Accsys Tech Regulatory News (AXS)

14 Jun 2006 07:00

Accsys Technologies PLC14 June 2006 14th June 2006 Accsys Technologies PLC ("Accsys" or "the Company") PRELIMINARY RESULTS FOR THE 12 MONTHS ENDED 31 MARCH 2006 (audited) Highlights • Establishment of Accsys Technologies and completion of the acquisition of Accsys Chemicals • Admission to AiM and completion of €27 million financing • First license option agreements signed in UK and Middle East, generating first license revenues ahead of expectations • Strong test results on 'Accoya', the Company's 'new wood species' brand, with product endorsements from the world's number one coatings supplier, Akzo Nobel Sikkens, who announced product guarantees for up to thirty years • Arnhem facility on track for completion in the fourth quarter of 2006 • €27 million of financial resources • Business development progress in wood fibre and styrene applications Willy Paterson-Brown, Chairman, said: "We are very pleased with the progressthat we are making on all fronts. I am confident that Accsys will continue onits path to making a significant impact on the building materials industryworldwide, offering manufacturers and consumers better performing, moresustainable products through advancing technology." For further information: Accsys Technologies PLC Collins Stewart Ltd. Parkgreen Communications Willy Paterson-Brown, Chairman Michael O'Brien, Analyst Ana Ribeiro+ 44 20 7598 4040 +44 20 7523 8000 +44 20 7493 3713 CHAIRMAN'S STATEMENT Accsys Technologies was successfully listed on the AiM market of the LondonStock Exchange in October 2005, raising €27 million before expenses. This hasprovided the Company with an excellent foundation for the continued developmentof its technologies and our market launch prior to commercial start-up, which isexpected this year. The response of the investment community and the stockmarket confirmed the validity of the Company's strategy and reflected the broadinterest of corporations and individuals in technologies which offer cost andenvironmental benefits to basic industries. The past year saw enormous strides in Accsys Technologies' development, withparticular emphasis on its Titan Wood subsidiary as planned. A new productbrand was created and launched, customer and licensee development proceededapace, product and process development continued positively and plantconstruction, including the acquisition of a new, larger site, moved forward.The Company expects to complete its wood acetylation production facility in thefourth quarter of 2006, with revenue from initial sales anticipated soon after. During the past year staffing levels were increased and management and reportingsystems transformed in readiness for full commercial production. Developmentefforts for other applications, notably wood fibre and styrene also continued,with discussions presently underway with several of the leading global companiesin each field about how best to exploit each technology. Considering theseactivities, together with the stock market flotation, it is fair to say that2005-6 was a busy, productive and successful year for our Company. The directors do not intend to pay a dividend until the Company has establishedstrong cash flow and reported satisfactory profitability. The Company has completed the restructuring reported at the interim stage, andnow has direct ownership of the subsidiaries likely to generate future licenceincome which should enable the distribution of future earnings. Willy Paterson-Brown Executive Chairman FINANCIAL INFORMATION Basis of Preparation The consolidated financial statements incorporate the financial statements ofAccsys Technologies PLC and all its subsidiary undertakings throughout the yearended 31 March 2006, using the merger method of accounting as the acquisition ofAccsys Chemicals PLC meets the criteria of a group reconstruction. In the Group financial statements, merged subsidiary undertakings are treated asif they had always been a member of the Group. The results of such a subsidiaryare included for the whole period in the year it joins the Group. Thecorresponding figures for the previous year include its results for that period,the assets and liabilities at the previous balance sheet date and the sharesissued by the Company as consideration as if they had always been in issue. Anydifference between the nominal value of the shares acquired by the Company andthose issued by the Company to acquire them is taken to a merger reserve. The financial information set out below does not constitute the company'sstatutory accounts within the meaning of section 240 of the Companies Act 1985.The financial information for the year ended 31 March 2005 is derived from thestatutory accounts of Accsys Chemicals PLC, the former parent company of thegroup, for the year then ended as the company has applied merger accounting inaccounting for the business combination. The financial information for the yearended 31 March 2006 is extracted from the company's statutory accounts for theyear then ended. The statutory accounts of Accsys Chemicals PLC for 2005 havebeen delivered to the Registrar of Companies and those for Accsys TechnologiesPLC for 2006 will be delivered following the company's annual general meeting.The auditors have reported on those accounts; their reports were unqualified anddid not contain statements under the Companies Act 1985, s 237(2) or (3). Consolidated profit and loss account Note 2006 2006 2005 2005 •'000 •'000 •'000 •'000 Turnover 80 - Administrative expenses General administrative expenses (5,860) (2,965) Impairment of tangible and intangible fixed assets - (24,514) _________ __________ (5,860) (27,479) _______ _______ Operating loss (5,780) (27,479) Interest receivable and similar income 782 18 _______ _______ Loss on ordinary activities beforeand after taxation (4,998) (27,461) Minority interest - 841 _______ _______ Loss for the year (4,998) (26,620) ======= ======= Basic and diluted loss per share 6 •(0.04) •(0.43) Consolidated statement of total recognised gains and losses Note 2006 2005 •'000 •'000 Loss for the year (4,998) (26,620)Exchange translation differences on consolidation and conversion toEuro - (1,095) _______ _______ Total recognised gains and losses for the year (4,998) (27,715) ======= ======= All amounts relate to continuing activities. Consolidated Balance Sheets Note Group Group Company 2006 2005 2006 •'000 •'000 •'000Fixed assetsIntangible assets 13,715 14,246 -Tangible assets 10,693 2,842 -Investments - - 11,383 _______ _______ _______ 24,408 17,088 11,383 Current assets Debtors 8,411 6,224 19,646Other investments 15,513 - 15,513Cash at bank 4,577 4,564 4,023 _______ _______ _______ 28,501 10,788 39,182Creditors: amounts falling due withinone year 1,984 1,922 23,666 _______ _______ _______ Net current assets 26,517 8,866 15,516 _______ _______ _______ Net assets 50,925 25,954 26,899 ======= ========= ======= Capital and reservesCalled up share capital 1 1,473 1,203 1,473Share premium account 25,504 - 25,504Merger reserve 106,707 102,512 -Profit and loss account (82,759) (77,761) (78) _______ _______ _______ Shareholders' funds 2 50,925 25,954 26,899 ======= ======= ======= The financial statements were approved by the Board and authorised for issue on14 June 2006 Consolidated cash flow statement Note 2006 2006 2005 2005 •'000 •'000 •'000 •'000 Net cash outflow from operatingactivities 3 (4,468) (2,513) Returns on investments andservicing of financeInterest received 269 18Interest paid - - _______ _______ Net cash inflow fromreturns on investments andservicing of finance 269 18 Capital expenditure andfinancial investmentPurchase of tangible fixed assets (7,925) (2,210)Sale of tangible fixed assets 53 - _______ _______ (7,872) (2,210) _______ _______ Cash outflow before use ofliquid resources and financing (12,071) (4,705) Management of liquid resources Increase in short term deposits (1,690) (5,616)Increase in other investments (15,000) - _______ _______ (16,690) (5,616) FinancingIncrease in loans - 1,434Issue of share capital 27,000 11,773 Expenses of issue of share capital (1,226) (565)Shares issued by subsidiary 3,000 800 _______ _______ 28,774 13,442 _______ _______ Increase in cash 13 3,121 ======= ====== Notes to the financial information 1 Share capital 2006 •'000Authorised equity share capital200,000,000 ordinary shares of €0.01 each 2,0001,000,000 deferred shares of 10p each 148 ______ 2,148 ======Allotted, called up and fully paid equity share capital132,463,447 ordinary shares of €0.01 each 1,3251,000,000 deferred shares of 10p each 148 ______ 1,473 ====== 2 Reconciliation of movements in shareholders' funds 2006 2005 •'000 •'000Group Loss for the year (4,998) (26,620)Exchange translation differences on consolidationand conversion to euro - (1,095)Net proceeds from issue of shares 25,774 21,593Shares issued by subsidiary 4,195 - _______ _______ Net increase/(decrease) in shareholders' funds 24,971 (6,122) Opening shareholders' funds 25,954 32,076 _______ _______ Closing shareholders' funds 50,925 25,954 ======= ======= Notes to the financial information 3 Reconciliation of operating loss to net cash outflow from operating activities 2006 2005 •'000 •'000 Operating loss (5,780) (27,479)Depreciation of tangible fixed assets 21 838Amortisation of intangible fixed assets 531 -Impairment of intangible fixed assets - 24,514(Increase) in debtors (497) (476)Increase in creditors 1,257 90 _______ _______ (4,468) (2,513) ======= ======= 4 Reconciliation of net cash inflow to movement in net funds/(debt) 2006 2005 •'000 •'000 Increase in cash in the year 13 3,121 Cash inflow from increase in debt and lease financing - (1,434) _______ _______ Change in net funds resulting from cash flows 13 1,687 Shares issued in subsidiary in settlement of debt 1,195 3,000 Other non-cash movements - 150 Exchange differences - 115 _______ _______ Movement in net funds/(debt) in the year 1,208 4,952 Opening net funds/(debt) 3,369 (1,583) _______ _______ Closing net funds 4,577 3,369 ====== ====== Notes to the financial information 5 Analysis of net funds At Other At 1 April Cash non-cash 30 March 2005 flow changes 2006 •'000 •'000 •'000 •'000 Cash in hand and at bank 4,564 13 - 4,577Debt due within one year (1,195) - 1,195 - _______ _______ _______ _______ Total 3,369 13 1,195 4,577 ======= ======= ======= ======= 6 Loss per Accsys Technologies PLC share The loss per share shown below is calculated based upon the weighted averagenumber of Accsys Technologies PLC Ordinary shares in issue. 2006 2005 Weighted average number of Ordinary Shares in issue 116,975,026 61,596,033Loss for the year •'000 (4,998) (26,620)Loss per share •(0.04) •(0.43) Since none of the Accsys Technologies PLC's potential Ordinary shares aredilutive, there is no difference between basic and diluted loss per share. This information is provided by RNS The company news service from the London Stock Exchange