7th May 2014 10:11
LONDON (Alliance News) - Shares in Accsys Technologies PLC rose Wednesday morning, after the environmental science and technology company reported strong growth in revenues and narrowed its losses in its recent financial year.
The group said its overall loss for the year ended March 31 was reduced as expected, due to higher revenue and improved profitability. However, it said that other operating costs increased during the year, in part due to legal costs associated with the on-going Diamond Wood arbitration, following the termination of its licence agreement with the Hong Kong-based company. Accsys claims that Diamond Wood failed to comply with its contractual obligations.
Total revenue for the year increased by 78% to EUR33.5 million, up from EUR18.8 million the prior year, boosted by sales to Medite Europe Ltd for the manufacture of Tricoya and Accoya wood elements, which it said was driven by both existing and new customers.
The group said it has a total of 59 Accoya distributors and agency agreements now in place, an increase from 42 the prior year.
Accsys said its joint venture with INEOS Industries Holdings Ltd, Tricoya Technologies Ltd, continues to make progress in all areas, including engineering, product development, marketing and business development, and said it has seen a strong increase in demand for Medite Tricoya.
The group said its cash balance at year end increased to EUR15.2 million, due to a combination of revenue growth, licence income and improvements in working capital.
Accsys said it will provide its full set of results for the year ended March 31 before the end of June.
Accsys Technologies shares were up 12% at 0.230 pence Wednesday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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