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Accsys

Interim (Half Year) Results for the six months ended 30 September 2020

November 30, 2020

Accsys, the fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, announces its interim results for the six months ended 30 September 2020 (“H1 FY 21”).

    H1 FY 21 H1 FY 20 Change %
Total Group revenue   €42.9m €44.0m (3%)
Underlying gross profit   €14.3m €12.8m +12%
Accoya® Manufacturing margin1   33.5% 28.6% +490bps
Underlying EBITDA2   €4.3m €2.5m +72%
Underlying EBIT3   €1.6m (€0.4m)  
Underlying (loss) before tax   (€0.1m) (€2.2m)  
Profit/(loss) before tax   €1.0m (€1.6m)  
Period end net (debt)4   (€16.3m) (€59.3m)  
Accoya® sales volume   26,422m3 28,113m3 (6%)

Key highlights:

  • Improved profitability driven by higher average selling prices: Underlying gross margin of 33% (H1 FY20: 29%) and underlying EBITDA2 up 72% to €4.3m.
     
  • Accoya® business performed strongly driving an €2.8m increase in Group operating cashflow5 to €5.4m (H1 FY20: €2.6m) together with rigorous working capital management resulting in a €8.9m reduction in Group Net Debt in the period.
     
  • Good progress on execution of strategic growth projects:
    • Q1 CY2021 with commissioning to follow; Accoya® (Arnhem) plant expansion with addition of fourth reactor on schedule.
    • Continued focus on growth strategy and remain on track to deliver our ‘5x’ production capacity target by 2025.
       

Notes

  1. Accoya® Manufacturing margin is defined as Accoya® segmental underlying gross profit (excluding Licence income and marketing services) divided by Accoya® segmental revenue (excluding Licence income and marketing services) (See note 2 to the financial statements)
  2. Underlying EBITDA is defined as Operating profit/(loss) before Exceptional items and other adjustments, depreciation and amortisation. (See note 4 to the financial statements). Exceptional items included Government payroll related COVID-19 grants received of €0.6m
  3. Underlying EBIT is defined as Operating profit/(loss) before Exceptional items and other adjustments. (See note 4 to the financial statements).
  4. Net debt is defined as short term and long-term borrowings (including lease obligations) less cash and cash equivalents. (See note 12 to the financial statements).
  5. Group operating cashflow is Cash inflows from operating activities before changes in working capital.
  6. The Sustainability Report is available on the Accsys website at: www.accsysplc.com/changing-the-world
     

Robert Harris, CEO commented:

“Accsys has delivered an excellent first half year, underpinned by continued strong demand for our products and supported by our operational agility which allowed us to adapt quickly in the face of the pandemic. Sales of our sustainable, high-performance Accoya® and Tricoya® wood products bounced back rapidly as the initial disruptions from lockdown measures eased, and as we adapted to better manage these challenges. We have built on this with continued good progression in our profitability.

“Whilst COVID-19 continues to cause uncertainty more generally and there remains a consequent risk of further disruption, the second half of the financial year has started well without the disruption experienced during the first lockdown. Strong demand has continued, with record sales levels in October whilst production is being maintained at capacity levels.

“Execution of our strategic growth plans progressed well during the period as we work to expand our production capacity to meet untapped global demand. Construction of the world’s first Tricoya® production plant, in Hull, UK, remains on track and has accelerated after the initial more severe lockdown. The erection of the acetylation tower structure was completed in October. Additionally, the project to expand our Accoya® plant in the Netherlands remains on schedule. We also continue to make good progress in evaluating the construction of  a facility in North America with Eastman to serve this significant and growing market.

“Sustainability sits at Accsys’ core and we have today published our Sustainability Report, setting out our ESG strategy, framework and priorities aligned to our purpose: Changing wood to change the world.

“Our IP and processes ensure that our products benefit from strong competitive advantages and are aligned to the global shift in consciousness towards sustainability. Looking ahead, we continue to see significant growth potential and opportunity for expansion”.