REG - Accsys Technologies - Preliminary Results for year ended 31 March 2016 <Origin Href="QuoteRef">ACCS.L</Origin> - Part 3
15/06/2016 07:06
- Part 3: For the preceding part double click ID:nRSO2046Bb
Current assets
Inventories 21 8,345 7,894
Trade and other receivables 22 5,647 4,998
Cash and cash equivalents 8,186 10,786
Corporation tax 412 388
22,590 24,066
Current liabilities
Trade and other payables 23 (8,063) (9,625)
Obligation under finance lease 28 (354) (264)
Corporation tax (1,425) (812)
(9,842) (10,701)
Net current assets 12,748 13,365
Non-current liabilities
Obligation under finance lease 28 (1,947) (1,799)
(1,947) (1,799)
Net assets 42,053 41,128
Equity
Share capital 24 4,495 4,440
Share premium account 128,792 128,714
Other Reserves 25 107,441 106,855
Accumulated loss (198,842) (199,022)
Own shares (47) (39)
Foreign currency translation reserve 153 180
Capital value attributable to owners of Accsys Technologies PLC 41,992 41,128
Non-controlling interest in subsidiaries 61 -
Total equity 42,053 41,128
The financial statements were approved by the Board and authorised for issue on 14 June 2016, and signed on its behalf by
Paul Clegg
William Rudge Directors
The notes form an integral part of these financial statements.
Accsys Technologies PLC
Consolidated statement of changes in equity for the year ended 31 March 2016
Share capital Ordinary Share premium Other reserves Own Shares Foreign currency trans- Accumula-ted Loss Total equity attributable to equity shareholders of the company Non-Controlling interests Total Equity
lation reserve
E000 E000 E000 E000 E000 E000 E000 E000 E000
Balance at 4,392 128,648 107,090 (47) 22 (192,223) 47,882 - 47,882
31 March 2014
Total comprehensive income/(expense) for the period - - - - 158 (8,260) (8,102) - (8,102)
Expiry of warrants - - (235) - - 235 - - -
Share based payments - - - - - 1,226 1,226 - 1,226
Shares issued 48 - - 8 - - 56 - 56
Premium on shares issued - 66 - - - - 66 - 66
Balance at - -
31 March 2015
4,440 128,714 106,855 (39) 180 (199,022) 41,128 - 41,128
Total comprehensive income/(expense) for the period - - - - (27) (858) (885) (10) (895)
Share based payments - - - - - 1,038 1,038 - 1,038
Shares issued 55 - - (8) - - 47 - 47
Premium on shares issued - 78 - - - - 78 - 78
Share Warrants issued - - - - - - - - -
Issue of subsidiary shares to non-controlling interests - - 586 - - - 586 71 657
Balance at - -
31 March 2016
4,495 128,792 107,441 (47) 153 (198,842) 41,992 61 42,053
Share capital is the amount subscribed for shares at nominal value (note 24).
Share premium account represents the excess of the amount subscribed for share capital over the nominal value of these
shares, net of share issue expenses. Share issue expenses comprise the costs in respect of the issue by the Company of new
shares.
See note 25 for details concerning other reserves.
Non-controlling interests relates to the investment of BP Ventures into Tricoya Technologies Limited (notes 9 and 25).
Own shares represents a total of 944,529 shares issued to an Employee Benefit Trust at nominal value. This includes 891,044
shares issued on 6 July 2015 and 16,123 shares issued on 10 December 2015, both in relation to the Employee share bonus
awards. These shares shall vest if the employees, including the Executive Directors, remain in employment with the Company
to the vesting date, being 1 July 2016 (subject to certain other provisions including good-leaver, take-over and committee
discretion provisions). (note 15).
Foreign currency translation reserve arises on the re-translation of the Group's USA subsidiary's net assets which are
denominated in a different functional currency, being US dollars.
Accumulated losses represent the cumulative loss of the Group attributable to the owners of the parent.
The notes form an integral part of these financial statements.
