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(Alliance News) - Accsys Technologies PLC on Monday said it has seen a "strong sales recovery, improved profitability and good strategic progress" in its interim results following the significant impact of Covid-19.
The UK-based wood building products company reported a pretax profit of EUR1.0 million for the six months ended September 30, compared to a loss of EUR1.6 million in the same period in the year prior.
Group revenue fell by 3% to EUR42.9 million from EUR44.0 million during the six-month period.
Accsys said these decreases were due to sales volumes of its product Accoya being 6% lower in April due to the impact on sales volumes caused by Covid-19 disrupting distribution channels, but that it recovered strongly, with customer demand exceeding production capacity by the end of the period. The lower sales volumes were partially offset by higher than average selling prices, which resulted in revenue from Accoya wood decreasing by only 4% to EUR38.7 million, it said.
Chief Executive Robert Harris said: "Accsys has delivered an excellent first half year, underpinned by continued strong demand for our products and supported by our operational agility which allowed us to adapt quickly in the face of the pandemic. Sales of our sustainable, high-performance Accoya and Tricoya wood products bounced back rapidly as the initial disruptions from lockdown measures eased, and as we adapted to better manage these challenges."
Harris added: "The second half of the financial year has started well without the disruption experienced during the first lockdown. Strong demand has continued, with record sales levels in October whilst production is being maintained at capacity levels."
Looking ahead, Accsys said it continues "to see significant growth potential and opportunity for expansion." The company also said it expects its cost base to increase marginally in the second half of its 2021 financial year as it resumes some initiatives and spending to support growth.
Shares in Accsys were up 6.0% at 113.12 pence in London on Monday.
By Zoe Wickens; zoewickens@alliancenews.com
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