Accrol Group Holdings PLC (LON:ACRL), the toilet tissue and kitchen roll maker, wiped away two thirds of losses and £2.2mln of debt in the first half of its financial year.
The group showed evidence of an improving monthly run rate and said that the turnaround plan put in place almost two years ago was now complete.
“With the turnaround complete and a strong management team in place, the board is now focusing on further automation of the group's operations and strategic opportunities to diversify, scale and grow the business,” Accrol said.
Revenue in the six months ended 31 October of £65.1mln was up 13% year-on-year, with losses shrinking to £3.0mln from £9mln last time as £1.1mln more operational costs were removed.
Consumer-only revenue was up 20% to £64.5mln, with underlying profit (adjusted EBITDA) a positive £3.2mln to reverse the £1.1mln loss a year ago.
The board said the group was "on track” to meet market expectations for the full year and it was “increasingly confident in the prospects for the group”.
Margins have continued to strengthen in the second half as new agreements come into effect, while further production efficiencies through increasing automation is being introduced, with benefits expected in the second half.