Accsys Technologies (AXS) is now achieving commercial roll-out of its two wood treatment techniques - Accoya and Tricoya - both of which give lower quality wood and wood chip valuable hardwood properties by eliminating water absorption.
Up until now, the group has been burning cash as it secures licensing agreements with manufacturers. This avoids the cost of setting up and running its own production facilities, although it does have a profitable production facility in Arnhem. Crucially, in the six months to September, cash outflow was reduced to just €700,000, and chief executive Paul Clegg reckons that the company will be cash neutral within six months. Meanwhile, there is still a comfortable cash cushion of €13.5m.
Total output of Accoya solid wood grew by nearly 40 per cent in the first half, while revenue generated from Tricoya-treated wood chip rose by two-thirds to €2.4m. In fact, demand has grown so quickly that Accsys is pushing through another general increase in prices.
Analysts at Numis are forecasting full-year pre-tax losses of €5m and a loss per share of 5¢ (from €8.2m loss/LPS 10¢ in 2014).