Accsys Technologies PLC
Consolidated statement of cash flow for the year ended 31 March 2016
2016 2015
E'000 E'000
Loss before taxation (466) (7,653)
Adjustments for:
Amortisation of intangible assets 524 375
Depreciation of land, property, plant and equipment 2,148 2,100
Recognition of reduction of investment in joint venture - 1,172
Net loss/(gain) on disposal of property, plant and equipment 35 -
Net finance expense 177 135
Equity-settled share-based payment expenses 1,038 1,226
Gain on acquisition of subsidiary - (267)
Cash flows generated from/(used in) operating activities before changes in working capital 3,456 (2,912)
Increase in trade and other receivables (714) (1,566)
(Decrease)/Increase in deferred income (1,661) 1,556
(Increase) in inventories (453) (1,860)
(Decrease)/Increase in trade and other payables (176) 909
Net cash generated from/(used in) operating activities before tax* 452 (3,873)
Tax received 229 263
Net cash flows generated from/(used in) operating activities 681 (3,610)
Cash flows from investing activities
Interest received 5 70
Disposal of property, plant and equipment 3 -
Expenditure of property, plant and equipment (2,565) (907)
Expenditure of intangible assets (1,490) (201)
Investments in joint ventures - (1,000)
Cash generated in acquisition of subsidiary, net of consideration - 1,338
Net cash used in investing activities (4,047) (700)
Cash flows from financing activities
Interest paid (191) (208)
Repayment of finance lease (106) (72)
Proceeds from issue of share capital 1,124 123
Share issue costs (44) -
Net cash generated from/(used in) financing activities 783 (157)
Net decrease in cash and cash equivalents (2,583) (4,467)
Effect of exchange rate changes on cash and cash equivalents (17) 68
Opening cash and cash equivalents 10,786 15,185
Closing cash and cash equivalents 8,186 10,786
*Cash out-flows from operating activities after changes in working capital included Enil in respect of exceptional costs
(2015: E3,159,000).
The notes form an integral part of these financial statements.
Accsys Technologies PLC
Notes to the financial statements for the year ending 31 March 2016
1. Accounting Policies
General information
The financial information set out in these preliminary results does not constitute the company's statutory accounts for the
periods ended 31 March 2016 or 31 March 2015. Statutory accounts for the period ended 31 March 2015 have been filed with
the Registrar of Companies and those for the period ended 31 March 2016 will be delivered to the Registrar in due course;
both have been reported on by the auditors. The auditors' report on the Annual Report and Financial Statements for the
period ended 31 March 2015 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a
statement under 498(2) or 498(3) of the Companies Act 2006.
The auditors' report on the Annual Report and Financial Statements for the period ended 31 March 2016 is unqualified, did
not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the
Companies Act 2006.
Basis of accounting
The Group's financial statements have been prepared under the historical cost convention (except for certain financial
instruments and equity investments which are measured at fair value), in accordance with International Financial Reporting
Standards (IFRS) issued by the International Accounting Standards Board as endorsed by the European Union, interpretations
issued by the IFRS Interpretations Committee (IFRS IC) and with those parts of the Companies Act 2006 applicable to
companies preparing their financial statements under adopted IFRS.
Going Concern
The financial statements are prepared on a going concern basis, which assumes that the Group will continue in operational
existence for the foreseeable future, and at least 12 months from the date these financial statements are approved.
As part of the Group's going concern review, the Directors have reviewed the Group's trading forecasts and working capital
requirements for the foreseeable future. These forecasts indicate that, in order to continue as a going concern, the Group
is dependent on the achievement of certain operating performance measures relating to the production and sales of Accoya®
wood from the plant in Arnhem and the collection of on-going working capital items in line with internally agreed budgets.
The Directors have considered the internally agreed budgets and performance measures and believe that appropriate controls
and procedures are in place or will be in place to make sure that these are met. The Directors believe that while some
uncertainty inherently remains in achieving the budget, in particular in relation to market conditions outside of the
Group's control, that there are a sufficient number of alternative actions and measures that can be taken in order to
achieve the Group's medium and long term objectives.
Therefore the Directors believe that the going concern basis is the most appropriate on which to prepare the financial
statements.
Changes in accounting policies
No new accounting standards, amendments or interpretations have been adopted in the period which have any impact on these
financial statements.
