Preliminary results for the year end 31 March 2026

AIM: AXS

Euronext Amsterdam: AXS

16 June 2026

Accsys Technologies PLC

("Accsys", the "Group" or the "Company")

The manufacturer of high performance and sustainable Accoya wood

Preliminary results for the year ended 31 March 2026

Strong strategic execution, revenue growth and improved profitability

On track to deliver FY27 strategic targets

Notes

[1]The comparative period, FY25, included 3,802m³ of Group sales to North America. Since the start-up of Accoya USA in September 2024 all North American sales are served by the JV. The like-for-like change in sales volumes and revenues excludes the effect of these sales from the FY25 Group comparators whilst including them within the FY25 JV sales volumes comparator.

²Accsys has a 60% shareholding in Accoya USA LLC, a joint venture (JV) with Eastman Chemical Company which commenced operations during H1 FY25. Whilst the JV is equity accounted for financial reporting purposes, the aggregated revenue figure includes 60% of the JV revenue. 

³At constant exchange rates, aggregated revenue growth would be +26% 

⁴Underlying EBITDA being EBITDA excluding exceptional items & excludes Accsys' share of results relating to Accoya USA JV

⁵Adjusted EBITDA being earnings before interest, tax, depreciation, amortisation and exceptional items of Accsys plus 60% of the JV's EBITDA

⁶Underlying basic earnings/(loss) per share being basic earnings/(loss) per share before exceptional items

⁷Total sales volumes include all Group sales and 100% of sales from the JV. All sales volumes figures are unaudited 

Dr Jelena Arsic van Os, CEO Accsys Technologies PLC said:

"This strong set of results reflects disciplined execution of our FOCUS strategy in a challenging macroeconomic environment. Accsys has transformed into a leaner and more effective organisation, driving record global Accoya sales volumes, significant revenue and profitability growth, and market share gains. 

Our Accoya USA joint venture had a standout performance, delivering EBITDA profitability in its first full financial year of trading, reinforcing the strength of our strategic positioning in North America. We saw significant sales volumes growth of 60% for the region, supported by solid operational execution.

We are delivering on the commitments set out in Phase One of our FOCUS strategy, while remaining focused on innovation, increasing capacity utilisation and driving further sustainable improvements in profitability."

Financial overview

· 21% growth in total Accoya sales volumes delivered against challenging macroeconomic conditions:

o  Robust growth in all markets: +60% North America, +12% UK&I, +21% Rest of Europe and +9% Rest of World

o  Accoya for Tricoya volumes +8%

· Group revenues increased by 20% to €153m on a like-for-like basis, driven by solid trading performance across all regions, continued pricing discipline, and a favourable sales mix with a higher year-on-year proportion of Accoya Color sales reflecting robust demand

· Significant improvement in profitability:

o  Adjusted EBITDA increased by 96% to €21.2m (FY25: €10.8m) driven by higher revenues, increased gross profit margin, positive JV EBITDA and Hull costs being recognised in the prior year

o  Adjusted EBITDA margin increased by 430bps to 11.6%, close to Phase I FY27 target of 12%

o  Statutory loss before taxation improved from €20.8m to €0.6m

o  Underlying basic earnings per share of 2.1 cents (FY25: loss per share of 5.0 cents)

· Stand out performance from Accoya USA JV:

o  178% increase in revenue (60% JV) to €30.3m (FY25: €10.9m)

o  JV achieved an EBITDA profit of €0.1m, representing a €6.1m swing in EBITDA profitability year-on-year

o  Management has successfully mitigated the impact of tariffs on imported lumber into the USA, introduced in October 2025

· Continued focus on capital allocation and deleveraging:

o  Net debt of €41.4m (FY25: €42.6m) with operating cash flow conversion of 75% (Phase I FY27 target: >75%).

o  Increase in working capital, reflecting higher inventory levels to ensure product availability needed to support strong demand and high customer service levels as well as investment in the JV to support its ramp-up

o  Free cash flow of €10.2m after expansionary growth and maintenance capital expenditure of €5.6m

o  Reduction in leverage ratio to 1.96x. Excluding convertible loan notes leverage ratio is 0.74x

Strategic highlights

Disciplined execution supports on track delivery of Phase I of the FOCUS strategy:

Sustainable profitable growth:

· Expanding market share and product offering:

o  FY26 sales volume run rate of 97,248m3 (FY25: 82,288m3) close to Phase I target of 100,000m3 for the end of FY27

o  Substantial growth for our premium Accoya Color product, with global sales volumes up 51%, supported by capacity expansion and operational improvements

o  Addition of 10 new distributors, with three in North America and Mexico

o  Launch of the Decking Collection, the Group's first range of finished Accoya products, broadening access to end customers

· Outstanding North America sales growth of 60% reinforces the strength of our strategic positioning in the USA

Lean and efficient:

· Improvement in like-for-like gross profit margin of 130bps to 30.9%

· Continued cost control discipline with savings retained from the FY24 business transformation programme

· Strong progress on optimisation of existing assets: €2.6m acetyls storage expansion project successfully completed in Arnhem to increase production efficiency; production capacity increased at Accoya Color Barry site

Reduce debt:

· Reduction in leverage ratio from 2.52x to 1.96x. Excluding CLNs, leverage ratio is 0.74x

· Refinancing completed in October 2025 with new debt facilities of €55m providing additional liquidity and strengthening the Group's financial position on improved terms

Flagship projects

Accoya continues to be chosen for high profile projects including: 'Platform 37' Google HQ, London; the Edelman Fossil museum, USA and the Queen Elizabeth II Memorial Garden, London. 

Outlook

The Group remains focused on innovation, market share gains, increasing capacity utilisation and driving further sustainable improvements in profitability. 

While macroeconomic conditions remain uncertain with some inflationary pressures arising from the conflict in the Middle East, we are well positioned to manage the potential impact through product differentiation, geographical diversification, and pricing discipline. The Board will continue to monitor developments closely and respond as appropriate.

Whilst mindful of the dynamic macroeconomic backdrop, trading is in line with the Board's expectations for FY27, and the Group is on track to deliver against its Phase I FOCUS targets. 

