REG - Accsys Technologies - Trading Update

Accsys TechnologiesAnnouncement

02/05/2024 07:00

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RNS Number : 9155M  Accsys Technologies PLC  02 May 2024

AIM: AXS

Euronext Amsterdam: AXS

 

2 May 2024

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

Accsys Technologies PLC

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

 

Trading update

 

FY2024 Adjusted Group EBITDA(1) ahead of market forecasts with resilient
trading in fourth quarter; progress made on strategic growth projects

 

Accsys, the fast-growing and purpose driven company that enhances the natural
properties of wood to create high performance and sustainable building
products, today announces a trading update with Adjusted Group EBITDA(1) ahead
of market forecasts for FY2024 (financial year ended 31 March 2024) and
commissioning underway on its US joint venture plant.

All numbers in this announcement are unaudited.

·     FY2024 results ahead of forecasts - As a result of resilient trading
in Q4 FY2024 and the cost saving initiatives implemented by management,
Adjusted Group EBITDA(1) is expected to be ahead of consensus expectations for
FY2024(2).

·       US JV commissioning underway - Accoya USA has begun
commissioning on its newly constructed plant in Kingsport, Tennessee (owned
60:40 by Accsys and Eastman Chemical Company in joint venture) in line with
the previously announced project plan and budget. The joint venture remains on
track to begin commercial operations in mid-2024.

·       Resilient trading in Q4 FY2024 - In Q4 FY2024, despite ongoing
macro-economic challenges, Accoya sales volumes remained robust, driven by
increased investment in sales and marketing and the addition of new
distribution channels. H2 FY2024 sales volumes totalled 27,761m³ (H2 FY2023:
39,387m³) with full year FY2024 volumes at 56,568m³ (FY2023: 63,344m³).

·      Cost saving and working capital initiatives showing results - The
Group's cost savings programme target achieved in H2 FY2024 with more than
€3 million (run rate) of targeted savings realised. Working capital
management measures are also seeing results with more than €9 million of
inventory reduction realised between 31 December 2023 and 31 March 2024.

·     Arnhem and Barry plant improvements continue - Accsys' plant and
operational improvements continue with a view to safely maximising
efficiencies and reliability, as well as ensuring operational performance is
aligned with demand.

·      Update on financing of Hull Tricoya plant - Accsys is committed to
coming to a resolution with respect to the future of its Tricoya plant in Hull
in H1 FY2025. Accordingly, Accsys has appointed a financial advisor to assist
with its search for a strategic and / or financing partner. Accsys will
provide an update in due course.

·     Reduction in net debt - Net debt of approximately €37 million at
31 March 2024, a reduction of approximately €11 million on net debt at 30
September 2023 (€48 million), following the successful capital raise in
November 2023 and tight working capital management.

 

·    Appointment of a Senior Independent Director ("SID") - The Board is
pleased to announce the appointment of Louis Eperjesi as Senior Independent
Director with effect from 19 April 2024. Louis has served on the Accsys Board
since 2022 and is currently a Senior Independent Director at Ibstock Plc and
Independent Non-Executive Director at Howden Joinery Group Plc and Trifast
plc.

 

Dr Jelena Arsic van Os, CEO Accsys Technologies PLC, commented:

"We are excited to see the commissioning of the Accoya USA plant underway.
When on stream this new facility will see our capacity double from 18 months
ago. It is a major milestone for Accsys that will bring our production closer
to customers and unlocks a significant growth opportunity in our largest
potential market. In Q4 we began to see positive results from our planned
investment in sales and marketing with trading ahead of expectations and
strong cash flow generation. We remain confident in the large market
opportunity for our products."

 

The Company will announce its preliminary results for FY2024 on or around 26
June 2024.

Notes:

1)       Adjusted Group EBITDA being earnings before interest, tax,
depreciation, amortisation and exceptional items of Accsys plus 60% of the US
joint venture's EBITDA.

2)       Accsys considers consensus FY2024 Adjusted EBITDA to be €2.5
million.

 

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)

Investor Relations
 Deutsche Numis (London)                             +44 (0) 20 7260 1000
 Oliver Hardy (NOMAD), Ben Stoop
 ABN Amro (Amsterdam)                                +31 20 344 2000
 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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