Exceptional Items
Exceptional items are events or transactions that fall outside the ordinary activities of the Group and which by virtue of
their size or incidence, have been separately disclosed in order to improve a reader's understanding of the financial
statements. These include items relating to the restructuring of a significant part of the Group, impairment losses (or the
reversal of previously recorded exceptional impairments), expenditure relating to the integration and implementation of
significant acquisitions and other one-off events or transactions. See note 5 for details of exceptional items.
Business combinations
Where the Company has the power, either directly or indirectly, to govern the financial and operating policies of another
entity or business so as to obtain benefits from its activities, it is classified as a subsidiary. The consolidated
financial statements present the results of the Group as if they formed a single entity. Inter-company transactions and
balances between Group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the
consolidated statement of financial position, the acquirer's identifiable assets, liabilities, and contingent liabilities
are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in
the consolidated income statement from the date on which control is obtained.
As allowed under IFRS 1, some business combinations effected prior to transition to IFRS, were accounted for using the
merger method of accounting. Under this method, assets and liabilities are included in the consolidation at their book
values, not fair values, and any differences between the cost of investment and net assets acquired were taken to the
merger reserve. The majority of the merger reserve arose from a corporate restructuring in the year ended 31 March 2006
which introduced Accsys Technologies PLC as the new holding company.
Joint ventures
A jointly controlled entity is an entity in which the Group holds a long term interest and shares joint control over
strategic, financial and operating decisions with one or more other ventures under a contractual arrangement. The Group's
share of the assets, liabilities, income, expenditure and cash flows of such jointly controlled entities are accounted for
using the equity method. The equity method records the Group's share of the results of the joint venture entity on a
separate line in the Group's financial statements.
The total carrying values of investments in joint ventures represent the cost of each investment including the carrying
value of any goodwill, the share of post-acquisition retained earnings, any other movements in reserves and any long term
debt interests which in substance form part of the Group's net investment. The carrying values of joint ventures are
reviewed on a regular basis and if an impairment in value has occurred, the carrying value is impaired in the period in
which the relevant circumstances are identified. The Group's share of a joint venture's losses in excess of its interest in
that associate is not recognised unless the Group has an obligation to fund such losses.
Unrealised gains arising from transactions with associates are eliminated against the investment to the extent of the
Group's interest in the investee. Unrealised losses are eliminated in the same way, but only to the extent that there is no
evidence of impairment.
Revenue recognition
Revenue is measured at the fair value of the consideration receivable. Revenue is recognised to the extent that it is
probable that the economic benefit will flow to the Group and that the revenue can be reliably measured. The following
specific recognition criteria must also be met before revenue is recognised.
Manufacturing revenue
Revenue is recognised in respect of the sale of goods when the significant risks and rewards of ownership of the goods have
been passed to the buyer, the timing of which is dependent on the particular shipment terms. When a customer provides
untreated wood to be processed by the Group in order to produce Accoya®, revenue is recognised when the Group's obligations
under the relevant customer contract have been substantially completed, which is before the finished Accoya® has been
collected by the customer. Manufacturing revenue includes the sale of Accoya® wood and other revenue, principally relating
to the sale of acetic acid.
Licensing fees and Marketing income
Licence fee and marketing income is recognised over the period of the relevant agreements according to the specific terms
of each agreement or the quantities and/or values of the licensed product sold. The accounting policy for the recognition
of licence fees is based upon an assessment of the work required before the licence is signed and subsequently during the
design, construction and commissioning of the licensees' plant, with an appropriate proportion of the fee recognised upon
signing and the balance recognised as the project progresses to completion. Marketing revenue when the company acts as
principal is recognised based on the actual work completed in the period. The amount of any cash or billings received but
not recognised as income is included in the financial statements as deferred income and shown as a liability.
Finance income
Interest accrues using the effective interest method, i.e. the rate that discounts estimated future cash receipts through
the expected life of the financial instrument to the net carrying amount of the financial asset.
Finance expense
Finance expenses include the fees associated with the Group's credit facilities which are expensed over the period which
the Group has access to the facilities.
Finance expenses also include an allocation of finance charges in respect of the sale and leaseback of the Arnhem land and
buildings, and the lease of London Office fit out and furniture, accounted for as a finance lease. The total finance charge
(calculated as the difference between the total minimum lease payments and the liability at the inception of the lease) is
allocated over the life of the lease using the sum-of-digits method.
