Accsys, the chemical technology group, focused on the acetylation of wood, today announces interim results for the consolidated group for the six months ended 30 September 2015.
Unaudited six Unaudited six Change months ended months ended 30 Sept 2015
30 Sept 2014
Total Group Revenu €26.3m €21.8m +21%
Gross Profit €9.4m €5.0m +88%
Underlying EBITDA* €1.3m €(1.9m) Improved168%
Underlying loss before tax* €(0.1m) €(3.1m)
Improved 97%
Loss before taks €(0.1m) €(6.2m)
Improved 98%
Period end cash balance €7.5m €13.5m
*Underlying EBITDA and loss before tax are stated before exceptional items of €nil (2014: €3.1m) recorded in respect of arbitration relating to the Diamond Wood licence agreement.
Highlights
 Improved manufacturing margin together with an increase in revenue attributable to licensing and business development activities resulted in first positive EBITDA since restructuring in 2010;
 Continued trend of revenue growth in the period, with revenue increasing by 21% to €26.3m;
 Manufacturing segment profitability continues to improve, recording EBITDA of €5.0m (2014: €3.1m) as a result of higher prices and improved efficiency; gross manufacturing profit margin increased from 23% to 30%;
 Strong balance sheet maintained with cash balance of €7.5m at 30 September 2015;
 Cash in-flow from operating activities (before changes in working capital) of €1.8m (2014: out-flow of €0.7m excluding exceptional items) as a result of improvement in profitability;
 New agreement with Solvay signed since period end, for licencing, marketing and manufacturing of Accoya, including fees and funding to allow expansion of Accsys manufacturing capacity;
 Agreed minimum 76,000m3 off-take commitment from Solvay over next five years; and
 Proposed Tricoya consortium negotiations have progressed, with detailed engineering and site feasibility studies undertaken.
Paul Clegg, Chief Executive commented: “Our latest set of results confirms that our manufacturing process generates increasing returns, giving us greater confidence to progress with our objective of ensuring we maintain a share in new manufacturing capacity. Not only have we seen a significant improvement in profitability in the period, but a number of important strategic steps have been taken in respect of the proposed formation of the new Tricoya consortium and the relationship with Solvay, enabling us to ensure that the ever-increasing demand for our products can be met in the future.”