Trading update

Continued momentum in sales supports the need for capacity expansion 

Accsys, the chemical technology group, focused on the acetylation of wood, today announced a trading update for the ten months ended 31 January 2017.

Financial Highlights

 ·      Accoya® sales volumes* have grown by 20% to 31,599 m3 in  the ten months to 31 January 2017; in part as a result of supply chain debottlenecking

·      Total revenue* for the Company up 10% to €45.3m for the ten months to 31 January 2017

·      Up to €14 million (before expenses) Firm Placing and Open Offer of new ordinary shares in Accsys at a price of €0.69 per share announced to provide additional working capital and strengthen balance sheet in the context of two significant capital projects

Operational Highlights

·      The Company continues to see strong demand for its Accoya® and Tricoya® products

·      Arnhem plant now running at close to full capacity, manufacturing approximately 40,000m3 of Accoya® per annum

·      Expansion of Arnhem Accoya® plant continues to progress with completion of the fully funded first stage of expansion to 60,000m3 of annual capacity expected by the end of 2017

·      Project to build world’s first Tricoya® wood chip acetylation plant in Hull is now fully funded, with agreements entered into for approximately €68m of equity and debt from Medite, BP, Business Growth Fund, Henderson Volantis and project specific financing from The Royal Bank of Scotland

·      Development of Tricoya® plant site now underway, with leading engineering, procurement and construction house Engie Fabricom contracted to complete construction by early 2019

 

The Company has today also announced further details and a Prospectus concerning the above including (A) the entering into of agreements for the construction, operation and financing of the Hull Plant with its Tricoya® Consortium partners, (B) progress with the expansion of its Accoya® plant in the Netherlands and (C) its proposal to raise €14 million (before expenses) pursuant to a Firm Placing and Open Offer. See www.accsysplc.com for details.

Paul Clegg, CEO commented: “The key to our future success is the continued demand for the added value of our technology to produce both Accoya and Tricoya. Sales trends continue to be encouraging and the funding arrangements to significantly increase our manufacturing capacity are now in place. This is a very exciting transformational time for the Company.”

*All figures are unaudited.