Accsys Technologies
Accsys Technologies PLC is a UK incorporated environmental science and technology company focused on the development, commercialisation and licensing of technologies for use in a wide range of everyday materials.
The primary focus is on the production and licensing of Accoya® wood, manufactured through the company’s proprietary acetylation process, which exhibits superior dimensional stability and durability compared with other natural and treated timber. Accsys currently operates a commercial scale Accoya® wood production facility in Arnhem, the Netherlands.
The Group is also developing technology to modify wood fibre to enable future production of a range of panel products which the Directors believe will enable such materials to become suitable for external applications for
the first time.
Accsys Technologies made good progress in full year, sees further license deals ahead
Accsys Technologies PLC (AIM: AXS) said it continued to make good progress in the full year to March 31 2009 despite the impact of the global economic recession and the particularly challenging market conditions and expects to signs further license deals in the current year.
Accsys’ primary focus is on the production of Accoya acetylated wood and technology licensing via its wholly owned subsidiary, Titan Wood Ltd.
Chairman Willy Paterson-Brown said: “Our Accoya wood product continues to gain strong brand recognition on a growing international stage and we have successfully launched Tricoya, our second brand.”
Revenue rose to €31.2 million from €27.3 million in the previous full year. Pretax profit fell to €1.8 million from €5.4 million, hit mainly by higher administrative expenses. Tax credits applied in the year lifted the net profit to €5.4 million from 4.08.
The period under review saw Titan Wood increase the capacity of its production facility in Arnhem, The Netherlands, by more than 33 percent through process improvements and sign a joint development agreement with Medite Europe Ltd to commercialise an economically viable, non-toxic, and stable medium density fibreboard (MDF) panel made from Tricoya wood elements.
Titan also signed a licence option agreement with Italy’s Safwood SpA in respect of rights to manufacture Accoya wood in Italy, Switzerland and Austria for a nameplate capacity of 120,000 cubic metres per annum. In May, the unit made a move that Accsys hopes will help open the North American market by clinching the contract to supply decking made from Accoya wood to Green Life Smart Life, a Rhode Island-based green building showcase home, promoting the latest advances in green building techniques, tools, products and materials.
Accsys expects to sign additional license options and agreements in the current year. “We continue to develop strong relationships with potential licensees and, whilst the current business environment has delayed the realisation of these prospects, I remain confident that we will achieve our targets and deliver the expected results,” the chairman said.
The cash balance at March 31 2009 was €17.5 million, down from €46.2 million a year earlier due to capital expenditure on the Arnhem plant and a significant increase in working capital to support the development of the business.
The group has no debt and an available equity line of credit for up to €20 million over three years. In addition, the company has signed an agreement with an institutional investor to issue shares to a value of €4 million in two equal tranches during July and September 2009.
Accsys paid a dividend of €0.01 per share in the previous year, but does not plan on doing so this year as the board deems it prudent to protect as strong a balance sheet as possible during the economic downturn. The board will consider dividend payments again in the future as appropriate.
Regarding the licence with Diamond Wood, it said it has been informed it is likely the funding required for building the first phase of the production plant there will be secured before the end of 2009.
The company began shipping Accoya wood to China during the year as Diamond Wood builds and establish the market for it in advance of the construction of its own facility, which, subject to the successful raising of funding, is currently expected to come on stream in early 2011.
Saudi financial group Al Rajhi Holdings WLL, which has a licence for 150,000 cubic metres annual capacity and exclusive rights for the territories of Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates, is currently in the detailed planning and engineering design phase, and Accsys is working with Al Rajhi to confirm their site selection and establish appropriate partners for operating and distribution activities.
Discussions with additional potential licensees are continuing, and the group is now starting to see renewed interest and enthusiasm as it is seeing signs the recent economic turbulence and uncertainty are coming to an end. “We remain confident about the long term prospects for our Accoya wood technology,” Paterson-Brown added.
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Other Accsys Technologies news
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23/02/10 Accsys Technologies signs distribution deal to sell Accoya wood in Germany and Poland
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08/12/09 Accsys raises €17 million for Accoya wood production and sales amid highest ever demand
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17/11/09 Accsys Technologies first half hit by downturn, but seeing increasing demand for Accoya wood
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23/10/09 Edison Research foresees new contract wins for Accsys, puts potential value at EUR4.75 per share
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15/10/09 Accsys Technologies wins North American distribution partners for Accoya wood
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08/10/09 OP-Fund Management raises Accsys Technologies stake to 6.56 pct
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17/09/09 Accsys Technologies shareholder and licensee Al Rajhi raises stake in company
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20/07/09 Accsys Technologies names Paul Clegg new CEO, Patterson to revert to non-exec chairmanship
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16/06/09 Accsys Technologies’ Titan Wood production facility increases capacity by 33 percent
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09/06/09 Accsys unit Titan in MDF panel cooperation for UK, Ireland