Accsys Technologies Share Discussion Threads

[effortless cool] 04/7/2014 11:46

I sold out of these this morning.

I still like the company but struggle to see how it will justify the current market cap over the next couple of years.

Some back of the envelope calculations ...

- Assume the Arnhem plant operates at full capacity this year and price rises of 10% are achieved vs. 2013/14 average prices. That gives revenue (Accoya plus acetic acid) of E49.1m. Add on, say, E1.5m for licenses takes us to E50.6m. That is 52% growth, vs. 78% this year, and the comparison will be worse if full capacity is not reached.

- Assume economies of scale improve the gross margin to 25% (from 23.1%). That gives gross profit of £12.7m.

- Assume operating costs of E16.0m (from E15.0m). That gives an operating loss of E3.3m. The bottom line loss will be a bit worse than that and EBITDA will still be negative.

- The big problem comes in the 2015/16 year, however. There is no significant additional manufacturing capacity available, so revenue growth will drop off dramatically, say +5% to +10%. EBITDA will probably be about neutral.

- Revenue might start motoring again from 2016/17 onwards, if the second factory does not suffer material delays and if other new manufacturing capacity starts to be built, but there is too much hope value in the share for me just now.

Plus points are that AXS should not need to raise new funds and that there must be the possibility that it will be taken over, perhaps by Solvay.

Good luck to continuing holders; I am going to keep monitoring from the sidelines, for the time being.

[roddiemac2] 03/7/2014 12:19

Sane comment , brightontrader. The truth is that AXS will be a big hit or a dud,---nothing in between. Management have the big picture on their side: growing populations,depleting natural resources, and a trend towards sustainability; that may not be enough.

I bought these when they floated , and took profit near their peak, but stupidly bought some back in my ISA. Initially , the shares rose on nothing much more than hype and hope. ( hope springs eternal , but is not an investment strategy )

I agree that we need to see net profits soon.

[brightontrader] 03/7/2014 09:26

I know from a technology company these results are fine, talking about burn rates, reduced losses, future deals that look promising etc, and all these things are very much like a software company creating sizzle to keep the share price up or the investment to keep rolling in.

However, pouring a little cold water on the results, I created and run 2 successful (small) businesses, one a software company from 89-96 which floated on Nasdaq and latterly CustomWest Shutters which I have just sold to Hillarys, and both these companies produced real profits, had to, as to make real money eventually you need real profits and you cannot exit on dreams alone, people wake up from dreams...

I am investing in this until next results then if I cannot see net profits I am out, and I wonder how many others will think this way.

[this_is_me] 03/7/2014 07:05

Market potential

We believe the potential market for Accoya(R) and Tricoya(R) is in excess of 2.5 million m(3) annually. To put this into perspective, during the last year we sold 25,391m(3) , however the total global solid wood market is understood to exceed 400 million m(3) annually. The global wood based panel sector is approximately 290 million m(3) annually.

[this_is_me] 03/7/2014 06:55

Great results

Paul Clegg, Chief Executive commented: "Accsys enjoyed a highly encouraging financial year, delivering progress on all fronts. Our rate of revenue growth demonstrates the traction our products are gaining in the global marketplace. This growth has enabled us to more than double gross profits, helping to reduce our rate of cash burn and maintain a healthy balance sheet with more than adequate financial strength to see us through to profitability in the medium-term.

[timberwolf] 02/7/2014 18:59

The UK based James Latham Group are a very long established company which, although having been very "traditional" in the past, have certainly moved within recent times and set up an excellent network of branches in the UK over the past few years. Their recent external cladding venture, into Accoya®LathamCLAD, seems to be going very well, together with the "basic" Accoya timber sales.

Although I'm only addressing part of the UK market in this post, as I've said in previous posts, I can't see the latest results for Assys being anything short of positive!

As for share dealing, I have no problem dealing in AXS shares online with NatWest Stockbrokers.

[this_is_me] 02/7/2014 17:38

I bought mine online in my Stocktrade ISA

[brightontrader] 02/7/2014 16:03

I buy them on-line through my Hargreaves Lansdown SIPP..

[garbetklb] 02/7/2014 15:30

I've been watching Accsys for some time - should have bought sooner!

