The Board of Accrol is pleased to announce the following trading update ahead of its results for the full year ended 30 April 2019, which will be announced on 3 September 2019.
Following the conclusion of the restructuring, the Group performed well in Q4 and in line with the management's strategic turnaround objectives, achieving and maintaining acceptable levels of monthly profitability on an Adjusted EBITDA level.
Total revenues in FY19 were c.£119 million, broadly unchanged on a like for like basis against the prior year, as the Group exited a number of low margin contracts. Sales in the Group's core toilet roll product, however, increased by c.12% year on year to c.£85 million from £76 million in FY18. Adjusted EBITDA was c.£1 million, representing a c.£7 million improvement on the prior year despite the substantial impact of FX and material cost headwinds which increased by an estimated c.£10 million. Adjusted loss before tax is expected to be in the range of £2.5 million to £3.0 million. Exceptional costs, primarily associated with the turnaround process, are expected to be in the range of £7.5 million to £8.0 million. Net debt was reduced faster than anticipated, finishing the year at c.£27.1 million, c.£2.5 million lower than the previously anticipated level of c.£29.6 million, ensuring that the Group comfortably fulfilled on its banking commitments.
Dan Wright, Chairman of Accrol, 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."