A Slow Burner6 Jun 2025 12:38
This company appears to have put the errors of its past behind them and I think it will be a slow burner moving forward. By following the FOCUS plan we should start to see ongoing improvements in sales and marketing especially in the North American market which must be huge.
Phase One "Transform and improve" (up to end of FY27). This phase will focus on sustainable, profitable growth from existing assets, maintaining a lean and efficient cost structure and debt reduction. The Company is targeting a run rate sales volume of 100,000m³ by the end of the period and expects the Kingsport production facility to be profitable in FY26.
· Phase Two "Optimise" (FY28-FY30). The focus during this phase will be on implementing operational efficiencies to deliver the full capacity of the two plants, with a continuous focus on debt reduction driven by strong free cash flow generation. The Company is targeting a run rate sales volume of 120,000m³ by the end of FY30 and will also optimise the Accoya Color production footprint.
· Phase Three "Grow" (post FY30). The Company plans to pursue growth opportunities with further capital investment, leveraging at that time, the proven US expansion model.