Share based payments
The Company awards share options and nil cost options to acquire shares of the Company to certain Directors and employees.
The Company also awards bonuses to certain Directors and employees in the form of the award of deferred shares of the
Company.
In addition the Company operated an Employee Share Participation Plan under which employees subscribe for new shares which
are held by a trust for the benefit of the subscribing employees. The Shares are released to employees after one year,
together with an additional, matching share on a 1 for 1 basis.
The fair value of options, deferred shares and matching shares granted are recognised as an employee expense with a
corresponding increase in equity. The fair value is measured at grant date and is charged to the statement of comprehensive
income over the vesting period during which the employees become unconditionally entitled to the options or shares.
The fair value of share options granted is measured using a modified Black Scholes model, taking into account the terms and
conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual
number of share options that vest only where vesting is dependent upon the satisfaction of service and non-market vesting
conditions.
Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each
balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of
options which eventually vest. Market vesting conditions are factored into the fair value of the options granted. The
cumulative expense is not adjusted for failure to achieve a market vesting condition.
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final
equity dividends are recognised when approved by the shareholders at an annual general meeting.
Pensions
The Group contributes to certain defined contribution pension and employee benefit schemes on behalf of its employees.
These costs are charged to the statement of comprehensive income on an accruals basis.
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the statement of
comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is
recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted at the balance sheet date together with any adjustment to tax payable in respect of previous years. Current tax
includes the expected impact of claims submitted by the Group to tax authorities in respect of enhanced tax relief for
expenditure on research and development.
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for:
· the initial recognition of goodwill,
· the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a
business combination, and
· differences relating to investments in subsidiaries to the extent that they will probably not reverse in the
foreseeable future.
The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. Recognition of deferred
tax assets is restricted to the extent that it is probable that future taxable profit will be available against which the
temporary differences can be utilised.
Foreign currencies
The individual financial statements of each Group company are presented in the currency of the primary economic environment
in which it operates (the functional currency). For the purposes of the consolidated financial statements, the results and
financial position of each Group company are expressed in Euro, which is the functional currency of the parent Company, and
the presentation currency of the consolidated financial statements.
In preparing the financial statements of the individual companies, transactions in currencies other than the entity's
functional currencies are recognised at the rates of exchange prevailing on the dates of the transactions. At each balance
sheet date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates
prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not
retranslated.
Exchange differences are recognised in profit or loss in the period in which they arise.
For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group's foreign
operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated
at the average monthly exchange rates prevailing in the month in which the transaction took place. Exchange differences
arising, if any, are recognised in other comprehensive income and the foreign currency translation reserve.
Government grants
Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received
and the Group will comply with the attached conditions. When the grant relates to an expense item, it is recognised as
income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.
Where the grant relates to an asset they are credited to a deferred income account and released to the statement of
comprehensive income over the expected useful life of the relevant asset on a straight line basis.
Goodwill
Goodwill arising on the acquisition of a subsidiary undertaking is the difference between the fair value of the
consideration paid and the fair value of the identifiable assets and liabilities acquired. It is capitalised, and is
subject to annual impairment reviews by the Directors. Any impairment arising is charged to the statement of comprehensive
income. Where the fair value of the identifiable assets and liabilities acquired is greater than the fair value of
consideration paid, the resulting amount is treated as a gain on a bargain purchase and has been recognised in the income
statement.
Other intangible assets
Intellectual property rights, including patents, which cover a portfolio of novel processes and products, are shown in the
financial statements at cost less accumulated amortisation and any amounts by which the carrying value is assessed during
an annual review to have been impaired. At present, the useful economic life of the intellectual property is considered to
be 20 years.
