28th Nov 2019 10:43
(Alliance News) - Accsys Technologies PLC said Thursday its revenue increased and pretax loss narrowed as strong demand for its products continued in the first half.
Accsys focuses on the transformation of wood through acetylation, and produces its Accoya solid wood and Tricoya wood elements technology.
The chemical technology company said for the six months ended September 30, its revenue rose 39% to EUR44.0 million from EUR31.6 million in the comparative period a year ago, driven by "continued strong" demand from existing customers for Accoya and Tricoya products.
Revenue from Accoya increased 32% to EUR40.2 million compared to EUR28.1 million a year ago as a result of higher sales volumes and increased prices.
"Demand has continued to exceed production capacity during the period and we have continued to manage this by allocating available volumes between our customer base," the company said.
As a result, the company said it narrowed its pretax loss to EUR1.6 million from EUR5.4 million a year ago.
Net debt increased to EUR59.3 Million at September 30 from EUR50.1 million as at March 31, due to the expenditure on the on-going construction of the Tricoya plant in Hull.
Chief Executive Officer Paul Clegg said: "Accsys is now very well positioned to take advantage of its sustainable products and substantial market opportunity, with an estimated 2.6 million cubic metres of annual sales ultimately being possible."
"The second half of the financial year has started well and we expect this to benefit from production at capacity levels as well as further improvement to our sales product mix, Clegg said."
Accsys also announced it has raised EUR46.3 million by placing 44 million of new ordinary shares at a price of EUR1.05 per share.
The proceeds will be used to fund further expansion of the Arnhem Plant and construction costs associated with the completion of the Tricoya Hull Plant, the company said.
Accsys shares were up 2.2% in London at 99.50 pence each on Thursday.
By Loreta Juodagalvyte; [email protected]
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