TIDMACRL
RNS Number : 4606C
Accrol Group Holdings PLC
22 January 2018
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
22 January 2018
Accrol Group Holdings plc
("Accrol", the "Group" or the "Company")
Unaudited interim results for the six months ended 31 October
2017
and
restructuring update
Accrol Group Holdings plc (AIM: ACRL), an independent tissue
converter and supplier to a number of the UKs largest wholesalers
and retailers, announces its interim results for the six months
ended 31 October 2017. In the six month period, the Group incurred
an operating loss of GBP5.7 million compared to a reported
operating profit of GBP3.9 million in the prior year first
half.
Following the appointment of Gareth Jenkins as CEO in September
2017 and the identification of a number of significant issues
affecting the Group's performance and financial liquidity, the
Company requested a suspension of its shares on 5 October 2017.
After engagement with shareholders and development of a series of
business recovery action plans, Accrol's shares were relisted on 20
November 2017 in conjunction with a planned share placement of
GBP18 million (gross of expenses) which was approved by
shareholders on 8 December 2017. At the same time, the Company
renegotiated its banking facilities with revised financial
covenants which took account of the projected operating performance
of the Group.
As previously announced, this has been a difficult period for
the Group and its shareholders and a range of business challenges
are now being addressed by a new executive leadership team. These
will take some time to resolve but progress is being made.
H1 FY18 financials:
-- Revenue increased by 13.1% to GBP72.3m (H1 FY17: GBP63.9m)
-- Gross profit declined by 34.7% to GBP11.9m (H1 FY17: GBP18.2m)
-- Adjusted gross margin(1) 10.7% lower at 17.7% (H1 FY17: 28.4%)
-- Adjusted EBITDA(2) reduced by GBP8.7m to a loss of GBP1.6m (H1 FY17: profit GBP7.1m)
-- Net debt rose by GBP9.4m to GBP29.3m (H1 FY17: GBP19.9m)
December 2017 Placing
Post the half year end, the Company successfully raised GBP16.8m
(net of expenses) by way of a placing.
Statement from Gareth Jenkins, Chief Executive Officer of
Accrol
It is with disappointment that, in my first communication to
shareholders, I have to address the fact that the performance of
and short-term outlook for the Group have been so contrary to prior
expectations. I do believe, however, that the capabilities of this
business are significant and, if well managed, it can deliver a
considerably improved performance in the medium term.
The Group's recent problems have arisen from the combination of
adverse factors, including:
-- rising input costs - tissue cost growth following upstream pulp cost growth;
-- adverse FX - forward hedging of USD for paper purchases
protected results immediately after the Brexit inspired Sterling
devaluation. Significant ongoing, fixed period USD financial
hedges, however, were taken out at rates which have become adverse
to current market spot rates. These hedges are negatively impacting
the Group's financial performance in the short term; and
-- internal cost growth - increases in the fixed cost base as a
consequence of the new logistics arrangements at Skelmersdale, the
new Leyland plant and changes to shift patterns in mid-2017, at a
time when the business was managing an overly complex product
portfolio.
As these problems came to light in early in October 2017, action
was taken to manage liquidity issues by extending credit from
suppliers and reducing inventory levels. Whilst this was necessary
under the circumstances, it put additional pressure on supplier
relations and on customer service levels.
I am pleased to report that significant progress is being made
on tackling these issues:
-- the leadership team has been strengthened with Don Coates
joining as COO. He has extensive experience in business turn around
and operational improvement;
-- price increases being negotiated and agreed with customers
are starting to impact results positively;
-- the product range is being rationalised, the benefits of
which should flow through progressively during 2018;
-- a number of cost savings initiatives are being pursued,
including the previously announced reduction in headcount;
-- an increased focus on investing the necessary funds to maintain equipment efficiency; and
-- current cash flow projections reflect the improved operating
outlook but will also be subject, in the short term, to the adverse
FX contracts and the payment for a new operating line, which will
be installed at the Leyland plant in the summer of 2018. The
combined effect of which is expected to increase net debt modestly
until mid 2018 before declining thereafter.
In addition to the foregoing actions, I have met personally the
Group's major customers and am encouraged by the positive attitude
they have to developing further business opportunities with Accrol,
despite the recent service challenges. I have also met the Group's
major suppliers. They remain supportive of doing business with
Accrol and of working with us on our ongoing product reformulation
plans.
Outlook
The Board expects that recent and planned actions will drive
Accrol forward. Whilst the Board continues to expect a small loss
at the adjusted EBITDA level for the financial year ending 30 April
2018, the Board is comfortable that the Group will continue to
operate within its borrowing covenants while work on the turnaround
continues and the directors look forward to the longer-term future
of Accrol with confidence.
The directors are confident the 12-month restructuring programme
being implemented by the Company's new management team, combined
with an invigorated focus on the right customers, products, markets
and people, will create a much stronger base on which Accrol can
rebuild its profitability and, ultimately, shareholder value.
The Board expects the Company to return to profit at adjusted
EBITDA level in the year to 30 April 2019. It remains the Board's
intention to return to the dividend list at the earliest
appropriate opportunity.
Gareth Jenkins, Chief Executive Officer of Accrol, said:
"I believe that actions we are taking and plan to take to effect
the turnaround at Accrol will put the business back on track
towards its goal of becoming a market leader in the supply of
innovative, high quality, tissue based products to the UK's largest
retailers and ultimately the consumer. I continue to believe Accrol
can achieve this by investing and leading in operational
excellence, to ensure that our customers get the best value product
with market leading quality and service."
Note 1: Adjusted gross margin is a non-GAAP measure that
excludes the impact of unrealised gains and losses on outstanding
forward foreign currency contracts valued at the Balance sheet
date.
Note 2: Adjusted EBITDA, which is defined as profit before
finance costs, tax, depreciation, amortisation, breakage gains /
(losses) on early termination of derivative financial instruments
and exceptional items, is a non-GAAP metric used by management and
is not an IFRS disclosure. Management use this measure to assess
business performance and provide additional useful information to
shareholders about the underlying performance of the Group.
