TIDMAXS
RNS Number : 8054T
Accsys Technologies PLC
25 March 2019
25 March 2019 AIM: AXS
Euronext Amsterdam: AXS
ACCSYS TECHNOLOGIES PLC
("Accsys" or the "Company")
TRADING UPDATE
Accsys, the fast growing and sustainable chemical technology
group, today announces a trading update for the financial year
ending 31 March 2019:
-- Significant increase in Accoya(R) sales volume of
approximately 49,500 cubic metres for the year ending 31 March 2019
(2018: 42,676 cubic metres);
-- Accoya(R) production now at a run-rate of approximately
60,000 cubic metres per annum following the full ramp-up of third
reactor;
-- Accoya(R) price increases successfully implemented from 1 January 2019;
-- Group is now EBITDA positive following the increase in sales
and production volumes together with price increases;
-- Demand continues to exceed production with all customers remaining on allocation;
-- Planning for a fourth Accoya(R) reactor in Arnhem continues
to progress ahead of a decision expected in the middle of this
calendar year;
-- Construction of the Hull Tricoya(R) plant continues to
progress. However, the Company has recently been notified by its
lead contractor responsible for delivery of the project that
structural engineering issues need to be addressed, principally
re-enforcement of the main tower foundations and steel framework.
This issue is the responsibility of the contractor and does not
relate to Accsys' Tricoya(R) acetylation technology. A process is
underway with the contractor to rectify the issue. As a result the
operational start-up of the Hull Tricoya(R) plant is now expected
to be delayed by a number of months into the 2020 calendar year.
The Hull plant is now unlikely to generate revenue in the financial
year ending on 31 March 2020 with the Arnhem plant also continuing
to sell lower value Accoya for the manufacture of Tricoya panels.
Group EBITDA for the year ended 31 March 2020 is now anticipated to
be marginally below the previous range of market expectations.
Revenue and profits from the Hull plant are now expected to be
recorded in the financial year commencing 1 April 2020 with the
expected longer term profitability of the Tricoya(R) plant and
market opportunity remaining unchanged. Further information will be
provided in due course;
-- Work continues with PETRONAS Chemicals Group Berhad to
evaluate the feasibility of jointly funding, designing, building
and operating an integrated acetic anhydride and Tricoya(R)
production plant in Malaysia; and
-- We also continue to progress discussions in respect of the
potential construction of an Accoya(R) plant in USA.
The Company's financial results for the year ended 31 March 2019
are expected to be announced in the second half of June 2019.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION EU 596/2014. The person
responsible for arranging for the release of this Announcement on
behalf of Accsys is Angus Dodwell, Legal Counsel & Company
Secretary.
Ends
For further information, please contact:
Accsys Technologies Paul Clegg, CEO via MHP Communications
PLC Will Rudge, FD
Nominated Adviser: Oliver Hardy
Corporate Broking: Christopher
Wilkinson +44 (0) 20 7260
Numis Securities Ben Stoop 1000
Tim Rowntree +44 (0) 20 3128
MHP Communications Kelsey Traynor 8100
+31 681 734
236
Off the Grid Frank Neervoort +31 222 379
(The Netherlands) Yvonne Derske 666
Notes to editors:
Tricoya(R) Consortium In March 2017, Accsys announced the
formation of the Tricoya(R) Consortium to fund, build and operate
the Tricoya(R) plant in Hull, UK. Members of the consortium include
BP and the leading manufacturer of sustainable wood-based panels,
Medite Europe DAC. Tricoya Ventures UK Ltd (TVUK), a subsidiary of
Accsys, owns and will operate the Tricoya(R) plant. TTL exploits
all Tricoya(R) related intellectual property and benefits from any
Tricoya(R) related revenues other than those generated by the
Tricoya(R) plant. The Tricoya(R) plant is expected to have an
initial capacity of 30,000 metric tonnes of Tricoya(R) chips per
annum, enough to produce approximately 40,000m(3) of Tricoya(R)
panel products per annum. The Tricoya(R) plant is expected to reach
EBITDA breakeven at approximately 40% design capacity and to take
approximately four years to reach full capacity following
completion. The location of the Tricoya(R) plant at Saltend
Chemicals Park in Hull allows for expansion when market conditions
dictate.
