REG - Accsys Technologies - Trading Update

Accsys TechnologiesAnnouncement

04/03/2022 07:15

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RNS Number : 6163D  Accsys Technologies PLC  04 March 2022

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 46,817m(3), 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 20,000m(3) of
capacity and increase the annual production capacity of the plant by 33% to
80,000m(3) 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                 ir@accsysplc.com (mailto:ir@accsysplc.com)

Sarah Ogilvie, Investor Relations
 Numis Securities (London)               +44 (0) 20 7260 1000

Oliver Hardy (NOMAD), Ben Stoop
 Investec Bank plc (London)              +44 (0) 20 7597 5970

Carlton Nelson, Alex Wright

                                       +31 20 344 2000
 ABN Amro (Amsterdam)

Richard van Etten, Dennis van Helmond
 FTI Consulting (UK)                     +44 (0) 20 3727 1340

Matthew O'Keeffe, Alex Le May
 Off the Grid (The Netherlands)          +31 681 734 236

Frank Neervoort, Yvonne Derske

 

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
(http://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
(http://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 (http://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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