Share Prices & Company Research

Market News

08 Jan 2019 | 09:07

Accrol Group warns on earnings amid weaker pound, rising tissue prices

Accrol Group warned Tuesday adjusted earnings would undershoot market expectations for the full year blaming a weaker pound and a rise in tissue prices.

The company forecasts adjusted earnings (EBITDA) in 2019 would be about £1m, well below the current market expectations of £4.6m.

Macro-economic headwinds potentially contributing a total of about £8.5m additional costs in 2019, would likely offset the operational improvements and sales price increases implemented, the company said.

The company's turnaround plan was expected to result in up to £8.0m of exceptional costs in the business during 2019.

The negative impact of rising input costs and foreign exchange on the group's profitability in first half of 2019 amounted to £5m. A further decline in sterling would continue to ramp up costs, the company warned.

'Should the current USD exchange rate and high tissue prices prevail, the Board estimates a further impact on input costs in H2 FY19 of c.£3.5m,' it said.

Group revenue in 2019 was expected to increase by about 8%, broadly in line with market forecasts to about £126m from a year earlier. 'The strategic plan for the Group remains on track, operationally, and the directors firmly believe Accrol Group will exit FY19 in a significantly stronger operational position,' said Gareth Jenkins, Chief Executive Officer of Accrol Group.

At 9:07am: (LON:ACRL) Accrol Group Hldgs Plc share price was -7.25p at 13.75p

Story provided by StockMarketWire.com
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.