For further information, please contact:
Accrol Group Holdings plc Today: +44 (0) 7715 769 078
Gareth Jenkins, Chief Executive Officer Thereafter: +44 (0) 1254 278
844
Zeus Capital Limited (Nominated Adviser
& Broker)
Dan Bate / Andrew Jones Tel: +44 (0) 161 831 1512
Dominic King / John Goold Tel: +44 (0) 203 829 5000
Belvedere Communications Limited
Cat Valentine (cvalentine@belvederepr.com) Tel: +44 (0) 7715 769 078
Notes to Editors
Accrol Group Holdings plc, based in Lancashire, is a leading
tissue converter and supplier of toilet rolls, kitchen rolls and
facial tissues as well as other tissue products to the UK's largest
wholesalers and retailers.
Accrol operates from three sites:
-- A manufacturing, storage and distribution facility in Blackburn;
-- A facial tissue plant, also in Blackburn; and
-- A manufacturing, storage and distribution facility in Leyland.
In addition, the business has a storage and distribution
facility in Skelmersdale, Lancashire.
CHIEF EXECUTIVE'S REVIEW
Overview of the six months ended 31 October 2017
We are disappointed to report that profitability for the six
months ended 31 October 2017 was significantly below prior year
levels. Whilst revenues grew by 13.1% to GBP72.3 million (H1 FY17:
GBP63.9 million), gross profit declined by 34.7% to GBP11.9 million
(H1 FY17: GBP18.2 million) with adjusted EBITDA reducing by GBP8.7
million to a loss of GBP1.6 million (H1 FY17: profit GBP7.1
million).
The following factors contributed to this decline.
Pulp Paper Market Dynamics and Parent Reel Costs
Accrol, together with the industry in general, experienced rapid
and significant growth in parent reel costs in the period under
review. A key contributory factor to this was increasing upstream
pulp costs, which was due, in large part, to a global supply
/demand squeeze exacerbated by the closure of certain pulp
production facilities.
Adverse FX
Following the June 2016 decision in the UK to exit the European
Union, the value of Sterling depreciated significantly against the
US dollar which is the benchmark currency for pulp pricing.
Accrol's results did not suffer initially due to pre-existing
currency hedges but the benefit of this currency hedging had
substantially expired by the end of FY17. Foreign exchange rates
applicable to paper purchases during the six months ended 31
October 2017 were broadly in line with market spot rates. As a
consequence of the fact that Sterling has progressively
strengthened in value against the US dollar since October 2016,
currency hedges which were taken out in late 2016/early 2017 and
which were in place at 31 October 2017 were at rates which are now
adverse to current market rates. If foreign exchange rates remain
as is or Sterling strengthens further, these hedges will act as a
drag on Company results until Autumn 2018, particularly for the
second half of the current financial year.
The results for the period under review include a charge of
GBP891,000, which reflects losses incurred on foreign exchange
hedging contracts which are no longer effective hedges as of 31
October 2017.
Lack of Price Rises to Customers
The Group did not achieve any notable price increases in the
period under review, which meant that the impact of the cost
inflation issues referred to above and below were not mitigated.
However, since October 2017, the new management team has been in
extensive discussions with customers and has increased prices
across its product portfolio. These increases are being phased in
during the third quarter of FY18.
Cost increases and inefficiencies
In light of historic top line growth performance, certain
decisions were taken to build the Group's scale and capability in
anticipation of continuing growth. The key changes were:
1. the creation of a new production site at Leyland, Lancashire;
2. the transition to a new logistics structure and the
outsourcing of certain related management activities; and
3. the restructuring of operating shift patterns at Blackburn.
The cumulative scale of change, created by these decisions,
proved to be significantly more challenging than envisaged
resulting in them having an adverse impact on the Group's
performance in terms of cost and efficiency.
Following a review of the Group's operations, the new management
team has begun implementing a comprehensive restructuring to
improve operational efficiencies. The following actions, which will
be taken over the next 12 months, are expected to result in
significant cost savings:
-- the head count reduction, as announced on the 21 November 2017;
-- an ongoing focus on reduction in waste levels;
-- a rationalisation of the Group's product portfolio;
-- investment in systems and people to deliver efficiencies in
purchasing, logistics, storage and manufacturing; and
-- streamlining and rationalising of supply lines.
Health and safety
In November 2017, the Company appointed an ex Health and Safety
Executive (HSE) senior inspector to help support its drive of
continued improvement in Health and Safety across the business. We
are investing an additional GBP0.4 million, as previously
announced, to increase the pace of change and we continue to see an
improvement in our key statistics in this area.
Further to the Update on Health & Safety Incident
announcement made on 12 October 2017, the Company announced on 17
January 2018 that Accrol Papers Limited (a directly owned
subsidiary of the Company) was fined GBP120,000 (after discount)
for a single health and safety regulatory offence.
The sentencing court commented that the fine had been reduced by
one third in light of the guilty plea entered at the earliest
opportunity and the Company's full co-operation with the HSE
investigation. The Company was given 12 months to pay the fine.
As previously reported, the HSE had previously indicated to the
Company that it was seeking a fine in the range of GBP550,000 to
GBP2.9m for this incident.
The Group takes the Health and Safety of its employees very
seriously and the Board believes this was recognised in the level
of fine imposed.
Placing of GBP18 million
In December 2017, the Company raised GBP18 million, before
expenses of GBP1.2 million, by way of a Placing of 36,000,000 new
ordinary shares of nominal value of GBP0.001 each in the capital of
the Company (the "Placing Shares") at an issue price of 50 pence
per Placing Share, to support the management in its objective of
returning the business to profitability.
The net proceeds of the Placing have been and are being used
to:
-- support future working capital requirements of the Group;
-- implement restructuring to improve operational aspects of the business; and
-- implement plans to review and improve the Group's Health & Safety procedures.
In conjunction with the Placing, the Group renegotiated its
banking debt covenants and revised the terms of its banking
facilities.
Financial Review
Revenues
Revenues for the six months grew by 13.1% to GBP72.3 million (H1
FY16: GBP63.9 million) with the majority of the growth coming from
the Discounter retailers. The increase was mainly organic growth
with toilet tissue revenues showing the highest growth over the six
months at 13.2% or GBP4.2 million.
Gross profit
Adjusted gross profit decreased 29.8% from GBP18.2 million in H1
FY17 to GBP12.8 million in H1 FY18. Adjusted gross profit excludes
the impact of unrealised gains and losses on outstanding forward
foreign currency contracts, valued at the Balance Sheet date. The
majority of this decrease is due to adverse pricing on parent
reels, as outlined above, coupled with investment into Leyland,
production heads, and warehousing costs for Skelmersdale.
