Unlikely victim: Energy crisis pushes tissue maker Accrol into strategic review
Tissue maker Accrol is to undergo a strategic review after a ‘significant’ jump in energy costs, making it an unlikely victim of the UK’s energy crisis.
The group has also been battling rising inflation, which has hiked the price of pulp and made its supply chains more costly.
The news pushed investors to pull out of the stock, which prompted shares to plunge 18.7 per cent to 25p per share by mid-afternoon.
The crisis that has swept Europe has seen 27 UK energy suppliers collapse under the pressure.
While Accrol has tried to trim costs, increasing prices for customers as a result, “unavoidable surcharges to parent reel prices, relating to exceptional energy price increases… will significantly impact margins”, it said in its trading update for the year to April 30.
Accrol has forecast its recovery for 2023, but will update shareholders on its review next week.
The group assured shareholders that the underlying business is in “good shape” and that revenue is expected to hit around £160m for the full year.
However, adjusted earnings before interest, taxes, depreciation and amortisation will some £6.6m lower than last year.