Lancashire toilet roll makers optimistic after increase in market share

Accrol, which has a manufacturing facility in Leyland, said that its losses before tax was £2.5m for the year ending April 30, 2022, down from £3.1m the previous year.

This followed an increase in revenue from £136.6m in 2021 to £159.5m this year and a rise in its market share by volume of 19.5 per cent, compared with 18.9 per cent in 2021, showing business bouncing back after the period of lockdowns.

It said new customers had been secured through increasing product diversity – notably Amazon, Unitas, Spar, Ocado and Sainsbury’s.

The firm said the results were in line with expectations and now it was predicting further strong revenue growth - up around 17 per cent year on year.

Bosses added that the company had amended and extended its banking arrangements to Aug 2024, providing 25 per cent additional headroom, which demonstrated continued confidence in the Group’s operating performance and support the board’s growth ambitions.

The report said that it had completed an automation process at its Blackburn and Leicester sites, while machine investment and full automation was due to be finished in Leyland in the first quarter of next year.

Dan Wright, executive chairman of Accrol, said: “While remaining mindful of the extremely challenging macro environment, the board views the prospects for Accrol with confidence, given the strong and rapid recovery of input cost rises in the second half of this year after the delay in the first half, our strengthened customer relationships, improved levels of service and quality, and its great value product range.

Chief executive Gareth Jenkins said: "Accrol is unrecognisable from the business which floated in 2016. It is resilient, agile, and strong.

"The cost of living crisis, being faced by UK consumers, is driving demand for great value products across the board."

"Our goal, over the last four years, has been to create an innovative, sustainable and market-leading business, which I believe we have finally achieved.

"This has been delivered through the hard work and dedication of our team and never have their skills and commitment been more clearly demonstrated than in the year under review.