Finally spurred into action by the mention of buoyant Accoya sales in James Latham's annoua results :



Had difficulty buying as Alliance Trust won't hold EUR denominated shares in their SIPP - put a few in my Sharecentre SIPP, but they didn't seem able to trade them electronically.

And, being listed on Euronext, I don't think they qualify for Business Property Relief for Inherisance Tax. Anyone have any thoughts on this?

So, a couple of hurdles for some private investors to have to overcome!

Garbetklb

[brightontrader] 02/7/2014 11:05

Whats the betting for tomorrow result annoucement.

Me, 26 cents bid........(bound to be wrong as good news always already discounted.)

[timberwolf] 01/7/2014 08:24

Edited - Previous news story

[this_is_me] 30/6/2014 09:26

Yes it is all looking good. I watched these for several years before finally getting in around last Christmas. The potential has always been there but it has taken some time for the conservative building industry to accept the virtues. It looks like things are on the up.

[timberwolf] 30/6/2014 07:55

Good to see the share price breaching the recent EURO 0.24 "ceiling" today, on the run up to the results due this Thursday. IMHO I can't see them being anything less than very positive.

[pdpoms] 28/6/2014 16:46

"Tests show Accoya outperforms top Class 1 timber species"

9 June 2014

Accoya, the modified wood brand manufactured by Accsys Technologies, has outperformed top Class 1 timber species in tests by the Australian Forest Research Company (AFRC).


Lab tests by ARFC trialled Accoya against five different fungi to determine the decay resistance of the product.

Accoya was found to excel against western red cedar and spotted gum, while also outperforming CCA H4 level preservative, merbau and teak in nine-year ground durability testing in New Zealand.

The modified wood also showed excellent resistance against various termite species in above-ground field tests in Australia.

"Accoya's performance against the giant northern termite, probably the world's most voracious and destructive termite, has been particularly impressive," said Jams Hague, ARFC managing director.

Further below and above-ground tests are still being carried out to confirm Accoya's official durability classification.


hxxp://www.ttjonline.com/news/tests-show-accoya-outperforms-top-class-1-timber-species-4288649/

[pdpoms] 28/6/2014 13:49

Article in South China Morning Post:

"Accsys' cutting-edge acetylation technology reinforces wood's strengths"

PUBLISHED : Monday, 16 June, 2014, 2:09pm

Reports by Mia Daughenbaugh and David Bell


As environmental awareness increases worldwide, the market for green technologies and products, including sustainable building materials, has also seen significant growth. World-leading wood modification company Accsys Technologies has taken a key role in advancing the green movement in construction with the commercialisation of Accoya, a revolutionary wood solution.

"Accoya is the result of our commitment to provide the global architectural community a sustainable yet high-performing and cost-competitive alternative to traditionally used construction materials," says CEO Paul Clegg. "With its remarkable performance attributes and aesthetic qualities, Accoya is fast becoming the industry standard."

Accoya is manufactured using a proprietary, acetylated wood modification technology pioneered and patented by Accsys. This results in a durable, dimensionally stable, non-toxic and rot-resistant wood product that can be used for exterior applications such as window frames, decking, cladding, doors, façades, and structural and architectural bridges.

Accoya's outstanding level of performance is backed by several independent research organisations, including the Building Research Establishment and the Timber Research and Development Association. Produced by Accsys' subsidiary production facility in Arnhem, the Netherlands, this wood product comes with a 50-year above-ground and 25-year below-ground warranty against rot and decay.
Accoya's environmental performance is showcased by its Cradle to Cradle Gold certification from consultancy firm McDonough Braungart Design Chemistry and numerous ecological accolades. Made from sustainably grown timber, Accoya has been rated carbon negative and is recognised under the Leadership in Energy and Environmental Design accreditation system.

"We are seeing increasing adoption of Accoya, showing that it offers added benefits," Clegg says. Accoya has been the material of choice in a range of commercial, civil engineering and private projects in differing environmental settings in 58 countries around the world.

Its performance credentials have led to inspiring applications such as in velodromes, water sculptures and sundials.

