering serious injury to a finger.

The Health and Safety Executive has told the company that it is seeking a fine in the range of £550,000 to £2.9m.