15th Jun 2016 08:02
LONDON (Alliance News) - Accsys Technologies PLC reported a narrowed pretax loss for its recently ended financial year, as revenue was boosted by continued strong demand and increased pricing for its Accoya wood product.
Accsys is a chemical technology group focused on acetylation of wood.
For the year to end-March the company reported a pretax loss of EUR466,000, narrowed from a pretax loss of EUR7.7 million the year before, as revenue rose to EUR52.8 million from EUR46.1 million.
Revenue for its Accoya wood product increase 7% to EUR43.5 million from EUR40.7 million, mostly as a result of a 5% increase in price for Accoya implemented in the back half of the previous year. Whilst this also resulted in a smaller increase in sales volume compared to recent years, it helped the company to manage demand as it nears its existing capacity.
Accsys said that managing the demand for Accoya will continue to be a challenge in the shorter term due to capacity constraints. However, it said that progress it has made in the year towards securing additional manufacturing capacity provides it with confidence in the medium term.
The company expects its additional manufacturing capacity at Arnhem, in the Netherlands, to become available in 2017, which will add an initial 50% to production capacity, to be followed by a fourth reactor adding another 50% as demand requires, it said.
"I am pleased to report further progress, with improved profitability and significant steps towards our objectives of increasing manufacturing capacity in order to meet demand for our products. Our collaboration with Solvay has allowed us to commence work in respect of the expansion of our Accoya plant in Arnhem and we have made significant progress in forming the proposed consortium with BP and Medite in respect of the first Tricoya wood chip acetylation plant in Hull. All together, I believe the company is in a stronger and more exciting position than at any time in our history," said Chief Executive Paul Clegg in a statement.
Shares in Accsys were up 6.0% at 66.62 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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