Accsys Technologies (LON:AXS) said improved margins were behind strong interim results, but warned growth will be slower next year.
The chemical technology group raised the price of its Accoya wood, leading to a rise in revenue and narrowing losses.
Patrick Shanley, chairman, said: “Accsys continues to make incremental improvements in manufacturing profitability which has been achieved through margin management.”
Sales volumes for Accoya, a type of wood made through a chemical process known as acetylation, were relatively flat, but revenue rose 21% to €26.3mln.
The group made a €100,000 loss in the first half, some 98% up on the €6.2mln loss over the same period the year before.
Additionally, a new deal with Solvay Acetow to increase manufacturing space at its Accoya plant in Arnhem, Holland, will improve efficiency and save money.
Also, as a result of the extra space, Solvay has agreed to buy at least 76,000 cubic metres of Accoya from the Arnhem plant over the next four years.
The initial incremental 20,000 cubic-metre capacity is expected to come on stream by mid-2017.
But Shanley said growth is likely to slow significantly until then.
“In the immediate term we will continue to carefully manage the increasing demand for Accoya prior to additional capacity coming on stream in 2017, such that we expect revenue to continue to grow but at a smaller rate than that recorded in previous financial years,” he said.