After a lengthy development process, Accsys Technologies (AXS) is now achieving commercial roll-out of its wood treatment techniques. Known as Accoya and Tricoya, the two treatments give lower-quality wood valuable hardwood properties by virtually eliminating water absorption. The company avoids the cost of setting up and running production facilities by securing licensing agreements. This is where it is now making real progress.
A licence agreement with Belgian chemical group Solvay became fully effective in December, while formal board approval from MDF producer Medite for a licence agreement is expected later this financial year. Finally, a licence option agreement with panel producer Masisa was extended last month, covering most of Latin America.
Headline numbers recorded a reduced loss for the year, but gross profits more than doubled to €7.8m (£6.2m). That was thanks to a combination of price increases and greater operating efficiency, which boosted gross margins from 18 to 23 per cent. The company does have a small production facility at Arnhem, built initially to show prospective customers that the process is viable. Last year this factory turned the previous year’s €900,000 loss into a profit of €2.4m.
Analysts at Numis are forecasting a pre-tax loss of €5m (from €8.2m in July 2014).
| ACCSYS TECHNOLOGIES (AXS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 24.5¢ | MARKET VALUE: | €108m | |
| TOUCH: | 24.25-24.75¢ | 12-MONTH HIGH: | 24.75¢ | LOW: 11.75¢ |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 11¢ | NET CASH: | €15.2m | |
| Year to 31 Mar | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2010 | 16.7 | -52.2 | -32.0 | nil |
| 2011 | 13.7 | -13.9 | -6.0 | nil |
| 2012 | 15.0 | -14.9 | -4.0 | nil |
| 2013 | 18.8 | -10.7 | -3.0 | nil |
| 2014 | 33.5 | -8.2 | -2.0 | nil |
| % change | +78 | - | - | - |
£1=€1.257 | ||||
