Paper maker Accrol cleans up as profits surge 52%
FAMILY-owned toilet tissue and kitchen roll manufacturer Accrol Holdings has reported a 52% surge in profits to £7.2m after it fought back against higher raw material prices by buying direct from paper mills.
The Blackburn company which is led by managing director Majid Hussain, and sons Wajid, operations director, and finance director Mozam. also grew staff numbers from 103 to more than 180 and continued to invest in new equipment for its factory on Roman Way Industrial Estate.
Turnover in the year to the end of April surged 26.8% to £63.5m. Accrol, which 
supplies a number of fast-growing discount retailers with products including its Sofcell toilet paper, said it had invested £3.4m in new equipment during the year.
The company, which is owned by the Hussain family, has the capacity to convert in excess of 60,000 tonnes of tissue a year, and can make more than million toilet rolls and over 500,000 kitchen rolls every day.
In a business review the directors said: “We have developed a strong purchasing strategy, holding relationships with a number of suppliers around the world to allow us to remain flexible.
In the last report we pointed out that following a significant increase in raw material prices the gross profit margin had declined. As a result of dealing with more mills on a direct basis we have recovered the position in the last 12 months and the gross profit margin has improve from 23.4% to 26.9%.”
In March the company opened a £6m warehouse in Blackburn, aided by a £1.4m grant from the Government’s Regional Growth Fund.
Accol”s sister company, Phoenix Court Blackburn, is set to receive £1.5m from the second round of RGF to fund another expansion of the site.
