Accsys announces a trading update for the nine months ended 31 December 2022, on an unaudited basis. Total Group's nine months 2022 revenue increased by 32% to Euro 109 million, compared to Euro 83 million in the same period of last year.
Accoya® sales volumes in Q3 2022 (October to end December) were 19,015 m3 versus total H1 FY23 volumes of 23,957 m3 reflecting increased capacity at Arnhem from Reactors 1-3 returning to full production following the completion of R4 in September, new production from R4 and some unwinding of higher inventory (work in progress) levels.
Customer demand for Accoya® remains resilient, with a visible Q4 customer order book despite some slowdown in the broader construction industry. The higher average sales prices reflect price increases implemented in H1, plus a further small increase in Q3. In addition, we have continued to successfully manage the effect of volatile chemical raw material prices through the Energy Price Premium which increased in Q3, although this is expected to reduce in Q4 as European energy market indices subside.
The combination of price increases and efficiency of operating at higher production volumes has enabled further progression in the profit per cubic metre of Accoya® sold in Q3.
Net debt of Euro 52 million, represents a reduction of Euro 9 million compared to September 2022, reflecting the reduction in the NatWest loan balance resulting from the Tricoya® restructure announced on 2 November. Cash outflow resulting from a reduction in payables from the Hull project as it moved into the hold period in Q3 was partially offset by positive cash flow from the Accoya® business. While inventory balances remained higher than required due to the long lead times of previous commitments and delivery timings around holiday periods, these are expected to reduce by the year-end.
Rob Harris, CEO of Accsys Technologies, said: “I am pleased with our performance over the last three months. We have delivered strong revenue growth in our Accoya® business due to enhanced capacity from our Arnhem plant. Notwithstanding ongoing macro-economic uncertainty, our expectations for customer orders continue to provide confidence in demand and growth opportunities for both our market-leading products, Accoya® and Tricoya®. We remain on track for sales volumes in H2 to increase by 50% compared to H1 and, as a result, we continue to target our previously stated ambition of nearly doubling underlying EBITDA for the full year.’’
Accsys is the fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products.
