Last close As at 05/08/2026
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Market capitalisation
GBP176m
Research: Industrials
Accsys continues to see strong demand for its high-performance wood products. With demand outstripping capacity, its stated strategy is to expand its total processing capacity from 60,000m3 currently to 200,000m3 by 2025. The group has reaffirmed guidance for FY22, consensus EBITDA is currently €10.4m and adjusted PBT is €1.2m. Driving this performance is price. With volumes flat due to capacity constraints and plant downtimes, which was covered in our March 2022 site visit note, Accoya revenues are up 15%, suggesting price increases in excess of inflation are being achieved. The capacity expansion at Arnhem R4 is taking longer than expected, with an unexpected second shut down that has occurred post the March 2022 site visit. In our view, the discounted placing (with net proceeds of €19m) appears prudent. The proceeds will provide working capital headroom, in light of the volatile pricing and supply chain environment and to accommodate the previously flagged higher capex costs at Hull and the project delays at Arnhem. We are withdrawing our forecasts and will review our FY23 and FY24 projections to reflect the updates on capacity and pricing.
Accsys Technologies |
FY22 guidance reaffirmed, €19m net capital raise |
Capital raise |
General industries |
26 May 2022 |
Share price performance
Business description
Analysts
Accsys Technologies is a research client of Edison Investment Research Limited |
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Accsys continues to see strong demand for its high-performance wood products. With demand outstripping capacity, its stated strategy is to expand its total processing capacity from 60,000m3 currently to 200,000m3 by 2025. The group has reaffirmed guidance for FY22, consensus EBITDA is currently €10.4m and adjusted PBT is €1.2m. Driving this performance is price. With volumes flat due to capacity constraints and plant downtimes, which was covered in our March 2022 site visit note, Accoya revenues are up 15%, suggesting price increases in excess of inflation are being achieved. The capacity expansion at Arnhem R4 is taking longer than expected, with an unexpected second shut down that has occurred post the March 2022 site visit. In our view, the discounted placing (with net proceeds of €19m) appears prudent. The proceeds will provide working capital headroom, in light of the volatile pricing and supply chain environment and to accommodate the previously flagged higher capex costs at Hull and the project delays at Arnhem. We are withdrawing our forecasts and will review our FY23 and FY24 projections to reflect the updates on capacity and pricing.
Year end |
Revenue (€m) |
EBITDA* |
PBT* |
EPS* |
P/E |
EV/EBITDA |
03/20 |
90.9 |
5.9 |
(2.2) |
(0.01) |
N/A |
43.0 |
03/21 |
99.8 |
9.3 |
1.1 |
0.01 |
N/M |
26.9 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The growing demands for sustainable business practices are creating a robust demand backdrop for Accsys’s high-performance wood products, which provide a sustainable alternative to hardwoods and other materials. The market opportunity is significant, with Accsys only having a 2% share of the 2.6m m3 addressable market. The Arnhem facility produces Accoya and the Hull facility produces Tricoya. Both are understood to be sold out. With the strong demand and restricted capacity, the group has been able to push through price increases that have offset input price increases.
A fourth Accoya reactor at Arnhem (adding c 20,000m3 capacity) together with new, larger wood handling equipment with enhanced capability is now in the final stages of completion. This was due to come on stream in April but has been delayed to June due to equipment delays and a further shut down for final pipework tie-ins. The delays have added €7m to the original €26m project costs and led to lower EBITDA and cash generation between December 2021 and May 2022. The new Tricoya facility at Hull and Accsys’s US JV with Eastman look to be broadly in line with the cost and timelines we set out in our March 2022 update.
The €19m raised net of expenses will cover the €7m of cost overruns for the capacity expansion at Arnhem and the remaining €13m will be used to provide working capital headroom for the ongoing business and the expansion at Hull.
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Research: Investment Companies
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