INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016

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 2016.

Unaudited six

Unaudited six

 

months ended

months ended

 

30 Sept 2016

30 Sept 2015

Accoya® revenue

€22.5m

€21.9m

Total Revenue

€25.1m

€26.3m

Gross Profit

€6.8m

€9.4m

EBITDA

€(1.3m)

€1.3m

Loss before taxation

€(2.9m)

€(0.1m)

Period end cash balance

€7.9m

€7.5m

 

See note 2 of the Group financial statements for reconciliation of Operating loss to EBITDA

Financial highlights

  • Demand for Accoya continues to grow with sales volumes increasing by 4% to 17,506m3 and with growth accelerating into the second half of the financial year;
  • Group revenue decreased by 5% due to an expected reduction in licence related income and an unexpected supply chain bottleneck which has now been resolved;
  • Further licensing income expected in the second half of the financial year;
  • A number of factors contributed to a lower EBITDA including lower licence related income, timing of annual plant maintenance stop, a new pricing regime with Solvay and higher costs associated with the proposed Tricoya consortium; and
  • A cash balance of €7.9m at 30 September 2016 (31 March 2016: €8.2m) reflects operating loss in the period and new plant investment, off-set by €4.2m proceeds from the sale of land in Arnhem.

Operational highlights

  • Building work commenced on the expansion of Accoya manufacturing plant in Arnhem;
  • We remain on track to increase manufacturing capacity by 20,000m3 by December 2017;
  • Significant progress has been made towards completion of the proposed Tricoya consortium with BP and Medite with final agreements, including funding from third parties, expected later this year; and
  • Detailed planning progressing in respect of the wood chip acetylation plant to be located in Hull.

Paul Clegg, Chief Executive commented: “In this financial period we have made further significant strategic and operational progress to increase our Accoya and Tricoya manufacturing capacity which will be transformational for the Group. The expansion of the Accoya plant in Arnhem and the formation of the Tricoya consortium are both fundamental for the future of the Company. Despite results being down on the previous half year, we remain confident of the results for the full year and beyond.”

Read the full notice here