Accsys has expanded the use of its proprietary acetylation technology to the production of Tricoya wood elements, including chips, fibres and particles. Touted as the first major innovation in wood composites in more than 30 years, Tricoya enables fabrication of reliable and dimensionally strong panel products for challenging indoor and outdoor applications. Tricoya Technologies, an equal joint venture between Accsys and chemical major INEOS, is overseeing the further development and global commercialisation of the Tricoya technology.
"Being manufactured for several years, Tricoya is an evolution of Accoya," Clegg says. "Tricoya opens up new possibilities for composite manufacturers, designers and the building industry in general."

Striving to maintain its sustainability position, Accsys has unveiled Accoya Alder. Made from sustainably sourced North American red alder, this Accoya variant has improved durability, stability and hardness, and is ideal for making cabinetry, flooring and outdoor furniture.

With 50 distribution or agency agreements in place, Accsys' wood solutions are available in most of Europe, North America, Australia, New Zealand, Chile, India, Israel, Morocco, and parts of East and Southeast Asia. The company remains open to signing additional distributors, especially in Asia, as it seeks more partners to advance its objective of building more environmentally responsible and efficient structures.

Accsys is keen on solidifying its presence in Asia, as the region is forecast to become the world's fastest-growing construction market by 2020. "We see enormous opportunities in Asia, especially China, with the concept of sustainability already well-grasped in the region," Clegg says.

The Accoya technology and processes are available for licensing to interested parties intending to establish their own production sites and markets. For Tricoya, licensees will have the opportunity to supply long-lasting, eco-friendly acetylated wood elements to new and existing customers.

"We are a full partner to our licensees and distributors," Clegg says. "We will share with them our journey - from a research and development firm focused on technology into a full-fledged producer with manufacturing expertise and marketing know-how."

Accsys Technologies
www.accsysplc.com

[timberwolf] 27/6/2014 12:51

Looks like you stirred the nest Jerry ;-)

TIDMAXS

RNS Number : 7467K

Accsys Technologies PLC

27 June 2014

AIM: AXS

NYSE Euronext Amsterdam: AXS

27 June 2014

ACCSYS TECHNOLOGIES PLC

("Accsys" or the "Company")

Notice of Results

Accsys Technologies PLC, the environmental science and technology company, will be releasing its Preliminary Results for the year ended 31 March 2014, on Thursday 3rd July at 7:00am BST.

There will be a presentation for analysts and investors relating to these results at 10:00 BST on Thursday 3rd July 2014. The presentation will take the form of a web based conference call, details of which are below:

Webcast link: Click here or copy and paste ALL of the following text into your browser:

hxxp://www.media-server.com/m/p/hka6j6qk

Conference call details for participants:

Participant Telephone Number: [phone] (UK Toll)

Confirmation Code: 1861672

Participants will have to quote the above code when dialling into the conference.

Ends

[timberwolf] 26/6/2014 14:29

Cheers Jerry!

[ukjerry] 26/6/2014 14:11

PR Company says no date set yet but expects them to be 1st week of July.

[ukjerry] 26/6/2014 13:54

And I wonder why the Snavely deal wasn't released here?

[ukjerry] 26/6/2014 13:52

I've sent an SMS to their PR company asking that question just now!

[timberwolf] 26/6/2014 13:08

Does anyone know when the next Annual Financial Report & Preliminary Results are due? Last years were on the 25th June, so I assumed they would be around this time. I can't seem to find the information anywhere on the Accsys Technologies website.

[pdpoms] 25/6/2014 12:45

Accsys Technologies appointed Snavely Forest Products distributor of Accoya wood in the USA

Market: Panels
24 June, 14:11
Jun 25, 2014. /Lesprom Network/. Accsys Technologies, manufacturer of modified wood product Accoya, has appointed Snavely Forest Products as an official distributor of Accoya wood in the USA, as Timber In Construction said in the press release received by Lesprom Network.

The wholesale building material distribution company will increase the presence of Accoya across the USA from five strategic locations – Pennsylvania, Colorado, Texas, North Carolina, and Baltimore, Maryland.


