Accsys Technologies PLC – Trading Update

Accsys Technologies PLC – Trading Update

Accsys, the fast growing and sustainable chemical technology group, today announces a trading update for the financial year ending 31 March 2019: 

  • Significant increase in Accoya® sales volume of approximately 49,500 cubic metres for the year ending 31 March 2019 (2018: 42,676 cubic metres);
  • Accoya® production now at a run-rate of approximately 60,000 cubic metres per annum following the full ramp-up of third reactor;
  • Accoya® price increases successfully implemented from 1 January 2019;
  • Group is now EBITDA positive following the increase in sales and production volumes together with price increases;
  • Demand continues to exceed production with all customers remaining on allocation;
  • Planning for a fourth Accoya® reactor in Arnhem continues to progress ahead of a decision expected in the middle of this calendar year;
  • Construction of the Hull Tricoya® plant continues to progress. However, the Company has recently been notified by its lead contractor responsible for delivery of the project that structural engineering issues need to be addressed, principally re-enforcement of the main tower foundations and steel framework. This issue is the responsibility of the contractor and does not relate to Accsys' Tricoya®acetylation technology. A process is underway with the contractor to rectify the issue. As a result the operational start-up of the Hull Tricoya® plant is now expected to be delayed by a number of months into the 2020 calendar year. The Hull plant is now unlikely to generate revenue in the financial year ending on 31 March 2020 with the Arnhem plant also continuing to sell lower value Accoya for the manufacture of Tricoya panels. Group EBITDA for the year ended 31 March 2020 is now anticipated to be marginally below the previous range of market expectations. Revenue and profits from the Hull plant are now expected to be recorded in the financial year commencing 1 April 2020 with the expected longer term profitability of the Tricoya® plant and market opportunity remaining unchanged. Further information will be provided in due course;
  • Work continues with PETRONAS Chemicals Group Berhad to evaluate the feasibility of jointly funding, designing, building and operating an integrated acetic anhydride and Tricoya® production plant in Malaysia; and
  • We also continue to progress discussions in respect of the potential construction of an Accoya® plant in USA.

The Company's financial results for the year ended 31 March 2019 are expected to be announced in the second half of June 2019.

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