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Accrol shares suspended

05 October 2017 07:55

Trading in Accrol Group's shares has been suspended on AIM while the board considers clarifies the company's financial position.

The company said it was currently experiencing more challenging trading conditions which were having a significant effect on the trading performance for FY18.

It said the factors were likely to have less of an impact on the company's trading performance in FY19.

The company has faced continued increases in input costs and it said the anticipated inflation recovery through product price increases had delivered less than planned to date.

In addition, the delay in price increases will have a reduced positive impact on the current financial year.

It also said: - The Company had also incurred higher than anticipated costs in relation to the operational changes associated with preparing the business for growth. The company believed these changes would deliver improved performance over the longer term. - The board had recently been advised that a Health and Safety incident, which occurred prior to the company's AIM IPO, may now result in a more significant fine being imposed by the Health and Safety Executive (HSE) than was previously anticipated. Whilst this was not expected to impact on trading, based on advice received by the company's legal advisers, any resulting fine may have a material impact on the company's cash position. It said that while the revenue expectations for FY18 remained broadly in line with market forecasts, the board had reviewed its expectations of the group's performance.

Based on current market conditions, the board now anticipated that earnings would be significantly below existing market forecasts for the current financial year, and as a consequence net debt would be correspondingly higher at year end.

It said that in view of this, the board would review the dividend in respect of the current financial year.

It said that following the appointment of Gareth Jenkins as CEO on 11 Sep, the voard commenced a wide-ranging review of the company's operations with a view to improving its margins and its overall financial performance.

Story provided by StockMarketWire.com

Related Company: ACRL

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