PIE-EATER
13 Oct 2017
Re: Possible misleading statements 2 ways of looking at the timing...1) So close to IPO that the full (or even assumed impact) could not have been known. These things go in a pattern....incident, outrage, all quiet, legal notices, action. It really depends how long that all quiet stage was.2) When it was known what the extent of the issue....i.e.as soon as HSE involved and taking action...then should definitely have been in public domain. Strange but HSE can be either VERY efficient or VERY inefficient in the speed with which they deal with these things.PE
stuffee
13 Oct 2017
Possible misleading statements Pie EaterThe accident was in May 2016, just before Accrol's IPO, when the Directors, advised by Zeus, confirmed to prospective investors that they were unaware of any pending proceedings against the Company. Those Directors and Zeus should swing for this and certainly recompense the Company for any losses caused by any misleading statement. The Hussain family, who founded Accrol and ran it before the IPO, gave appropriate warranties and indemnities - lets hope they put big hand in their deep pockets, which took £20m from the IPO. .
Laraghs fund
13 Oct 2017
Re: FINE I assumed it was a death in the factory, but according to this news report it is the tip of a finger !LONDON (Alliance News) - Toilet roll maker Accrol Group Holdings PLC said Thursday that subsidiary Accrol Papers Ltd pleaded guilty at a court hearing to a single health and safety regulatory offense.The offense relates to an incident whereby an employee sustained a serious injury to the top of his right index finger. The Health & Safety Executive is seeking a fine in the range of GBP550,000 to GBP2.9 million for the incident. The court ruled that Accrol Papers will receive maximum credit for its early guilty plea and any fine imposed will be subject to a discount of one third. Sentencing in the case is expected on January 17, 2018.
PIE-EATER
13 Oct 2017
FINE So the HSE fine will be c£360k to c£2m.....allowing for discounted early guilty plea.With such a wide range of fine, it's easy to see why shares had to be suspended.Also more difficult to see why not brought to (potential) investors notice earlier as a potential liability. Would be interesting to note the date of the incident if it became readily available.PE
BeaglePup
10 Oct 2017
Re: What price when it returns? Looking at what we have been told of the situation:1. Larger than expected H&S fine will affect Cash balances - so a hit to the NAV but I note that they don't say they expect to need additional finance to cover it2. Increased costs hitting the margin - so impacting the EBITDA and probably a reduction of dividend but possibly not getting rid of it.So I am concluding that we will of course see a hit to the sp which might be exacerbated by a forecast reduction in yield in the next couple of years. However they are not saying yet that there will be dilution from a cash call, nor a need to go into administration. My feeling is that this is still a profitable business but maybe only marginally profitable whilst we endure Brexit effects. If the NAV is reduced and the profitability then maybe it becomes a takeover target?
PIE-EATER
10 Oct 2017
Re: What price when it returns? How long is a piece of string?If they can put out a strong, cohesive, evidence based statement and state that a line is drawn under this full stop, then perhaps 15-20p fall and a gradual (and I do mean gradual improvement). Without that, definitely sub 100p is a possibility with little chance of a meaningful or prolonged bounce.This might not be a case of DYOR but stick a finger in the wind!GLA (probably going to need it)PE
old_punter
09 Oct 2017
What price when it returns? Red faces also at Questor who recently tipped the stock c130p, so plenty of disappointed investors around who follow ST and Questor.Obviously it depends on what we are told and financial position. But I suppose there will be an attempt to get a credible story together so the price does not open so low to give the alert punter a chance of a quick buck. Nevertheless it will be worth watching in case there is that opportunity. My instinct FWLIW is that below a quid it may be a buy but we shall have to see what we are told and not told, and this is definitely a DYOR situation.