Video overview

A video overview of the results is available on the Accsys website: Accsys Annual Reports & Financial Results - Company Information

Results presentation 

There will be a full year results presentation at 9.00am BST on 16 June 2026. The presentation will take the form of a webcast and conference call, details of which are below:

Webcast link (for audio and visual presentation): Click on the link below or copy and paste ALL of the following text into your browser:

 https://edge.media-server.com/mmc/p/qnx3s4qe

Phone participants: for those participants who would like to ask a question live over the phone lines, please register on the following link. You will then be sent a confirmation email with a link to dial-in numbers. https://register-conf.media-server.com/register/BIbc57362160614dc887333e53613a5c37

Ends

Enquiries:

Accsys Investor Relations [email protected]

Panmure Liberum (London) - Nomad and Broker

Nicholas How (NOMAD), Will King +44 (0) 20 3100 2000

ABN Amro (Amsterdam) - Broker

Richard van Etten, Dennis van Helmond +31 (0) 20 344 2000

Media: 

Camarco (UK) [email protected]

Ginny Pulbrook, Tom Huddart, Tilly Butcher +44 (0)20 3757 4980

Huijskens Sassen Communications (NL)

Clemens Sassen, Tessa Nelissen +31 (0) 20 68 55 955

CEO Review

Overview

FY26 was an excellent year for Accsys. We delivered strong strategic execution and a material improvement in financial performance, achieving record total Accoya sales volumes and significant growth in profits. North America delivered a standout performance with Accoya sales volumes growing 60%, underscoring the success of our US strategy and the value of local manufacturing. This performance resulted in the JV making an EBITDA profit for the Group in its first full financial year of trading. These results were achieved against continued challenging market conditions, highlighting our resilient and differentiated offering.

With continued disciplined execution of our FOCUS strategy, we are delivering on the commitments set out in Phase I 'Transform and Improve', and we are on track to hit our Phase I strategic targets by the end of FY27.

Accsys has transformed into a leaner and more effective organisation, supported by strong fundamentals and a clear pathway to sustained profitability.

Financial performance

Significantly increased profitability and margin progress

FY26 was a year of significant top-line momentum, with Group revenues rising 12% to €153m (FY25: €137m) and increasing by 20% on a like-for-like basis*. This performance demonstrates strong underlying global Accoya demand, the resilience of our premium pricing and disciplined commercial execution. When including our 60% share of JV revenue, Accsys' aggregated revenues reached €183m, up 24% year-on-year.

The Group gross profit margin increased to 30.9% (FY25: 30.3%), remaining above our 30.0% target.

EBITDA improved significantly with underlying EBITDA of €21.1m (FY25: €16.8m). This was driven by strong Group Accoya sales volumes and resilient pricing, improved gross profit margin, increased royalties received from the JV and Hull costs being recognised in the prior year. When including the share of profit from the JV, adjusted EBITDA increased year-on-year by 96% to €21.2m.

We reported a total statutory profit after tax of €6.5m in FY26, compared with a total statutory loss after tax of €22.9m in FY25, supported by a €7.0m tax credit in the year; excluding this, the Group's underlying loss before tax narrowed significantly to €1.9m (FY25: €9.9m) reflecting a substantial year-on-year improvement in the Group's underlying financial performance, the recognition of the closure costs of the Hull site in FY25, and significant improvements in the financial performance of the JV as it continues to ramp-up.

The adjusted EBITDA margin improved to 11.6% (FY25: 7.3%), which is only marginally below the FY27 Phase I target of 12.0%.

The JV performance improved substantially with total revenues climbing to €50.5m (FY25: €18.1m) and passing the EBITDA breakeven point, achieving an EBITDA profit of €0.2m (FY25: loss of €10.1m).

*Sales transferred to the Accoya USA JV, represented 7% of Group volumes in FY25

Cash generation, leverage and capital allocation

Net cash flows from operating activities increased by €5.1m to €15.8m (FY25: €10.7m), supported by higher underlying EBITDA and improved operating cash flow conversion of 75%, an increase of 11% vs FY25 and close to our FY27 target of >75%.

Balance sheet strength remains a priority and this has continued to improve, with the leverage ratio moving from 2.52x at 31 March 2025 to 1.96x at 31 March 2026, reflecting the material decrease in leverage over the last two years. Our capital allocation priority remains focused on debt reduction to further strengthen the Group's financial position. 

Net debt reduced to €41.4m at 31 March 2026 (31 March 2025: €42.6m), reflecting improved cash flow from operations partially offset by capital expenditure on plant optimisation, including an acetyls expansion project in Arnhem, as well as higher inventory levels needed for sustained growth and planned investment in Accoya USA to support its ramp-up.

In October 2025, we successfully refinanced our debt facilities, strengthening our capital structure, enhancing financial flexibility and further de-risking the Group to support the next phase of execution. We were also pleased to partner, alongside ABN AMRO, with HSBC for the first time, a tier one bank of significant strength and reputation. The revised terms are expected to improve annual cash flow by €2m.

Executing our FOCUS strategy

Transform and Improve

Phase I of our FOCUS strategy, FY24-FY27 is delivering tangible results, with clear capital allocation priorities, improved operational discipline and stronger financial control across the business. This Phase is focused on strengthening returns from our existing asset base, improving margins and cash generation, and reinforcing the foundations for sustainable profitability.

Our ambition is to build a consistently strong, operationally efficient business that delivers for all stakeholders.

Optimising our assets

In Arnhem, as part of our Solid Roots operational efficiency programme, we completed a €2.6m project 'Elm Tree II', enhancing our acetyls storage capabilities. This investment will further reduce downtime by increasing on-site storage capacity, allowing parallel anhydride feeding of the reactors and lowering dependence on timings of third-party deliveries. We have also invested in improved ventilation, lighting and noise reduction in the Arnhem stacker hall to enhance the working environment for colleagues.

At our Barry site we doubled production capacity by adding a second shift to meet the growing demand for our premium Accoya Color product and support the launch of the 'Accoya Decking Collection'. This strategic decision supported a 51% growth in Accoya Color sales globally. 

At our joint venture, Accoya USA, accelerating sales and increasing capacity utilisation of our asset were key operational priorities during the year. Local manufacturing has reinforced longstanding customer confidence in Accoya availability and supported excellent sales growth. To further expand market coverage, we onboarded two new distributors covering key high-growth regions, including Florida, Texas and California, and appointed our first direct distributor in Mexico, broadening our reach in North America.

Commercial momentum

Total sales volumes increased by 21% to 77,237m³, significantly outperforming the wider building materials market, reflecting strong customer demand and an expanded commercial footprint. We closed FY26 with a run rate of 97,248m³, reflecting the annualised level of total sales based on Q4 volumes, placing us firmly on track to achieve our 100,000m³ run rate target for the end of FY27.

Globally, Accoya's core demand continues to be driven by joinery, cladding and decking applications, while landscaping applications, including public spaces and gardens, represent a growing opportunity driven by low lifetime costs, positive in-use experience and proven long-term performance.

Total Sales volumes

In North America, growth was primarily driven by longstanding customers gaining confidence in improved local supply. During the year we were pleased to deepen relationships with three large US window and door manufacturers, who are now adopting Accoya on a broader basis following extensive testing and small-scale projects. As these programmes scale, we expect their full benefit to be realised in FY27. Alongside this, our focus for FY27 is to fully embed the new distribution partners added during the year, helping them maximise sell-through and capture the opportunity from expanded coverage.

