Accsys Technologies Share Discussion Threads

[lasata] 05/7/2007 10:10

Citywire:

Rathbones and Artemis plant seeds in Accsys' woods Printable Version

Published: 07:00 Thursday 05 July 2007
By: Lauren MacGillivray, News Reporter





Accsys Technologies says its ability to create a new species of wood delivers significant financial and environmental benefits and Rathbone's Carl Stick and Lindsay Whitelaw of Artemis are among those backing its strategy.

The UK company (AXS), which is listed on AIM and has its operations and subsidiaries in the Netherlands, uses a process called acetylation to change the molecular structure of softwoods.

The firm said the result is a wood more durable than even hardwood, which saves the need to fell tropical hardwoods.

Willy Paterson-Brown, chief executive officer for Accsys, said the acetyl used in the process is basically vinegar and is harmless to the environment.

He said: 'Historically, softwood was treated with toxic chemicals, or tropical hardwoods were used.

We can turn softwood into hardwood that is non-toxic and of better quality for everyday applications.'

Accsys, which comprises 2.52% of the Rathbone Special Situation fund (Rathbone Special Situations) and 0.4% of the Artemis New Enterprises fund (Artemis New Enterprises), has a market capitalisation of €621 million (£417 million). It launched on AIM in October 2005 with a share price of €1 (67p) and as of last week, its stock was trading at €4.18.

Its turnover for 2007 was €50,000 versus €80,000 the previous year and it cited investment in the business for an operating loss of €22.6 million compared with €5.7 million in 2006.

Its highlight for the year was the creation of a 30,000 cubic metre Accoya wood production plant in Arnhem.

It said it has a large order to build heavy-traffic road bridges in the Netherlands.
Other examples of how Accsys' product can be used include window frames and musical instruments.

It also licenses businesses in other countries to use its technology.

Paterson-Brown said: 'The wood industry is enormous. The marketplace is worth about €100 billion a year

[cestnous] 05/7/2007 09:08

Buy recommendation in shares mag today, saying share price should continue to rise.

[damanko] 05/7/2007 06:33

Blott, my policewoman friend actually used the same site as you, great minds, eh? However, she has many talents, speaking very good English being a minor one. I think she edited the translation quite a bit. Invited me over to see the factory and stay at her new place as well ............ I feel a research trip coming on.

[damanko] 02/7/2007 08:28

That was a rather better translation of the Arnhem newspaper article posted last week, kindly translated by another poster. The last paragraph is interesting, it seems to suggest that Accsys' success (?) came about from being in the same industrial estate as a local company that went bankrupt. True? I wonder.......

[damanko] 02/7/2007 07:24

azelea, well done. You've answered a question that many would feel is unanswerable.

[azalea] 01/7/2007 23:07

Ultimately, yes. If demand increases (for whatever reasons) then the share price will increase on projected/confirmed profits increase. Additional share price value would be created if Celanese and institutions increased their stakes. Without knowing the answers to the first part, its not possible to forecast the second.

[bothdavis] 01/7/2007 19:29

What share price do you reckon in 1 years time?
Is it soley dependant on orders taken?

[theo13] 30/6/2007 19:53

we'll all hold your hand damanko, we know it's difficult.....

[g1ll1s] 30/6/2007 18:17

......no, go on, you do it ;)

[damanko] 29/6/2007 18:19

Please, somebody else answer Iasata, give me strength.........

[lasata] 29/6/2007 16:13

I see that there is a proposal to list on the Amsterdam exchange - where will the shares come from? My calculations show that there aren't many "free floating" shares.

[azalea] 29/6/2007 15:38

I can see the vast potential, but where is the high risk?
Arnhem is working flat out and looking to double its output, U.S. giant Celanese, supplying the chemicals, has bought into AXS with a 5.5% stake and has the option to buy up to 29.5%. A large order has already been secured. There is an international consensus to pull all the stops out against illegal logging of hardwoods and promoting wood supplies from renewable sources.The legal outcome in the EU is very likely to be a range of incentives - particularly tax breaks for treated durable softwoods; import barriers against those which are not and a virtual banning of all hardwoods.

[damanko] 29/6/2007 15:17

However...... the last time I followed a tip in the Independent, was when it recommended buying Maxwell Communications in 1987.... "Before it hits £5.00". Well I bought at about 4 pounds, managed to get out in 1991, less than half that price, about 3 days before he went for an extended swim.

Ho hum. Let's hope they've got it right this time.

[damanko] 29/6/2007 15:11

Well spotted hew, we don't get the Independent delivered in Tripoli, so plucked it off the net:

Accsys Technologies

Our view: Buy

Current price: €4.10

The AIM-listed Accsys Technologies has pioneered a chemical process that turns softwood into hardwood in a fraction of the time, normally 70 years or so, that hardwoods take to grow naturally.

The process, acelylitation, is not a million miles off schoolboys soaking their conkers overnight in vinegar and results in a hardwood called Accoya. A 20-year strategic and exclusive supply partnership was signed in March with the US chemicals giant Celanese, which took a 5.5 per cent stake in Accsys as part of the deal.

The numbers side of yesterday's full-year results are slightly irrelevant - a €22.6m loss, up from a €5m loss a year ago, reflects a period of heavy investment in the Arnhem production facility.

Accsys now expects to become profitable in the current financial year, has no debt and cash reserves of approximately €37.5m. Part of that cash pile comes from the company's first licensing deal, announced on Monday. Skanfore, a diversified trading company based in Abu Dhabi, will pay an upfront licensing fee of €10m and has already ordered 500,000 cubic metres of Accoya. The first major construction project using Accoya, a road bridge in the Netherlands, is due for completion later this year.

Although the shares have been one of the best performers on AIM in the last year, rising more than 300 per cent, there is plenty of upside left, especially if there are more licensing deals in the pipeline. The potential for Accoya is vast, and for investors who are unafraid of high risk the shares are still worth buying.

[hew] 29/6/2007 15:01

Not yet tracked it down but Newspaper Summaries say the Independent today tips this as a high risk Buy with vast potential.

[blott] 28/6/2007 17:10

I preferred Cat Trousers myself

[iamnotanumber] 28/6/2007 14:09

DiogenesJ, thanks, I'm pleased we cleared that one up. It was sounding a bit Monty Pythonish for a moment!

[diogenesj] 28/6/2007 12:31

But I think they are talking about the sales manager Bert Kattenbroek (literally Catmarsh: broek meant 'marsh' in old Dutch, but now means 'trousers').

[diogenesj] 28/6/2007 12:22

Good to know that Pratt and Cat Trousers are in charge, isn't it?

[damanko] 28/6/2007 10:45

Blott, many thanks, seems what I want.

[iamnotanumber] 28/6/2007 09:35

Cat trousers??

[damanko] 28/6/2007 09:00

Blott, Alshterbleift. Think I get the gist. 28 people, wonder if that includes all the suits, or just the Van Der Kiikens on the shop floor.... anyway, thanks your quick response. I sometimes need this type of thing for "legalise" French, is it freeware?

Regards
damanko