INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018
Accsys, the chemical technology group, focused on the acetylation of wood, today announces interim results for the consolidated group for the six months ended 30 September 2018.
6 months ended 30 Sept 2018 6 months ended 30 Sept 2017
Underlying* Statutory Underlying* Statutory
Total Revenu €31.6m €31.6m €28.3m €28.3m
Accoya® EBITDA €2.8m €2.8m €1.2m €0.9m
EBITDA €(1.4m) €(1.4m) €(2.8m) €(4.9m)
Loss before taxation €(4.5m) €(5.4m) €(5.2m) €(6.8m)
Period end cash balance €22.0m €46.9m
Net Debt €(34.2m) €23.1m
*Excludes exceptional costs and other adjustments. See note 4 for details and note 2 for reconciliation of EBITDA and Accoya® EBITDA.
? Revenue increased by 12% driven by higher volumes, pricing and licence income;
? 8% increase in Accoya® sales volume significantly restricted by continued capacity constraints – third Accoya® reactor now operational;
? Underlying EBITDA progression reflects increase in sales and production volumes together with price increases;
? Net debt of €34.2m at 30 September 2018 (31 March 2018: €3.8m) reflects significant investment in Tricoya® plant construction, completion of third Accoya® reactor and purchase of Arnhem land and buildings; and
? Operating activities generated positive cash-flow during the period.
? First part of Accoya® plant expansion completed and operational with benefits expected in second half of the year;
? Output increasing over remainder of financial year to a run rate reflecting a 50% increase in production volume;
? All customers remain on allocation with demand continuing to exceed supply;
? Price increase effective from 1 January 2019;
? Construction of the first dedicated Tricoya® wood chip acetylation plant in Hull expected to be completed around mid-2019 calendar year with operations to commence following a subsequent period of commissioning; and
? Ongoing discussions with potential partners concerning new Accoya® and Tricoya® plants in USA and Asia.
Paul Clegg, Chief Executive commented:
“These results show continued and exciting progress for the Group at a time when we are making significant investments in our future growth. We are seeing increased demand in all regions, driven by the outstanding performance characteristics of our products as well as their sustainability credentials, which are becoming ever more important in a world which is increasing its awareness of the potential benefits of making more sustainable building material choices.
The market opportunity is substantial and the demand for Accoya® and Tricoya® remains at a level which exceeds our current production rates. As a result, we expect revenue to increase significantly in the second half of the year as we benefit from the new Accoya® reactor in Arnhem which is now operational, with improvement to profitability. We continue to explore opportunities for new manufacturing plants in USA and Asia with partners in those regions.”
There will be a presentation relating to these results at 10:00 GMT on 20 November 2018. The presentation will take the form of a web-based conference call, details of which are below:
Webcast link (for audio and visual presentation):
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Accsys EUR 0,195 +0,005ct vol. 09.920