In mainland Europe, volumes increased by 21%, with particularly strong demand for decking in Central Europe. The UK and Ireland delivered continued double-digit growth, reflecting Accoya's strong reputation in joinery, while Australia and New Zealand performed well within Rest of World.

Our premium pricing power remains resilient, demonstrating the strength of the Accoya brand. In the US, the team effectively protected margins, managing the impact of tariffs on all imported lumber introduced in October 2025.

Globally our teams continued to promote awareness of Accoya amongst architects and end users via dedicated training, media outreach, social media and other marketing activities, including trade show presence.

During FY26, Accoya was featured in prominent international projects, including world-class museums, private residences, and notable landscaping initiatives. This includes Accoya being specified for the Queen Elizabeth II Memorial Park in London's Regent's Park, the façade of the soon-to-open Google landscraper in Kings Cross, London and for the façade of the Edelman Fossil Museum in New Jersey, USA.

Accoya for Tricoya continues to experience increased market growth, with demand expanding across mainland Europe and sales rising by 8% year over year. 

Accoya has earned ongoing recognition from industry awards and was awarded Best Use of Treated Wood in Landscape at the Wood Protection Association awards 2025 for The National Autistic Garden, Carmine, Scotland.

Innovation to broaden customer adoption

Protecting our IP into the future remains a priority and this year we had 13 granted patents adding further protection to our core acetylation process and improvements on future Accoya and Tricoya technologies. Protection was also obtained for cleaning up our post-acetylation acid stream.

R&D investment of €1.2m focused on working with external partners to develop fire protection solutions, researching new wood species and enhancing our Accoya Color range. Building on last year's success with Accoya, an Accoya Color wall panel achieved compliance for use in Wildland Urban Interface (WUI) zones in the US, supporting adoption in the growing number of WUI-designated areas.

We are also working with coating partners on extended warranties - there are now several coatings companies offering warranties of 15 years for translucent and opaque finishes on Accoya, which is unique for the wood sector.

Health & Safety (HSE)

Health & Safety remains a top priority for the Group. LTIR (Lost-Time Incident Rate) reduced from 3.30 to 0.51, marking progress on our 'Zero Harm' ambition. FY26 saw the launch of a new health and safety video, continued roll out of our Life Saving Rules programme and bolstering of our teams at Arnhem and Barry with two new HSE leads, ensuring that we maintain the safety and wellbeing of our colleagues.

Sustainable growth

Responsible, sustainable growth is central to our vision and strategy. In November, we introduced "Accsys Cares," our first sustainability plan, setting commitments and targets based on our Double Materiality Assessment to support long-term value creation whilst reducing our impact. 

We are proud to see our efforts recognised by the S&P Corporate Sustainability Assessment, in which we achieved a six point increase in our score to 62/100, maintaining our leadership position within the top 20% of companies in our industry sector.

Our products continued to make an impact. During FY26 our products captured 63,875 tonnes of carbon, equivalent to 6,882 homes' energy use in a year (US EPA). We continued our commitment to responsible sourcing, with 100% of wood sourced from certified sustainable sources (FSC® (CO12330), PEFC/16-37-2311, or equivalent).

Developing and engaging our teams

Our committed colleagues drive our success. Based on feedback from the FY25 Employee Engagement Survey, we continue to listen and enhance engagement and the employee experience, including supporting employee-led awards.

Our Learning Management System enabled consistent training delivery across the Group, with employees completing an average of 36.6 hours of training during FY26, supporting long-term capability, safety and compliance.

We close this record year with deep gratitude to our teams and leadership, whose commitment, resilience and belief in our direction have been the true drivers of our success. I am taking this opportunity to thank all our colleagues for their unwavering dedication, which remains a meaningful and enduring source of strength for the Group.

Outlook

The Group remains focused on innovation, market share gains, increasing capacity utilisation and driving further sustainable improvements in profitability. 

While macroeconomic conditions remain uncertain with some inflationary pressures arising from the conflict in the Middle East, we are well positioned to manage the potential impact through product differentiation, geographical diversification, and pricing discipline. The Board will continue to monitor developments closely and respond as appropriate.

Whilst mindful of the dynamic macroeconomic backdrop, trading is in line with the Board's expectations for FY27, and the Group is on track to deliver against its Phase I FOCUS targets. 

Dr Jelena Arsic van Os

Chief Executive Officer

15 June 2026

CFO Review

Statement of comprehensive income

Total Accoya sales volumes increased by 21% to 77,237m3 (FY25: 63,864m3). Group sales volumes increased by 6% to 60,384m3 (FY25: 57,104m3), which reflects strong growth in demand for Accoya products. On a like-for-like basis, excluding the 3,802m3 of Group sales to North America in H1 FY25, prior to the commercial start-up of the JV, Group sales volumes increased by 13%. The sales volume run rate including the JV was 97,248m3 at the year-end (FY25: 82,288m3), which is just below the 100,000m3 target we set for the end of Phase 1 of our FOCUS strategy at 31 March 2027.

Group revenue for the year increased 12% to €153m (FY25: €137m) with like-for-like revenue growth of 20%. Accoya sales of €139m were up 12% reflecting the higher sales volumes and increased average selling price. Licence revenue increased significantly to €4.0m (FY25: €1.4m) resulting from the impressive sales growth of the JV with the Group earning a royalty on sales made by the JV. Tricoya panel revenue decreased slightly by €0.3m during the year to €3.4m (FY25: €3.7m), representing the Group purchasing Tricoya panels, produced by our Accoya for Tricoya customers, and selling them on to external Accoya customers.

Other revenue, which predominantly relates to the sale of the acetic acid by-product into the acetyls market, decreased by 8% to €6.9m (2025: €7.5m) due to lower acetic acid sales prices and lower sales volumes as the Group benefited from improved anhydride usage efficiencies. The acetic acid sales act as a partial hedge against acetic anhydride costs which also decreased during the year.

Cost of sales increased from €95.2m to €106m, an increase of 11% remaining generally in line with increased sales volumes. Net acetyls costs (proportional combination of acetic anhydride cost and acetic acid sales price) were slightly lower than the prior year due to usage efficiencies offset against greater production volumes, changes in supplier mix, and the Group benefited from a foreign exchange gain on US Dollar denominated anhydride purchases given the weakness of the US Dollar against the Euro. Raw wood purchase prices remain in line with the prior year with higher appearance grade raw wood cost being offset by lower wood chip grade cost. Gross profit of €47.4m was 14% higher than the prior year (FY25: €41.4m) with the gross profit margin 60bps higher at 30.9%, which is above our FOCUS strategy target of maintaining the gross profit margin at above 30%. The like-for-like gross profit margin percentage increased by 130 bps to 30.9%.

