TIDMAXS
RNS Number : 4114Z
Accsys Technologies PLC
18 September 2020
AIM: AXS
Euronext Amsterdam: AXS
18 September 2020
Accsys Technologies PLC
("Accsys", the "Group" or the "Company")
Annual General Meeting Statement
Accsys, the fast-growing and eco-friendly company that combines
chemistry and technology to create high performance, sustainable
wood building products, announces the following trading update in
advance of its Annual General Meeting, to be held at 10.30 a.m. (UK
time) today.
Trading for 5 months to 31 August 2020
Sales levels have continued to recover strongly following the
previously reported impact to sales volumes in April resulting from
COVID-19 disrupting our distribution channels. In May we
successfully carried out our annual maintenance stop for our
Accoya(R) plant. This was accomplished slightly earlier than
initially planned, to position the business to maximise uptime once
pandemic lockdown measures eased.
Following this, all three Accoya(R) reactors have been on stream
and sales orders have increased notably following the return to and
reopening of business by our customers and end-users. As a result,
Accoya(R) sales volumes of 20,952 cubic metres for the five months
to 31 August 2020 represent only a 9% reduction compared to the
same period last year despite a 35% year on year reduction in total
volume sold experienced in April.
Unaudited group revenue for the period was EUR33.7m, a 6%
reduction compared to the same period last year. In addition to the
strong recovery in sales in recent months as lock-down measures
have eased, the Group has benefited from full priced sales to the
former Cerdia region following the termination of the Accoya(R)
licence with Cerdia effective from 1 April 2020. Production levels
in Arnhem have also now returned to their pre-COVID-19 levels.
We expect the recovery in sales levels to continue assuming no
further significant disruption from COVID-19.
Tricoya(R) Hull plant construction progress
Following the initial disruption caused by COVID-19 through
April and May, construction work for the Tricoya(R) plant in Hull
has progressed with activity levels continuing to increase. New
on-site working protocols take into account revised Health and
Safety and social distancing requirements resulting in an
associated reduction in productivity levels. However, overall
activity levels are now at a higher level than at any previous time
on the project, with monthly working hours now over three times
those from a year ago.
The new Covid-19 working protocols are resulting in some
inefficiencies in the build programme and we are working with our
construction contractors to ensure that all possible measures are
taken to meet the project schedule. We are working towards the
completion of the construction of the plant in the first quarter of
the new calendar year with commissioning to follow thereafter.
However, the situation is being closely monitored and the impact on
the project schedule remains dynamic and under review.
COVID-19 mitigating actions update
Following the resumption of full construction activities in Hull
and improved Accoya(R) sales volumes, all UK employees who had
previously been furloughed had returned to work by August and all
salaries, including those of the senior management team and the
Board, have returned to their pre-COVID-19 levels. Our application
for compensation for payroll costs in the Netherlands under the NOW
scheme applies only to the first quarter of the new financial year,
given the subsequent increase in Accoya(R) revenue.
Our focus on cost control and working capital has been
successful in the period and, as we have incurred less capital
expenditure on the Hull plant than expected due to the delays with
construction, this has enabled a reduction in net debt compared to
31 March 2020. Operating costs are therefore expected to show a
relative increase in the second half of the financial year as we
focus on our growth strategy.
Progress with Accoya(R) capacity increase
Arnhem
Work is progressing with the expansion of the Accoya(R) plant in
Arnhem by the addition of a fourth Accoya(R) reactor, which will
increase the capacity to 80,000 cubic metres. The reactor vessel
has been ordered and an engineering, procurement and construction
management contract has been entered into with detailed engineering
now being undertaken. The project is expected to be complete by
March 2022 as previously reported.
Joint Venture with Eastman Chemical Company
In August we were very pleased to announce the formation of
Accoya USA LLC, a new joint venture with Eastman Chemical Company
which intends to construct and operate an Accoya(R) wood production
plant to serve the North American market, a key target region with,
which we estimate to be, the largest market potential for Accoya(R)
.
The new company has been formed and a technology licence entered
into to enable front-end engineering and design for the proposed
initial 40,000 cubic metres plant to be completed. A decision
whether to proceed to the next stage of plant construction, and as
to funding, is expected to be made following the initial
engineering and design work, which is expected to be completed in
the first quarter of the 2021 calendar year.
Governance and sustainability
We have continued to progress our full review of how we assess
ESG issues and opportunities. Working with an expert consultancy,
we have completed a materiality study with input from many
stakeholders, including interviews, focus groups, and a survey of
over 1,600 relevant individuals. We have identified the most
important and relevant ESG topics to Accsys and are currently
developing a more detailed strategy that will be presented in an
ESG and Sustainability Report in due course.
