Contract win for Accrol
Accrol (ACRL:110p), the recently listed Aim-traded Blackburn-based maker of toilet rolls, kitchen rolls and facial tissues, has won a contract worth £10m a year with a major global retailer to supply toilet rolls. The award commences in the autumn and underpins analyst predictions that revenues will grow by 15 per cent to £138m in the financial year to end April 2017 to produce a near 10 per cent hike in cash profits to £16.4m and deliver pre-tax profits of £13.4m. On this basis, expect EPS of 10.7p and a dividend per share of 6p. Accrol will publish its maiden results for the 12 months to end April 2016 on Tuesday, 22 July and I fully expect the board to reiterate current year guidance especially as likely weaker UK economic conditions post the EU Referendum is great news for the company.