Underlying other operating costs (excluding depreciation and amortisation and prior year Hull costs) increased by €3.7m from €24.6m to €26.3m as the Group invested in revenue generating headcount in our commercial organisation and operational headcount in Arnhem and Barry to support growth.

The depreciation and amortisation expense for the year was €8.8m compared to €9.2m in the prior year.

Underlying net finance expenses increased by €0.8m to €6.4m due mainly to the increase in the accounting value of the embedded derivative within the convertible loan notes that were taken out as part of the November 2023 equity raise.

Following the Board's decision in September 2024 to discontinue the Hull plant, and the subsequent placement of Tricoya UK Limited into voluntary liquidation on 17 December 2024, an exceptional credit of €1.3m has been recognised in FY26 (FY25: exceptional charge of €10.9m). This relates to the derecognition of €1.3m provision in relation to the repayment of the EU Life Grant. Following completion of the grant it was concluded that no further amounts were repayable to the EU.

The Group's share of the US JV's (Accoya USA, LLC) net loss after tax, which is accounted for using the equity method, decreased by €4.2m to €7.7m (FY25: net loss €11.9m) as the JV benefited from strong North American sales growth of 60% and a full year of sales after commencing commercial operations. The Group's share of the JV's EBITDA was a profit of €0.1m compared to a loss of €6.0m in the prior year.

Underlying EBITDA, excluding the share of the JV and exceptional costs, increased by 26% from €16.8m to €21.1m, with a margin of 13.8% (FY25: 12.3%) showing the continued strong underlying profitability of the Group. Corporate costs were €0.1m lower than the prior year at €3.6m. Adjusted EBITDA increased significantly by 96% to €21.2m compared to €10.8m in the prior year due to higher underlying profitability, improved profitability of the JV and Hull costs being recognised in the prior year. Accordingly, the adjusted EBITDA margin increased by 430bps from 7.3% to 11.6%, which is close to the FY27 Phase 1 target of 12.0%.

The Group achieved an underlying loss before tax of €1.9m (FY25: loss of €9.9m).  After exceptional items, the statutory loss before tax amounted to €0.6m (FY25: €20.8m).

A net tax credit of €7.0m was recognised during the year (FY25: tax charge of €2.0m) as previously recognised tax provisions in the Netherlands were released following the finalisation of a bilateral advance pricing agreement with the UK and Dutch Tax Authorities which covered the years FY17 to FY25. Accordingly, the Group made a profit after tax and exceptionals of €6.5m compared to a loss of €22.9m the prior year, the highest profit after tax in the Group's history.

The Group delivered underlying earnings per share of 2.1 cents per share (FY25: loss of 5.0 cents per share), and a statutory earnings per share of 2.7 cents per share (FY25: loss of 9.5 cents per share).

Cash flow

Net cash flows from operating activities increased by €5.1m to €15.8m (FY25: €10.7m), resulting from the higher underlying EBITDA during the year, representing an operating cash flow conversion rate of 75% (FY25: 64%), almost achieving the FY27 Phase 1 target of >75%. The net working capital cash outflow amounted to €8.8m compared to a cash out flow of €7.0m in FY25. Inventory levels increased by €5.0m to ensure product availability needed to support strong demand and high levels of customer service, and there was a net outflow of €5.0m relating to amounts owed by the JV as it continued to ramp up. Working capital continues to be a key area of focus for the Group.

Plant and machinery additions of €4.8m in the year (FY25: €1.8m) consisted of expansionary growth capital expenditure in the Arnhem plant to provide further acetyls storage (€2.6m), thereby increasing future production efficiency, HSE improvements in the stacker hall (€0.6m), and maintenance CapEx.

Free cash flow (net cash flow from operating activities less CapEx) increased to €10.2m compared to €8.8m in FY25. The Group made a planned investment into the JV of €3.0m to support its growth and ramp up. Net cash outflows from financing activities amounted to €7.3m (FY25: €4.0m), primarily arising from the net repayment of loans (€2.9m), interest paid (€2.2m) and payment of lease liabilities (€1.4m).

Financial position

At 31 March 2026, the Group held cash of €17.4m, in line with the prior year. Net debt decreased by €1.2m in the year to €41.4m (FY25: €42.6m) primarily due to the increased operating cash flow generated during the year offset by CapEx, investment in JV and financing cash flows. The free cash flow margin improved to 6.7% (FY25:6.5%).

Gross borrowings increased by €0.3m to €56.0m during the year (2025: €55.7m), with net loan repayments of €2.9m being offset by the accrued interest on the convertible loan notes of €2.3m and the increase in the accounting value of the embedded derivative within the convertible loan notes of €0.6m.

The leverage ratio (net debt to underlying EBITDA) improved to 1.96x compared to 2.52x in the prior year, and is significantly lower than the 4.35x at 31 March 2024. The continued deleveraging of the balance sheet is in line with our FOCUS strategy. Excluding the convertible loan notes, the leverage ratio was 0.74x (FY25: 1.1x).

On 27 October 2025, the Group successfully completed new debt facilities of €55m, provided on an equal basis by ABN AMRO N.V. and HSBC UK Bank Plc. The facilities comprise of a €20m term loan and a €35m revolving credit facility and are committed on a three-year term, maturing in October 2028. The facilities include an option, at the Banks' discretion, to extend the term for a further year to October 2029. The successful refinancing shows continued strong support from ABN AMRO and we are delighted to partner with HSBC, a tier one bank of significant strength and reputation. We are pleased to have secured improved financing facilities, providing additional liquidity for the Group, and strengthening our financial position on improved terms.

Going concern

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future, and at least for the 12 months from the date these financial statements are approved (the 'going concern period'). As part of the Group's going concern review, the Directors have assessed the Group's trading forecasts, working capital and liquidity requirements, and bank facility covenant compliance for the going concern period under a base case scenario and a reverse stress test scenario.

The cash flow forecasts used for the going concern assessment represent the Directors' best estimate of trading performance and costs based on current agreements, market experience and consumer demand expectations. These forecasts indicate that, in order to continue as a going concern, the Group is dependent on achieving a certain level of performance relating to the production and sale of Accoya, and the management of its working capital.

The Directors have also considered the possible quantum and timing of any funding required to ramp up Accoya USA's operations. Accsys has a contractual obligation to fund its 60% share of Accoya USA, LLC on a pro-rata basis with its JV partner (Eastman Chemical Company). This funding has been considered in both scenarios.

The Group is also dependent on the Group's financial resources including its existing cash position and banking facilities (see note 26 for details).

The Directors considered a reverse stress test scenario against the base case to determine the decrease in Group sales volumes required to breach bank covenants only, as there is far greater liquidity headroom within the Group. The Directors do not expect the assumptions in the reverse stress test scenario to materialise, but should they unfold, the Group has several mitigating actions it can implement to manage its going concern risk, such as deferring discretionary capital expenditure and implementing further cost reductions to ensure there are no covenant breaches during the going concern period.  In the reverse stress test, a decrease of more than approximately 13.4% on Group sales volumes compared to the prior year or a decrease of more than approximately 28.5% compared to the equivalent base scenario period was required to breach the first bank covenant.

