A MAJOR soft tissue manufacturer has said it remains ‘committed to growth’ after revealing it now has half the discount market for its products.

In the six months to October 31, Accrol Group Holdings, which has its main factory and headquarters in Roman Road, Blackburn, saw its after-tax profits rise by 67.7 per cent from £2.8million to £4.7million compared to the same period in 2015.

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Chief executive Steve Crossley revealed the firm’s share of discount sector has increased from 35 per cent to 50 per cent over the previous 12 months.

Announcing Accrol’s interim results, he said November’s contract with Lidl was now expected to ‘significantly’ exceed its original £10m sales estimate.

Mr Crossley said: “As a company we are wedded to further growth.”

He confirmed that Accrol’s new 168,000 sq ft factory in Leyland is on target to start production in January employing 80 staff.

In the last year Accrol was floated on the AIM Stock Market in June raising £63.5m.

The firm has also increased it’s Blackburn workforce by 100 to 550.

The company’s turnover for the six month period also increased by 8.8 per cent from £58.7m to £63.9m.

Outlining of future expansion plans, Mr Crossley said: “We are really pleased with these results.

“The company is currently investing £1m in upgrading and enhancing our equipment and training for staff in Blackburn.

“With manufacturing increasing, we are looking to consolidate our six warehouses around Blackburn and Accrington into a single large unit in Lancashire.

“At the current rate of growth we could otherwise soon need nine.

“At our new Leyland plant, there is the potential in the future to add four more production lines, costing £3m plus each, recruiting another 30 employees.

“We remain confident in the outlook for the full year.”

Chairman Peter Cheung said: “This is a combination of the fantastic business the Hussain family built up and the new opportunities and flexibility that the flotation in June allows the company.”

Mr Crossley said further possible deals were in the process of negotiation following contracts with Booker, Poundstretcher and Lidl.

Accrol announced an interim dividend of 2p per ordinary share.