TIDMAXS
RNS Number : 8302D
Accsys Technologies PLC
02 May 2013
AIM: AXS
NYSE Euronext Amsterdam: AXS
2 May 2013
ACCSYS TECHNOLOGIES PLC
("Accsys" or the "Company")
Trading update
Accsys today issues a trading update for the year to 31 March
2013 (based on unaudited figures). Key highlights include:
-- Total revenue increased by 25% to EUR18.8m for the year ended 31 March 2013 (2012: EUR15.0m);
-- Revenue from sales to Accoya(R) customers increased by 45%
for the year ended 31 March 2013 to EUR16.4m (2012: EUR11.3m);
-- Positive gross margin achieved at the group level for the year ended 31 March 2013;
-- Continue to expect our Arnhem manufacturing plant to reach at
least 50% capacity utilisation and hence be EBITDA positive in the
current financial year;
-- Continuing progress with Solvay-Rhodia towards a fully
effective licence agreement which we expect to become unconditional
later in 2013;
-- New Accoya(R) decking product retail trial launched by
Solvay-Rhodia in over 40 outlets in Europe;
-- Total of 42 Accoya(R) distributor and agency agreements now
in place (an increase of three since February) covering most of
Europe, Australia, Canada, Chile, China, India, Mexico, Morocco,
New Zealand, parts of South-East Asia and the USA;
-- Tricoya Technologies Limited ('TTL'), the joint venture with
Ineos, continues to make progress, developing both new and existing
Tricoya(R) licence opportunities including the signing of a Heads
of Terms in December 2012 for a conditional licence agreement with
Medite;
-- Further industry recognition:
o Medite Tricoya(R) won Product of the Year at the Sustain
Magazine Awards for Sustainability, Business and the Built
Environment; and
o Accoya(R) window frames have been found to be carbon negative
over their lifetime; and
-- Net cash balance of EUR20.5m at 31 March 2013 (December 2012: EUR21.2m).
Financial results (unaudited)
Total revenue for the year ended 31 March 2013 increased by 25%
to EUR18.8m (2012: EUR15.0). In the same period, Accoya(R) revenue
increased by 45%, excluding sales to Medite for the manufacture of
Tricoya, to EUR16.4m (2012: EUR11.3m), noting a substantial volume
was sold to Medite in the second half of the previous financial
year to enable them to build up initial stocks of Medite Tricoya.
Total revenue also included EUR0.6m of licence income which had
been recorded in the first half of the year. We expect revenue to
continue to grow however this rate of growth is likely to remain
difficult to predict from one period to another.
Net cash balance as at 31 March 2013 of EUR20.5m represents a
decrease of EUR0.7m since 31 December 2012. The decrease is after
taking account of EUR1.7m received in February 2013 following the
completion of the second part of the sale and leaseback of the land
in Arnhem and also reflects the operating loss in the period, the
first cash investment into TTL, capital expenditure (including
development costs) and changes to other working capital balances.
Cash out-flow from operating activities before changes in working
capital has decreased significantly in the year ended March 2013
compared to the prior year and this trend is expected to
continue.
Trading update
Accsys continues to make progress towards achieving its longer
term objective of achieving profitability.
Following the delivery of the first stages of the engineering
Process Design Package to Solvay-Rhodia in November 2012, Accsys
and Solvay-Rhodia continue to work towards completing the full
Process Design Package which will enable the detailed engineering
to be completed. Our respective sales teams continue to develop the
market and we have been very pleased that Solvay-Rhodia has
launched a trial of a new Accoya(R) decking product in over 40
retail outlets in Europe. We expect this collaboration to increase
and we continue to expect the licence agreement to become
unconditional following the approval of Solvay-Rhodia's board of
directors later in 2013.
Revenue from Accoya(R) customers increased by 45% in the year to
31 March 2013 compared to last year reflecting continuing strong
growth in demand. We expect growth to continue and have been
pleased to sign a number of new distributors or sales agents over
the last few months including in Germany, Austria, Czech Republic,
Italy, Denmark and Iceland.
We have recently announced Accoya(R) price increases in all
regions which will become effective over the first quarter of
2013/14 financial year. While the price increase is in part
attributable to increasing raw material costs, taken together with
increased sales volumes, we expect profitability to improve such
that we continue to expect the Arnhem manufacturing facility to
achieve an EBITDA positive level at 50% of its current capacity in
the current year; a level which also indicates the potential
returns a prospective licensee may be able to generate.
Accoya(R) and Tricoya(R) continue to receive industry
recognition of their superior qualities: An updated analysis by
leading climate change consultancy Verco, has shown that Accoya's
carbon footprint significantly outperforms most other building
materials, including a wide range of sustainably sourced hardwoods.
Further analysis by the Delft University of Technology revealed
that Accoya(R) window frames are now classified as carbon negative
over their lifetime cycle. Medite Tricoya(R) won Product of the
Year at the Sustain Magazine Awards for Sustainability, Business
and the Built Environment based on its combined innovation and
transparent sustainability.
TTL continues to make progress and is working towards agreeing a
full conditional licence agreement with Medite for the manufacture
of Tricoya, following the signing of a Heads of Terms in December
2012.
