Good morning! It's Paul and Jack with a catch up report.

My attention is mainly focused on a charity fundraising effort for ZANE.

Amazing donations already from our subscribers, thank you, £1,600 already! Update - stunning generosity from you, thanks again, we're up to £5.6k already, and of course that will be doubled by several big donors lined up!

https://www.justgiving.com/fun...

Thank you from the bottom of my heart to everyone who wants to contribute. This could snow build into something really good. Already, HNW individuals are saying to me that they want to contribute £x-k, on a matching basis. Companies are saying to me, how can we contribute Paul? So I'm, really excited about this. Everyone chip in, and we'll add to it. Whoop whoop! I think £4k could become £12k or more for ZANE! :-)

Timing - we're going at a leisurely pace today, because it's Friday. Estimated finish time, about 3pm.

Agenda -

Paul -

Accsys Technologies (LON:AXS) - interesting products, but glacial pace of expansion.

Jack

Kainos (LON:KNOS) - trading continues to be impressive at this high quality digital services and platforms company, but you pay a premium!


Paul’s Section

Accsys Technologies (LON:AXS)

149p (up 4% at 11:45) - mkt cap £252m

This company makes the popular Accoya processed wood product.

Short video is here:


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 12 months ended 31 March 2021 ("FY21"), on an unaudited basis.
  • Recovery in H2 at +23% on H2 LY
  • Revenues of 98m euros
  • “Further progression on profitability” - very vague, I would prefer facts & figures
  • Inventory levels have fallen, due to supply chain disruption
  • Aiming to double production capacity in the current year
  • Delay of 3-6 months in new plant being built in Hull - which will ramp up production over 3 years - seems very slow
  • Plant in Arnhem is also being expanded to increase capacity
  • Planning for a joint venture (60%) production facility in USA
  • Significant demand, but supply constraints - a long-running problem with this share
  • Net debt reduced to 12.5m euros - seems modest for a capital-intensive business

My opinion - I think the historical graphs below paint a clear picture - steadily rising revenues, but no profits! It’s taking an eternity to build this business up, and it’s still sub-scale.…

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