Administration costs
Administration costs for the six months increased by GBP2.3
million to GBP10.9 million, mainly due to costs associated with
Leyland and Skelmersdale, net of savings arising from the closure
of the Shadsworth warehouse.
Exceptional costs of GBP0.9 million relate to set up costs of
the new warehouse at Skelmersdale (GBP0.2 million) with the balance
of GBP0.7 million being one off costs and losses in relation to
redundancy, restructuring, disposals of parent reel inventories and
the HSE fine.
Distribution costs
Distribution costs as a percentage of sales increased marginally
from 8.8% in H1 FY17 to 9.1% in the current year.
Working capital
H1 FY18 H1 FY17 Variance
GBP'm GBP'm GBP'm
Inventories 17.7 13.3 4.4
Trade and other receivables 30.1 22.9 7.2
Trade and other payables (24.9) (16.6) (8.3)
------- ------- --------
22.9 19.6 3.3
------- ------- --------
Inventories increased in the period, mainly due to higher levels
of finished goods to support customer fulfilment requirements and
higher levels of parent reels purchased in anticipation of higher
sales. Trade debtors increased c. GBP7.2 million year on year with
around half of the increase due to one major customer paying early
in the prior year with the remainder of the increase due to sales
growth. Trade payables have increased as the Group stretched
payment terms to support cashflow in the short term.
Borrowings and cashflow
H1 FY18 H1 FY17 Variance
GBP'm GBP'm GBP'm
------- ------- --------
Revolving credit facility 14.8 12.8 2.0
Invoice discounting facility 15.4 6.7 8.7
Finance leases 0.5 0.4 0.1
------- ------- --------
Total debt 30.7 19.9 10.8
Cash and cash equivalents (1.4) - (1.4)
------- ------- --------
Net debt 29.3 19.9 9.4
------- ------- --------
Net debt increased by GBP9.4 million in the period, mainly due
to the losses during the period under review coupled with the
growth in working capital. This was substantially funded by an
increase in the invoice discounting facility.
Strategy
Despite recent problems, the Group remains well placed to
benefit from its strong position as a major UK supplier of
non-discretionary tissue products into the consumer value sector.
The Group continues to focus on the delivery of organic growth in
the Discounter and Private Label sectors, as these remain the
fastest growing areas of the market. Growth in these sectors is
being driven primarily by increasing Private Label product sales,
which continue to take market share from well-known brands.
The immediate challenge for the Group is to overcome the issues
which crystallised in the period under review. Significant progress
has already been made but there is much more to do and it will take
time for the benefits of our actions to be evident in our results.
In the meantime, the Group remains exposed to continuing volatility
in input costs and, as with any business turnaround plan, there are
execution risks in dealing with current issues. That said, we are
now in a stronger financial position to deal with the business
challenges following the recent placement. Absent the short term
funding costs of the adverse FX contracts and the committed funding
of the new line which will be installed in the Leyland plant, we
expect the Group to return to positive cash generation and to see a
sustained downward trend in Net Debt after summer 2018.
The key areas of our strategic focus are:
-- strengthening long term relationships with key customers and suppliers;
-- strengthening and developing key roles within the Group;
-- simplifying the business;
-- delivering operational efficiencies;
-- managing input cost volatility; and
-- improving information systems capabilities.
Outlook
I am pleased to report that significant progress is being made
on tackling the issues which have been identified within the
business over recent months. Turning the business performance
around from its recent deterioration is on track although it is
important to appreciate that the full benefits of any business
turnaround take some time to come through.
A key challenge faced by the business is the continued
escalation in US dollar denominated parent reel costs and whilst
sterling's improvement against the US dollar will help to mitigate
this cost burden in the medium term, the short term impact of
increased parent reel costs has been exacerbated by financial
hedges which are now at rates which are adverse to the financial
markets. The majority of these financial hedges expire prior to the
end of the current financial year, with the balance extending until
Autumn 2018. Excluding this transitory exchange exposure, the
continuing strengthening of Sterling against the US Dollar bodes
well for the forward cost environment.
A number of initiatives are now being pursued to offset the
recent growth in the fixed cost base, including the previous
announced head count reduction. In addition, the Group has
increased its prices across its product portfolio to mitigate the
recent rise in paper reel costs.
As outlined above, the Board expects that recent and planned
actions will drive Accrol forward. Whilst the Board continues to
expect a small loss at the adjusted EBITDA level for the financial
year ending 30 April 2018, the Board is comfortable that the Group
will continue to operate within its borrowing covenants while work
on the turnaround continues and the directors look forward to the
longer-term future of Accrol with confidence. As previously
announced the Board will not be proposing a final dividend for
FY18.
The directors are confident the 12-month restructuring programme
being implemented by the Company's new management team, combined
with an invigorated focus on the right customers, products, markets
and people, will create a much stronger base on which Accrol can
rebuild its profitability and, ultimately, shareholder value.
As previously stated, the Board expects the Company to return to
profit at adjusted EBITDA level in the year to 30 April 2019. It
remains the Board's intention to return to the dividend list at the
earliest appropriate opportunity.
