12th Feb 2014 08:58
LONDON (Alliance News) - Accsys Technologies PLC saw its shares rise strongly Wednesday after it reported a 71% increase in revenues for the nine months to end-December, driven by growth in demand for its Accoya wood, and said it expects the growth trend to continue.
In a statement, the producer and licenser of Accoya and Tricoya wood said revenues rose to EUR23 million in the period, up from EUR13.4 million a year earlier, as Accoya revenues rose to EUR20.2 million, from EUR11.6 million. It said it sold 89% more Accoya than a year earlier.
"This increasing demand for Accoya continues to be seen across all regions and is attributable to both old and new distributors," it said.
"We continue to see the benefit from our significant investment in sales and marketing over the last few years, for example the targeting of architectural audiences. In this respect we are pleased that the new calendar year has started very positively and we expect the trend of revenue growth to continue," it added.
Accoya is wood that has been enhanced to be more long lasting and stable. It is an acetylated wood used for things like external building cladding. The treatment claims to make softwood as durable as hard wood.
Its cash balance at the end of December stood at EUR14.4 million, down EUR2.5 million from the end of September. It said it expects to end its financial year with a cash balance of about EUR13 million as outflows largely caused by shipment timing partially reverses over the next few months.
Accsys Technologies shares were up 10.7% at 0.2325 pence early Wednesday, making it the third-biggest gainer on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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