Accsys Technologies PLC (www.accsysplc.com) is a chemical
technology group whose primary focus is on the production of
Accoya(R) wood and Tricoya(R) wood elements, technology licensing
via its subsidiary, Titan Wood Limited, which has manufacturing
operations in Arnhem, the Netherlands (through its subsidiary Titan
Wood B.V.), a European office in London, United Kingdom, an
American office in Dallas, Texas (via its subsidiary Titan Wood,
Inc.) and technology licensing associated with the acetylation of
wood elements via its subsidiary Tricoya Technologies Limited. Any
references in this announcement to agreements with Accsys shall
mean agreements with either Accsys or its subsidiary entities
unless otherwise specified. Accsys Technologies PLC is listed on
the London Stock Exchange AIM market and on Euronext Amsterdam,
under the symbols 'AXS'. Accsys' operations comprise four principal
business units: (i) Accoya(R) wood production; (ii) building and
operating of Tricoya(R) wood chip acetylation plant in Hull; (iii)
technology development, focused on a programme of continuous
development of and improvements to the process engineering and
operating protocols for the acetylation of solid wood and the
development of technology for the acetylation of wood elements; and
(iv) the licensing of technology for the production of Accoya(R)
wood and Tricoya(R) wood elements across the globe.
Accoya(R) Wood (www.accoya.com) is produced using Accsys'
proprietary patented acetylation technology that effectively
converts sustainably grown softwoods and non-durable hardwoods into
what is best described as a "high technology wood". Distinguished
by its durability, dimensional stability and, perhaps most
importantly of all, its reliability (in terms of consistency of
both supply and quality), Accoya(R) wood is particularly suited to
exterior applications where performance and appearance are valued.
Moreover, the Accoya(R) wood production process does not compromise
the wood's strength or machinability. The combination of
dimensional stability, durability and retained strength means that
Accoya(R) wood offers a wealth of new opportunities to architects,
designers and specifiers. These benefits result in lower
maintenance and total cost of ownership while using a higher
sustainable and environmental responsible building material. For a
full archive of Accoya(R) news, visit www.accoya.com/news.
Tricoya(R) Wood Elements (www.tricoya.com) are produced using
Accsys' proprietary technology for the acetylation of wood chips
and particles for use in the fabrication of panel products such as
medium density fibreboard and particle-board. These products
demonstrate enhanced durability and dimensional stability which
allow them to be used in a variety of applications that were once
limited to solid wood or man-made products. Exploitation of Accsys'
proprietary technology relating to Tricoya(R) Wood Elements is
carried out through Tricoya Technologies Limited. Tricoya(R) Wood
Elements are lauded as the first major innovation in the wood
composites industry in more than 30 years.
Wood Acetylation is a process which increases the amount of
'acetyl' molecules in wood, thereby changing its physical
properties. When carried out to a sufficient level throughout the
wood, this process protects wood from rot by making it "inedible"
to most micro-organisms and fungi, without - unlike conventional
treatments - making it toxic. It also greatly reduces the wood's
tendency to swell and shrink, making it less prone to cracking and
ensuring that, when painted, it requires dramatically reduced
maintenance.
Accsys Technologies is the trading name of Titan Wood Limited.
ACCOYA(R) , TRICOYA(R) and the Trimarque Device are registered
trademarks owned by Titan Wood Limited ("TWL"), a wholly owned
subsidiary of Accsys Technologies PLC, and may not be used or
reproduced without written permission from TWL, or in the case of
the Tricoya(R) registered trademark, from Tricoya Technologies
Limited, a subsidiary of TWL with exclusive rights to exploit the
Tricoya(R) brand.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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