Accsys Technologies

LN: AXS

£116.9m market cap

99.1p last close

Accsys Technologies is a chemical technology company focused on the development and commercialisation of a range of transformational technologies based on the acetylation of solid wood and wood elements for use as high performance, environmentally sustainable construction materials.

Investment summary

All of the commercial markers of progress in developing Accoya have been ticked in FY20 to date with improvements in volume, pricing and gross margins all noted in the first five months of the year. Moreover, demand in each of the end markets currently served is said to be strong and the expanded Arnhem facility is being fully utilised. The new Tricoya facility timescale slippage does take the near-term gloss off Accoya’s progress but management reiterated that long-term profit expectations for the Tricoya business stream are unchanged. Our FY20 and FY21 estimates are unchanged and we have introduced FY22 forecasts for the first time.

Y/E Mar
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2018A 60.9 (3.5) (8.8) (0.07) N/A N/A
2019A 75.2 0.9 (6.2) (0.04) N/A N/A
2020E 87.5 4.7 (4.0) (0.04) N/A 24.6
2021E 110.0 10.4 (2.4) (0.03) N/A 14.0
Industry outlook

Accsys has a technically proven process and wide international market acceptance for its modified wood output. As well as successful capex execution, the sales and marketing challenge is to pull through demand to absorb newly available capacity and develop licence partners. Management has previously stated a long-term market potential of 1m m3 pa of Accoya wood and 1.6m+ m3 of Tricoya panel products.

Last updated on 11/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 64.3
Forecast gearing ratio (%) 94
Price performance
%
1m
3m
12m
Actual (0.5) (1.9) (2.6)
Relative* (1.8) (3.8) (6.0)
52-week high/low 123.0p/95.6p
*% relative to local index
Key management
Paul Clegg CEO
Hans Pauli Executive Director, Corporate Development
William Rudge Executive Finance Director