Accrol Group Holdings PLC, the UK's leading independent tissue converter, has announced its half-year results for the six months ended 31 October 2023. The company reported a strong performance, with margins and volume continuing to grow, and an uplift in expectations for FY25. Despite a reduction in revenue, branded volumes grew by 45% in H1 FY24, and margins returned to pre-pandemic levels, rising by 930 basis points to 27.3%.

The company's adjusted EBITDA for H1 FY24 was £10.2 million, a 43.7% increase from the previous year, and adjusted profit before tax was £5.0 million, marking an improvement of £1.8 million. Additionally, the adjusted net debt at 31 October 2023 reduced by £5 million to £25.5 million. Market expectations for FY24 and FY25 respectively are revenue of £205.0 million and £211.1 million, and EBITDA of £21.0 million and £21.9 million.

Gareth Jenkins, Chief Executive Officer of Accrol, expressed satisfaction with the group's performance, stating, "We continue to deliver by producing great quality and value products, which meet every consumer's budget." The company's private label market share increased to 55% in H1 FY24, and it saw strong performance in the wet wipe business, with a 33% increase in biodegradable sales.

Post period end, Accrol acquired Severn Delta, a £5 million revenue wet wipe and tumble dryer sheets business, in line with its strategy to broaden its product offering. The company also signed a new long-term agreement with a global FMCG group to supply a well-known branded product under license, set to launch in March 2024.

Looking ahead, the company expects further volume growth driven by its strong private label supply position, great brands, and new licensed products. It is on track to deliver FY24 revenue of approximately £205 million and adjusted EBITDA of at least £21 million, up 34% year-on-year. Severn Delta is expected to positively impact adjusted EBITDA in FY25.

Dan Wright, Executive Chairman of Accrol, highlighted the company's transformation into a leading manufacturer of private label, own branded, and licensed tissue products, expressing confidence in the continued growth of the business.