REG - Accsys Technologies - Trading Update

Accsys TechnologiesAnnouncement

03/05/2023 07:00

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RNS Number : 1859Y  Accsys Technologies PLC  03 May 2023

Accsys Technologies PLC (AIM: AXS, Euronext Amsterdam: AXS)

 

("Accsys" 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 provides an update on end-of-year guidance (for the year ended 31 March
2023 (FY 2023)) and progress on key strategic projects. All numbers in this
announcement are unaudited.

 

FY 2023 guidance update

·      Growth in Accoya(®) sales volumes of 6% on prior year at
63,344m(3)

·      H2 sales volumes of 39,387m(3) (H1: 23,957m(3)), representing
growth of 64% on H1, and in excess of our targeted 50% increase

·      The Company now expects it will deliver EBITDA moderately ahead of
its previous guidance of doubling underlying EBITDA year on year

·      Net debt of €44m at 31 March 2023 represents a reduction of €8m
compared to 31 December 2022, driven by growing EBITDA and a focus on working
capital management, including a reduction in inventory levels

 

Update on strategic growth projects:

·      Tricoya® (Hull) plant - the Board of Accsys continues to conduct
its review of the Tricoya® plant in Hull, assessing its economics and
capabilities.  All funding options remain under evaluation, as outlined in
previous Company announcements, which include discussions with potential
third-party partners.  The Board continues to believe that the market
potential of Tricoya® is significant and will consider all relevant
commercial factors in deciding whether or not to proceed with the Hull plant
and if so, on what basis.  A further update will be provided in due course.
 The maintenance costs at the plant remain within the Board's expectations
and are funded by internally generated cash flow.

·      Accoya® USA JV - we continue to make good progress with the
construction of the 43,000m(3) Accoya(®) plant in Kingsport, Tennessee with
our JV partner, Eastman. However, mechanical completion has experienced some
delay and cost inflation and as a result, commercial operations are now
expected to commence in mid-2024.  Progress to date includes the completion
of ground works, ongoing steelwork and main warehouse construction,
installation of the reactors on site, placement of multiple large
sub-contracts and procurement of more than 80% of major equipment.  Both
joint venture partners continue to be fully engaged in delivering this
strategically important project.

·      Accoya(®) (Arnhem) plant - growth in sales volumes reflects
increased capacity from Reactors 1-3 after returning to full production
following the completion of Reactor 4 (R4) in September, new production from
R4 and some unwinding of higher inventory levels. Fourth quarter production
was the highest ever delivered at the plant.

 

The Company will announce its Preliminary results for FY 2023 on 27 June
2023.

 

---ends---

For further information, please contact:

 Accsys Technologies PLC                 ir@accsysplc.com (mailto:ir@accsysplc.com)

Katharine Rycroft, 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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