Accsys has today announced it’s interim results for the six months ended 30 September 2023.
Highlights:
• 21% growth in revenue at €71.2m, driven by good product demand, higher average sales prices and increased production capacity following reactor 4 start-up in September 2022
• 20% growth in Accoya sales volumes at 28,807m3: Strong growth of Accoya in Rest of World and Rest of Europe markets, up 42% and 28% respectively. 30% growth in Accoya for Tricoya production at 8,393m3, supporting our belief in Tricoya market potential
• 2 percentage points decline in gross profit margin to 29%, reflecting higher raw material costs and wood inventory optimisation
• 64% decrease in underlying EBITDA at €1.6m: volume growth and higher average Accoya prices offset by: Increased pre-operational costs in Accoya plant in Kingsport, US, ahead of completion in mid-2024 and Tricoya
UK plant operating costs, due to a change in accounting treatment; Increased operating expenditure on sales & marketing, executive recruitment and engineering costs
• Strategic growth projects: Arnhem – plant performing well; efficiency improvements ongoing; Accoya plant in Kingsport, US – construction of new 43,000m3 plant progressing well and in line with plan; on- track for completion and commercial operation in mid-2024
• Tricoya UK plant project – while Accsys continues to believe in the market potential for Tricoya, in view of the current operating environment and shift of Company focus on the Accoya plant in Kingsport, US, the Board is
undertaking a review of the viability, strategic interest and financial capabilities of its Tricoya UK plant in Hull. The review will be conducted in early calendar year 2024
• Exceptional item of €1.2m in relation to organisational re-alignment and cost savings initiatives: Actions being taken to deliver annual cost savings of €3.0m+. Impairment loss (non-cash) of €7.0m recognised in the period
relating to the Tricoya segment due to an increase in the discount rate used following an increase in market interest rates and the Company specific market volatility factor
• Net debt at 30 September 2023 of €48.2m, an increase of €4.1m since the FY23 year end, reflecting capex of €2.0m, increase in working capital and inventory position and scheduled loan interest payments partially offset by
EBITDA generation during the period
• Fundraising: The Company today announces a fundraising to raise gross new proceeds of approximately €24m and an extension of its debt facilities. The proceeds of the fundraising will allow Accsys to complete the delivery of its Accoya plant in Kingsport, US, in mid-2024, strengthen its balance sheet and increase working capital headroom in the face of a challenging macro trading environment. Decisive action has been taken to secure the fundraising and a debt extension package to ensure the Company has the funding platform necessary to execute its growth strategy
To read the results in full please click here.