Last checked at 21 Sep 2017 07:00
AIM: AXS
Euronext Amsterdam: AXS
21 September 2017
ACCSYS TECHNOLOGIES PLC("Accsys" or "the Company")
Annual General Meeting Statement
Accsys, the chemical technology group, focused on the highly sustainable acetylation of wood, today announces that in advance of its Annual General Meeting, to be held at 2.30 p.m. (UK time) this afternoon, its Chief Executive, Paul Clegg, has made the following comments:
"I am pleased to report sales of Accoya increased by 20% in the five months to 31 August 2017 compared to the same period last year, with Accoya revenue of €22.5m (2016: €18.7m) (unaudited). This represented 16,970 cubic metres of Accoya sold (2016: 14,187 cubic metres).
Demand continues to be strong, however as previously stated we are now operating at full capacity. Further growth will therefore be constrained until the third reactor is complete and we are working with our customers in order to minimise the impact of this temporary capacity limitation.
Work in respect of the first phase of the expansion of the Arnhem plant is progressing well. Full commissioning of the third reactor is expected later this financial year and the benefit of the new capacity continues to be expected to be available from the start of the new financial year enabling further significant growth in sales and production.
This will increase our Accoya production capacity to approximately 60,000 cubic metres, representing a significant increase compared to the 31,532 cubic metres of Accoya sold in the last financial year (excluding material sold to Medite for Tricoya, which will be supplied by the Tricoya plant in Hull following its completion in 2019).
Production of Accoya decreased marginally to 16,124 cubic metres for the five months to 31 August 2017 (2016: 16,220 cubic metres). Production was impacted in May by a one-off shut down relating to the expansion project with some associated costs and which was slightly longer than expected. Raw material costs have increased in the four months to 31 August 2017 compared to last year and we are currently reviewing the implementation of a price increase.
Next week we look forward to hosting the majority of our customers in Arnhem for our global Accoya sales conference where we will be focussing on the continued growth of Accoya given the imminent completion of the capacity expansion and the increasing demand for our products.
Following the formation of the Tricoya consortium with BP, Medite and our financial partners BGF and Volantis, I am also pleased to report excellent progress with construction of the world's first dedicated chip acetylation plant in Hull for the manufacture of Tricoya. Extensive ground works including piling, have commenced on site together with detailed engineering being undertaken by Engie Fabricom and a focus on procurement of key items of equipment."
Our interim financial statements for the six months ended 30 September 2017 are expected to be released on 22 November 2017.
Ends
For further information, please contact:
Accsys Technologies PLC | Paul Clegg, CEO Will Rudge, FD Hans Pauli, Executive Director, Corporate Development | via MHP Communications |
Numis Securities | Nominated Adviser: Oliver Cardigan Jamie Lillywhite Corporate Broking: Christopher Wilkinson Ben Stoop | +44 (0) 20 7260 1000
|
MHP Communications | Tim Rowntree Kelsey Traynor | +44 (0) 20 3128 8100
|
Off the Grid (The Netherlands) | Frank Neervoort Yvonne Derske | +31 681 734 236 +31 222 379 666 |
Notes to editors:
Accsys Technologies PLC (www.accsysplc.com) is a chemical technology group whose primary focus is on the production of Accoya® wood and technology licensing via its subsidiary, Titan Wood Limited, which has manufacturing operations in Arnhem, the Netherlands (through its subsidiary Titan Wood B.V.), a European office in London, United Kingdom, an American office in Dallas, Texas (via its subsidiary Titan Wood, Inc) and technology licencing associated with the acetylation of wood elements via its subsidiary Tricoya Technologies Limited. Any references in this announcement to agreements with Accsys shall mean agreements with either Accsys or its subsidiary entities unless otherwise specified. Accsys Technologies PLC is listed on the London Stock Exchange AIM market and on Euronext Amsterdam, under the symbols 'AXS'. Accsys' operations comprise three principal business units: (i) Accoya® wood production; (ii) technology development, focused on a programme of continuous development of and improvements to the process engineering and operating protocols for the acetylation of solid wood and the development of technology for the acetylation of wood elements; and (iii) the licensing of technology for the production of Accoya® wood and Tricoya® wood elements across the globe.
Accoya® wood (www.accoya.com) is produced using Accsys' proprietary patented acetylation technology that effectively converts sustainably grown softwoods and non-durable hardwoods into what is best described as a "high technology wood". Distinguished by its durability, dimensional stability and, perhaps most importantly of all, its reliability (in terms of consistency of both supply and quality), Accoya® wood is particularly suited to exterior applications where performance and appearance are valued. Unlike most tropical and European hardwoods, its colour does not degrade when exposed to ultraviolet light. Moreover, the Accoya® wood production process does not compromise the wood's strength or machinability. The combination of UV resistance, dimensional stability, durability and retained strength means that Accoya® wood offers a wealth of new opportunities to architects, designers and specifiers. These benefits result in lower maintenance and total cost of ownership while using a higher sustainable and environmental responsible building material. For a full archive of Accoya® news, visit www.accoya.com/news.asp.
Tricoya® Wood Elements (www.tricoya.com) are produced using Accsys' proprietary technology for the acetylation of wood chips, and particles for use in the fabrication of panel products such as medium density fibreboard and particle-board. These products demonstrate enhanced durability and dimensional stability which allow them to be used in a variety of applications that were once limited to solid wood or man-made products. Exploitation of Accsys' proprietary technology relating to Tricoya® Wood Elements is carried out through Tricoya Technologies Limited. Tricoya® Wood Elements are lauded as the first major innovation in the wood composites industry in more than 30 years.
Wood Acetylation is a process which increases the amount of 'acetyl' molecules in wood, thereby changing its physical properties. When carried out to a sufficient level throughout the wood, this process protects wood from rot by making it "inedible" to most micro-organisms and fungi, without - unlike conventional treatments - making it toxic. It also greatly reduces the wood's tendency to swell and shrink, making it less prone to cracking and ensuring that, when painted, it requires dramatically reduced maintenance.
Accsys Technologies is the trading name of Titan Wood Limited. ACCOYA®, TRICOYA® and the Trimarque Device are registered trademarks owned by Titan Wood Limited ("TWL"), a wholly owned subsidiary of Accsys Technologies PLC, and may not be used or reproduced without written permission from TWL, or in the case of the Tricoya® registered trademark, from Tricoya Technologies Limited, a subsidiary of TWL with exclusive rights to exploit the Tricoya® brand.