Accsys Technologies

LN: AXS

£133.3m market cap

112.5p 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

FY19 performance at the Arnhem Accoya facility has been robust with the successful delivery of higher volumes from increased capacity. Construction delays at the new Hull Tricoya facility outside Accsys’s control are a near-term frustration and does dampen EBITDA progression over our estimate horizon. That said, achieving a positive group EBITDA outturn in FY19 is a significant milestone. The expected commissioning of the new Hull Tricoya facility and its associated revenue generation has been pushed back by around six months into Q121 owing to the need for reinforcement work previously unforeseen by the main contractor. Our estimates are under review.

Y/E Mar
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 56.5 (1.5) (4.5) (5.47) N/A N/A
2018A 60.9 (3.5) (8.8) (6.78) N/A N/A
2019E 72.4 2.0 (6.0) (4.29) N/A 205.0
2020E 87.5 4.7 (4.0) (4.11) N/A 28.3
Last updated on 21/05/2019
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 long term market potential of 1m m3 pa of Accoya wood and 1.6m+ m3 of Tricoya panel products.

Last updated on 21/05/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 46
Forecast gearing ratio (%) 63
Price performance
%
1m
3m
12m
Actual (1.5) (0.9) 45.8
Relative* 0.2 (2.7) 57.1
52-week high/low 123.0p/76.5p
*% relative to local index
Key management
Paul Clegg CEO
Hans Pauli Executive Director, Corporate Development
Sarah Harding Head of Corporate Marketing & Communications
William Rudge Executive Finance Director