Accrol revenues rise

AIM-listed independent tissue converter Accrol Group Holdings reports revenues of £63.9m for the six months to the end of October - 8.8% up on last time.

Gross Profit increased 5.6% to £18.2m and adjusted gross margin improved by 1.1% to 28.4% (H1 FY16: 27.3%) through significant currency hedging pre and post EU referendum and negotiated parent reel pricing.

Adjusted EBITDA increased 1.5% to £7.1m and net debt reduced by £3.2m from £23.1m at flotation to £19.9m at 31 October.

The group says it has increased its foreign currency facilities significantly and continued with its existing hedging strategy.

Chief executive Steve Crossley said: "Our strong first half performance demonstrates the success of our strategy of organic growth through Discounters and increasing market share through the supply of Private Label products to some of the UK's largest retailers.

"We have continued to win new business, including a contract with Lidl which is expected to generate more than the £10m sales per year previously announced, increased our market share in the discount sector to circa 50% and have made significant progress with our strategic plan of making operational improvements and increasing capacity to ensure we can best meet the growing demand for our products. We remain confident in the outlook for the full year."