The Directors believe that while some uncertainty always inherently remains in achieving the budget, in particular in relation to market conditions outside of the Group's control, after carefully considering all the factors explained in this statement, there is sufficient liquidity and covenant headroom such that there is no material uncertainty with respect to going concern. Accordingly, the financial statements have been prepared on a going concern basis.

Sameet Vohra

Chief Financial Officer

15 June 2026

Consolidated statement of comprehensive income for the year ended 31 March 2026

The notes form an integral part of these financial statements.

* See note 5 for details of exceptional items.

** See note 3 for details of re-presentation. 

Consolidated statement of financial position as at 31 March 2026

Registered Company 05534340

The financial statements were approved by the Board of Directors on 15 June 2026 and signed on its behalf by

Sameet Vohra

Chief Financial Officer

The notes form an integral part of these financial statements.

Consolidated statement of changes in equity for the year ended 31 March 2026

Share capital is the amount subscribed for shares at nominal value (note 23).

Share premium account represents the excess of the amount subscribed for share capital over the nominal value of these shares, net of share issue expenses. Share issue expenses comprise the costs in respect of the issue by the Company of new shares.

See note 24 for details concerning Other reserves.

Foreign currency translation reserve arises on the re-translation of the Group's USA subsidiary's net assets which are denominated in a different functional currency, being US dollars.

Accumulated losses represent the cumulative loss of the Group attributable to the owners of the parent.

The notes form an integral part of these financial statements.

Consolidated statement of cash flows for the year ended 31 March 2026

The notes form an integral part of these financial statements.

Notes to the financial statements for the year ended 31 March 2026

1. Accounting Policies

General Information

The financial information set out in these preliminary results does not constitute the Company's statutory financial statements for the years ended 31 March 2026 or 31 March 2025. Statutory financial statements for the year ended 31 March 2025 have been filed with the Registrar of Companies and those for the year ended 31 March 2026 will be delivered to the Registrar in due course; both have been reported on by the auditors. The auditors' report on the Annual Report and Financial Statements for the year ended 31 March 2024 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. The auditors' report on the Annual Report and Financial Statements for the year ended 31 March 2026 is unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

Basis of accounting

The Group's financial statements have been prepared under the historical cost convention (except for certain financial instruments and equity investments which are measured at fair value), in accordance with UK-adopted international accounting standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. In addition, the financial statements are also prepared in accordance with international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and the Dutch Financial Markets Supervision Act.

Going Concern

The consolidated financial statements are prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future, and at least for the 12 months from the date these financial statements are approved (the 'going concern period'). As part of the Group's going concern review, the Directors have assessed the Group's trading forecasts, working capital and liquidity requirements, and bank facility covenant compliance for the going concern period under a base case scenario and a reverse stress test scenario.

The cash flow forecasts used for the going concern assessment represent the Directors' best estimate of trading performance and cost implications in the market based on current agreements, market experience and consumer demand expectations. These forecasts indicate that, in order to continue as a going concern, the Group is dependent on achieving a certain level of performance relating to the production and sale of Accoya, and the management of its working capital.

The Directors' have also considered the possible quantum and timing of funding required to fund the ramp up of Accoya USA's operations. Accsys has a contractual obligation to fund its 60% share of Accoya USA, LLC on a pro rata basis with its joint venture partner (Eastman Chemical Company). This funding has been considered in both scenarios.

The Group is also dependent on the Group's financial resources including its existing cash position, banking and finance facilities (see note 26 for details).

The Directors considered a reverse stress test scenario against the base case to determine the decrease in Group sales volumes required to breach bank covenants only, as there is far greater liquidity headroom within the Group. The Directors do not expect the assumptions in the reverse stress test scenario to materialise, but should they unfold, the Group has several mitigating actions it can implement to manage its going concern risk, such as deferring discretionary capital expenditure and implementing further cost reductions to ensure there are no covenant breaches during the going concern period. In the reverse stress test, a decrease of more than approximately 13.4% on Group sales volumes compared to an equivalent prior year period or a decrease of more than approximately 28.5% compared to the equivalent base scenario period was required to breach the first bank covenant.

The Directors believe that while some uncertainty always inherently remains in achieving the forecasts, in particular in relation to market conditions outside of the Group's control, after carefully considering all the factors explained in this statement, there is sufficient liquidity and covenant headroom such that there is no material uncertainty with respect to going concern and have prepared the financial statements on this basis. 

Exceptional Items

Exceptional items are events or transactions that fall outside the ordinary activities of the Group and which by virtue of their size or incidence, have been separately disclosed in order to improve a users' understanding of the financial statements. These include impairment losses (or the reversal of previously recorded exceptional impairments), restructuring costs, significant gains or losses following the disposal of an asset and other significant one-off events or transactions. See note 5 for details of exceptional items.

Business combinations

A subsidiary is an entity over which the Group has control. Control is evident where the Group is exposed to, or has rights to, variable returns from its involvement with that entity and has the ability to affect those returns through its power over that entity. The consolidated financial statements present the results of the Group including the results of Accsys Technologies plc and its subsidiaries and joint venture. All Intra-group transactions and balances are eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the consolidated statement of financial position, the acquirer's identifiable assets, liabilities, and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of operations acquired or disposed are included in the consolidated statement of comprehensive income from the effective date of acquiring control or up to the effective date of disposal.

As allowed under IFRS 1, some business combinations effected prior to transition to IFRS, were accounted for using the merger method of accounting. Under this method, assets and liabilities are included in the consolidation at their book values, not fair values, and any differences between the cost of investment and net assets acquired were taken to the merger reserve. The majority of the merger reserve arose from a corporate restructuring in the year ended 31 March 2006 which introduced Accsys Technologies PLC as the new holding Company.

Non-controlling interests are measured, at initial recognition, as the non-controlling proportion of the fair values of the assets and liabilities recognised at acquisition.

After initial recognition, non-controlling interests are measured as the aggregate of the value at initial recognition and their subsequent proportionate share of profits and losses less any distributions made. Changes in the Group's interests in subsidiaries that do not result in a change in control are accounted for as equity transactions. Any resulting difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration payable or receivable is recognised directly in equity and attributed to the shareholders.

When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognised in profit or loss.

Revenue from contracts with customers

Revenue is measured at the fair value of the consideration receivable. Revenue is recognised to the extent that it is highly probable that a significant reversal will not occur based on the consideration in the contract. The following specific recognition criteria must also be met before revenue is recognised.