Internal development costs are incurred as part of the Group's activities including new processes, process improvements,
identifying new species and improving the Group's existing products. Research costs are expensed as incurred. Development
costs are capitalised when all of the criteria set out in IAS 38 'Intangible Assets' (including criteria concerning
technical feasibility, ability and intention to use or sell, ability to generate future economic benefits, ability to
complete the development and ability to reliably measure the expenditure) have been met. These internal development costs
are amortised on a straight line basis over their useful economic life, between 10 and 20 years.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment charged. Cost includes
the original purchase price of the asset as well as costs of bringing the asset to the working condition and location of
its intended use. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each
asset, except freehold land, over its expected useful life on a straight line basis, as follows:
Plant and machinery These assets comprise pilot plants and production facilities. These
facilities are depreciated from the date they become available for use at rates applicable to the asset lives expected for
each class of asset, with rates between 5% and 20%.
Office equipment Between 20% and 50%.
Leased land and buildings Land held under a finance lease is depreciated over the life of the lease.
Freehold land Freehold land is not depreciated.
Impairment of non-financial assets
The carrying amount of the non-current non-financial assets of the Group is compared to the recoverable amount of the
assets whenever events or changes in circumstances indicate that the net book value may not be recoverable, or in the case
of goodwill, annually. The recoverable amount is the higher of value in use and the fair value less cost to sell. In
assessing the value in use, the expected future cash flows from the assets are determined by applying a discount rate to
the anticipated pre-tax future cash flows. An impairment charge is recognised in the statement of comprehensive income to
the extent that the carrying amount exceeds the assets' recoverable amount. The revised carrying amounts are amortised or
depreciated in line with Group accounting policies. A previously recognised impairment loss, other than on goodwill, is
reversed if the recoverable amount increases as a result of a reversal of the conditions that originally resulted in the
impairment. This reversal is recognised in the statement of comprehensive income and is limited to the carrying amount
that would have been determined, net of depreciation, had no impairment loss been recognised in prior years. Assets are
grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units) for purposes of
assessing impairment.
Leases
Operating lease payments are recognised as an expense in the statement of comprehensive income on a straight-line basis
over the lease term.
Assets held under finance leases are recognised as assets of the Group at their fair value or, if lower, at the present
value of the minimum lease payments, each determined at the inception of the lease. The corresponding liability to the
lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance
expenses and reduction of lease obligation so as to achieve a constant rate of interest on the remaining balance of the
liability.
Inventories
Raw materials, which consist of unprocessed timber and chemicals used in manufacturing operations are valued at the lower
of cost and net realisable value. The basis on which cost is derived is a first-in, first-out basis.
Finished goods, comprising processed timber, are stated at the lower of weighted average cost of production or net
realisable value. Costs include direct materials, direct labour costs and production overheads (excluding the
depreciation/depletion of relevant property and plant and equipment) absorbed at an appropriate level of capacity
utilisation. Net realisable value represents the estimated selling price less all expected costs to completion and costs
to be incurred in selling and distribution.
Financial assets
Financial assets are classified as cash and cash equivalents, available for sale investments and loans and receivables,
depending on the purpose for which the asset was acquired. When financial assets are recognised initially, they are
measured at fair value plus, in the case of investments not at fair value, through profit or loss directly attributable
transaction costs.
Except where a reliable fair value cannot be obtained, unlisted shares held by the Group are classified as available for
sale investments and are stated at fair value. Gains and losses arising from changes in fair value are recognised directly
in equity, with the exception of impairment losses which are recognised directly in profit or loss. Where an investment is
disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in the profit or loss in the
year. Where it is not possible to obtain a reliable fair value, these investments are held at cost less provision for
impairment.
Loans and receivables, which comprise non-derivative financial assets with fixed and determinable payments that are not
quoted on an active market are initially recognised at fair value plus transaction costs that are directly attributable to
their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less
provision for impairment.
Trade and other receivables
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted on an active
market. They arise principally from the provision of goods and services to customers. Trade receivables are initially
recognised at fair value less an allowance for any uncollectible amounts. A provision for impairment is made when there is
objective evidence that the Group will not be able to collect debts. Bad debts are written off when identified.
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at bank and in hand and short-term deposits,
including liquidity funds, with an original maturity of three months or less. For the purpose of the statement of
consolidated cash flow, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding
bank overdrafts.
Financial liabilities
Other financial liabilities
Trade payables and other financial liabilities are initially recognised at fair value and subsequently carried at amortised
cost using the effective interest method.
Share capital
Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of
a financial liability. The Group's shares are classified as equity instruments.
