Nice to see the TTL joint partner named...none other than BP. Also a tasty £35m value and a small stake taken by BPV this is excellent news. Can't see BP hanging around and it's heartening to see that a site for the plant has already been identified. We might finally see some concrete progress here now and with the TTL valuation underpinning the SP I'm hopeful that these might still come out of the bottom drawer at some point!!
Regretfully I'm out of it, sold last Friday. It's not what I wanted: perhaps like many investors here there is a 'save the world' aspect to this share that you really want to support (while making some money of course!) I was prepared to vacate the bottom drawer for it.
BUT.... concerns have been growing. I'm no financial whizz, I'm pretty new to investing in individual companies, but this lot concern me.
I came in just in time to take a loss through the Diamond Wood problem. Is that all over? I'M NOT SURE. Did we ever learn what really went wrong with DW? Not only did AXS lose the case, but as I understand it they also had costs awarded against them. Sounds like DW were in a strong position.
Last weeks announcement concerning the agreement with Solvay really concerned me. There were lots of positive hints but no real facts. So I find my self with a number of questions: 1. Although it was clear that they have a good product, in increasing demand, such that they have been able to raise prices, they needed a guaranteed offtake from Solvay. Why?? And above all, at what price? Is it a giveaway, and if so, in exchange for what? 2. "...under the new agreement Solvay will review the optimal timing to construct its 63,000 cubic metres Accoya manufacturing plant". Bring it forward or DELAY it? "review" - means what? Is there a commitment? To do what, and when, and why? They're hinting at something but not actually giving us the information we need. That CONCERNS me... 3. They say the agreement benefits both sides, but I can't see what's in it for Solvay, as it stands. Surely something is....?? 4. "The licence agreement covering Europe has been amended to provide increased royalties to Accsys and the return to Accsys of the selling rights for 20 European countries." So, again, on the face of it, apparently great for AXS, but what's in it for Solvay?? You don't just give away the selling rights for a great product for 20 European countries! Again, they're hinting at stuff - such that later perhaps they can say they did not conceal anything - but I certainly don't get what's really going on. 5. I was under the impression that they had licenced this process or whatever you call it worldwide. Why do we never hear word as to progress anywhere else? Thinking of DW, why not?
Maybe I'm just ignorant, but I have enough questions that I'm out of it.
1 December 2015 2:16am City A.M. ACCSYS TECHNOLOGIES Following on from the positive news last week of an agreement with Belgian firm Solvay, the chemical technologies group announced strong interim results. Analysts at Numis reiterated their “buy” rating, and set a target price to 117p. They said “Accsys is well place to develop the market for its unique products and therefore crystallise substantial value for shareholders”.
Indeed...good progress but really really slow...2017 until the new capacity kicks in and 2018 until the tricoya plant is operating. Still at least the concept has finally been proven and the Arnhem plant is providing a significant ROCE / positive cash flow so all moving in the right direction. Not sure this share will ever make any significant ground though in the near term so I'm tempted to chase rainbows elsewhere with the cash I have locked in here but I think I'll stick it back into the bottom drawer, mainly because I've got a non sensical attachment to this share so feel after waiting this long I may as well wait another year or two!
Date: 30-11-2015 10:36 Wood acetylation specialist Accsys Technologies (AXS:AIM) is 1% higher at 69.1p after the £61.4 million cap posts a 21% increase in revenue with an underlying operating profit of €1.3 million; the group’s first positive EBITDA since restructuring in 2010.
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