Accrol Group Holdings plc LON:ACRL the AIM listed leading independent tissue converter, has given DirectorsTalk the following update on trading.
The business has made good progress since the start of this financial year and trading has been in line with our expectations. During the six months ended 31 October 2016, the Company has continued to win new business with existing customers in addition to the previously announced new £10m contract gain, which we can now confirm is Lidl.
Installation of two high-speed converting lines in our new 168,000 sq. ft. manufacturing facility in Leyland is well underway and will increase our total capacity to 143,000 tonnes per annum. The premises will initially house the two high speed tissue converting lines we purchased in April 2016 and the increased capacity will support our continued growth with both Discounters and Major Multiples in the UK.
We continue to follow our hedging policy to mitigate adverse movements in Sterling against the US$ and Euro. Following our significant purchase of dollars pre-Brexit, we have increased our facilities and we continue to closely monitor the Company’s forward currency positions.
We remain confident in the outlook for the full year and that the strong cash flows generated by the business will support our progressive dividend policy and underpin our continued growth.
The Company’s interim results will be announced on Thursday 5th January, 2017.
Steve Crossley, Accrol’s CEO, commented:“Since the start of this financial year we have made good progress on our strategic aims and we are increasing our production capacity to enable us to take advantage of new opportunities as they arise.
“We are pleased with the new business that we have won since the start of the financial year and with progress on the manufacturing facility in Leyland, Lancashire and look forward to the future with confidence.”