Accsys Technologies (AXS) is poised to benefit from a significant increase in output for its two main products, Accoya and Tricoya. These two processes virtually eliminate water ingress into softwood and woodchip, thus making weather-exposed building components such as window frames and cladding last a lot longer.
There were several key developments in the year to March, not least the installation of additional capacity at its Accoya plant in Arnhem, which will ultimately double production capacity to 80,000 cubic metres a year. Accsys has also renegotiated its collaboration with chemical group Solvay, whereby Solvay is committed to taking 76,000 cubic metres of Accoya over the next five years while its own production plant is constructed. Thereafter it will pay Accsys a licence fee.
In another deal, Accsys announced a proposed consortium that includes BP to build the first Tricoya wood elements acetylation plant in Hull, with full production expected to start by the end of 2018 at an initial capacity of 30,000 tonnes per year.
The benefit of operational leverage is already starting to show, with gross margins up from 27 per cent to 34 per cent. Significantly, the cash burn has been eliminated, and researchers at European Securities Network forecast net adjusted profits of €2m and EPS of 2¢ for the year to March 2017.
| ACCSYS TECHNOLOGIES (AXS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 67p | MARKET VALUE: | £60m | |
| TOUCH: | 64.75-67p | 12-MONTH HIGH: | 78p | LOW: 56p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 47p* | NET CASH: | €8.2m | |
| Year to 31 Mar | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 15.0 | -14.9 | -4.0 | nil |
| 2013 | 18.8 | -10.7 | -3.0 | nil |
| 2014 | 33.5 | -8.2 | -10.0 | nil |
| 2015 | 46.1 | -7.7 | -9.0 | nil |
| 2016 | 52.8 | -0.5 | -1.0 | nil |
| % change | +15 | - | - | - |
Ex-div:- Payment:- £1=€1.26 *Includes intangible assets of £11m, or 12p a share | ||||