Gareth Jenkins, CEO
22 January 2018
Consolidated Income Statement
For six months ended 31 October 2017
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended 31 ended
31 October October 30 April
Continuing operations Note 2017 2016 2017
GBP'000 GBP'000 GBP'000
Revenue 4 72,265 63,914 135,053
- Cost of sales before loss on derivative
financial instruments (59,504) (45,742) (97,374)
- Loss on derivative financial instruments (891) - -
----------------------------------------------- ----- ------------ ------------ ----------
Cost of sales (60,395) (45,742) (97,374)
----------------------------------------------- ----- ------------ ------------ ----------
Gross profit 11,870 18,172 37,679
Administration expenses (10,915) (8,653) (15,698)
Distribution costs (6,610) (5,597) (11,453)
Operating (loss) / profit (5,655) 3,922 10,528
Analysed as:
---------------------------------------------
- Adjusted EBITDA(2) (1,583) 7,136 16,061
- Depreciation (1,218) (938) (1,910)
- Amortisation 9 (1,021) (1,039) (2,042)
- Loss on derivative financial instruments (891) - -
- Exceptional items 5 (942) (1,237) (1,581)
----------------------------------------------- ----- ------------ ------------ ----------
Operating (loss) / profit (5,655) 3,922 10,528
Finance costs (338) (801) (1,129)
Analysed as:
--------------------------------------------- ----- ------------ ------------ ----------
- Finance costs on pre-IPO
debt structure 7 - (478) (478)
- Finance costs on post-IPO
debt structure 7 (338) (323) (651)
----------------------------------------------- ----- ------------ ------------ ----------
Finance costs (338) (801) (1,129)
----------------------------------------------- ----- ------------ ------------ ----------
(Loss) / profit before tax (5,993) 3,121 9,399
Tax credit / (charge) 8 932 (740) (2,023)
----------------------------------------------- ----- ------------ ------------
(Loss) / profit for the period attributable
to equity shareholders (5,061) 2,381 7,376
------------------------------------------------------ ------------ ------------ ----------
Consolidated Statement of Comprehensive Income
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended 30
31 October 31 October April
2017 2016 2017
(Loss) / profit for the period attributable
to equity shareholders (5,061) 2,381 7,376
Other comprehensive (expense) / income for
the period
Revaluation of derivative financial instruments (54) 5,092 (2,868)
Tax relating to components of other comprehensive
income 118 - 545
----------------------------------------------------- ------------ ------------ -----------
Total comprehensive (expense) / income attributable
to equity shareholders (4,997) 7,473 5,053
----------------------------------------------------- ------------ ------------ -----------
Earnings per share
GBP GBP GBP
Basic and Diluted 6 (0.05) 0.03 0.09
Adjusted and Adjusted Diluted 17 (0.03) 0.05 0.12
Note 2: Adjusted EBITDA, which is defined as profit before
finance costs, tax, depreciation, amortisation, breakage gains /
(losses) on early termination of derivative financial instruments
and exceptional items, is a non-GAAP metric used by management and
is not an IFRS disclosure. Management use this measure to assess
business performance and provide additional useful information to
shareholders about the underlying performance of the Group.
Consolidated Statement of Financial Position
For six months ended 31 October 2017
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended 31 ended 31 30 April
October October 2017
2017 2016
Note GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Property, plant and equipment 25,908 24,161 26,914
Intangible assets 9 28,721 30,745 29,742
Deferred tax asset 8 1,437 - 545
---------------------------------- ----- ------------ ------------ ------------
Total non-current assets 56,066 54,906 57,201
---------------------------------- ----- ------------ ------------ ------------
Current assets
Inventories 17,672 13,280 14,358
Trade and other receivables 30,123 22,884 24,670
Derivative financial instruments 12 243 4,902 841
Cash and cash equivalents 10 1,355 33 3,867
---------------------------------- ----- ------------ ------------ ------------
Total current assets 49,393 41,099 43,736
---------------------------------- ----- ------------ ------------ ------------
Total assets 105,459 96,005 100,937
---------------------------------- ----- ------------ ------------ ------------
Non-current liabilities
Borrowings 11 14,102 12,751 13,146
Derivative financial instruments 12 - - 474
Deferred tax liabilities 8 4,178 4,352 4,336
Total non-current liabilities 18,280 17,103 17,956
---------------------------------- ----- ------------ ------------ ------------
Current liabilities
Borrowings 11 16,597 7,072 9,709
Trade and other payables 24,880 16,588 18,840
Income taxes payable 108 792 920
Derivative financial instruments 12 3,927 - 3,235
Total current liabilities 45,512 24,452 32,704
---------------------------------- ----- ------------ ------------ ------------
Total liabilities 63,792 41,555 50,660
---------------------------------- ----- ------------ ------------ ------------
Net assets 41,667 54,450 50,277
---------------------------------- ----- ------------ ------------ ------------
Capital and reserves
Share capital 14 93 93 93
Share premium 41,597 41,597 41,597
Hedging reserve (2,259) 5,092 (2,323)
Capital redemption reserve 27 27 27
Retained earnings 2,209 7,641 10,883
Total equity shareholders' funds 41,667 54,450 50,277
----------------------------------------- ------------ ------------ ------------
The financial statements were approved by the Board of Directors
on 22 January 2018
Signed on behalf of the Board of Directors
Gareth Jenkins James Flude
Chief Executive Officer Chief Financial Officer
Company Registration Number 09019496
Consolidated Statement of Changes in Equity
For six months ended 31 October 2017
Share Share Hedging Capital Retained Total
capital premium reserve redemption earnings/
reserve (deficit)
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 30 April 2017
(audited) 93 41,597 (2,323) 27 10,883 50,277
Comprehensive income
Loss for the period - - - - (5,061) (5,061)
Revaluation of derivative
financial instruments - - (54) - - (54)
Tax relating to components
of other comprehensive income - - 118 - - 118
Total comprehensive income - - 64 - (5,061) (4,997)
-------------------------------- ----- ---------- ---------- ---------- ------------ ----------- ---------
Transactions with owners
recognised directly in equity
Dividend paid to ordinary
shareholders 15 - - - - (3,720) (3,720)
Share-based payments - - - - 107 107
Total transactions recognised
directly in equity - - - - (3,613) (3,613)
-------------------------------- ----- ---------- ---------- ---------- ------------ ----------- ---------
Balance at 31 October 2017
(unaudited) 93 41,597 (2,259) 27 2,209 41,667
-------------------------------- ----- ---------- ---------- ---------- ------------ ----------- ---------
Consolidated Cash Flow Statement
For six months ended 31 October 2017
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended ended 31 30 April
31 October October 2017
Note 2017 2016
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Operating (loss) / profit (5,655) 3,922 10,528
Adjustment for:
Depreciation 1,218 938 1,910
Amortisation 9 1,021 1,039 2,042
Gain on derivative financial - - -
instruments
Grant income (59) (35) (212)
Exceptional items 405 1,014 1,016
Share based payments 107 - 196
Profit on disposals - - (26)
-------------------------------------------- ----- ------------ ------------ ------------
Operating cash flows before movements
in working capital (2,963) 6,878 15,454
Increase in inventories (3,314) (3,919) (4,997)
Increase in trade and other
receivables (5,452) (1,410) (3,224)
