BOARD OF DIRECTORS. James Flude Chief Financial Officer. Peter Cheung Executive Chairman. Steve Crossley Chief Executive Officer

Transcription

1 ANNUAL GENERAL MEETING YEAR ENDED 30 APRIL 2016 SEPTEMBER 2016

2 BOARD OF DIRECTORS Peter Cheung Executive Chairman Steve Crossley Chief Executive Officer James Flude Chief Financial Officer Joanne Lake Independent Non-Executive Director Steve Hammett Independent Non-Executive Director 2

3 BUSINESS OF THE MEETING

4 BUSINESS OF THE MEETING Ordinary business 1. Receive the Company s annual accounts and Directors Report 2. Re-elect Peter Cheung 3. Re-elect James Flude 4. Re-elect Steve Crossley 5. Re-elect Joanne Lake 6. Re-elect Steve Hammett 7. Re-appoint PwC as auditors 8. Approve Directors Remuneration Report Special business 9. Directors power to allot relevant securities 10. Disapplication of pre-emption rights on equity issues for cash 11. Authority for Company to purchase its own shares 4

5 RESOLUTIONS Resolution 1 Receive the Company s annual accounts and Directors Report FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 77,386, ,386,606 % of eligible votes 100.0% 0% 0% 100.0% Resolution 2 Re-elect Peter Cheung FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 72,936,606 2,700,000 1,750,000 77,386,606 % of eligible votes 94.2% 3.5% 2.3% 100.0% 5

6 RESOLUTIONS Resolution 3 Re-elect James Flude FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 77,386, ,386,606 % of eligible votes 100.0% 0% 0% 100.0% Resolution 4 Re-elect Steve Crossley FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 77,386, ,386,606 % of eligible votes 100.0% 0% 0% 100.0% 6

7 RESOLUTIONS Resolution 5 Re-elect Joanne Lake FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 77,386, ,386,606 % of eligible votes 100.0% 0% 0% 100.0% Resolution 6 Re-elect Steve Hammett FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 77,386, ,386,606 % of eligible votes 100.0% 0% 0% 100.0% 7

8 RESOLUTIONS Resolution 7 Re-appoint PwC as auditors FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 75,636,183 1,750, ,386,606 % of eligible votes 97.7% 2.3% 0% 100.0% Resolution 8 Approve Directors remuneration report FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 77,383, ,000 77,386,606 % of eligible votes 100.0% 0% 0% 100.0% 8

9 RESOLUTIONS Resolution 9 Directors power to allot relevant securities FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 77,381,117 1,289 4,200 77,386,606 % of eligible votes 100.0% 0% 0% 100.0% Resolution 10 Disapplication of pre-emption rights on equity issues for cash FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 75,622,117 1,760,289 4,200 77,386,606 % of eligible votes 97.7% 2.3% 0% 100.0% 9

10 RESOLUTIONS Resolution 11 Authority for Company to purchase its shares FOR AGAINST ABSTAIN/ WITHHELD TOTAL ELIGIBLE No of shares 75,630,606 1,752,000 4,000 77,386,606 % of eligible votes 97.7% 2.3% 0% 100.0% 10

11 PETER CHEUNG CHAIRMAN

12 OVERVIEW OF THE YEAR Another successful year Headlines Revenues up 17% to 118.2m EBITDA up 22.5% to 15.0m Private label products Operational highlights 3 additional lines installed Increasing share of total UK tissue market to over 7% Continued dominance of the discount market with growing market share Continued investment in converting lines Strong financials Discounters & Multiples New capex for more lines committed in April 16 Financial highlights Discounters contributed majority of the 17% sales growth Flexible supply chain Revenues from Multiples increased 15% YOY Adjusted EBITDA increased by 2.8m or 23% - increased revenues and favourable paper pricing 12

13 LISTING ON AIM JUNE 2016 Reasons for IPO Increased reputation and profile Platform to execute strategy Strengthen the balance sheet Reduce the debt burden Incentivise management to deliver shareholder return Provided a partial exit for the family and NorthEdge Capital 13

14 STEVE CROSSLEY CHIEF EXECUTIVE

15 PERFORMANCE AND IMMEDIATE PRIORITIES Operational performance Service levels strong despite continual growth Steady improvement in operational efficiency but further opportunity Strong growth and new contract wins Sourcing model continues to drive competitive input values New paper mills introduced to further widen the supply base Continued investment in pulp and paper mills globally Family transition plan underway with mutually beneficial support Immediate priorities Maintain great service, quality and value to our customers Consistent and steady growth Further Improve operational utilisation and efficiency Investment in people to support growth New facility - install and commission two lines at Leyland 15

