Accrol Group Holdings plc is a leading independent tissue converter, manufacturing toilet rolls, kitchen rolls, facial tissues and AFH products to supply retailers throughout the UK. Accrol imports parent reels from around the world and converts them into finished goods at the Company’s 350,000 sq. ft. manufacturing, storage and distribution facility in Blackburn, Lancashire. Accrol currently manufactures approximately 17 million units per week and supplies some of the UK’s largest retailers.

Accrol Group Holdings plc is listed on AIM, the growth market of the London Stock Exchange.

The Company was incorporated and registered in England and Wales on 30 April 2014 under the Act with registered number 9019496 as a private company limited by shares with the name Aghoco 1220 Limited. The name of the Company was changed to Accrol Group Holdings Limited on 1 August 2014. The Company was re-registered as a public limited company with the name Accrol Group Holdings plc on 1st June 2016. Accrol Group Holdings plc’s main country of operation is the UK.

The Company, and the Group, trade under the name “Accrol Papers”.

Cheers stevesham.


paragraph from the the intention to float on the aim market document dated 26 May 16.

Macro-economic impact on raw material prices - There is currently a global over-supply of both pulp and Parent Reels, with additional capacity forecast to be brought on stream through to 2019. As such, Parent Reel prices are currently relatively low and are expected to remain so for the foreseeable future. Low Parent Reel prices allow Accrol to manufacture at a lower cost, enhancing margin and providing pricing flexibility to win new orders. Overcapacity drives increased flexibility of supply and provides Accrol with a choice of pricing and technology when sourcing Parent Reels.

My take on that, having been through so many pulp price cycles, in real terms what I believe will happen as it has done numerous times and the same goes for polythene extruders with oil price volatility is...

If pulp goes up the whole market will move up their price points, it is quite interesting to watch, one of the big names usually starts first Kimberly Clark, SCA for example then some of the larger converters Accrol being one of them along with others and then the smaller ones as they generally try to pick up market share having fewer overheads.

That said, I think we have reached the stage that no-one wants to use cut up newspaper so even if the prices move up, there is still a growing market, so even if margins are squeezed increasing volumes as long as the business model remains should still be fine.

Now the biggest challenge as with any business and with new people at the top is to keep costs under control as they always have run very lean and keen.

Just my thoughts

Keep your thoughts rolling. You sound very knowledgeable. :-))

Thanks Dreamcatcher I work in the industry

:-))

We may be coming out of Europe, but we will still need toilet rolls!

Even more today. :-)) Just hope raw material cost does not rise to sharply. As you said before, it will have to be passed on.

I payed just under 111p per share.

Indeed :-))

Fared well today considering.

I got in at just over £1.11, but as I said before I am happy with this, I am not a frantic day trader this is one to tuck away and watch it grow, just waiting for the dust to settle from the referendum and then I intend to top up.

As you, I thought it held up well with everything else just falling through the floor (with the odd exception. maybe because to many a toilet roll company is just too dull, boring and uninspiring which suits me perfectly ;-) therefore not a lot of activity.

Also at the end of the day, it doesn't need to pay for European/Eastern European temporary workers like fruit and veg farmers, expensive agency staff like the NHS, just solid jobs for hard working people a true 'bucket and spade' business which again is another big tick in the box for me.

Stevesham, looking back I see they were going to purchase their own paper mill. Just wonder if it will still be something for the future?

Good question, I didn't know that I may ask them as for me at least the simplest business model would be to continue converting parent reels for the following reasons

1. Wider choice of suppliers from the major mills already operating for example Kimberly Clark, SCA, Metsa Tissue, Georgia Pacific being the main ones however https://en.wikipedia.org/wiki/List_of_paper_mills there are dozens

2. Additional Environmental legislation to conform with as water, chemicals have to be disposed of as there will no doubt be an element of recycled paper going through the mill, and if it is newsprint for example it has to be chemically whitened as dull grey tissue is not that appealing

3. Cost of equipment and energy to heat and run versus the low potential savings, but to balance that, if Accrol did maunfacture the paper they could also sell the parent reels into the market

4. I like simple, let others have the hassle of owning and managing the forests, planting the trees, pulping the wood etc, unless of course it was purely recycled paper which is not in my view as good virgin fibre because when paper is recycled it is put back together with glue and the length of the fibres are shorter than virgin fibre right off the tree

I could go on, but I am starting to get boring, but one final piece of information is the amount of different properties of paper and tissue demanded by the market for different applications.

Softness for skin contact

Wet strength for example when used catering environments doesn't break down when wiping kitchen surfaces

General Absorbency

Low linting for use at electronic producers and other industries where dust is their enemy

Absorbency for oils and grease

Polishing cloths for the automotive and other industries

All different properties are manufactured in different ways, and we won't go on about roll size, dispenser options, 1ply, 2ply, 3ply

Suffice it to say the market for tissue and paper products is vast, just talking about the UK, every home, building, workplace, hotel, school, university, care home, restaurant, factory and person uses paper and tissue daily and with around 64 million people around, that is one of the largest target markets ever, and the final point (again) is the product is used generally once and then thrown away and bought again giving phenomenal repeat business.

Just my pennies worth, think I am going to buy a paper convertor :-)))) oopps already have shares in Accrol, note to self buy more

DYOR......

Thanks for your knowledge and efforts. Going to sit on my hands at the moment incase severe shock waves hits the markets. Rather surprised on Friday that the outcome was not far worse. Looks like banks and builders took the brunt.

Well, what can I say, more of the same please, good luck everyone

Accrol Group Holdings plc (the "Company" or "Accrol")

Contract Win and Trading Update


Accrol Group Holdings plc, the AIM listed leading independent tissue converter, is pleased to announce 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 £10 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: "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".

Good news. Not flagged by moneyam ?

AOL. - Benefitting from Brexit?

Also reporting today was Accrol Group(LSE: ACRL), with the independent tissue converter announcing a new contract with a major global retailer to supply toilet paper, kitchen rolls and facial tissues. The contract is expected to be worth over £10m per annum and further consolidates Accrol's position as a major player within its industry.

Accrol could benefit from a downturn in the UK following the EU referendum. Over 50% of its sales are generated from the discount market segment and if consumers trade down to cheaper toilet paper and kitchen rolls, then its sales could rise. And with Accrol being significantly hedged against currency movements for the current financial year, its medium-term outlook remains bright.

On this topic, Accrol is on track to meet current guidance for the full-year and although it's a small and relatively risky stock to own, it could prove to be a somewhat resilient buy over the medium-to-long term.

Small and relatively risky made me smile, clearly written by a journalist

Contracts in most of the major retailers and discounters

A product group everyone buys

New £10 million contract at factory prices

Strong distributor base selling products on their behalf

Excellent 'Away from Home' business

Positives from the leave vote

I wish all companies were this small and risky, I would buy them all day!

DYOR :-)

With expansion it would be good to see new manufacturing premises added, just so it spreads the risk of all being under one roof.

Good and valid point dreamcatcher, with the caveat that the increase in overheads by doing that such as rates,general infrastructure, insurance, utilities and everything else involved in additional premises, is more than covered by an increase in sales and associated margins.