Toilet roll maker says turnaround strategy starting to pay off
Blackburn toilet roll maker Accrol said it’s turnaround strategy is starting to reap dividends.
The firm, which has endured a torrid time in recent years, issued a trading update his morning. At one stage the company was forced to suspend trading in its shares.
The company said following its restructuring the business performed well in the fourth quarter and in line with the management’s strategic turnaround objectives.
Accrol said it achieved acceptable levels of monthly profitability on an adjusted EBITDA level.
Total revenues in the full year were £119m, which were broadly unchanged on a like for like basis against the prior year.
Sales in the group’s core toilet roll product, however, increased by 12% year on year to £85m from £76m in 2018.
Adjusted EBITDA was £1m, representing a £7m improvement on the prior year despite the substantial impact of FX and material cost headwinds which increased by an estimated £10m.
Adjusted loss before tax is expected to be in the range of £2.5m to £3m.
Exceptional costs, primarily associated with the turnaround process, are expected to be in the range of £7.5m to £8m.
Net debt was reduced faster than anticipated, finishing the year at £27.1m, £2.5m lower than the previously forecast, ensuring that the Group comfortably fulfilled on its banking commitments.
Chairman Dan Wright said: “I am very pleased to report that we finished FY19 in a much stronger position, following the conclusion of a transformational restructuring, and that the new financial year has started well.
“The group is now enjoying the full benefits of the structural cost savings achieved in FY19, achieving an acceptable level of margin for a business of its type.
“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.”