As previously announced, Stephen Odell will assume the position
as Chairman immediately following today's AGM and Patrick Shanley
will step down as Chairman and as a non-executive director
following nearly 10 years' service to the Company. Alexander
Wessels appointment as a non-executive director will also become
effective immediately following today's AGM.
Stephen and Alexander will add to the Board's international
experience as we continue our ambitious growth strategy. Accsys
will remain forever grateful for Patrick's dedication and
significant contribution to our success so far and the Board would
like to put on record their heartfelt thanks.
S
For further information, please contact:
Accsys Technologies Robert Harris, CEO via FTI Consulting
PLC William Rudge, FD
Numis Securities Limited
-Nominated Adviser
and Oliver Hardy (NOMAD)
Joint Broker Ben Stoop +44 (0) 20 7260 1000
Carlton Nelson
Investec Bank plc - James Rudd
Joint Broker Alex Wright +44 (0) 20 7597 5970
Matthew O'Keeffe
FTI Consulting Alex Le May +44 (0) 20 3727 1340
Frank Neervoort +31 681 734 236
Off the Grid (The Netherlands) Yvonne Derkse +31 622 37 96 66
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 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 characteristics that match or better those
of man-made, intensely resource-depleting and heavily
carbon-polluting alternatives.
The company's primary focus is on the production of Accoya (R)
wood and Tricoya (R) wood elements, as well as technology licensing
via its subsidiaries Titan Wood Limited and Tricoya Technologies
Limited. Accsys has its head office in London, UK, production
operations in Arnhem, the Netherlands, an American office in
Dallas, Texas, and is constructing the world's first Tricoya (R)
plant in Hull, UK.
Accsys is committed to a more sustainable world, and uses
abundantly available wood sources that are certified as
sustainable. With our business model already aligned with several
UN Sustainable Development Goals, Accsys is currently working on
identifying further strategic ESG priorities to have an even
greater positive impact on the world.
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,
under the symbols 'AXS'.
More information about Accsys can be found at
www.accsysplc.com
Accoya (R) wood is a sustainable, durable and stable solid wood
product 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. Produced from certified (e.g. FSC
(R) ) sustainable sources, Accoya (R) wood has many environmental
credentials and ecolabels, and is one of very few building
materials to be Cradle to Cradle Certified(TM) 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.
With an up to 50 year warranty and 70+ year service life, the
combination of sustainability, dimensional stability, durability
and retained strength means that Accoya (R) wood offers a wealth of
new opportunities to architects, designers, specifiers,
manufacturers and homeowners. These benefits result in lower
maintenance and total cost of ownership while also offering
significant sustainability benefits. For more information about
Accoya (R) wood, visit www.accoya.com .
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 panel products such as
medium density fibreboard (MDF) and particle-board.
Panel products made with Tricoya (R) wood elements are truly
durable and stable enough for use outdoors and in wet environments.
Combining the sustainability, durability and stability from our
acetylation process with the ease of use and quality finish of wood
panel products, the enhanced durability and dimensional stability
opens new opportunities for the use of these products, making them
suitable in applications and environments that previously required
solid wood, synthetic or unsustainable materials.
Tricoya (R) wood elements have been lauded as the first major
innovation in the wood composites industry in more than 30 years.
For more information about Tricoya (R) wood elements, visit
www.tricoya.com.
In March 2017, Accsys announced the formation of the Tricoya (R)
Consortium to fund, build, own and operate the Tricoya (R) plant in
Hull, UK, through its subsidiary Tricoya Ventures UK Limited.
Members of the consortium include BP and the leading manufacturer
of sustainable wood-based panels, MEDITE Europe DAC. More
information is available at:
https://www.accsysplc.com/about-us/accsys-corporate-structure/
Wood acetylation is a process which increases the naturally
occurring acetyl content of wood, thereby changing its physical
properties. When carried out to a sufficient degree throughout the
wood, as with Accsys' proprietary process, it significantly reduces
the ability of the wood to absorb water without adding any toxic or
harmful compounds, elements or substances that were not already
present in the wood. This makes it much more dimensionally stable
and, because it is no longer easily digestible to most organisms,
extremely durable.
'Accsys' and 'Accsys Technologies' are trading names of Titan
Wood Limited ("TWL"), a wholly-owned subsidiary of Accsys
Technologies PLC. Accoya (R) , Tricoya (R) 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 (R) registered trademark, from Tricoya Technologies
Limited, a subsidiary of TWL with exclusive rights to exploit the
Tricoya (R) brand.
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