Accrol Group Holdings PLC (LON:ACRL) is now more “operationally efficient and fit for purpose”, executive chairman Dan Wright told investors in Tuesday’s financial results statement.
The UK-listed loo paper and kitchen roll firm revealed that in 2019 it achieved positive earnings, a narrower pre-tax loss and it wiped away nearly 20% of net debt.
Accrol’s underlying results highlighted core revenue of £116.7mln, up from £115.3mln, while adjusted earnings (EBITDA) was stated at £1mln versus a £5.8mln loss in the year before.
Statutory figures, meanwhile, showed a £14mln loss before tax, narrowed from a £24.1mln loss in the prior year. Net debt reduced to £27.1mln from £24.1mln.
In its outlook statement, Accrol highlighted that it is now a profitable and cash generative business. The company anticipates costs to reduce and its net debt position is expected to improve.
Accrol highlighted that its product lines as positioned to be ‘brand killers’, positioned to capitalise on the accelerating consumer shift from expensive established brands to “best value tissue products”.
Wright highlighted: “The new board and management team of Accrol delivered a complex and comprehensive turnaround plan in FY19, simplifying and strengthening the business to improve efficiency and optimise operational performance.
“Following the conclusion of this restructuring, I am pleased to say that I believe the business is more operationally efficient and fit for purpose than it has ever been.”
"By the end of the year, we achieved our stated objective to return the group to monthly profitability and I am pleased to report that the reengineered business is showing resilience in the face of strengthening FX headwinds.”
Since the year end, Accrol has delivered improving levels of monthly profitability, he added.
“As such, we are on track to meet market expectations in FY20 and the board is confident that the group will exit FY20 at an accelerating monthly run rate."
Chief executive Gareth Jenkins meanwhile said: “We keep a watchful eye on the strength of the pound and will take the steps necessary to mitigate the risks of continued currency weakness, but that should not distract us from profitably meeting our customers' needs.
“The business has now been reset.
“There is a huge opportunity for the group in the rapidly growing personal hygiene value market and, whilst there is more to do, the board has real confidence that the foundations have been laid for a successful future."
Shares were up 5% to 26.88p on Tuesday morning.