ACCROL GROUP UNDER FCA INVESTIGATION.
Accrol Group the Blackburn headquartered independent tissue converter as confirmed that they are subject to an FCA investigation.
In an update to the London Stock Exchange, the business said that the watchdog was looking into certain statements that it made to the market between 1 April 2017 and 20 November 2017.
“Accrol is cooperating fully with the FCA,” it added.
The company also reported its half-year results which featured a fall in revenue for the six months to 31 October 2018 from £72.3m to £57.6m.
Pre-tax losses also widened from £6m to £9m, while adjusted EBITDA narrowed from a loss of £1.5m to a loss of £1.1m.
The results come on the back of a turnaround programme which commenced in February 2018. Chief executive Gareth Jenkins called it “one of the most challenging” in which the leadership team has ever been involved.
“I am pleased to say that the major actions are now behind us and we are beginning to see results,” he added. “We will never become complacent; ongoing success in the tissue conversion sector requires nothing less than operational excellence.
“As a board, we are convinced that we have created a more robust business with strong foundations on which to build and, whilst I am sure there will be challenges ahead, the group is on a significantly improved path.”
Chairman Dan Wright added: “The business has changed beyond recognition since February 2018 and will exit the current financial year in a much stronger position operationally than it has ever been in before. My only disappointment is that, as previously announced, we are, in effect, three months behind where we expected to be on the financial recovery.
“I believe Accrol has a bright future; one in which the group delivers better levels of return throughout fluctuating macro-economic cycles. While I recognise the ongoing macro-economic challenges, I am confident that we are through the main challenges that the business faced in this difficult period and the signs going forward look positive.”
Accrol’s chief financial officer Steve Townsley has also stepped down from both his role and the board for health reasons. Hannah Argo, who joined the group on 10 January 2019, has filled the position on an interim basis.