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Accsys has spent four years developing its business plan, and is now poised to reap the benefits. Given the huge benefits over conventional hardwood, demand is likely to accelerate, especially now that housing and construction output is firmly on the road to recovery but as aways dyor and good luck......
Establishing a new technology in an established market is always an uphill struggle, but Accoya wood is slowly gaining acceptance and other factors are working in the group's favour, notably much tighter regulations on illegally sourced wood. True, Accsys remains loss-making and doesn't pay a dividend, but the shares are all about its technology's blue sky potential. And now deals are coming through, the cash burn rate is shrinking rapidly from the current €6m-7m a year, with Numis estimating a free cash outflow of just €2.4m next year. Indeed, gross profits in the six months to September jumped 84 per cent to €3.5m with turnover up 74 per cent at €15.8m, and this doesn't include the latest deal with Solvay. What's more, increasing prices and economies of scale benefits have pushed gross operating margins up from 18 per cent to 22 per cent........
The first production plant will have the capacity to produce 63,000 cubic metres of finished Accoya. In return, Accsys will receive a series of licence payments, as well as royalty payments linked to volume output, and licensing income alone will reach €30 per cubic metre per year. This comes on top of an existing agreement, with chemicals group Ineos to run a Tricoya plant with an initial capacity of 30,000 tonnes. And Accsys has also secured 50 distribution or agency agreements, where joiners can brand their products and thereby increase the profit margin. And, while the emphasis will remain on securing licensing agreements, Accsys built its own production plant in Arnhem, which on 60 per cent capacity generated €900,000 cash profits in the first half.......
Accsys Technologies (AXS) is all about two patented technologies, Accoya and Tricoya, which cover wood treatment techniques that give lower quality wood valuable hardwood properties by reducing water absorption. The benefits are significant and the potential market is massive - the global windows and doors market alone is estimated to be worth about $136bn. Not only does Accsys's treated wood offer the potential to reduce pressure on slow growth hardwood stocks, it also provides some stunning advances on conventional wood. Accoya-treated timber has a 50-year guarantee against rot or swelling, and you don't have to paint it for 20 years unless you want to. In fact, the Timber Research and Development Association (TRADA) has extended the service life of Accoya window frames to at least 70 years, significantly more than the most durable hardwood timbers. And, as an MDF substitute, Tricoya-treated wood chip can be left outside in the rain for 60 years with no coating. Crucially, Accsys has reached the tipping point of moving from the development stage to achieving commercial roll-out, and has avoided the costs of establishing a string of production facilities by concentrating on securing licensing agreements. Only last month, it finally signed an agreement with Solvay, giving the Belgian chemical group exclusive rights for at least 15 years to produce and sell Acoya products in 47 Eurpean states, which excludes the UK...........
The buy recommendation in the Investors Chronicle has prompted me to look at this and I am very tempted by the growth potential. The thing which is holding me back though is the potential liability arising from the Diamond Wood arbitration. It is a potentially hefty liability too. To what extent is that priced in?
Great to see Henderson increasing their stake, shows a bit of faith. With eco building being the buzz as it is with sustainability at the heart then the products of accyss will and have already shown to make a huge impact on Ideas and designs, looking forward to a great year and more from axs
Thanks Missionon, I have some catching up to do but things look good here, the buying activity is good of late I could be in soon. Good luck and thanks again.
Great futured company, once it hit the .12s it should hit min of .18s within a few months on history. Great products and now the new factory deal has been sorted its future looks bright. The only cloud is diamond wood from china contract but they didnt hold their end of the bargain so it should be an open shut case but these things drag on. Once china is opened though its blue sky for the product in my opinion. Good luck
It's been on my watch list for about the same time but I have not looked in for a while. The size of some of the trades caught my eye, and very little move in sp things look good here in my opinion but I need to read up.
I have been following this share closely for 18 months,topping up when i can ,and i get the feeling things are starting to move now. We have been bumping along 0.13 for so long its made a good solid low resistance and with all the little bits of good news coming together, finally we could be off out of these doldrums.
Some big purchases last few days could this be about to move?
Approval of Solvay licence agreement 23 December 2013 Accsys, the environmental science and technology company whose primary focus is on the production and technology licensing of Accoya® wood and Tricoya® wood elements, today announces that its Accoya® licence agreement with Belgian chemical group Solvay is now approved by both parties and is fully effective, resulting in a new level of cooperation between the two companies.
Thanks. I'll read up on it.
Best to read the FT, Sep 18th 2013, "Accsys faces high stakes in battle with China’s Diamond Wood" (http://www.ft.com/cms/s/0/71fb59d4-204b-11e3-9a9a-00144feab7de.html#axzz2lfZvLP7z). This is the only real cloud on the horizon as far as I'm concerned. A lot of valuable time has been wasted through this failure to penetrate the Chinese market. No doubt the lawyers fees will show up on the end of year accounts?
All very interesting & positive. I am a newcomer & don't know the background to the Diamond Wood problems - can anyone fill me in? Otherwise it seems like orders are up, the word is spreading, and lots of good stuff to come. The slides of accoya in use, particularly in Denmark, were beautiful.
