Toilet paper and tissue makers Accrol plans to list on London's junior market this month, seeking a valuation of £120 million.
The company has bucked the trend of companies holding off on issuing before the Brexit referendum on 23 June. Its business to is entirely limited to the UK, therefore its success is not dependent on EU membership.
The company, founded in 1993 by husband and wife Jawid Hussain and Mahroof Begum, has had success due to the rise of discount retailers in the UK. It has grown for seven straight years to a reported revenue value of over £100 million in 2015, according to the Financial Times.
It has cornered a 35 per cent share in the discount market and a 7 per cent share in the overall tissue market in the UK.
Accrol, a private label manufacturer, has not been deterred by not being a 'household name' and competing with brands such as Andrex, Kleenex and Nouvelle.
Accrol chairman, Peter Cheung, said not having a brand is actually an advantage to the company as private label sales continue to increase while some brands are being squeezed out. "Brands rely on product differentiation. That's hard to do. The private label is as good, if not better, than the brand," said Cheung.
Accrol is hoping to raise £60 million from the flotation, which it will use to refinance and expand the business. Cheung said that its current Blackburn manufacturing facility will soon have to be added to the keep up with demand.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by John Golden. To subscribe to ESM: The European Supermarket Magazine, click here.