Increase in trade and other
payables 6,987 4,313 6,431
-------------------------------------------- ----- ------------ ------------ ------------
Cash generated from operations (4,742) 5,862 13,664
Tax paid (802) (979) (2,149)
Interest paid (338) (3,858) (4,131)
-------------------------------------------- ----- ------------ ------------ ------------
Net cash flows from operating
activities (5,882) 1,025 7,384
-------------------------------------------- ----- ------------ ------------ ------------
Cash flows from investing activities
Purchase of property, plant
and equipment (812) (691) (4,417)
Proceeds from sale of property, plant
and equipment - - 56
-------------------------------------------- ----- ------------ ------------ ------------
Net cash flows used in investing
activities (812) (691) (4,361)
-------------------------------------------- ----- ------------ ------------ ------------
Cash flows from financing activities
Proceeds of issue of Ordinary
shares - 43,328 43,328
Cost of raising finance - (1,971) (1,971)
Increase / (decrease) in amounts
due to factors 5,902 (817) 2,038
Repayment of capital element
of finance leases - (10,887) (10,737)
Repayment of bank loans - (3,900) (3,900)
Receipt of new bank loans 2,000 12,730 12,730
Repayment of shareholder loans
/ loan notes - (41,240) (41,240)
Dividend paid to ordinary shareholders (3,720) - (1,860)
-------------------------------------------- ----- ------------ ------------ ------------
Net cash flows used in / (from) financing
activities 4,182 (2,757) (1,612)
-------------------------------------------- ----- ------------ ------------ ------------
Net (decrease) / increase in
cash and cash equivalents (2,512) (2,423) 1,411
Cash and cash equivalents at beginning
of the period 3,867 2,456 2,456
-------------------------------------------- ----- ------------ ------------ ------------
Cash and cash equivalents at
period end 10 1,355 33 3,867
-------------------------------------------- ----- ------------ ------------ ------------
Notes to the Interim Financial Statements
For six months ended 31 October 2017
1. Reporting entity
Accrol Group Holdings plc (the "Company") and its subsidiaries
(together "the Group") is engaged in the business of soft paper
tissue conversion. It is incorporated in the United Kingdom with
company number 09019496 and is domiciled in the United Kingdom. The
registered address of the Company is the Delta Building, Roman
Road, Blackburn, United Kingdom, BB1 2LD.
The company is a public limited company and has its primary
listing on the AIM division of the London Stock Exchange.
2. Basis of preparation
The interim financial statements for the six months ended 31
October 2017, have been prepared in accordance with IAS34, 'Interim
Financial Reporting' as adopted by the European Union. The interim
financial statements should be read in conjunction with the group's
Annual Report and Accounts for the year ended 30 April 2017,
prepared and approved by the Directors in accordance with
International Financial Reporting Standards as adopted by the EU
('Adopted IFRSs'), IFRIC Interpretations and the Companies Act
2006.
The interim financial statements included in this report are not
audited and do not constitute statutory accounts within the meaning
of the Companies Act 2006. The Annual Report and accounts for the
year ended 30 April 2017 have been filed with Companies House. The
auditor's report on those accounts was unqualified and did not
include any matters on which the auditors were required to report
by exception under the Companies Act 2006.
The consolidated financial statements have been prepared on a
going concern basis under the historical cost convention. The
consolidated financial statements are presented in pounds sterling
and all values are rounded to the nearest thousand pounds, except
where otherwise indicated.
Standards issued not yet effective
The accounting policies applied in preparing the unaudited
interim financial statements are consistent with those used in
preparing the statutory financial statements for the year ended 30
April 2017 as set out in the Group's Annual Report and
Accounts.
New and amended standards and interpretations need to be adopted
in the first interim financial statements issued after their
effective date (or date of early adoption). There are no new IFRSs
or International Financial Reporting Interpretations (IFRIC) that
are effective for the first time for the six months ended 31
October 2017 which have material impact upon the Group.
At the date of authorisation of this financial information, the
following new standards and interpretations which have not been
applied in this financial information were in issue but not yet
effective (and in some cases, had not yet been adopted by the
EU):
-- Annual Improvements 2012-2014 Cycle (effective 1 January 2018)
-- IFRS 15 - Revenue from Contracts with Customers (effective 1 January 2018)
-- IFRS 9 Financial Instruments (effective 1 January 2018).
The impact of the adoption of these Standards and
Interpretations is on the consolidated financial statements of the
Group in the year of initial application is currently being
reviewed. An update on the expected impact will be made in the
consolidated financial statements for the year ending 30 April
2018.
IFRS 16 'Leases' is a new standard that has been published and
is effective from 1 January 2019 but has not been early adopted by
the Group and could have a material impact on the Group financial
information. At the time of preparing this financial information,
the Group continues to assess the possible impact of the adoption
of this standard in future years. However, it is likely to result
in an increase in leases recognised in the statement of financial
position as finance leases and a reduction in the number of leases
treated as operating leases and hence not recognised in the
statement of financial position.
Going concern
The directors are satisfied that the Group has sufficient
resources to continue in operation for the foreseeable future, a
period of not less than 12 months from the date of this report.
Accordingly, they continue to adopt the going concern basis in
preparing the interim financial statements.
3. Principal risks and uncertainties
The Group risk management process is used to identify, monitor,
evaluate and escalate risks as they emerge, enabling management to
take appropriate action wherever possible in order to control them
and also enabling the Board to keep risk management under
review.
The Group's Annual Report and Accounts for the year ended 30
April 2017 (a copy of which is available on the Group's website
www.accrol.co.uk) set out details of the principal risks and
uncertainties that were identified during the risk management
process:
-- Loss of a major customer
-- Parent reel and pulp capacity and pricing
-- New entrant into market
-- Winning a large customer contract
-- Installation of new converting capacity
-- Volatility of foreign exchange rates
-- Dependence on information technology
-- Key person dependency
-- Adherence to regulatory requirements
The Board considers the principal risks and uncertainties that
could impact upon the Group over the second half of the financial
year to 30 April 2018, to be significantly unchanged from those set
out above. However, the events of recent months are an indicator
that the understanding of the scale and nature of the risks and the
adequacy of the mitigating controls within the business have proven
to be insufficient to adequately address the crystallisation of
certain of these risks. Steps are now being taken to strengthen the
mitigating controls to limit the potential future consequences of
these risks and uncertainties.
4. Revenue
The Group has one type of revenue and class of business.