This was needed - but how long is "medium term"? 6 months, 12 months, 2 years?
Paul Clegg, Chief Executive commented: "Accsys has had a highly productive first half of the year. The investment made in sales and marketing over the last two years is now delivering a sustainable trend of highly encouraging revenue growth across all our key global sales territories. "The combination of sales momentum and encouraging progress towards unconditional licence agreements with Solvay and Medite, alongside continuing discussions with a number of other parties, leaves us very well positioned to achieve profitability at a Group level in the medium-term, and I am comfortable that we will meet market expectations for the full year." There will be a presentation relating to these results at 10:00 GMT on Monday 25 November 2013. The presentation will take the form of a web based conference call, details of which are below: Webcast link: Click here or copy and paste ALL of the following text into your browser: http://www.media-server.com/m/p/i3mxokys Conference call details for participants: Participant Telephone Number: +44(0)20 3427 1919 UK Toll Confirmation Code: 6126963 Participants will have to quote the above code when dialling into the conference.
NYSE Euronext Amsterdam: AXS 25 November 2013 ACCSYS TECHNOLOGIES PLC ("Accsys" or "the Company") INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2013 Accsys, the environmental science and technology company whose primary focus is on the production and technology licensing of Accoya®wood and Tricoya®wood elements, today announces interim results for the six months ended 30 September 2013. Unaudited six months to 30 Sept 2013 Unaudited six months to 30 Sept 2012 Change Total Group Revenue €15.8m €9.1m +74% Gross profit €3.5m €1.9m +84% Loss before tax €3.8m €5.4m Improved 30% Period end cash balance €16.9m €20.7m -18% Highlights · Strong performance, in line with market expectations; · Highly encouraging trend of revenue growth, with increases across all key global territories; total revenue increased 74% compared to the corresponding period last year, and by 62% compared to the preceding six month period; · Revenue from the sale of Accoya® increased by 80% to €13.9m in the first half of the year compared to the corresponding period last year; · Group level gross operating margin increased to 22% (Year to 31 March 2013: 18%) as a result of economies of scale benefits and sales price increases; · Arnhem plant is now profitable, recording a positive EBITDA of €0.9m (2012: loss of €0.5m) as a result of record production levels; gross manufacturing profit margin increased from 15% to 19%; · 56% reduction in cash out-flow from operating activities (before changes in working capital) to €1.7m (2012: €3.9m); · Strong balance sheet maintained with cash balance of €16.9m at 30 September 2013; · Continued close working relationship with Solvay ahead of their formal approval of the Accoya® wood licence agreement which is expected by the end of this year; · Tricoya Technologies Ltd, our JV with Ineos formed in order to exploit Tricoya® wood elements globally, entered into a joint development, production and distribution licence agreement in July with Medite, to build and run a Tricoya plant with an initial capacity of 30,000 metric tonnes with exclusive rights to sell in UK, Ireland and the Netherlands; · Total of 50 distribution or agency agreements now in place, an increase of eight since 31 March 2013, covering most of Europe, Australia, Canada, Chile, India, Israel, Morocco, North America, New Zealand and parts of East and South East Asia; and · TRADA extended the service life of Accoya® windows to at least 70 years, demonstrating Accoya performs significantly better than even the most durable hardwood timbers. Paul Clegg, Chief Executive commented: "Accsys has had a highly productive first half of the year.
This is drifting forever downwards - add to that the increase in GBP against the Euro and I'm feeling exceedingly depressed with this. What we need is an IMS demonstrating that all the licences and agreements are yielding an ongoing,increasing and quantified revenue stream with an estimate of when BE is expected. Whilst I support the environmental aspirations of this product, there are others working to bring alternative environmental friendly replacement materials to timber, possibly at lower costs. Please Mr Clegg...............
As reported at the AGM today (5 months). Money is being made by licensing their technology and there should be plenty of scope to continue this expansion globally. If they can get the costs of the finished product down further, this should make major inroads into the environment-construction industry. A long-term prospect for me that is a pleasure to hold.
This company is only offering shares to their employees creating more shares in circulation. I personally dont see future for this company in coming 3-4 years. besides that the real estate market is heavily down in holland. Just check the history of this company ...the share price went down from 4 euros/share ( yr 2007) to 0.50 euro/share (yr 2011) to now 0.1 euros/share and the number of shares just went up. Old American CEO had made big mess which Mr Clegg cleverly handled but the revenues and profitability is still long way ...so dont hold unless you have patience for 3-4 years
From the share price view it's a pity they moved to Holland. First, as it is quoted in Euros you need to pllace an order or dummy order to get a price secondly, there is always the extra worry of what is going to happen to the Euro. I personally think this is a fantastic company with fantastic products so I'm hanging in for the profit. GLA
Cheers bud, had me thinking I had lost the plot after SCLP tanked 43%
Shares are traded in 100's Complicated as then changed to pounds So 10000 is a million here..
11.59p to buy did I just miss the boat or what.