News World News

Tuesday 17 October 2017

Toilet paper maker Accrol suspends trading and warns over profits

The group said earnings would be “significantly below” its forecasts for the current financial year as tough trading conditions tore into the business.

LSE sign
LSE sign

By Ben Woods, Press Association Chief City Correspondent

Toilet tissue maker Accrol has halted trading on the AIM market and issued a profit warning after being hammered by rising costs.

The group said earnings would be “significantly below” its forecasts for the current financial year as tough trading conditions tore into the business.

Accrol, which hired chief executive Gareth Jenkins last month, is facing rising manufacturing and expansion costs and a prospective fine linked to a “health and safety incident”.

In a statement, the company said it would review its divided for the current financial year.

It added: “Whilst the revenue expectations for FY18 remain broadly in line with market expectations, the board has reviewed its expectations of the group’s performance.

“Based on current market conditions, the board now anticipates that earnings will be significantly below existing market forecasts for the current financial year, and as a consequence net debt will be correspondingly higher at year end.”

While the group expects trading for the 2018 financial year to suffer, the challenging conditions will have less of an impact in 2019.

The Blackburn-based firm halted trading on the London Stock Exchange’s junior AIM market at 7.30am on Thursday.

Accrol manufactures toilet paper, kitchen rolls and facial tissues.

Press Association

Independent.ie Comments Facility

INM has taken the decision to remove the commenting facility on its online platform Independent.ie to minimise the legal risk to our business that arises from Ireland's draconian libel awards system.

We continue to look forward to receiving comments through direct email contact or via social media, some of which may still be featured on the website Independent.ie


Editors Choice

Also in World News