Thursday 26 May 2016 2:58 pm

Loo roll business plans float ahead of EU referendum

A Northern loo roll business is showing not even a wee bit of fear ahead of the EU referendum.

Accrol today announced its intention to float on the London Stock Exchange’s alternative investment market (Aim) less than two weeks before the vote.

The independent tissue converter, which has been advised by Zeus Capital, is expected to price its initial public offering (IPO) on 10 June.

IPO experts have noted that firms are generally holding back flotations until after the 23 June vote.

Read more: London set for IPO market recovery… but not just yet

Blackburn-based Accrol, which claims a seven per cent share of the UK’s tissue market, has been backed by NorthEdge Capital since a £66m buyout in July 2014.

The IPO, which will mark a partial exit for NorthEdge, is the North of England-focused private equity firm’s first ever float.

NorthEdge said Accrol’s sales exceeded £100m in 2015, while its earnings before interest, taxation, depreciation and amortisation (Ebitda) grew by 13.7 per cent.

Read more: More action in Amsterdam as London's float market awaits referendum

Dan Wright, chief operating officer and head of portfolio at NorthEdge Capital, said: “Accrol has enjoyed sustained growth during the two years we have been working with the business. The drive and passion of the management team to develop the business has been exemplary. A prospective IPO is an opportunity for the team to further build on a robust platform for growth.”

Peter Cheung, chairman of Accrol, said: “We are delighted by the level of interest and support we have received from high quality institutional investors. We are a very well invested company with an attractive and progressive dividend policy and we look forward to creating value for all of our shareholders in this new and exciting stage in Accrol’s development.”