16 JAMES FLUDE CHIEF FINANICAL OFFICER

17 m m HIGHLIGHTS FOR YEAR ENDED 30 APRIL 2016 Revenues increased by 17.0% to 118.2m (2015: 101.1m) Adjusted gross margin increased 2.1% to 28.1% (2015: 26.0%): Three new machines purchased in at full capacity Favourable paper pricing Adjusted EBITDA increased by 22.5% to 15.0m (2015: 12.3m) Revenue Continued strong cash generation which included repayment of 4.1m of loan note interest Continued investment in machinery: 3.2m committed in April 2016 on two high-speed converting lines Follows the prior year investment of 6.6m in three high-speed lines Utilisation of 74% (2015: 72%) against available capacity of 118,000 tonnes (2015: 101,000 tonnes) FY14 FY15 FY16 Adjusted EBITDA FY14 FY15 FY16 17

18 01-Jan Jun Nov Apr Sep Feb Jul Dec May Oct Mar Aug Jan Jun Nov Apr-16 POTENTIAL IMPACT OF BREXIT Currency prior to the EU referendum, Accrol took out additional forward currency contracts Paper prices continue to be suppressed Depreciation in Sterling provides opportunity: Potential price decreases from tissue suppliers US$: from January 2010 to June 2016 Potential market price increase Smaller converters may not be hedged as far - opportunity for further market consolidation Talk of potential recession will only further strengthen the Discounters and own label sales with Accrol ideally placed to increase supply June & July 2016 US$: Accrol hedged 18

19 STEVE CROSSLEY CHIEF EXECUTIVE

20 STRATEGY STRATEGY Objective Progress Discounters Multiples Organic growth through Discounters New contract wins Discounters Increase share through Multiples Private Label Our share now above 40% Booker 6.5m (Apr 16), Poundstretcher 5.0m (May 16) Major Global Retailer 10m starts Oct 16 Operations Improve utilisation from existing capabilities Continued investment in plant and machinery Investment in people Efficiency improvements Leyland Jan / Feb 2017 Recruitment of key management roles 20

21 OUTLOOK Outlook Confident in the outlook for FY17 Continued focus on growth of Private Label to Discounters and Multiples Started FY17 strongly - 22m of annual sales from three new major contracts won at the start of FY17 Potentially reduced consumer expenditure following Brexit well positioned to take advantage Committed to progressive dividend policy intention to pay interim and final dividend in aggregate at 6% at IPO placing price 21

22 DISCLAIMER The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested This presentation is for information purposes only and no reliance may be placed upon it. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained in this presentation. This presentation does not constitute or form part of any offer or invitation for sale or subscription of, or any solicitation of any offer to buy or subscribe for, any securities of Accrol Group Holdings plc. The making of this presentation does not constitute a recommendation regarding any such securities. This presentation contains certain forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding Accrol Group Holding plc s future business, financial condition, financial performance, operations, prospects or developments is a forward-looking statement. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "anticipates", "believes", "envisages", "estimates", "expects", "intends", "hopes", "may", "plans", "targets", "will", "would", "could" or "should" or, in each case, the negative of those, variations or comparable expressions. By their nature, forward-looking statements involve risk and uncertainty as they relate to events which occur in the future. No representation or warranty is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Actual performance or results may differ materially from any future results, performance or achievement expressed or implied by these forward-looking statements. Factors which may give rise to such differences include (but are not limited to) changing business conditions, introduction of competing products by other companies, and changing economic, legal or regulatory conditions. New factors could emerge that could cause Accrol Group Holding plc s business not to develop as it expects. These and other factors could adversely affect the outcome and financial effects of the events specified in this presentation. The forwardlooking statements are made by the Directors of Accrol Group Holding plc in good faith based on the information available to them at 25 September 2016 and reflect the Directors knowledge and information available at that date and their beliefs and expectations. Accrol Group Holding plc does not intend to update any forward-looking statements contained in this presentation. Each forward-looking statement speaks only as at 25 September 2016 and Accrol Group Holding plc and its advisers expressly disclaim any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in the presentation is intended to be, or intended to be construed as, a profit forecast or profit estimate and no statement in the presentation should be interpreted to mean that earnings per Accrol Group Holding plc share for the current or future financial years will necessarily match or exceed the historical earnings per Accrol Group Holding plc share. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. Past performance of securities in Accrol Group Holding plc cannot be relied upon as a guide to the future performance of such securities. 22

23 CONTACT Accrol Group Holdings plc Roman Road Industrial Estate Davyfield Rd Blackburn BB1 2LU London Office 41 Conduit Street London W1S 2YQ Manchester Office 82 King Street Manchester M2 4WQ