The analysis of geographical area of destination of the Group's
revenue is set out below:
(Unaudited) (Unaudited) (Audited)
Six months Six months
ended 31 ended 31 Year ended
October October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
United Kingdom 69,584 63,702 132,184
Europe 2,681 212 2,869
------------------- ------------ ------------ -----------
Total 72,265 63,914 135,053
------------------- ------------ ------------ -----------
5. Exceptional items
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended 31 ended 30 April
October 2017 31 October 2017
2016
GBP'000 GBP'000 GBP'000
Exceptional items
One off costs relating to improvements 254 - -
in working capital
Set up costs relating to new 225 - -
warehouse at Skelmersdale
Professional fees relating to
the AIM flotation - 208 208
Early settlement charges on
finance leases - 454 454
Acquisition deal costs - 352 352
Consultancy fees - 223 567
Health and Safety Executive 120 - -
fine
Redundancy and restructuring 343 - -
----------------------------------------
942 1,237 1,581
---------------------------------------- -------------- ------------ ------------
The exceptional items are described below:
Six months ended 31 October 2017
One off costs relating to improvements in working capital of
GBP254,000 have arisen due to commercial decisions which were taken
to release the value in working capital despite the short-term
cost.
Set up costs relating to the new finished goods warehouse at
Skelmersdale of GBP225,000 have been classified as exceptional as
these are additional to normal and ongoing costs relating to the
warehousing of stock.
Health and Safety Executive fine relates to a fine imposed by
the Health and Safety Executive on 17(th) January 2018. This has
been treated as an adjusting post balance sheet event (see note
18).
Redundancy and restructuring costs of GBP343,000 relate mainly
to the change in CEO in the period.
Six months ended 31 October 2016
Professional fees of GBP208,000 incurred as part of the IPO
process were classified as exceptional as they did not directly
relate to the raising of the equity for the AIM flotation. In
addition, part of the funds raised in the IPO were used to reduce
the debt in the business with the majority of the finance leases
being repaid which attracted an early redemption charge of
GBP454,000.
Fees totalling GBP352,000 relating to the acquisition of the
Accrol Group in July 2014 by Accrol Group Holdings Limited, were
also required to be written off as part of the accounting for the
IPO.
Dual running costs totalling GBP223,000 were incurred in the
period relating mainly to the Hussain Family who provided
consultancy services.
Year ended 30 April 2017
Professional fees of GBP208,000 incurred as part of the IPO
process were classified as exceptional as they did not directly
relate to the raising of the equity for the AIM flotation. In
addition, part of the funds raised in the IPO were used to reduce
the debt in the business with the majority of the finance leases
being repaid which attracted an early redemption charge of
GBP454,000.
Fees totalling GBP352,000 relating to the acquisition of the
Accrol Group in July 2014 by Accrol Group Holdings Limited, were
also required to be written off as part of the accounting for the
IPO.
Consultancy costs totalling GBP567,000 were incurred as part of
the restructuring. These related mainly to the Hussain Family
consultancy, manufacturing consultancy and human resourcing
consultancy.
6. Earnings per share
The basic earnings per share is calculated by dividing the
(loss) / profit attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares
outstanding during the period.
Diluted earnings per share is calculated by dividing the (loss)
/ profit after tax by the weighted average number of shares in
issue during the year, adjusted for potentially dilutive
shares.
The following reflects the income and share data used in the
basic earnings per share calculation:
(Unaudited) (Unaudited) (Audited)
Six months Six months
ended 31 ended 31 Year ended
October October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
(Loss) / profit for the period
attributable to shareholders (5,061) 2,381 7,376
Number Number Number
Basic weighted average number
of shares 93,012,002 77,427,867 85,113,194
Dilutive share options - - 1,321,025
Basic weighted average number
of shares for diluted earnings
per share 93,012,002 77,427,867 86,434,219
GBP GBP GBP
Basic earnings per share (0.05) 0.03 0.09
Diluted earnings per share (0.05) 0.03 0.09
The share option scheme in operation post flotation is dependent
upon share price movements and could therefore result in future
dilution of earnings per share.
For the period ending 31 October 2017, potential share options
were anti-dilutive, as their inclusion in the diluted loss per
share calculation would have reduced the loss, and hence they were
excluded.
7. Finance costs
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended 31 ended 31 30 April
October October 2017
2017 2016
GBP'000 GBP'000 GBP'000
Finance costs on pre-IPO
debt structure
Shareholder loans - 478 478
- 478 478
Finance costs on post-IPO
debt structure
Bank loans and overdrafts 170 174 368
Finance lease interest 8 71 80
Interest on factoring facility 133 57 160
Amortisation of finance fees 27 21 43
---------------------------------- -------------- ------------ -----------
338 323 651
Total finance costs 338 801 1,129
---------------------------------- -------------- ------------ -----------
8. Income tax expense
Tax charged in the income statement
(Unaudited) (Unaudited) (Audited)
Six months Six months
ended 31 ended 31 Year ended
October October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
Current income tax
Current tax on (losses) / profits
for the period - 866 2,165
--------------------------------------- -------------- ------------ -----------
Total current income tax - 866 2,165
--------------------------------------- -------------- ------------ -----------
Deferred tax
Origination and reversal of
temporary differences (939) (147) (163)
Change in tax rate 7 21 21
--------------------------------------- -------------- ------------ -----------
Total deferred tax (932) (126) (142)
--------------------------------------- -------------- ------------ -----------
Tax (credit) / charge in the
income statement (932) 740 2,023
--------------------------------------- -------------- ------------ -----------
The tax charge for the period is lower (2017: higher) than the
effective rate of Corporation Tax in the UK of 19% (2017: 20%). The
differences are explained below:
(Unaudited) (Unaudited) (Audited)
Six months Six months Year
ended ended ended
31 October 31 October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
(Loss) / profit before income
tax (5,993) 3,121 9,399
Effective rate 19% 20% 19.92%
At the effective income tax
rate (1,139) 624 1,872
Expenses not deductible for
tax purposes 197 95 130
Change in rate 10 21 21
--------------------------------- ------------ ------------ ----------
(932) 740 2,023
------------------------------- ------------ ------------ ----------
During the period the Group recognised the following deferred
tax (assets) / liabilities:
Derivative
Accelerated financial
capital allowances Intangibles Losses instruments Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
30 April 2017 (audited) 1,695 2,641 - (545) 3,791
Charge / (credit)
in year 27 (193) (774) - (940)
Change in deferred
tax rate (1) 9 - - 8
Credit to equity - - - (118) (118)
31 October 2017
(unaudited) 1,721 2,457 (774) (663) 2,741
------------------------- -------------------- ------------ -------- ------------- --------
At Summer Budget 2015, the government announced legislation
setting the Corporation Tax main rate (for all profits except ring
fence profits) at 19% for the years starting the 1 April 2017, 2018
and 2019 and at 18% for the year starting 1 April 2020. At Budget
2016, the government announced a further reduction to the
Corporation Tax main rate for the year starting 1 April 2020,
setting the rate at 17%.
