Accsys Tech Share News (AXS)

Accsys Technologies is expanding its plant in Arnhem following sharply higher sales of Accoya wood in the six months to September 2010. Production at Arnhem in the Netherlands was at record levels and Accsys wants to increase capacity by 50%. This will require more cash to be raised to finance construction and operating costs. There are 21 distribution and supply agreements for Accoya, which is being sold in New Zealand and India. New products for window frames and fences are being developed. Sales volumes grew 93% and Accoya revenues were 81% to €6.52m. Gross profit was still modest. Group revenues fell from €9.33m to €6.52m because there was no contribution from licence revenue. The reported loss before restructuring costs fell from €7.15m to €7.43m. There was a cash outflow and cash in the bank fell from €18.3m to €6.64m. Stocks of wood increased from €3.76m to €7.46m ahead of the temporary close down of the plant in October for production improvements.AIM-quoted Accsys has signed a revised licence agreement with Chinese firm Diamond Wood China, which has signed an agreement with an Asian funding group to finance its Accoya factory in China.