Discount loo roll business Accrol today reported growing revenue and profits, while laying out plans to capitalise on customers being driven to cheaper options after the EU referendum.
Accrol, which floated on the Alternative Investment Market (Aim) in June, reported revenue of £63.9m, up 8.8 per cent, in unaudited interim results for the six months to 31 October.
Earnings before interest, taxation, depreciation and amortisation (Ebitda) came in at £7.1m, up 1.5 per cent, and the firm reported a gross profit of £18.2m, up 5.6 per cent.
The Lancashire-based firm also today announced a maiden interim dividend of 2p.
Its share price remained relatively flat at 127p, up from less than 110p when it floated.
Why it’s interesting
Accrol floated at a time when many other firms were holding back, ahead of the EU referendum.
Speaking to City A.M. in July, the firm’s chief executive said he had no regrets about taking the plunge and was hopeful for the company’s prospects.
Today, in the results release, Accrol set out why it is well placed to benefit from the UK’s Brexit vote and expected future inflation:
We believe post-referendum concerns over inflation will only serve to further drive consumers into the discounters and purchase more affordable private label products as they seek quality and value.
We will continue to invest in capacity as we are well placed to take advantage of these trends in the marketplace.
What the company said
Chief executive Steve Crossley said:
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 per cent 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.