20th Oct 2021 11:35
Accrol Group Holdings PLC - Blackburn, England-based private label toilet roll producer - Expects earnings to be lower than anticipated and weighted towards the second half, in its financial year ending April 30, 2022. Tightening raw material supply chains and HGV driver shortages, coupled with higher production and energy costs will restrict revenue growth in its full year, the company explains.
It also forecasts that earnings before interest, tax, depreciation and amortisation will improve by 20%, up from the GBP15.6 million reported in financial 2021. Guides revenue growth of around 25% year-on-year, from GBP136.6 million. Adjusted net debt is forecast to remain in line with current market expectations, the company notes.
"Accrol remains well placed to benefit from the ongoing recovery in volumes in the discount sector and a more stable cost environment, as the full effects of the pandemic and broader supply chain and distribution constraints unwind," it says.
Current stock price: 38.60 pence, down 14% on Wednesday morning
Year-to-date change: down 39%
By Scarlett Butler; [email protected]
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