Accsys today provides the following trading update for the six month period to 30 September 2009, ahead of the announcement of its interim results.
The Company expects that revenues for the first half of the year will be lower than in the corresponding period last year.
The decrease in revenues is largely due to reduced licensing fees from Diamond Wood, our licensee in China, and from Al Rajhi, our licensee in the Middle East. Progress on the Diamond Wood plant is linked to their fund raising process which is currently underway. Development on the Al Rajhi plant has been slower than anticipated due to the economic climate, however the
Company is confident that progress will be made during the second half of the year. The recent increase in the Al Rhaji group’s shareholding of Accsys to 9.2% is most welcome.
The Company experienced strong growth in Accoya® wood sales in the first quarter (up 51%), however sales in the second quarter have been impacted by the temporary shutdown of the Arnhem plant, which was required to implement further process improvements and an automated wood logistics system. These improvements have now been completed, production has resumed and the resultant backlog of sales orders will be met in the next quarter.
It is too early to give any indication of the results for the year to 31 March 2010. However, it is clear that they will be determined principally by the extent to which progress is made by our licensees.
In addition, we have implemented a number of cost reduction schemes in the first half of the year, the benefits of which will not be seen until the second half.
The Company has continued to focus on expanding its sales network and is pleased to announce that it has reached agreement with a number of distribution partners across the world. Details of the first of such arrangements with our distribution partners in North America are being
announced separately today. We hope to be in a position to announce further distribution deals in the near future.
Paul Clegg, Chief Executive Officer, of Accsys, stated, “The economic climate has clearly had an effect on our licensing revenues but it is pleasing to see the continued commitment to Accsys from both Diamond Wood and Al Rajhi.”

North American Distribution Partners
WDMA Hallmark Certification Approved
Accsys Technologies PLC (“Accsys” or “the Company”)
Accsys is pleased to announce that it has reached agreement with a number of distribution partners in North America as it continues to focus on its sales network. The list of partners includes Universal Forest Products, Inc., a NASDAQ listed company which had over US$2 billion of sales last year.
Following initial product certification and introduction, the Company is now effectively scaling its capabilities in key markets. As well as driving sales, distribution partners will provide greater market penetration in existing and new application segments for the Company’s product, increasing awareness of the Accoya® brand amongst end users. As use of Accoya® wood becomes more widespread this will, in turn, produce greater licensing opportunities.
The Company is also in discussions with several other distributors in various international geographies as we look to expand our market.
The Company is also delighted to announce that Titan Wood, a wholly owned subsidiary of Accsys, has been approved by the Window and Door Manufacturers’ Association (WDMA) as a Hallmark Certified Supplier. This rating certifies the quality of exterior millwork and gives government and private agencies a method of identifying windows and doors that are manufactured in accordance
with the WDMA’s highest standards. The WDMA Hallmark® is a mark of excellence among architects, contractors and other specifiers. Products eligible for Hallmark certification are subjected to a rigorous verification process in order to ensure conformance with the requirements of the WDMA.
Paul Clegg, Chief Executive Officer, of Accsys, stated, “North America is a key market in the wood products industry. The certification from WDMA and commitment from leading distributors provides further validation of the quality of our product and creates greater awareness of the brand. I look forward to announcing additional partners in other territories in the near future.”
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