Manufacturing revenue

Revenue is recognised from the sale of goods at a point in time and is measured at the amount of the transaction price received in exchange for transferring goods. The transaction price is the expected consideration to be received, to the extent that it is highly probable that there will not be a significant reversal of revenue in the future. Revenue is recognised when the Group's performance obligations under the relevant customer contract have been satisfied when the customer collects the goods or when delivered to the customer. Manufacturing revenue includes the sale of Accoya wood and Tricoya panels.

Licensing fees

Licence fees are recognised over the period of the relevant agreements according to the specific terms of each agreement or the quantities and/or values of the licensed product sold. The accounting policy for the recognition of licence fees is based upon satisfaction of the performance obligations set out in the contract such as an assessment of the work required before the licence is signed and subsequently during the design, construction and commissioning of the licensees' plant, with an appropriate proportion of the fee recognised upon signing and the balance recognised as the project progresses to completion. The amount of any cash received but not recognised as income is included in the financial statements as deferred income and shown as a liability.

Other revenue

Included within other revenue are raw wood and acetic acid sales. Revenue is recognised from the sale of goods at a point in time and is measured at the amount of the transaction price received in exchange for transferring goods. Revenue is recognised when the Group's performance obligations have been satisfied either when the customer collects the goods or when delivered to the customer.

Finance income

Interest accrues using the effective interest method, i.e. the rate that discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset.

Finance expenses and borrowing costs

Finance expenses include the fees, interest and other finance charges associated with the Group's loan notes, credit facilities and leases, which are expensed over the period that the Group has access to the loans, facilities and leases.

Foreign exchange gains or losses on the loan notes and borrowings are included within finance expenses.

Interest on borrowings directly relating to the construction or production of qualifying assets are capitalised until such time as the assets are substantially ready for their intended use or sale. Where funds have been borrowed specifically to finance a project, the amount capitalised represents the actual borrowing costs incurred.

Where the funds used to finance a project form part of general borrowings, the amount capitalised is calculated using a weighted average of rates applicable to relevant general borrowings of the Group during the construction period. The capitalisation of borrowing costs is suspended during extended periods in which it suspends active development of a qualifying asset.

Share based payments

The Company awards nil cost options to acquire ordinary shares in the capital of the Company to certain Directors and employees. The Company has also previously awarded bonuses to certain employees in the form of the award of deferred shares of the Company.

In addition, the Company has established an Employee Share Participation Plan under which employees subscribe for new shares which are held by a trust for the benefit of the subscribing employees. The shares are released to employees after one year, together with an additional, matching share on a one for one basis.

The fair value of options and deferred shares granted are recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and is charged to the consolidated statement of comprehensive income over the vesting period during which the employees become unconditionally entitled to the options or shares.

The fair value of share options granted is measured using a modified Black Scholes model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest only where vesting is dependent upon the satisfaction of service and non-market vesting conditions.

Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options which eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Pensions

The Group contributes to certain defined contribution pension and employee benefit schemes on behalf of its employees. These costs are charged to the consolidated statement of comprehensive income on an accruals basis.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the consolidated statement of comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date together with any adjustment to tax payable in respect of previous years. Current tax includes the expected impact of claims submitted by the Group to tax authorities in respect of enhanced tax relief for expenditure on research and development.

Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for:

· the initial recognition of goodwill;

· the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination; and

· differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. Recognition of deferred tax assets is restricted to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

Foreign currencies

The individual financial statements of each Group company are presented in the currency of the primary economic environment in which it operates (the functional currency). For the purposes of the consolidated financial statements, the results and financial position of each Group company are expressed in Euro, which is the functional currency of the parent Company, and the presentation currency of the consolidated financial statements.

In preparing the financial statements of the individual companies, transactions in currencies other than the entity's functional currencies are recognised at the rates of exchange prevailing on the date of the transactions. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

Exchange differences are recognised in profit or loss in the period in which they arise.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at exchange rates prevailing on the reporting date. Income and expense items are translated at the average monthly exchange rates prevailing in the month in which the transaction took place. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in the foreign currency translation reserve. Such translation differences are reclassified to profit and loss only on disposal or partial disposal of the overseas operation.

Foreign exchange hedging

The Group has adopted IFRS 9 hedge accounting in respect of the cash flow hedging instruments that it uses to manage the risk of foreign exchange movements impacting on future cash flows and profitability.

The Group has prospectively assessed the effectiveness of its cash flow hedging using the 'hedge ratio' of quantities of cash held in the same currency as future foreign exchange cash flow quantities related to the underlying transaction. The Group has undertaken a qualitative analysis to confirm that an 'economic relationship' exists between the hedging instrument and the hedged item. It is also satisfied that credit risk will not dominate the value changes that result from that economic relationship.

The Group applies hedge accounting in respect of foreign currency forward contracts. At each period end the Group calculates the fair value of all foreign currency forward contracts and the fair value gain or loss is recognised within other comprehensive income.

Government grants

Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received and the Group will comply with the attached conditions. When the grant relates to an expense item, it is recognised as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Where the grant relates to an asset, they are credited to a deferred income account and released to the statement of comprehensive income over the expected useful life of the relevant asset on a straight line basis.

Goodwill

Goodwill arising on the acquisition of a subsidiary undertaking is the difference between the fair value of the consideration paid and the fair value of the identifiable assets and liabilities acquired. It is capitalised, and is subject to annual impairment reviews by the Directors. Any impairment arising is charged to the consolidated statement of comprehensive income. Where the fair value of the identifiable assets and liabilities acquired is greater than the fair value of consideration paid, the resulting amount is treated as a gain on a bargain purchase and is recognised in the consolidated statement of comprehensive income.

Joint venture

The Group has entered into a joint venture agreement with Eastman Chemical Company, forming Accoya USA, LLC. The Group applies IFRS 11 for this joint arrangement, and following assessment of the nature of this joint arrangement, has determined it to be a joint venture. Interest in the joint venture is accounted for using the equity method, after initially being recognised at cost.

Further details concerning the Accoya USA, LLC joint venture with Eastman Chemical Company are included in note 25.

Other intangible assets

Intellectual property rights, including patents, which cover a portfolio of novel processes and products, are shown in the financial statements at cost less accumulated amortisation and any amounts by which the carrying value is assessed during an annual review to have been impaired. The useful economic life of the intellectual property is considered to be 20 years. The amortisation charge in the year is within other operating costs in the statement of comprehensive income.

