24th Feb 2020 12:12
(Alliance News) - Accsys Technologies PLC on Monday said it has entered into a new agreement with Cerdia Produktions GmbH.
Wood products company Accsys said the contract follows existing agreements with Cerdia, relating to Accoya wood, which will terminate in April. The original agreements, entered into in 2012, were originally due to expire in December 2020.
In bringing forward termination to April 1, Accsys said it will be able to sell Accoya directly into central Europe and Scandinavia nine months earlier than previously estimated.
Accoya is modified timber, which can resist rot, defy the elements and stay strong for decades.
Under the terms of new agreement, payments to Accsys include fees of EUR3.2 million, it said. These payments will be set-off against a loan provided by Cerdia to Accsys in 2015, which currently stands at EUR8.6 million.
Thus, Accsys said net debt will be reduced and the Cerdia loan will remain in effect until maturity in 2025.
Accsys said it is now liaising with European Accoya customers and other stakeholders to ensure a smooth transition of direct Accoya sales and marketing relationships from Cerdia, effective from April 1.
Looking ahead, Accsys confirmed trading is in-line with expectations and no changes are being made for the full year guidance.
The AIM stock was trading 1.2% lower in London on Monday at 102.00 pence a share.
By Evelina Grecenko; [email protected]
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