PIE-EATER
09 Oct 2017
Simon Thompsons comment today However, new listings are not a one-way bet, as the case of Blackburn-based tissue maker Accrol (ACRL:134p) highlights. The company has just warned on profits for the financial year to end-April 2018 only weeks after issuing an in-line trading update when I advised running profits (‘A trio of small-cap plays’, 18 Sep 2017), having initiated coverage when shares floated at 100p ('Clean up with Accrol', 6 Jun 2016).Profits have been hit by input cost pressures resulting from a further rise in parent reel prices; slower-than-anticipated product price increases which is squeezing Accrol’s margins; higher costs in relation to operational changes; and the likelihood of a more significant fine being imposed by the Health and Safety Executive (HSE) than was previously anticipated in relation to an incident that occurred prior to the IPO. Based on advice received by its legal advisers, any fine may have “a material impact on the company's cash position”.So, while full-year revenues are likely to be in line with market forecasts of £155m, after factoring in 15 per cent growth, pre-tax profits will be materially below previous expectations of £14.6m. Moreover, net debt of £19m at the April 2017 year-end – representing a modest 1.2 times historic cash profits – is set to rise given the profit shortfall and likely HSE fine, casting doubt on the sustainability of last year’s dividend per share of 6p. The board applied for suspension of trading in its shares on Thursday, 5 October pending clarification of its financial circumstances, a sensible course of action in my view. That's because it enables the banks and large shareholders to come to an arrangement, and all investors will be better informed when the company issues a full update when the shares relist. True, it's still a grim situation, but as I noted this is an exception. In fact, given the high financial returns on offer by backing the right IPO – shares in software robot company Blue Prism (PRSM:1,136p) are up 10-fold since I highlighted their potential (‘Robotic growth’, 19 June 2016) – I will continue to scour the new issue market for further investment opportunities for you to exploit.
Greyinvestor
06 Oct 2017
Re: How? If the health and safety stuff wasn't disclosed, legal action could be forthcoming. Not that it will help investors, as usual.I agree that this is another ST special. Just like CAML. He seems to forget the bad ones.I'm reminded of the great WB 'whatever you do, don't lose money', the principle being that it takes a lot of winners to make up for one loser.I'm a lot more cautious these days, but still get singed every so often.My maxim is to get out of losers fast, and to stay in and increase bets on winners. I never cut exposure to a good stock if I don't have to.My latest boring value stock is PCA. But DYOR.
killermanjarrow
05 Oct 2017
How? Does the health and safety issue not make it into the public domain???I agree with other comments. I'm finished with aim.
PIE-EATER
05 Oct 2017
Re: Awful update : early bath for all re... I think several institutions with large holdings will be expressing their displeasure.....and I would be happy to translate it for them into the local Lancashire dialect.......free of charge.I believe the founding family still have a large holding (one of the attractions for me) so glad to see that their potential lack of transparency will affect them as well.Fortunately, as stated on another board, I stagger investments into AIM holdings and then allow to run (or not as is the case here)A reminder of the risks of AIM (recent AIM "darlings" like SFE and BOO have had a tough time of late as well)PE
stuffee
05 Oct 2017
Re: Awful update : early bath for all responsible please I too followed Simon T into this one but wasn't smart enough to exit.ST does seem pretty good at selecting several companies such as this, trading at an apparent discounted rating, without any Division 1 or even 2 financial advisors, then seeing a collapse a few months later. I've been stung before. We should all realise (but probably won't!) why the market is a bit skeptic of such companies, accounting for their apparent "bargain" rating.Interesting whether the advisors arranged appropriate warranties and indemnifies from the share vendors at the time of IPO a year ago re the apparent substantial health & safety liability, now emerging and described as having a material impact on Company's cash. Might offer some comfort but could take ages to settle.Unimpressed that the board and the talented advisors didn't make any whisper of all this at the AGM two weeks ago. Early bath deserved for all responsible please.
Phillip Reid
05 Oct 2017
Re: Awful update Take back anything good that I said about this company. Should have stuck to my original decision not to put any more money into AIM stocks. Agree with other comments.Hope they ain't going to ask for the recent divi back LOL (probably would if they could)Regards
PIE-EATER
05 Oct 2017
The BEEB Even made it to the business live page on the BEEB website! (next to the constitutional crisis in Spain....sorry)PE
BeaglePup
05 Oct 2017
Re: Awful update Agreed, it seems to have been a mistake to follow the Simon Thompson suggestion on this one. I'm down somewhat and obviously stuck now with the suspension. It'll be difficult to decide whether to bail out with a loss or hold for longer term growth on the basis that everyone needs bog roll!
