AIM: AXS
Euronext Amsterdam: AXS
4 March 2022
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 a trading update for the 10 months ended 31 January 2022 ("10 months"), on an unaudited basis. Comparative percentage change figures in this statement reflect comparisons with the corresponding 10 months in the prior financial year.
10 Months Trading
· Continuing strong demand and revenue growth:
o 10 months Accoya® wood revenue of approximately €79.9m, up around 12%, with 10 months Group revenue approximately €92.3m.
o 10 months Accoya® sales volumes of approximately 46,817m3, down around 2%.
· Lower Accoya® sales volumes were due to temporary production downtime at the Arnhem plant primarily due to the installation of the new fourth reactor and isolated maintenance work (which have impacted February as well).
· Demand for Accoya® remains strong with production now back at full capacity.
· Further increases in average sales price effective from January 2022. This, together with previous increases, continues to offset higher raw materials costs (primarily net acetyls).
· Due to the production downtime and resulting lost sales volume that cannot be recovered as the plant runs at full capacity, FY 2022 EBITDA is expected to be around the lower end of the range of market consensus expectations.
Good progress on strategic growth projects:
Accoya® USA plant joint venture
· As announced separately this morning, Accsys has made the final investment decision for the Accoya® USA joint venture.
· Key contracts have been concluded, including US$80 million of senior debt bank financing.
· Construction will now commence shortly.
Accoya® plant expansion in Arnhem
· Good progress in completing the final stages of construction of the planned extension (Fourth Reactor (R4)) at the existing Accoya® plant at Arnhem, the Netherlands.
· Operation of the newly installed R4 is expected to commence in April 2022.
· At full capacity, R4 will bring an additional 20,000m3 of capacity and increase the annual production capacity of the plant by 33% to 80,000m3 of Accoya®.
Tricoya® UK plant construction (Hull)
· Progress at Hull continues in line with our previous expectations.
· Construction-based workstreams are largely complete, and commissioning of mechanical and electrical systems are well underway. We continue to work towards plant commercial operations in July 2022.
Ends
For further information, please contact:
| Accsys Technologies PLC | |
| Numis Securities (London) |
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| Investec Bank plc (London) ABN Amro (Amsterdam) |
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| FTI Consulting (UK) |
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| Off the Grid (The Netherlands) |
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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® wood and Tricoya® 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® 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™ 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® 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® acetylated wood elements are produced for use in the fabrication of panel products such as medium density fibreboard (MDF). Panel products made with Tricoya® 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®, Tricoya® 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® registered brand trademark, from Tricoya Technologies Limited, a subsidiary of TWL with exclusive rights to exploit the Tricoya® brand.
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