Investments made by a toilet roll and kitchen towel supplier to the likes of Tesco, Aldi, Morrisons and Wilko's are set to "bear considerable fruit" in the coming years, its chairman has said.
Dan Wright made the comments as Lancashire-headquartered Accrol's CEO said its latest financial year had been "most challenging period" in the industry that has has experienced.
The listed company has said its revenue for the 12 months to the end of April 2022 increased from £136.6m to £159.4m.
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However, its net debt widened from £21.6m to £27.5m following the group's "accelerated" investment in automation and the "necessary expansion" in working capital to manage supply constraints and rising costs.
Accrol also said its revenue for the year to April 30, 2023, is expected to be between £200m and £220m, "as a result of the successful recovery of all input cost increases".
The business added that its strategic review, which it announced in January, is ongoing and the board intends to provide a full update in September.
Chief executive Gareth Jenkins said: "This has been the most challenging period in the industry that I have experienced, with tissue pricing reaching unprecedented levels, driven by energy prices and supply constraints.
"We have successfully recovered these increased input costs to date and are confident we can continue to recover any further rises through innovation, efficiency and our supportive retailer customer base.
"We have a well invested business and exit the year in a strong position both operationally and commercially."
Executive chairman Dan Wright added: "The new improved banking arrangements demonstrate continued confidence in the group's operating performance and ongoing support for our development plans.
"The investments we have already made into the efficiency of our operations have served us well through these incredibly challenging times and we are confident that they will bear considerable fruit in FY23 and beyond."