Accsys and TTL continue to develop a number of new and existing
potential Accoya(R) and Tricoya(R) licence opportunities
respectively, with counterparties whose combined existing total
wood product manufacturing or processing capacity is in excess of
10 million m(3) per annum. While these discussions remain ongoing,
the complex nature and investment required by a licensee, means
that the timing and certainty of their completion remains difficult
to predict.
The date of the full preliminary announcement of the financial
results for the year ended 31 March 2013 and the related webcast is
expected to be announced in June.
Commenting on the trading update released today, Paul Clegg, CEO
of Accsys Technologies PLC said: "We are pleased by the growth in
our underlying Accoya(R) sales and generation of positive gross
margin which we have achieved despite continuing difficult economic
conditions impacting the construction industry. The on-going
recognition of the many superior benefits of our products, combined
with increased sales recorded by both existing as well as new
distributors, give us confidence that growth will continue. The
progress with the Solvay-Rhodia licence agreement is encouraging
and the on-going development of both new and existing licensing
opportunities continues to provide confidence concerning our longer
term objective of achieving profitability."
Ends
For further information, please contact:
Accsys Technologies Paul Clegg, CEO via Blythe Weigh
PLC Hans Pauli, COO Communications
Will Rudge, FD
Nominated Adviser: Oliver
Cardigan
Corporate Broking: Christopher
Wilkinson +44 (0)20 7260
Numis Securities Ben Stoop 1000
+44 (0)20 7138
3204
Paul Weigh +44 (0) 7989 129658
Blythe Weigh Tim Blythe +44 (0) 7816 924626
SPJ Financial & Corporate
Communication Frank Neervoort +31 681734236
Notes to editors:
Accsys Technologies PLC(www.accsysplc.com) is an environmental
science and technology company whose primary focus is on the
production of Accoya(R) wood and technology licensing via its
subsidiary, Titan Wood Limited, which has manufacturing operations
in Arnhem, the Netherlands (through its subsidiary Titan Wood
B.V.), a European office in Windsor, United Kingdom, and an
American office in Dallas, Texas (via its subsidiary Titan Wood,
Inc). All group subsidiaries are ultimately 100% owned by Accsys
and trade as Accsys Technologies. Any references in this
announcement to agreements with Accsys shall mean agreements with
either Accsys or its subsidiary entities unless otherwise
specified. Accsys Technologies PLC is listed on the London Stock
Exchange AIM market and on Euronext Amsterdam by NYSE Euronext,
under the symbols 'AXS'. Accsys' operations comprise three
principal business units: (i) Accoya(R) wood production; (ii)
technology development, focused on a programme of continuous
development of and improvements to the process engineering and
operating protocols for the acetylation of solid wood and the
development of technology for the acetylation of wood elements; and
(iii) the licensing of technology for the production of Accoya(R)
wood and Tricoya(R) wood elements across the globe.
Accoya(R) wood (www.accoya.com) is produced using Accsys'
proprietary patented acetylation technology, that effectively
converts sustainably grown softwoods and non-durable hardwoods into
what is best described as a "high technology wood". Distinguished
by its durability, dimensional stability and, perhaps most
importantly of all, its reliability (in terms of consistency of
both supply and quality), Accoya(R) wood is particularly suited to
exterior applications where performance and appearance are valued.
Unlike most tropical and European hardwoods, its colour does not
degrade when exposed to ultraviolet light. Moreover, the Accoya(R)
wood production process does not compromise the wood's strength or
machinability. The combination of UV resistance, dimensional
stability, durability and retained strength means that Accoya(R)
wood offers a wealth of new opportunities to architects, designers
and specifiers. For marine uses where weight is also important,
Accoya(R) wood for the first time provides boat builders with a
wood that is strong, lightweight, durable and retains its natural
beauty for far longer. For a full archive of Accoya(R) news, visit
www.accoya.com/news.asp.
Tricoya(R) Wood Elements(www.tricoya.com) are produced using
Accsys' proprietary technology for the acetylation of wood chips,
and particles for use in the fabrication of wood based composites,
including panel products. These composites demonstrate enhanced
durability and dimensional stability which allow them to be used in
a variety of applications that were once limited to solid wood or
man-made products. Exploitation of Accsys' proprietary technology
relating to Tricoya(R) Wood Elements is carried out through Tricoya
Technologies Limited, a joint venture between Accsys and INEOS
Industries Holdings Limited. Tricoya(R) Wood Elements are lauded as
the first major innovation in the wood composites industry in more
than 30 years.
Wood Acetylation is a process which increases the amount of
'acetyl' molecules in wood, thereby changing its physical
properties. When carried out to a sufficient level throughout the
wood, this process protects wood from rot by making it "inedible"
to most micro-organisms and fungi, without - unlike conventional
treatments - making it toxic. It also greatly reduces the wood's
tendency to swell and shrink, making it less prone to cracking and
ensuring that, when painted, it requires dramatically reduced
maintenance.
Accsys Technologies is the trading name of Titan Wood Limited.
ACCOYA(R), TRICOYA(R) and the Trimarque Device are registered
trademarks owned by Titan Wood Limited ("TWL"), a wholly owned
subsidiary of Accsys Technologies PLC, and may not be used or
reproduced without written permission from TWL, or in the case of
the Tricoya(R) registered trademark, from Tricoya Technologies
Limited, a joint venture between TWL and INEOS Industries Holdings
Limited with exclusive rights to exploit the Tricoya(R) brand.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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