9. Intangible assets
Customer
Goodwill lists Other Total
GBP'000 GBP'000 GBP'000 GBP'000
Cost
At 30 April 2017 (audited) 14,982 20,427 40 35,449
Additions - - - -
At 31 October 2017 (unaudited) 14,982 20,427 40 35,449
--------------------------------- --------- --------- -------- --------
Amortisation
At 30 April 2017 (audited) - 5,707 - 5,707
Charge - 1,021 - 1,021
At 31 October 2017 (unaudited) - 6,728 - 6,728
--------------------------------- --------- --------- -------- --------
Net book value
At 30 April 2017 (audited) 14,982 14,720 40 29,742
At 31 October 2017 (unaudited) 14,982 13,699 40 28,721
--------------------------------- --------- --------- -------- --------
The balance for Goodwill and Customer relationships arose on the
Group's Acquisition of Accrol Holdings Limited and are attributed
to the sole cash-generating unit ('CGU').
The other intangible asset class relates to a Management
Services Agreement between Accrol Papers Limited and Accrol Group
Holdings Plc which provides a mechanism for a recharge of salary
costs between the two entities.
10. Cash and cash equivalents
(Unaudited) (Unaudited) (Audited)
As at As at As at
31 October 31 October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
Cash and cash equivalents 1,355 33 3,867
---------------------------- -------------- ------------ ----------
Cash and cash equivalents earn interest at floating rates based
on daily bank deposit rates. Short-term deposits are made for
varying periods of between one day and one month depending on the
immediate cash requirements of the Group, and earn interest at the
respective short-term deposit rates.
11. Borrowings
(Unaudited) (Unaudited) (Audited)
As at 31 As at As at
October 31 October 30 April
2017 2016 2017
GBP'000 GBP'000 GBP'000
Non-current
Bank facility 13,818 12,751 12,778
Finance leases 284 - 368
----------------------------- -------------- ------------ -----------
14,102 12,751 13,146
---------------------------- -------------- ------------ -----------
Current
Bank facility 987 - -
Factoring facility 15,425 6,668 9,523
Finance leases 185 404 186
----------------------------- -------------- ------------ -----------
16,597 7,072 9,709
---------------------------- -------------- ------------ -----------
Loan maturity analysis:
Within one year 16,609 6,923 9,709
Between one and two years 2,285 119 185
Between two and five years 12,000 13,030 13,183
After five years - - -
---------------------------- -------------- ------------ -----------
30,894 20,072 23,077
---------------------------- -------------- ------------ -----------
The following amounts remain undrawn
and available
(Unaudited) (Unaudited) (Audited)
As at 31 As at As at 30
October 31 October April 2017
2017 2016
GBP'000 GBP'000 GBP'000
Revolving credit facility 3,000 5,000 3,000
Factoring facility 7,088 11,391 13,043
10,088 16,391 16,043
-------------------------------------- ------------------ ------------ ------------
Finance fees
Finance fees are not included in the Loan Maturity Analysis
table. As at 31 October 2017, finance fees relating to the
arrangement of the Revolving Credit Facility have been capitalised
and are being amortised.
The finance fees after amortisation are as follows:
(Unaudited) (Unaudited) (Audited)
As at 31 As at 31 As at 30
October October April 2017
2017 2016
GBP'000 GBP'000 GBP'000
Finance fees 195 249 222
--------------- -------------- ------------ ------------
12. Financial instruments
Derivative financial instruments
Derivative financial instruments represent the Group's forward
foreign exchange contracts. The assets / (liabilities) representing
the valuations of the forward foreign exchange contracts at the
period end are:
(Unaudited) (Unaudited) (Audited)
As at 31 As at 31
October October As at 30
2017 2016 April 2017
Foreign currency contracts GBP'000 GBP'000 GBP'000
Current assets 243 4,902 841
Current liabilities (3,927) - (3,235)
Non-current liabilities - - (474)
----------------------------- -------------- ------------ ------------
(Liability) / asset (3,684) 4,902 (2,868)
----------------------------- -------------- ------------ ------------
The fair value of a derivative financial instrument is split
between current and non-current depending on the remaining maturity
of the derivative contract and its contractual cash flows. The
foreign currency contracts are designated as hedged accounted at
initial recognition. The fair value of the Group's foreign currency
derivatives is calculated as the difference between the contract
rates and the mark to market rates which are current at the balance
sheet date. This valuation is obtained from the counterparty bank
and at each period end is categorised as a Level 2 valuation. The
maximum exposure to credit risk is the fair value of the derivative
as a financial asset.
Losses on derivative financial instruments arose in the period
due to two factors. Firstly, sales growth was slower than
anticipated and resulting paper purchase volume requirements were
reduced. Secondly, raw material purchases were reduced in order to
improve working capital. This impacted upon the effectivity of
derivative financial instruments, crystallising a loss of
GBP129,000 in the half year. Prospective testing on the
effectiveness of hedges indicated that several derivative
instruments had become ineffective at the 31 October 2017 resulting
in an additional loss of GBP762,000.
13. Seasonality of operations
There is no significant seasonality impacting upon Accrol Group
Holdings plc. Revenues and operating profits are mainly impacted by
the timings of new business wins and losses.
14. Share capital and reserves
Called up, allotted and fully paid:
(Unaudited) (Unaudited) (Audited)
As at 31 As at 31 As at 30
October 2017 October April 2017
2016
GBP GBP GBP
Ordinary shares of GBP0.001 each 93,012 93,012 93,012
93,012 93,012 93,012
------------------------------------- -------------- ------------ ------------
The number of ordinary shares in issue is set out below:
Number Number Number
Ordinary shares of GBP0.001 each 93,012,002 93,012,002 93,012,002
Each holder of the GBP0.001 Ordinary Shares is entitled to vote
at general meetings of the Company. Every holder of an Ordinary
Share shall have one vote for each Ordinary Share held.