Internal development costs are incurred as part of the Group's activities including new processes, process improvements, identifying new species and improving the Group's existing products. Research costs are expensed as incurred. Development costs are capitalised when all of the criteria set out in IAS 38 'Intangible Assets' (including criteria concerning technical feasibility, ability and intention to use or sell, ability to generate future economic benefits, ability to complete the development and ability to reliably measure the expenditure) have been met. These internal development costs are amortised on a straight line basis over their useful economic life, between eight and 20 years.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any impairment charged. Cost includes the original purchase price of the asset as well as costs of bringing the asset to the working condition and location of its intended use. The capitalisation of costs is suspended during extended periods in which it suspends active development of a qualifying asset. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset, except freehold land, over its expected useful life on a straight line basis, as follows:

Plant and machinery These assets comprise plant production facilities and machinery, and are depreciated from the date they become available for use over their useful lives of between five and 20 years

Office equipment Useful life of between three and five years

Leased land and buildings Land held under a finance lease is depreciated over the life of the lease

Impairment of non-financial assets

The carrying amount of non-current non-financial assets of the Group is compared to the recoverable amount of the assets whenever events or changes in circumstances indicate that the net book value may not be recoverable, or in the case of goodwill, annually. The recoverable amount is the higher of value in use and the fair value less cost to sell. In assessing the value in use, the expected future cash flows from the assets are determined by applying a discount rate to the anticipated pre-tax future cash flows. An impairment charge is recognised in the consolidated statement of comprehensive income to the extent that the carrying amount exceeds the assets' recoverable amount. The revised carrying amounts are amortised or depreciated in line with Group accounting policies. A previously recognised impairment loss, other than on goodwill, is reversed if the recoverable amount increases as a result of a reversal of the conditions that originally resulted in the impairment. This reversal is recognised in the consolidated statement of comprehensive income and is limited to the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised in prior years. Assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units) for purposes of assessing impairment. 

Leases

To the extent that a right-of-control exists over an asset subject to a lease, a right-of-use asset, representing the Group's right to use the underlying leased asset, and a lease liability, representing the Group's obligation to make lease payments, are recognised in the consolidated statement of financial position at the commencement of the lease.

The right-of-use asset is measured initially at cost and includes the amount of initial measurement of the lease liability, any initial direct costs incurred, including advance lease payments, and an estimate of the dismantling, removal and restoration costs required in terms of the lease. Depreciation is charged to the consolidated income statement so as to depreciate the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The lease term shall include the period of an extension option where it is reasonably certain that the option will be exercised. Where the lease contains a purchase option the asset is written off over the useful life of the asset when it is reasonably certain that the purchase option will be exercised.

The lease liability is measured at the present value of the future lease payments, including variable lease payments that depend on an index and the exercise price of purchase options where it is reasonably certain that the option will be exercised, discounted using the interest rate implicit in the lease, if readily determinable. If the implicit interest rate cannot be readily determined, the lessee's incremental borrowing rate is used. Finance charges are recognised in the consolidated statement of comprehensive income over the period of the lease.

Lease expenses for leases with a duration of one year or less and low-value assets are not recognised in the consolidated statement of financial position, and are charged to the consolidated income statement when incurred. Low-value assets are determined based on quantitative criteria.

The Group has used the following practical expedients permitted by the standard:

- The use of a single discount rate to a portfolio of leases with reasonably similar characteristics

- Reliance on previous assessments on whether leases are onerous

- The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

Inventories

Raw materials, which consist of unprocessed timber and chemicals used in manufacturing operations, are valued at the lower of cost and net realisable value. The basis on which cost is derived is a first-in, first-out basis.

Inventory in the process of being produced is disclosed as work in progress and the costs associated to where it is in the process are capitalised to its value.

Finished goods, comprising processed timber, are stated at the lower of weighted average cost of production or net realisable value. Costs include direct materials, direct labour costs and production overheads (excluding the depreciation of relevant property and plant and equipment) absorbed at an appropriate level of capacity utilisation. Net realisable value represents the estimated selling price less all expected costs to completion and costs to be incurred in selling and distribution.

Fair value measurement

Assets and liabilities that are measured at fair value, or where the fair value of financial instruments has been disclosed in notes to the

financial statements, are based on the following fair value measurement hierarchy:

- Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

- Level 2 - inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and

- Level 3 - inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

Specific valuation methodologies used to value financial instruments include other techniques, including discounted cash flow analysis, are used to determine the fair values of other financial instruments.

Financial assets

Financial assets and financial liabilities are recognised in the Group's consolidated statement of financial position when the Group becomes party to the contractual provisions of the instrument.

Financial assets are initially measured at fair value and in the case of investments not at fair value through profit or loss, fair value plus directly attributable transaction costs.

Except where a reliable fair value cannot be obtained, unlisted shares held by the Group are classified as fair value through other comprehensive income and are stated at fair value. Gains and losses arising from changes in fair value are recognised directly in other comprehensive income, with dividends recognised in profit or loss. Where it is not possible to obtain a reliable fair value, these investments are held at cost less provision for impairment.

Loans and receivables, which comprise non-derivative financial assets with fixed and determinable payments that are not quoted on an active market, are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.

Trade and other receivables

Trade receivables are initially recognised at fair value and are subsequently measured at amortised cost using the effective interest rate method, less allowance for impairments. The Group has elected to apply the IFRS 9 practical expedient option to measure the value of its trade receivables at transaction price, as they do not contain a significant financing element. The Group applies IFRS 9's 'simplified' approach that requires companies to recognise the lifetime expected losses on its trade receivables. At the date of initial recognition, the credit losses expected to arise over the lifetime of a trade receivable are recognised as an impairment and are adjusted, over the lifetime of the receivable, to reflect objective evidence reflecting whether the Group will not be able to collect its debts.

Cash and cash equivalents

Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in hand and short-term deposits, including liquidity funds, with an original maturity of three months or less. For the purpose of the statement of consolidated cash flow, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

Financial liabilities

Other financial liabilities

Trade payables and other financial liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.

Loans and other borrowings are initially recognised at the fair value of amounts received net of transaction costs and subsequently measured at amortised cost using the effective interest method.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.

Derivatives are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Financial guarantee contracts

Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued.

The liability is initially measured at fair value, which is determined based on the present value of the difference in cash flows between the contractual payments required under the FHB borrowing (provided to the Company's joint venture - Accoya USA) and the payments that are estimated to be required without the guarantee being provided by Accsys to FHB. To calculate the fair value of the guarantee, the present value calculation is then weighted by the probability of the guarantee being called by FHB.

Where guarantees in relation to loans or other payables of associates are provided for no compensation, the fair values are accounted for as contributions and recognised as part of the cost of the investment.

Share capital

Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability. The Group's shares are classified as equity instruments.

Segmental Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Accsys Technologies PLC, the chief operating decision makers (CODM) of the Group. The Board are responsible for allocating resources and assessing performance of the operating segments and has been identified as steering the committee that makes strategic decisions.

Alternative Performance Measures

The Group presents certain measures of financial performance, position or cash flows in the Annual Report and Financial Statements that are not defined or specified according to IFRS (International Financial Reporting Standards). These measures, referred to as Alternative Performance Measures (APMs), are prepared on a consistent basis for all periods presented in this report.

