November 21, 2023
Accsys has today announced it's interim results for the six months ended 30 September 2023.
Highlights:
• 21% growth in revenue at €71.2m, driven by good product demand, higher average sales prices and increased production capacity following reactor 4 start-up in September 2022
• 20% growth in Accoya sales volumes at 28,807m3: Strong growth of Accoya in Rest of World and Rest of Europe markets, up 42% and 28% respectively. 30% growth in Accoya for Tricoya production at 8,393m3, supporting our belief in Tricoya market potential
• 2 percentage points decline in gross profit margin to 29%, reflecting higher raw material costs and wood inventory optimisation
• 64% decrease in underlying EBITDA at €1.6m: volume growth and higher average Accoya prices offset by: Increased pre-operational costs in Accoya plant in Kingsport, US, ahead of completion in mid-2024 and Tricoya UK plant operating costs, due to a change in accounting treatment; Increased operating expenditure on sales & marketing, executive recruitment and engineering costs
• Strategic growth projects: Arnhem - plant performing well; efficiency improvements ongoing; Accoya plant in Kingsport, US - construction of new 43,000m3 plant progressing well and in line with plan; on- track for completion and commercial operation in mid-2024
• Tricoya UK plant project - while Accsys continues to believe in the market potential for Tricoya, in view of the current operating environment and shift of Company focus on the Accoya plant in Kingsport, US, the Board is undertaking a review of the viability, strategic interest and financial capabilities of its Tricoya UK plant in Hull. The review will be conducted in early calendar year 2024
• Exceptional item of €1.2m in relation to organisational re-alignment and cost savings initiatives: Actions being taken to deliver annual cost savings of €3.0m+. Impairment loss (non-cash) of €7.0m recognised in the period relating to the Tricoya segment due to an increase in the discount rate used following an increase in market interest rates and the Company specific market volatility factor
• Net debt at 30 September 2023 of €48.2m, an increase of €4.1m since the FY23 year end, reflecting capex of €2.0m, increase in working capital and inventory position and scheduled loan interest payments partially offset by EBITDA generation during the period
• Fundraising: The Company today announces a fundraising to raise gross new proceeds of approximately €24m and an extension of its debt facilities. The proceeds of the fundraising will allow Accsys to complete the delivery of its Accoya plant in Kingsport, US, in mid-2024, strengthen its balance sheet and increase working capital headroom in the face of a challenging macro trading environment. Decisive action has been taken to secure the fundraising and a debt extension package to ensure the Company has the funding platform necessary to execute its growth strategy
Dr. Jelena Arsic Van Os, Chief Executive Officer of Accsys, commented:
"In navigating the challenging macro-economic conditions of the first half of the year, our new management team has shown unwavering commitment in reshaping Accsys towards a less complex business model with increased execution focus. As we reflect on our business performance, we acknowledge and proactively address short-term obstacles. However, our confidence in our innovative product range remains unshaken, with the conviction that our Accoya and Tricoya premium offerings set us apart in the market, representing substantial untapped potential. To ensure delivery on this potential, the Company has raised today approximately €24m of new proceeds from our shareholders to improve near-term liquidity and enable us to finalise the construction of our Accoya plant in Kingsport, US, which alongside our wider operations, strengthens Accsys's position for growth in both the medium and longer term."
To read the results in full:
https://www.accsysplc.com/app/uploads/2023/11/20231121-AXS-Interim-results-for-the-six-months-ended-30-September-2023-1-1.pdf
Enquiries:
Investor Relations / Analysts: Katharine Rycroft, Accsys Technologies PLC, ir@accsysplc.com
Accsys has today announced it's interim results for the six months ended 30 September 2023.
Highlights:
• 21% growth in revenue at €71.2m, driven by good product demand, higher average sales prices and increased production capacity following reactor 4 start-up in September 2022
• 20% growth in Accoya sales volumes at 28,807m3: Strong growth of Accoya in Rest of World and Rest of Europe markets, up 42% and 28% respectively. 30% growth in Accoya for Tricoya production at 8,393m3, supporting our belief in Tricoya market potential
• 2 percentage points decline in gross profit margin to 29%, reflecting higher raw material costs and wood inventory optimisation
• 64% decrease in underlying EBITDA at €1.6m: volume growth and higher average Accoya prices offset by: Increased pre-operational costs in Accoya plant in Kingsport, US, ahead of completion in mid-2024 and Tricoya UK plant operating costs, due to a change in accounting treatment; Increased operating expenditure on sales & marketing, executive recruitment and engineering costs
• Strategic growth projects: Arnhem - plant performing well; efficiency improvements ongoing; Accoya plant in Kingsport, US - construction of new 43,000m3 plant progressing well and in line with plan; on- track for completion and commercial operation in mid-2024
• Tricoya UK plant project - while Accsys continues to believe in the market potential for Tricoya, in view of the current operating environment and shift of Company focus on the Accoya plant in Kingsport, US, the Board is undertaking a review of the viability, strategic interest and financial capabilities of its Tricoya UK plant in Hull. The review will be conducted in early calendar year 2024
• Exceptional item of €1.2m in relation to organisational re-alignment and cost savings initiatives: Actions being taken to deliver annual cost savings of €3.0m+. Impairment loss (non-cash) of €7.0m recognised in the period relating to the Tricoya segment due to an increase in the discount rate used following an increase in market interest rates and the Company specific market volatility factor
• Net debt at 30 September 2023 of €48.2m, an increase of €4.1m since the FY23 year end, reflecting capex of €2.0m, increase in working capital and inventory position and scheduled loan interest payments partially offset by EBITDA generation during the period
• Fundraising: The Company today announces a fundraising to raise gross new proceeds of approximately €24m and an extension of its debt facilities. The proceeds of the fundraising will allow Accsys to complete the delivery of its Accoya plant in Kingsport, US, in mid-2024, strengthen its balance sheet and increase working capital headroom in the face of a challenging macro trading environment. Decisive action has been taken to secure the fundraising and a debt extension package to ensure the Company has the funding platform necessary to execute its growth strategy
Dr. Jelena Arsic Van Os, Chief Executive Officer of Accsys, commented:
"In navigating the challenging macro-economic conditions of the first half of the year, our new management team has shown unwavering commitment in reshaping Accsys towards a less complex business model with increased execution focus. As we reflect on our business performance, we acknowledge and proactively address short-term obstacles. However, our confidence in our innovative product range remains unshaken, with the conviction that our Accoya and Tricoya premium offerings set us apart in the market, representing substantial untapped potential. To ensure delivery on this potential, the Company has raised today approximately €24m of new proceeds from our shareholders to improve near-term liquidity and enable us to finalise the construction of our Accoya plant in Kingsport, US, which alongside our wider operations, strengthens Accsys's position for growth in both the medium and longer term."
To read the results in full:
https://www.accsysplc.com/app/uploads/2023/11/20231121-AXS-Interim-results-for-the-six-months-ended-30-September-2023-1-1.pdf
Enquiries:
Investor Relations / Analysts: Katharine Rycroft, Accsys Technologies PLC, ir@accsysplc.com