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Company Accsys Technologies PLC
TIDM AXS
Headline Trading update
Released 07:08 02-May-2013
Number 8302D07
RNS Number : 8302D
Accsys Technologies PLC
02 May 2013
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AIM: AXS
NYSE Euronext Amsterdam: AXS
2 May 2013
ACCSYS TECHNOLOGIES PLC
("Accsys" or the "Company")
Trading update
Accsys today issues a trading update for the year to 31 March 2013 (based on unaudited figures). Key highlights include:
· Total revenue increased by 25% to €18.8m for the year ended 31 March 2013 (2012: €15.0m);
· Revenue from sales to Accoya® customers increased by 45% for the year ended 31 March 2013 to €16.4m (2012: €11.3m);
· Positive gross margin achieved at the group level for the year ended 31 March 2013;
· Continue to expect our Arnhem manufacturing plant to reach at least 50% capacity utilisation and hence be EBITDA positive in the current financial year;
· Continuing progress with Solvay-Rhodia towards a fully effective licence agreement which we expect to become unconditional later in 2013;
· New Accoya® decking product retail trial launched by Solvay-Rhodia in over 40 outlets in Europe;
· Total of 42 Accoya® distributor and agency agreements now in place (an increase of three since February) covering most of Europe, Australia, Canada, Chile, China, India, Mexico, Morocco, New Zealand, parts of South-East Asia and the USA;
· Tricoya Technologies Limited ('TTL'), the joint venture with Ineos, continues to make progress, developing both new and existing Tricoya® licence opportunities including the signing of a Heads of Terms in December 2012 for a conditional licence agreement with Medite;
· Further industry recognition:
o Medite Tricoya® won Product of the Year at the Sustain Magazine Awards for Sustainability, Business and the Built Environment; and
o Accoya® window frames have been found to be carbon negative over their lifetime; and
· Net cash balance of €20.5m at 31 March 2013 (December 2012: €21.2m).
Financial results (unaudited)
Total revenue for the year ended 31 March 2013 increased by 25% to €18.8m (2012: €15.0). In the same period, Accoya® revenue increased by 45%, excluding sales to Medite for the manufacture of Tricoya, to €16.4m (2012: €11.3m), noting a substantial volume was sold to Medite in the second half of the previous financial year to enable them to build up initial stocks of Medite Tricoya. Total revenue also included €0.6m of licence income which had been recorded in the first half of the year. We expect revenue to continue to grow however this rate of growth is likely to remain difficult to predict from one period to another.
Net cash balance as at 31 March 2013 of €20.5m represents a decrease of €0.7m since 31 December 2012. The decrease is after taking account of €1.7m received in February 2013 following the completion of the second part of the sale and leaseback of the land in Arnhem and also reflects the operating loss in the period, the first cash investment into TTL, capital expenditure (including development costs) and changes to other working capital balances. Cash out-flow from operating activities before changes in working capital has decreased significantly in the year ended March 2013 compared to the prior year and this trend is expected to continue.
Trading update
Accsys continues to make progress towards achieving its longer term objective of achieving profitability.
Following the delivery of the first stages of the engineering Process Design Package to Solvay-Rhodia in November 2012, Accsys and Solvay-Rhodia continue to work towards completing the full Process Design Package which will enable the detailed engineering to be completed. Our respective sales teams continue to develop the market and we have been very pleased that Solvay-Rhodia has launched a trial of a new Accoya® decking product in over 40 retail outlets in Europe. We expect this collaboration to increase and we continue to expect the licence agreement to become unconditional following the approval of Solvay-Rhodia's board of directors later in 2013.
Revenue from Accoya® customers increased by 45% in the year to 31 March 2013 compared to last year reflecting continuing strong growth in demand. We expect growth to continue and have been pleased to sign a number of new distributors or sales agents over the last few months including in Germany, Austria, Czech Republic, Italy, Denmark and Iceland.
We have recently announced Accoya® price increases in all regions which will become effective over the first quarter of 2013/14 financial year. While the price increase is in part attributable to increasing raw material costs, taken together with increased sales volumes, we expect profitability to improve such that we continue to expect the Arnhem manufacturing facility to achieve an EBITDA positive level at 50% of its current capacity in the current year; a level which also indicates the potential returns a prospective licensee may be able to generate.