Accrol hikes expectations after strong first half
By Josh White
Date: Wednesday 22 Nov 2023
(Sharecast News) - Tissue conversion specialist Accrol reported a solid first-half performance in a trading update on Wednesday, having experienced continuous volume growth.
The AIM-traded firm said it achieved a notable milestone by quickly returning its margins to pre-pandemic levels in the half-year, surpassing earlier forecasts.
As a result, the board now expects adjusted EBITDA for the 2024 financial year to reach a minimum of £21m.
Accrol also noted adjusted net debt of £25.5m as of 31 October, compared to £30.5m in the first half of the 2023 financial year.
That debt reduction was primarily attributed to strong cash generation, driven by operational efficiencies within the business.
Additionally, the board said it anticipated adjusted net debt would approach a level close to 1x EBITDA by the end of the fiscal year.
"We are clearly very pleased with this performance," said chief executive officer Gareth Jenkins.
"We continue to deliver by having great quality and value products which meet every consumer's budget.
"Our strong relationship with the retailers and our robust supply model are ensuring we can continue to deliver a strong set of results in a changing market environment."
At 1404 GMT, shares in Accrol were up 8.66% at 32.16p.
Reporting by Josh White for Sharecast.com.
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