Segmental Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief executive. The
chief executive is responsible for allocating resources and assessing performance of the operating segments, has been
identified as the steering committee that makes strategic decisions.
2. Accounting estimates and judgements
In preparing the Consolidated Financial Statements, management has to make judgments on how to apply the Group's accounting
policies and make estimates about the future. The critical judgments that have been made in arriving at the amounts
recognised in the Consolidated Financial Statements and the key sources of estimation and uncertainty that have a
significant risk of causing a material adjustment to the carrying value of assets and liabilities in the next financial
year are discussed below:
Revenue recognition
The Group has considered the criteria for the recognition of fee income from licensees over the period of the agreement and
is satisfied that the recognition of such revenue is appropriate. The recognition of fees is based upon an assessment of
the work required before the licence is signed and subsequently during the construction and commissioning of the licensees'
plant, with an appropriate proportion of the fee recognised upon signing and the balance recognised as the project
progresses to completion. The Group also considers the recoverability of amounts before recognising them as income.
Goodwill
The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated
above. The recoverable amounts of cash-generating units have been determined based on value in use calculations. These
calculations require the use of judgements in relation to discount rates and future forecasts (See note 16). The
recoverability of these balances is dependent upon the level of future licence fees and manufacturing revenues. While the
scope and timing of the production facilities to be built under the Group's existing and future agreements remains
uncertain, the Directors remain confident that revenue from own manufacturing, existing licensees, new licence or
consortium agreements will be generated, demonstrating the recoverability of these balances.
Intellectual property rights and property, plant and equipment
The Group tests the carrying amount of the intellectual property rights and property, plant and equipment whenever events
or changes in circumstances indicate that the net book value may not be recoverable. These calculations require the use of
estimates in respect of future cash-flows from the assets by applying a discount rate to the anticipated pre-tax future
cash-flows. The Group also reviews the estimated useful lives at the end of each annual reporting period (See note 16 &
17). The price of the Accoya wood and the raw materials and other inputs vary according to market conditions outside of the
Group's control. Should the price of the raw materials increase greater than the sales price or in a way which no longer
makes Accoya competitive, then the carrying value of the property, plant and equipment or IPR may be in doubt and become
impaired. The Directors consider that the current market and best estimates of future prices mean that this risk is
limited.
Inventories
The Group reviews the net realisable value of, and demand for, its inventory on a monthly basis to provide assurance that
recorded inventory is stated at the lower of cost and net realisable value after taking into account the age and condition
of inventory (see note 21).
Available for sale investments
The Group has an investment in unlisted equity shares carried at nil value. The investment is valued at cost less any
impairment as a reliable fair value cannot be obtained since there is no active market for the shares and there is
currently uncertainty around the future funding of the business. The Group makes appropriate enquiries and considers all of
the information available to it in order to assess whether any impairment has occurred (See note 18).
New standards and interpretations in issue but not yet effective at the date of authorisation of these financial
statements:
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been
applied in these financial statements were in issue but not yet effective (and in some cases had not yet been adopted by
the EU).
• IFRS 9 'Financial Instruments'
• IFRS 10 (amendments) 'Consolidated Financial Statements'
• IFRS 11 (amendments) 'Joint arrangements'
• IFRS 14 'Regulatory deferral accounts'
• IFRS 15 'Revenue from contracts with customers'
• IFRS 16 'Leases'
• IAS 1 (amendments) 'presentation of financial statements'
• IAS 7 (amendments) 'Cash flow statements'
• IAS 12 (amendments) 'Income taxes'
• IAS 19 (amendments) 'Employee contributions'
• IAS 16 (amendments) 'property plant and equipment'
• IAS 38 (amendments) 'Intangible assets'
• IAS 27 (amendments) 'Separate financial statements'
• IAS 28 (amendments) 'Associates and joint ventures'
The Directors do not expect that the adoption of the Standards and Interpretations listed above will have a material impact
on the financial statements of the Group in future periods.
3. Segmental reporting
The Group's business is the manufacturing of and development, commercialisation and licensing of the associated proprietary
technology for the manufacture of Accoya wood, Tricoya wood elements and related acetylation technologies. Segmental
reporting is divided between licensing and business development activities, the manufacturing and sale of Accoya and
research and development activities.
