Accsys, the fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, today provides an update on end-of-year guidance (for the year ended 31 March 2023 (FY 2023)) and progress on key strategic projects. All numbers in this announcement are unaudited.
FY 2023 guidance update
· Growth in Accoya® sales volumes of 6% on prior year at 63,344m3
· H2 sales volumes of 39,387m3 (H1: 23,957m3), representing growth of 64% on H1, and in excess of our targeted 50% increase
· The Company now expects it will deliver EBITDA moderately ahead of its previous guidance of doubling underlying EBITDA year on year
· Net debt of €44m at 31 March 2023 represents a reduction of €8m compared to 31 December 2022, driven by growing EBITDA and a focus on working capital management, including a reduction in inventory levels
Update on strategic growth projects:
· Tricoya® (Hull) plant - the Board of Accsys continues to conduct its review of the Tricoya® plant in Hull, assessing its economics and capabilities. All funding options remain under evaluation, as outlined in previous Company announcements, which include discussions with potential third-party partners. The Board continues to believe that the market potential of Tricoya® is significant and will consider all relevant commercial factors in deciding whether or not to proceed with the Hull plant and if so, on what basis. A further update will be provided in due course. The maintenance costs at the plant remain within the Board's expectations and are funded by internally generated cash flow.
· Accoya® USA JV - we continue to make good progress with the construction of the 43,000m3 Accoya® plant in Kingsport, Tennessee with our JV partner, Eastman. However, mechanical completion has experienced some delay and cost inflation and as a result, commercial operations are now expected to commence in mid-2024. Progress to date includes the completion of ground works, ongoing steelwork and main warehouse construction, installation of the reactors on site, placement of multiple large sub-contracts and procurement of more than 80% of major equipment. Both joint venture partners continue to be fully engaged in delivering this strategically important project.
· Accoya® (Arnhem) plant - growth in sales volumes reflects increased capacity from Reactors 1-3 after returning to full production following the completion of Reactor 4 (R4) in September, new production from R4 and some unwinding of higher inventory levels. Fourth quarter production was the highest ever delivered at the plant.