Accsys Technologies' (AIM:AXS) shares surged 10% after the company raised its profit outlook for the year, citing strong operational progress and growing demand for its sustainable wood products.
The upgraded guidance follows a solid first-half performance for the six months ending September 30, with total sales volumes up 10% and gross margins exceeding 30%.
Revenue increased by 4% to €74.1 million, supported by robust demand across Europe and North America, where sales volumes grew 18%. The recently operational Kingsport facility in Tennessee is driving growth in the US, highlighting the potential of the company’s expanded capacity.
Adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by €2.4 million to €4 million, driven by improved pricing, cost-saving measures, and strong customer demand.
While global market conditions remain challenging, the company anticipates further growth in the second half of the year, supported by increased capacity and strong sales momentum.
The stock rose 4.58p to 47.63p.