Accrol Group Holdings plc LON:ACRL, the AIM listed leading independent tissue converter, has told DirectorsTalk that it has agreed a new contract with a major global retailer to supply toilet paper, kitchen rolls and facial tissues with revenues expected to be more than GBP10 million per annum at manufacturer’s selling price.
The new contract further consolidates Accrol’s position as a leading player within the marketplace and will commence in Autumn 2016 using existing manufacturing capacity.
In the event that there is a period of reduced consumer expenditure following the UK’s decision to leave the European Union, it is possible that the move towards non-discretionary economy and private label products will accelerate. If this happens, Accrol believes it is well positioned to benefit as over 50% of sales are generated from the discount market segment and the Company is primarily focused on supplying private label products to both discount and multiple retailers.
The Company remains significantly hedged against adverse currency movements for the financial year ending 30 April 2017. Moreover, whilst only two months of this financial year have passed, the directors are comfortable with market forecasts and continue to see opportunities in the market. Results for the year ended 30 April 2016 will be announced on 22 July 2016.
Steve Crossley, Accrol’s newly appointed CEO commented LON:ACRL: “We are delighted that another major global retailer has chosen Accrol as a supplier for its tissue products. This is a great start to Accrol’s life as a publicly listed company and represents a major business win that will contribute significantly to our future growth”.
