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TRADING UPDATES: Accrol to beat consensus; Plant Health cautions

22nd Nov 2023 12:21

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Wednesday and not separately reported by Alliance News:

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Accrol Group Holdings PLC - Blackburn, England-based private-label toilet roll manufacturer - Says in the six months to October 31, volume growth continued. It says it performs strongly in the half-year, with margins returning to pre-pandemic levels "quicker than forecast". It now expects adjusted earnings before interest, tax, depreciation and amortisation for financial 2024 of at least GBP21 million, which would be a 35% improvement from the GBP15.6 million achieved in the prior financial year, and ahead of market expectations of GBP20.5 million.

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Plant Health Care PLC - Holly Springs, North Carolina-based maker of biological products for agriculture - The maker of biological products for agriculture warns it expects revenue in 2023 to make little progress from the prior year's USD11.8 million. The challenging market conditions highlighted in the firm's interim results have continued to deteriorate, particularly in the US. Global markets such as Brazil, Europe and some Asian markets have been "subdued". "Sales orders in the US have not materialised as originally anticipated as the company's distribution partners in the region have gone through a significant inventory correction. This has, in large part, been driven by volatility in demand and price following the global Covid-19 pandemic, as well as the effects of an increasing interest rate environment and change in growers purchasing habits," it says. It also warns that regulatory delays in India will push back some product launches, which will likely weigh on its performance in 2024. Revenue for 2024 is to be 28% lower than market expectations of USD23 million. The company remains confident order intake will rise once customers have corrected inventory levels.

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Breedon Group PLC - Derby, England-based construction materials firm - Hails "strong performance to October". Says strong pricing more than offsets moderating volumes. Says revenue for first 10 months of year increases 8% and revenue for four months to October 31 alone up 4%. Breedon adds: "As expected, changes to building regulations in the UK that took effect in June impacted ready-mixed concrete volumes. Aggregate and asphalt volumes have continued to moderate. However, pricing has been sustained and we have maintained tight control over our cost base. We continue to generate good free cash flow and are on track to deliver a further reduction in covenant leverage at the year end, providing financial flexibility to continue to invest for growth." It now expects to achieve underlying earnings before interest and tax for 2023 ahead of market consensus of GBP147.6 million. It achieved an underlying Ebit of GBP155 million in 2022.

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Gateley Holdings PLC - Birmingham, England-based legal and professional services group - Says revenue for six months to October 31 expected to grow by around 7% and be no less than GBP81.5 million. Underlying pretax profit of no less than GBP10.0 million expected, growth of around 4%. Gateley adds: "Activity levels improved throughout Q224, compared to Q124, and the group continues to perform in line with the board's expectations for FY 24. However, the board remains mindful of current economic conditions and, therefore, maintains a cautious outlook."

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Ariana Resources PLC - mineral exploration and development company with gold mining interests in Turkey, Cyprus and Kosovo - Says "due diligence drilling programme" begins at Dokwe gold project in Zimbabwe. Asset belongs to Rockover Holdings Ltd, in which Ariana has a 1.3% interest in, as well as project exclusivity through the Asgard Metals Fund. It adds: "Up to 1,500 metres of diamond drilling [is] planned to test two significant resources at Dokwe North and Dokwe Central."

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Cobra Resources PLC - South Australia-focused gold and rare earth exploration company - Granted 213 kilometre exploration tenement in northern Tasmania, Australia. Says tenement is "complementary" as hosts "rare earth mineralisation". Chief Executive Rupert Verco says: "Tasmania has a history of mining industrial metals, with good transport infrastructure, labour, energy, and water availability. We are evaluating strategic options to advance a low-cost exploration programme whilst maintaining our primary focus on advancing our ionic rare earth discovery in South Australia."

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By Eric Cunha, Alliance News news editor

Comments and questions to [email protected]

Copyright 2023 Alliance News Ltd. All Rights Reserved.

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