Accrol delivering on promises & well positioned going into next year (LON:ACRL)

Accrol Group Holdings plc (LON:ACRL) Chief Executive Officer Gareth Jenkins caught up with DirectorsTalk for an exclusive interview to discuss the post-close statement, growing market share & volume, further investment, space capacity to grow, the John Dale wet wipe business, and what the future looks like for the group.

Q1: Gareth, final results are scheduled to be released in late September, what pleases you most about the post-close statement?

A1: I think the most exciting bit about it really is that Accrol Group delivered what we said we’re going to do. We upgraded our numbers in late December ’22, and we’re really pleased to report that our revenue is higher than we expected.

Quite simply, we’ve delivered on all the promises that we gave our shareholders at the beginning of the year, despite some really challenging times in the last 12 months.

So, we’re just pleased with delivering on our promises.

Q2: You’ve gained further market share this year, not to 21.5%, and you’ve grown volume by almost 8%, what do you feel that you’re getting right?

A2: Over the last 5 years, we’ve seen our market share grow from probably around 8% to now, as you said, just under 22% this year. Certainly, over the last 12 months we’ve listed to the retailers, we’ve listened to what consumers have been saying and we know we’re now getting the right products in front of the individuals.

For toilet tissue, it’s all around softness and we’re one of the market leaders in the sector there. With kitchen towel, it’s on absorbency, and again we compete head-to-head with the brand leaders on performance.

So, it’s about getting the right product to the right consumer, and clearly, we feel we’re getting that right now.

Q3: You’ve spent, over the last few years, about £20 million on capital investment in the business, what else is needed in the next 3-5 years?

A3: In the core business, very little. There’ll be maintenance capital of around £3 million per year but really quite modest investment for the business going forward.

As you’ve said, we’ve spent a great deal of money. We’ve put the business in an incredibly strong position and all our sites are fully automated, all with state of the art machinery.

So, we’re in a really strong position to take advantage of what’s happening in the market.

Q4: How much spare capacity do you have to grow into?

A4: So, the business has about 20-25% spare capacity as we stand today., so more than enough for the next 2-3 years. We’ve worked really hard investing in the right areas to give us that additional headroom and we’re very confident that our growth projections that we’ve got in the marketplace.

We will continue to deliver on those, and we’ve certainly got the machinery and the capacity to do that so we’re in a really good space.

Q5: How excited are you about the wet wipe business, and can you tell us more about that part of the business?

A5: We bought John Dale just under 2 years ago and we bought that business because it was capable of producing biodegradable, water industry approved, flushable wet wipes, turning over in wet wipe volume then of around £2 million. We’ve made some relatively modest investments so far, but we plan to put a further machine into the business.

What I’m really pleased about is the reaction from retailers so we’ve brought to them some new products, all of them are water industry approved, flushable wipes. All of them are plastic-free and we’ve seen a real dramatic increase in revenues in this part of our business, current run rates are over £10 million.

So, we’re really excited about what we can achieve and the capacity, once this new machine comes online, will give us around about £40 million of the revenue. It’s an exciting part of our business, it’s growing very strongly and I’m looking forward to seeing how it progresses over the next couple of years.

Q6: Finally, what does the future look like for Accrol Group?

A6: Good. We’re well positioned going into next year, volumes continue to track where we expect and the business is really well invested.

We’re seeing a real market shift towards private label products as the cost of living crisis impacts individuals, people looking for real value on the shelf for an everyday product like toilet roll or kitchen towel.

We’re really well positioned to take advantage of that so we’re really excited about next year and beyond.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Share on twitter
Share on linkedin
Accrol Group

More articles like this

Accrol Group

The benefits of a laundry sheets subscription

Imagine laundry day, simplified. No more heavy detergent bottles, no more measuring, and no more environmental guilt. At Oceans, we believe that keeping your clothes clean should be effortless and eco-conscious. That’s why we’ve introduced our eco-friendly laundry sheets and

Accrol Group

Accrol performs strongly, gaining further market share

Accrol Group Holdings plc (LON:ACRL), the UK’s leading independent tissue converter, has announced its audited final results for the year ended 30 April 2023, which show strong growth in both revenue and profit, driven by increasing market share and

Accrol Group

Accrol analyst briefing to be held on 26 September 2023

Accrol Group Holdings plc (LON:ACRL), the UK’s leading independent tissue converter, has announced that it will release its Final Results for the year ended 30 April 2023 on Tuesday, 26 September 2023. An analyst briefing will be held online

Accrol Group

The perks of a toilet roll subscription

Have you ever wondered how you can make a difference in the world while still enjoying the little luxuries of life? Well, look no further, because today we’re diving deep into the fantastic world of a toilet roll

Accrol Group

Flush out harsh chemicals

Let’s face it, cleaning the toilet isn’t exactly glamorous, and the harsh chemical odours can make it downright unbearable. Did you know that the average household is unwittingly hosting a whopping 62 toxic chemicals in their cleaning products? Yikes! But

Accrol Group

Is doing laundry bad for the environment?

As we strive to lead more sustainable lives, from ditching single-use plastics to making sure we recycle correctly; we also need to make sure our daily routines are as green as they can be, including seemingly mundane tasks

Accrol Group

Me & my brand: Ashley Taylor of Accrol

Ashley Taylor, Sales Director, Accrol Group, talks about how Elegance makes a luxurious and value-conscious product out of the essential purchases every household must make An overview of the brand Toilet tissue is an everyday essential that features

Accrol Group

UK manufacturing production uptick bolsters Q2 GDP growth

The UK manufacturing sector was the largest contributor to production output in June 2023, which in turn was the largest contributor to GDP growth, according to the latest ONS figures. The UK economy grew by a modest 0.5 per

Accrol Group

Eco-friendly travel tips for a green UK staycation

Hello eco-conscious explorers and sustainable globe-trotters! Are you planning a staycation in the beautiful UK? If so, we have some fantastic eco-friendly travel tips to ensure your journey is as green as the rolling hills. Here’s what you

Accrol Group

Revolutionising UK manufacturing: The role of IoT

The Internet of Things (IoT) is revolutionizing UK manufacturing, driving efficiency, productivity, and innovation in an industry that is a cornerstone of the nation’s economy. The integration of IoT into manufacturing processes is not just a trend, but

Accrol Group

UK manufacturing surge lifts second quarter growth

The UK economy grew faster than expected in June, helped by a surge in manufacturing production. Monthly GDP rose by 0.5% on the month, though the 2.4% increase in manufacturing between May and June is extremely unusual (at

Accrol Group

How to ditch single use plastics

We all know that the world is drowning in a sea of plastic pollution. It’s estimated that only 9% of all the plastic ever produced has been recycled, and in some places up to 11 million tonnes of plastic enter

Accrol Group

Family days out that are kind to the environment

The summer holidays can be a great time for family days out. From the beach to the park, there are lots of wonderful places to explore and create lasting memories. But what if you could have a fun-filled

Accrol Group

Natures had enough: Our first-ever TV ad campaign!

Accrol Group Holdings plc (LON:ACRL) is the UK’s leading independent tissue converter, producing toilet tissue, kitchen towel, facial tissue and biodegradable wet wipes. The UK soft tissue market is worth £1.6bn with private label products comprising circa 50%.

Accrol Group

UK grocery inflation eases for fourth month

UK grocery price inflation eased for a fourth consecutive month in July, according to data published by Kantar ahead of official inflation figures on Wednesday. The research company found that the annual pace of grocery price inflation eased

No more posts to show