Result by Segment: Licensing, Management and Business Development
2016 2015
E'000 E'000
Revenue 5,422 1,051
Cost of sales - -
Gross profit 5,422 1,051
Other operating costs (10,063) (8,527)
Exceptional Items - (2,937)
Other operating costs (10,063) (11,464)
Loss from operations (4,641) (10,414)
Loss from Operations (4,641) (10,415)
Depreciation and amortisation 609 430
EBITDA (4,032) (9,983)
Manufacturing
Revenue 47,347 45,026
Cost of sales (34,597) (33,842)
Gross profit 12,750 11,184
Other operating costs (6,487) (6,253)
Profit from operations 6,263 4,931
Profit from operations 6,263 4,931
Depreciation and amortisation 2,016 2,004
EBITDA 8,279 6,935
Research and Development
Revenue - -
Cost of sales - -
Gross result - -
Other operating costs (1,910) (1,205)
Loss from operations (1,910) (1,205)
Loss from Operations (1,910) (1,205)
Depreciation and amortisation 47 41
EBITDA (1,863) (1,164)
Total
Revenue 52,769 46,077
Cost of sales (34,597) (33,842)
Gross profit 18,172 12,235
Other operating costs (18,460) (15,985)
Exceptional Items - (2,937)
Other operating costs (18,460) (18,922)
Loss from operations (288) (6,687)
Share of joint venture loss - (1,098)
Finance income 13 73
Finance expense (191) (208)
Exceptional gain on acquisition of subsidiary - 267
Loss before taxation (466) (7,653)
Loss from Operations (288) (6,687)
Share of joint venture loss - (1,098)
Depreciation and amortisation 2,672 2,475
EBITDA 2,384 (5,309)
EBITDA (before exceptional items) 2,384 (2,371)
Licensing, Management and Business Development
Revenue is attributable to fees from licensees of the Group's technology to third parties.
Other operating costs include all remaining costs unless they are directly attributable to Manufacturing or Research and
Development. This includes marketing, business development, management and the majority of the Group's administration costs
including the head office in London (previously Windsor) as well as the US office. Headcount = 24 (2015: 21)
Manufacturing
Revenue includes the sale of Accoya and other revenue, principally relating to the sale of acetic acid.
All costs of sales are allocated against manufacturing activities in Arnhem unless they can be directly attributable to a
licensee. Other operating costs include depreciation of the Arnhem property, plant and equipment together with all other
costs associated with the operation of the Arnhem manufacturing site, including directly attributable administration costs.
Headcount = 85 (2015: 77)
Research and Development
Costs are associated with various R&D activities associated with Accoya and, in the current period, Tricoya processes.
Costs exclude those which have been capitalised in accordance with IFRS. (see note 16). Headcount = 12 (2015: 13)
Assets and liabilities cannot be readily allocated to the three segments and therefore no additional segmental information
has been disclosed.
Analysis of Revenue by geographical area of customers: 2016 2015
E'000 E'000
UK and Ireland 21,426 17,760
Benelux 7,764 8,431
Rest of Europe 14,085 10,704
Americas 4,846 5,522
Asia-Pacific 4,382 3,151
Rest of World 266 509
52,769 46,077
Revenue generated from three customers exceeded 10% of Group revenue of 2016. This included 47% of the revenue from the
rest of Europe and relates to a mixture of manufacturing, licence and other revenue. In addition two other customers
represented 38% and 32% respectively, of the revenue from the United Kingdom and Ireland and relates to manufacturing
revenue. Revenue generated from two customers exceeded 10% of Group revenue in 2015. (34% and 31% respectively, of the
revenue from the United Kingdom and Ireland).
Analysis of non-current assets (Other than financial assets and deferred tax): 2016 2015
- More to follow, for following part double click ID:nRSO2046BdRecent news on Accsys Technologies
See all newsREG - Accsys Technologies - Director Interests
AnnouncementREG - Accsys Technologies - Block listing Six Monthly return
AnnouncementREG - AIM - AIM Notice - 28/02/2024
AnnouncementREG - Accsys Technologies - Block listing application to AIM
AnnouncementREG - Accsys Technologies - Directorate Change
Announcement