REG - Accsys Technologies - Trading Update

Accsys TechnologiesAnnouncement

01/09/2023 07:00

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RNS Number : 0352L  Accsys Technologies PLC  01 September 2023

AIM: AXS

Euronext Amsterdam: AXS

 

1 September 2023

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Accsys Technologies PLC

("Accsys", the "Group" or the "Company")

 

Trading Update

Accsys, the fast-growing and eco-friendly company that combines technology and
ingenuity to enhance the properties of wood to create products that are
extremely durable and stable, presenting new opportunities for the built
environment, today provides an update on current trading.

Accsys has made a strong start to the current financial year ending 31 March
2024 (FY24) with revenue and sales volumes ahead of the prior year for the
first four months of FY24. However, trading conditions in the building
materials, construction and residential housing markets in the UK, Europe and
North America have continued to soften, impacted by rising interest rates, the
higher inflation environment and slowing residential activity. In addition,
distributors of building products in the US and Europe have seen significant
volume declines year to date, with high levels of destocking being
experienced. As a result, Accsys has observed a weakening in demand for its
products.

In view of this trading environment, Accsys' executive team is taking
immediate and decisive steps, in particular measures to reduce operating
costs, optimise working capital and implement incremental cost saving
initiatives. In parallel, actions are being taken to accelerate Accsys' sales
approach to stimulate demand in its core and emerging markets. Accsys will
also continue to focus on the efficiency of the Arnhem plant and completion of
the Kingsport plant with commercial operation still expected mid-2024. All
actions being taken will support a more agile organisation, while preserving
the underlying business' ability to fulfil its long-term growth potential.
Further details on the initiatives being undertaken by Accsys will be provided
in the Company's interim results.

Given market uncertainty and with ongoing market trends expected to persist in
the near term, Accsys' sales volumes and revenue for the full financial year
2024 are now expected to be below current market expectations, with EBITDA
likely to be significantly below expectations. Challenging trading conditions
are expected to persist at least until the second half of the 2024 calendar
year. The Board will take appropriate action to support and invest in the
business, build global demand for our unique sustainable products and remains
confident in the growth opportunities for Accoya and Tricoya over the medium
to long term.

The Company will announce its interim results for the six months ended 30
September 2023 (HY24) on 21 November 2023.

Ends

This announcement comprises inside information for the purposes of EU MAR and
UK MAR. The person responsible for making this announcement is Nick Hartigan,
General Counsel and Company Secretary, Accsys Technologies PLC.

For further information, please contact:

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

Katharine Rycroft, Head of Investor Relations

                                                     +44 (0) 20 7421 4300
 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
 ABN Amro (Amsterdam)                                +31 20 344 2000
 Richard van Etten, Dennis van Helmond
 Huijskens Sassen Communications (The Netherlands)   +31 20 685 5955

Clemens Sassen

 

 

 

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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