- Preliminary Announcement of Results for the year ended 31 March 2012
Accsys, the environmental science and wood technology company, has made significant progress during the year towards delivering on its strategy of licensing its technology and seeding new markets with its sustainable and highly durable modified wood products.

Operational Highlights:
• Licence agreement signed in June 2012 with Solvay-Rhodia (‘Solvay’) for the production and sale of Accoya® wood using Accsys’ proprietary acetylation technology. The conditional agreement grants Solvay exclusive rights to produce and sell Accoya® within certain countries in Europe;
• Introduction of Medite Tricoya® to the market place with first sales to customers from our joint development partner, Medite, opening up a wealth of new potential applications;
• Signed licence option agreement in April 2012 with a leading MDF and Particle Board manufacturer in Latin America which we expect to open up significant new opportunities;
• Strategic collaborative relationship agreed with BP in March 2012 which includes the supply of acetic anhydride and the support of further product and application developments;
• Significantly strengthened intellectual property portfolio. We are pleased to announce this includes the recent grant of a product patent for Accoya® in the UK, securing monopoly rights for Accoya® in the United Kingdom for 20 years;
• Completed first part of sale and leaseback of Arnhem land and buildings, generating proceeds of €2.2m and which will also enable future improvements to wood handling logistics and storage facilities;
• Eight further Accoya® distribution, agency and supply agreements signed, making a total of 35, covering most of Europe, Australia, Canada, Chile, China, India, Korea, Lebanon, Morocco, New Zealand, parts of South-East Asia, U.A.E and the USA; and
• Introduction of Accoya® Alder to our product line; a popular, attractive hardwood species which provides superior performance, similar to that of Accoya® Radiata.


Financial Highlights

10% increase in revenue for the financial year to €15.0m (2011: €13.7m). Revenue for the second half of the financial year increased by 41% compared to the first half of the year as a result of increased demand for Accoya®;
Improvement in gross manufacturing margin from a 4% loss last year to a 0.3% loss and from a 7% loss in the first half of the financial year to a 5% profit in the second half;
Exceptional impairment charge of €2.3m in respect of licensee receivables consisting of €2.9m non-cash charge relating to Al Rajhi as a result of continuing uncertainty as to whether the licence will continue, partly offset by €0.6m of technology fees paid by Diamond Wood which had previously been provided for;
9% reduction in other operating costs to €12.5m (2011: €13.7m);
17% improvement in profit after tax before exceptional items to a loss of €12.1m (2011: €14.6m). (Including exceptional items, profit after tax improved by 1% to a loss of €14.4m (2011: €14.4m);
Cash balance of €24.6m as at 31 March 2012 (2011: €27.6m); and
79% reduction in net cash out-flows from operating activities to €3.7m (2011: €17.7m) as result of improved cost and working capital controls, including a significant reduction in inventory levels.