15. Dividends
The Board will not pay an interim dividend for the year ending
30 April 2018 (H1 FY17: 2p). The final dividend of GBP3,720,000
relating to the year ended 30 April 2017 was paid to shareholders
in September 2017.
16. Related party disclosures
(a) Identity of related parties
The Company's significant shareholders include NorthEdge Capital
LLP and members of the Hussain family. Phoenix Court Blackburn
Limited is a company under the control of the Hussain family
providing commercial premises for letting. Alklar Limited is an
entity under the common directorship of Peter Cheung, to which
payments for Peter Cheung's services as a director for Accrol UK
Limited were made. Post the AIM listing, Peter Cheung is now
remunerated for his services via payroll. Nisiac Limited is a
company under the control of the Hussain family, to which payments
for the consulting services of the Hussain family were made.
The subsidiaries of the Group are as follows:
Company Principal Country Holding
activity of incorporation %
------------------------- ----------------- ------------------- --------
Accrol UK Limited Holding company United Kingdom 100%
Accrol Holdings Limited Holding company United Kingdom 100%
Accrol Papers Limited Paper convertor United Kingdom 100%
(b) Transactions with related parties
The following table provides the total amounts owed to / (due
from) related parties as at the end of each year:
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended 31 ended 30 April
October 31 October 2017
2017 2016
GBP'000 GBP'000 GBP'000
Nisiac Limited - 31 -
Owed to related parties - 31 -
------------------------- ------------ ------------ -----------
Opening balance - 44,560 44,560
Interest charged - 478 478
Purchases 870 1,121 2,003
Repayments (870) (46,128) (47,041)
Owed to related parties - 31 -
-------------------------- ------------ ------------ -----------
Trade & other payables - 31 -
-------------------------- ------------ ------------ -----------
Owed to related parties - 31 -
-------------------------- ------------ ------------ -----------
The following table provides the total amounts of purchases and
interest charged from related parties for the relevant financial
year:
Six months Six months
ended 31 ended Year ended
October 31 October 30 April
2017 2016 2017
Transactions GBP'000 GBP'000 GBP'000
NorthEdge Capital LP - 259 259
The Hussain family - 241 241
Phoenix Court Blackburn Limited 870 871 1,744
Alklar Limited - 62 62
Nisiac Limited - 166 175
---------------------------------- ----------- ------------ -------------
Total 870 1,599 2,481
---------------------------------- ----------- ------------ -------------
Terms and conditions of transactions with related parties
The purchases and loans from related parties are made at normal
market prices. Outstanding balances at the year-end are unsecured,
interest free and settlement occurs in cash. There have been no
guarantees provided for any related party payables. Payments to
Phoenix Court Blackburn Limited are in respect of the provision of
services. Payments to Nisiac were in respect of the provision of
consultancy services.
17. Non-GAAP measures
Adjusted earnings per share
The adjusted earnings per share is calculated by dividing the
adjusted earnings attributable to ordinary equity holder of the
parent by the weighted average number of ordinary shares
outstanding during the year. The following reflects the income and
share data used in the adjusted earnings per share calculation.
(Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
ended 31 ended 30 April
October 31 October 2017
2017 2016
GBP'000 GBP'000 GBP'000
Earnings attributable to
shareholders (5,061) 2,381 7,376
Adjustment for:
Amortisation 1,021 1,039 2,042
Loss on derivative financial 891 - -
instruments
Exceptional items 942 1,237 1,581
Tax effect of adjustments
above (190) (455) (524)
---------------------------------- -------------- ------------ -----------
Adjusted earnings attributable
to shareholders (2,397) 4,202 10,475
---------------------------------- -------------- ------------ -----------
Number Number Number
Basic weighted average number
of shares 93,012,002 77,427,867 85,113,941
Dilutive share options - - 1,321,025
Diluted weighted average
number of shares 93,012,002 77,427,867 86,434,219
GBP GBP GBP
Adjusted earnings per share (0.03) 0.05 0.12
Diluted adjusted earnings
per share (0.03) 0.05 0.12
The share option scheme in operation post flotation is dependent
upon share price movements and could therefore result in future
dilution of earnings per share.
For the period ending 31 October 2017, potential share options
were anti-dilutive, as their inclusion in the diluted loss per
share calculation would have reduced the loss, and hence they were
excluded.
18. Events after the balance sheet date
Placing of GBP18m
To support the business in its objective of getting back to
profitability, the Company has successfully completed the placing
of 36,000,000 new ordinary shares of nominal value of GBP0.001 each
at a price of 50 pence per share raising gross proceeds of
GBP18m.
The net proceeds of the Placing will be used to:
-- support future working capital requirements of the Group;
-- implement restructuring to improve operational aspects of the business; and
-- implement plans to review and improve the Group's health & safety procedures.
HSE Court action
On the 17(th) January 2018 the Accrol Papers Limited was fined
GBP120,000 for a crush injury to the tip of an employee's right
index finger. This fine has been reported as an exceptional cost in
the results for the six month period under review.
20. Date and approval of interim financial statements
The interim financial statements cover the period 1 May 2017 to
31 October 2017 and were approved by the Board on 22 January
2018.
Further copies of the interim financial statements are available
from the Company's registered office, Delta Building, Roman Road,
Blackburn, United Kingdom, BB1 2LD and can be accessed on the
Accrol Group Holdings plc investor relations website,
www.accrol.co.uk.
Responsibility Statement
The interim financial statements comply with the Disclosure and
Transparency Rules (DTR) of the United Kingdom's Financial Conduct
Authority in respect of the requirement to produce a half yearly
financial report. The interim report is the responsibility of, and
has been approved by, the Directors. The Directors confirm that to
the best of their knowledge:
-- this financial information has been prepared in accordance
with IAS 34, 'Interim Financial Reporting' as adopted by the
European Union;
-- this interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
-- this interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related party
transactions and changes therein).
The Directors of Accrol Group Holdings Plc are listed in the
Accrol Group Holdings Plc Annual Report for 2017. Post this list,
Steve Crossley has resigned as Chief Executive Officer and Gareth
Jenkins has been appointed as his replacement. Dan Wright was also
appointed as a non-executive director of the Company on 11 December
2017. Details of the Directors are available on the Accrol Group
Holdings Plc website: www.accrol.co.uk.
By order of the Board
James Flude
Chief Financial Officer
22 January 2018
This information is provided by RNS
The company news service from the London Stock Exchange
END
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