Accsys Technologies

LN: AXS

£230.5m market cap

140p 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

Accsys maintained an EBITDA and EBIT positive position in H121 in line with the second half of last year despite initial market disruption from the COVID-19 lockdowns early in the financial year. Accoya wood revenues were down slightly but the divisional operating margin improved to 18.2%. The new Tricoya Hull reactor build is on track to complete in this financial year with commissioning thereafter; this will improve the Tricoya segment profitability and also free up Accoya capacity to facilitate market growth. Positive net cash inflow in excess of €7m reduced core net debt to c €12m. The company also emphasised its ESG credentials through the publication of a new sustainability report. Our estimates are under review.

Y/E Mar
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2019A 75.2 0.9 (6.2) (0.38) N/A N/A
2020A 90.9 7.0 (2.2) (0.08) N/A 95.8
2021E N/A N/A N/A N/A N/A N/A
2022E N/A N/A N/A N/A N/A N/A
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 26/02/2021
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Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (€m) 64.3
Forecast gearing ratio (%) 94
Price performance
%
1m
3m
12m
Actual (1.4) 31.2 44.3
Relative* 0.2 27.1 53.1
52-week high/low 163.5p/65.0p
*% relative to local index
Key management
Robert Harris CEO
Hans Pauli Executive Director, Corporate Development
William Rudge Executive Finance Director