Accsys Technologies revenues rise as Accoya wood demand stiffens
Wood hardening group Accsys Technologies announced a positive third-quarter update, with strong production volumes and news of continuing growth in demand for its Accoya wood product.
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Revenues in the nine months to 31 December stiffened 41% to €32.4m, accelerating from the 38% growth at the first half.
A 48% improvement in underlying cash-flow compared to same quarter last year, led to a strong balance sheet of €7.1m net cash.
Progress was revealed in the multi-year global marketing agreement with chemicals giant Solvay, tied up in December, with Accsys having so far received €2m of non-refundable payments.
Work on a new plant at Freiberg also remained on track for completion in 2016, with Accsys to grant Solvay a non-exclusive global licence option and for Solvay to grant Accsys the option to invest in a large minority share in the European project and future production projects.
House broker Numis said the group continues to make strategic, operational and financial progress and highlighted that the group saw a positive outlook for Accoya, with management expecting continued growth in volumes and price to result in further improvements to manufacturing profitability.