TIDMAXS
RNS Number : 0789M
Accsys Technologies PLC
17 September 2021
AIM: AXS
Euronext Amsterdam: AXS
17 September 2021
Accsys Technologies PLC
("Accsys", the "Group" or the "Company")
Trading Update
Accsys, the fast-growing and eco-friendly company that combines
chemistry and technology to create high performance, sustainable
wood building products, today announces an unaudited trading update
for the first five months of the 2022 financial year from 1 April
2021 to 31 August 2021 ("the period"), ahead of its Annual General
Meeting to be held at 2.30pm (UK time) today.
Trading for 5 months to 31 August 2021
-- Strong sales and revenue growth compared to the same period
one year ago, which was more severely impacted by COVID-19 ('prior
year'):
o Continued strong demand for both Accoya(R) wood and Tricoya(R)
wood elements.
o 31% increase in Accoya(R) revenue to approximately EUR40m (a
22% increase compared to the same period two years ago(1) ). This
includes a 10% increase in revenue for Tricoya(R) customers.
o 18% increase in Accoya(R) sales volumes to approximately
24,664 m(3) (an 8% increase compared to the same period two years
ago(1) ).
-- These results and trading in the period reflect the following trends:
o Higher average selling prices for Accoya(R) , driven by sales
price increases in the 2021 financial year and in the 2022
financial year to date, which reflect continuing strong demand and
raw material costs in the period.
o Inventory levels of raw wood have remained low in the period
due to industry supply chain challenges but are expected to improve
in the remainder of the financial year.
o A planned maintenance stop in the period was moved to later in
2021.
-- The integration of the Accoya(R) Color assets we purchased in
the UK this year is progressing well, and we produced our first
batch of Accoya(R) Color at our new site in the period.
-- Net cash of approximately EUR8.3m compared to net debt of
EUR12.2m as at 31 March 2021, reflecting the proceeds of the equity
capital raise completed in May largely offset by investment in
additional production capacity in Hull and Arnhem.
Tricoya(R) UK plant construction (Hull)
-- Progress at Hull continues in line with the recent Accsys
update published on 21 August 2021.
-- Various workstreams, including mechanical, electrical, and
civil works, are underway as we work towards having the plant
commercially operational by July 2022.
Accoya(R) The Netherlands plant expansion (Arnhem)
-- Good progress in the planned extension of the existing
Accoya(R) plant at Arnhem, the Netherlands. Project remains on
track to be operational by the end of Q1 calendar year 2022.
-- The installation of a fourth reactor will bring an additional
20,000m(3) of capacity and increase the annual production capacity
of the plant by 33% to 80,000m(3) of Accoya(R) .
Accoya(R) USA plant joint venture
-- Good progress has been made on the US JV with Eastman
Chemical Corporation ahead of making the final investment decision
to build an Accoya(R) plant with an initial 40,000m(3) capacity at
Kingsport, Tennessee and replicate our existing Accoya(R)
technology at Arnhem.
-- The front-end engineering and design ('FEED') of the plant is complete.
-- Major agreements between the JV parties in relation to raw
materials supply, support services, land & utilities are well
advanced and are expected to be entered into on completion of the
financing work stream.
-- The project's debt-specific financing workstream is
continuing and we expect to finalise terms in the coming months in
line with our anticipated returns.
-- The JV parties continue to work towards the plant being
constructed by mid-2023 with the work completed to date confirming
the significant opportunity for the JV.
Rob Harris, Accsys CEO, said:
"Accsys has made a strong start to the 2022 financial year. Our
established Accoya(R) business has delivered double digit volume
and revenue growth. This reflects continued strong customer demand,
our price increases, product mix, and lapping the initial more
severe effects of COVID-19 last year.
During the last five months we have continued to make good
progress with the construction of a fourth reactor in Arnhem,
advanced our US JV with Eastman and whilst we experienced some
previously communicated challenges with the construction of our
Hull Tricoya(R) facility, we are working through these and expect
to have the plant commercially operational by July 2022.
Looking ahead, we remain confident in delivering on full year
expectations and underpinned by the clear market opportunities for
our high-performance wood products, we continue to progress towards
our ambitious 2025 fivefold increase in production target."
Notes:
1. A further comparison has been given against the same period
two years ago which was pre-pandemic.
Ends
For further information, please contact:
Accsys Technologies PLC ir@accsysplc.com
Sarah Ogilvie, Investor Relations
======================================== ======================
Numis Securities (London)
Oliver Hardy (NOMAD), Ben Stoop +44 (0) 20 7260 1000
======================================== ======================
Investec Bank plc (London)
Carlton Nelson, Alex Wright +44 (0) 20 7597 5970
ABN Amro (Amsterdam)
Richard van Etten, Dennis van Helmond +31 20 344 2000
======================================== ======================
FTI Consulting (UK)
Matthew O'Keeffe, Alex Le May +44 (0) 20 3727 1340
======================================== ======================
Off the Grid (The Netherlands)
Frank Neervoort, Yvonne Derske +31 681 734 236
======================================== ======================
Notes to editors:
Accsys (Accsys Technologies PLC) is a fast-growing business with
a purpose: changing wood to change the world. The company combines
chemistry, technology and ingenuity to make Accoya(R) wood and
Tricoya(R) wood elements: high performance wood products that are
extremely durable and stable, opening new opportunities for the
built environment and giving the world a choice to build
sustainably. Accsys transforms fast-growing, certified sustainable
wood into building materials with an up to 50-year warranty,
locking carbon stored in the wood into useful products for decades,
with performance characteristics that match or better those of
non-renewable, resource-depleting and polluting alternatives.
Accsys is listed on the London Stock Exchange AIM market and on
Euronext Amsterdam, under the symbols 'AXS'. Visit
www.accsysplc.com
Accoya(R) solid wood is sustainable, durable, and stable with
exceptional performance, finish and sustainability. Accsys'
proprietary acetylation process makes the wood more dimensionally
stable and because it is no longer easily digestible, extremely
durable. It is one of very few building materials to be Cradle to
Cradle Certified(TM) at the Gold level, with a Platinum rating for
Material Health, confirming that no harmful or toxic additives or
chemicals are present to leach out into the environment. Primary
applications for Accoya(R) wood include windows, doors, cladding
and decking, where the combination of performance and
sustainability benefits compete favorably against hardwoods,
plastics, metals and concrete. Visit www.accoya.com
Tricoya(R) acetylated wood elements are produced for use in the
fabrication of panel products such as medium density fibreboard
(MDF). Panel products made with Tricoya(R) wood elements are truly
durable and stable enough for use outdoors and in wet environments,
unlocking new possibilities for design and construction. They have
been lauded as the first major innovation in the wood composites
industry in more than 30 years and bring the flexibility of
traditional panel products and sustainability benefits of wood to a
whole new range of applications. Visit www.tricoya.com
Any references in this announcement to agreements with Accsys
shall mean agreements with either Accsys or its subsidiary entities
unless otherwise specified. 'Accsys' and 'Accsys Technologies' are
trading names of Titan Wood Limited ("TWL"), a wholly-owned
subsidiary of Accsys Technologies PLC. Accoya (R) , Tricoya (R) and
the Trimarque Device are registered trademarks owned by TWL, and
may not be used or reproduced without written permission from TWL,
or in the case of the Tricoya (R) registered trademark, from
Tricoya Technologies Limited, a subsidiary of TWL with exclusive
rights to exploit the Tricoya
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