Accrol Group Holdings PLC (LON:ACRL) saw trading suspended in its shares today on AIM as the toilet tissues firm warned on earnings saying it is currently experiencing “more challenging trading conditions”.
In a trading update, Accrol said: “Whilst the revenue expectations for FY18 remain broadly in line with market expectations, the Board has reviewed its expectations of the Group's performance.”
It added: “Based on current market conditions, the Board now anticipates that earnings will be significantly below existing market forecasts for the current financial year, and as a consequence net debt will be correspondingly higher at year end.”
The group said as a result it will review its dividend in respect of the current financial year, and requested a suspension of trading in its shares while it considers the anticipated impact on the company's net debt position.
Accrol pointed to continued increases in input costs being driven by parent reel price rises, and said the anticipated inflation recovery through product price increases have delivered less than planned to date.
The group also revealed that a health and safety incident, occurring before its IPO in June 2016, has led to a fine being imposed which will hit its cash position, although trading will not be affected.
Shares in Accrol were suspended at 134p.