Wood hardening specialist Accsys Technologies PLC (LON:AXS) reported a small underlying profit and positive cashflow as demand increased for its eco-friendly products.
The AIM-listed company, which employs acetylation to transform cheaper softwood into high-performance, sustainable building products, improved revenues 23% to €75.2mln in the year to 31 March.
Sales volumes of Accoya solid wood were up 16% compared to last year, with a 33% year-on-year increase in the second half as a third reactor came on stream at Arnhem in the Netherlands.
Accsys reported an underlying operating profit before exceptional items and other adjustments (underlying EBITDA) of €0.9mln, a swing from the €3.5mln loss a year earlier, while statutory losses before tax improved to €7.7mln from €10.4mln.
Despite improving cash-flow generated from operations of €0.3mln compared to the prior year’s €3.8mln outflow, cash balances at the year end were down to €8.9mln from €39.7mln, while net debt jumped to €50.1mln from €3.8mln.
Chief executive Paul Clegg said the Accoya capacity expansion at Arnhem was a major boost to the financial performance, enabling the positive EBITDA result, with EBITDA of €2.3mln in the second half.
“This transformative expansion is starting to make a real difference to both margins and sales volumes,” he said.
Plans for a fourth Accoya reactor are “well underway” at Arnhem, while construction issues at the new Tricoya plant in Hull “have been resolved” and discussions were said to be “progressing” with a potential partner in the US about possible Accoya plant Stateside to capitalise on the increasing demand there.