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Accsys

Trading Update

April 16, 2021

Accsys today announces a trading update for the 12 months ended 31 March 2021 (“FY21”), on an unaudited basis.

Highlights include:

  • Strong sales and revenue growth in the second half following the rapid recovery after the initial impact of COVID-19 in the first quarter:
    • FY21 Accoya® revenue of approximately €91m, up around 10%, with H2 up approximately 23% on H2 in prior year, with Group revenue in excess of approximately €98m.
    • FY21 Sales volumes of approximately 60,466m3, up around 4%.
  • Further progression on profitability, due to an improved manufacturing margin through a combination of initiatives.
  • Production has continued at capacity levels throughout H2 driven by ongoing strong demand from new and existing customers.
  • At the end of the year we are focussing on rebuilding our inventory stock levels, which are lower than usual due to reductions during COVID-19 disruption in H1 FY21 and some consequent supply chain disruptions.

Read the full statement, including key progress towards doubling Accsys’ production capacity in the next year, on our Regulatory News page.

Rob Harris, Accsys CEO, said:

“We have delivered a strong 12 months during which we have grown revenues, profits and preserved cash by successfully managing the revenue, margin and cost challenges presented by COVID-19. This strong performance reflects the agility of our business and the underlying demand for our sustainable products as the world further focuses on decarbonisation.

We have continued to make good strategic progress and are now into the final stages of construction at our Hull Tricoya® plant, the first of its type in the world. Whilst COVID-19 has presented challenges in the final phases, we are looking forward to the plant being operational in the second half of the new financial year and remain confident that there is a significant addressable market for Tricoya®.

During the period we have hit a number of key milestones on expanding our Arnhem plant with groundwork started on our fourth reactor and we remain on track to for it to be operational in Q4 FY 2022.

We are making good progress on our joint venture with Eastman Chemical Company to build an Accoya® plant in North America. Our recent market due diligence has reaffirmed our view that North America is a significant growth market.

As we look ahead, we are in a unique position to build on the strong financial progress this year whilst living our broader purpose, underpinned by our clear ESG Strategy. Our products are aligned to the global trend of decarbonisation with demand outstripping supply and consequently we are increasing production in the Netherlands, UK and intend to do so in the US to reach our ‘5X’ growth ambition to increase our production capacity to 200,000m3 per annum by 2025 and meet this growing demand.”