The significant APMs are:

Net debt

A measure comprising short term and long-term borrowings (including lease obligations) less cash and cash equivalents. Net debt ignores movements in embedded derivatives to provide a measure of the Group's true net indebtedness or overall leverage.

Underlying EBITDA

Operating profit/(loss) before Exceptional items, depreciation and amortisation. Underlying EBITDA provides a measure of the cash-generating ability of the business that is comparable from year to year.

Underlying EBIT

Operating profit/(loss) before Exceptional items. Underlying EBIT provides a measure of the operating performance that is comparable from year to year.

Adjusted EBITDA

Underlying EBITDA plus the Group's attributable share of the Accoya USA joint venture's underlying EBITDA. Adjusted EBITDA provides a measure of the cash-generating ability of the business that is comparable from year to year.

Adjusted EBIT

Underlying EBIT plus the Group's attributable share of the Accoya USA joint venture's underlying EBIT. Adjusted EBIT provides a measure of the operating performance that is comparable from year to year.

Free cash flow

Net cash from operating activities less investment in property, plant and equipment and intangible assets. See note 26.

Leverage ratio

Leverage ratio is the ratio of net debt to underlying EBITDA.

2. Accounting judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates

Goodwill

The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated above. The recoverable amounts of cash-generating units have been determined based on value in use calculations. These calculations require the use of judgements in relation to discount rates and future forecasts (See note 14 and 15). The recoverability of these balances is dependent upon the level of future licence fees and manufacturing revenues. While the scope and timing of the production facilities to be built under the Group's existing and future agreements remains uncertain, the Directors remain confident that revenue from own manufacturing, existing licensees, new licence agreements will be generated, demonstrating the recoverability of these balances.

Intellectual property rights (IPR) and property, plant and equipment

The Group tests the carrying amount of the intellectual property rights and property, plant and equipment whenever events or changes in circumstances indicate that the net book value may not be recoverable. These calculations require the use of estimates in respect of future cash flows from the assets by applying a discount rate to the anticipated pre-tax future cash flows. Within this process, the Group makes a number of key assumptions including operating margins, production volumes, discount rates, terminal growth rates and forecast cash flows. Additional information is disclosed in note 14 and 15, which highlights the estimates applied in the value-in-use calculations for those CGUs that are considered most susceptible to changes in key assumptions and the sensitivity of these estimates. The Group also reviews the estimated useful lives at the end of each annual reporting period (See note 14 and 15). The price of raw materials and other inputs vary according to market conditions outside of the Group's control. Should the price of the raw materials increase greater than the sales price or in a way which no longer makes Accoya competitive, then the carrying value of the property, plant and equipment or IPR may be in doubt and become impaired. The Directors consider that the current market and best estimates of future prices mean that this risk is limited.

Fair value of financial derivative

The Group has convertible loan notes with an embedded conversion option. The Group values the financial derivative based upon assumptions around the likelihood of conversion and the volatility of the share price to determine the fair value of the derivative. Any movements in the fair value of the derivative are recognised through the profit and loss. See note 26 for further details.

Recovery of investment in the joint venture

The Group, together with Eastman Chemical Company LLC formed Accoya USA, LLC, 60% owned by the Group and 40% owned by Eastman. The two parties are assessed to jointly control the entity, due to the operating agreement requiring both joint venture partners to approve key business decisions. The Group performs an impairment assessment on its investment in Accoya USA, LLC whenever events or changes in circumstances indicate that the carrying value may not be recoverable. This requires the Group to make an estimate and assumptions of the expected cash flows, sales volumes and choose a suitable discount rate in order to calculate the present value of those cash flows. See note 25 for further details.

Accounting judgements

In preparing the Consolidated Financial Statements, management has to make judgments on how to apply the Group's accounting policies and make estimates about the future. The critical judgements that have been made in arriving at the amounts recognised in the Consolidated Financial Statements and the key sources of uncertainty that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities in the next financial year are discussed below:

Financial asset at fair value through profit or loss

The Group has an investment in listed equity shares carried at nil fair value as a reliable fair value cannot be obtained since there is no active market for the shares and there is currently uncertainty around the future funding of the business. The Group makes appropriate enquiries and considers all of the information available to it in order to determine the fair value (See note 17).

New standards and interpretations in issue at the date of authorisation of these financial statements:

New standards, amendments and interpretations

The following amendments to Standards and a new Interpretation have been adopted for the financial year beginning on 1 April 2025:

• Amendments to IAS 21;

· Amendments to IFRS 19; and

· Amendments to IFRS 7 and IFRS 9.

The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

New standards, amendments and interpretations not yet adopted

Certain new accounting standards and interpretations have been published that are not mandatory for 31 March 2026 reporting periods and have not been early adopted by the Group.

In April 2024, the IASB issued IFRS 18 'Presentation and Disclosure in Financial Statements'. The new presentation requirements introduced in IFRS 18 will increase comparability of the financial performance of similar entities, especially related to how 'operating profit or loss' is defined. The new disclosure requirements for 'management-defined performance measures' will enhance transparency. IFRS 18 is effect from 1 January 2027 and has not yet been adopted by the Group.

Accsys Technologies plc is in the process of determining the impact on the Group of applying IFRS 18. The Group is preparing a transition plan to report our first IFRS 18-compliant interim financial statements for the period ending September 2027 and annual financial statements for the year ended March 2028. The standard is anticipated to not have a significant impact on the presentation of the Consolidated Income Statement.

Other new accounting standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

3. Segmental reporting

The Group's business is the manufacturing of and development, commercialisation and licensing of the associated proprietary technology for the manufacture of Accoya wood, Tricoya wood elements and related acetylation technologies. Segmental reporting is divided between corporate activities and activities directly attributable to Accoya.

Accoya

Reconciliation of Accoya Adjusted EBIT and EBITDA

Revenue includes the sale of Accoya, licence and royalty income and other revenue, principally relating to the sale of acetic acid. Revenue also includes sales of lower visual grade Accoya to Tricoya customers for the purposes of producing Tricoya panels.

All costs of sales are allocated against manufacturing activities in Arnhem and Barry (Wales) unless they can be directly attributable to a licensee. Other operating costs include all costs associated with the operation of the Arnhem and Barry manufacturing sites, including directly attributable administration, sales and marketing costs. 

See note 5 for explanation of Exceptional items.

* To better reflect revenue earned from Group intellectual property, royalties previously presented within the 'other revenue' line item in the prior year have been reclassified and are now presented within the 'royalties and licence revenue' line item.

Corporate  

Corporate costs are those costs not directly attributable to Accoya activities. This includes management and the Group's corporate and general administration costs, including the head office in London. See note 5 for explanation of Exceptional items.

Total

See note 5 for details of Exceptional items.