Bryan Crennell, director of sales and marketing at Accsys Technologies, said: "We're extremely pleased to be able to announce the appointment of Snavely Forest Products as an official distributor of Accoya in the USA. This partnership has been months in the making and signals targeted expansions of Accoya in the USA. Snavely is a premium finished building products distributor and I believe Accoya's durable, stable and aesthetic qualities will prove popular with their customer network. We are also working with Snavely to develop new and exciting product offerings for their customers, details of which will be announced shortly."


Clark Spitzer, VP of marketing at Snavely Forest Products, added: "Accoya is an innovative wood material, with excellent performance properties that are ideal for the US market. Its durability, strength and stability make it particularly well suited to the range of applications for which we will develop. We expect to see its increased use in the American market over the coming months and years."

- See more at: hxxp://www.lesprom.com/en/news/Accsys_Technologies_appointed_Snavely_Forest_Products_distributor_of_Accoya_wood_in_the_USA_62586/#sthash.cY7dyfTA.dpuf

[timberwolf] 24/6/2014 12:49

Someone I know who sells Accoya says that it's still flying off the shelf and that they can't get enough (although that's slightly worrying in itself though!). Topped up on AXS today.

[hjfe] 07/5/2014 15:27

hxxp://www.-.com/content/small-cap-value-report-7-may-2014-vlx-npt-idea-ekf-axs-tri-asy-83187/


Accsys Technologies (LON:AXS)
We've only looked at this share once here, briefly on 12 Feb 2014 on a positive trading statement. My view then was that it looked expensive, but potentially interesting, due to high growth kicking in.

There's another trading update today, covering the year ended 31 Mar 2014, and it sounds interesting. Total revenue has risen 78% to E33.5m, which seems to be organic growth - not often you see that type of growth rate.

It appears to still be loss-making, although at a reduced extent;



The overall loss for the year has reduced as expected, due to the higher revenue and resultant improvement in profitability. However, other operating costs have also increased, in part due to legal costs associated with the on-going Diamond Wood arbitration.



What interests me here is that this could be an example of a company in the early stages of growth, into potentially huge markets. It makes a new type of engineered wood called Accoya, with technical advantages over conventional wood, e.g. resistance to UV light, durability, consistency of quality, etc. I'm not qualified to judge any of that, so to verify that a product does what it's meant to do, I tend to just look for rapidly increasing sales, and partnerships with big, quality companies, both of which are in evidence here.

An additional factory is to be built by Solvay (a large Belgian chemicals company), to manufacture Accoya under licence, which should reduce the capex requirement, and accelerate growth. The outlook comments are light on specifics, but indicate that the company is close to profitability;



The year has seen a step change in the scale of our business. The extensive efforts we have put into marketing and promoting our world leading products is now being borne out by our sales volume growth as our products gain wider market acceptance.

While the global market opportunity for our products remains vast, I am conscious that Accsys remains at an early stage of its long-term journey, with much still to be achieved. However, the progress we have made during the past financial year, in sales, licensing and the significant increase in our production levels, provides me with increased confidence that we are on the right path and will achieve our objective of profitability in the near-term



All of which sounds interesting. The cash position seems OK, with net cash of E15.2m at 31 Mar 2014 actually having risen since 31 Dec 2013, due to de-stocking and licence revenues received. That bank balance looks enough to hopefully mean that a dilutive fundraising is not required.

With 439.2m shares in issue, and a share price of E0.225 it's not cheap, at a market cap of E98.8m, which translates into a sterling market cap of £81m. I think my previous report was wrong, as I missed the fact that the share price is quoted in Euros, and hence mistakenly thought the mkt cap was £100m, so my apologies for that schoolboy error. The shares have a dual listing on AIM, and NYSE Euronext Amsterdam.

It's certainly got a speculative element, but have to say I rather like it, so have picked up a little stock today for the growth part of my portfolio. It's difficult to value, but I like the move towards profit, the rapid % growth, cash in the bank, and the large potential market size. Perhaps any readers who have dug deeper into this share could add some comments below?





- See more at: hxxp://www.-.com/content/small-cap-value-report-7-may-2014-vlx-npt-idea-ekf-axs-tri-asy-83187/#sthash.nx2fdDxJ.dpuf

[ukjerry] 07/5/2014 12:55

It's the licensing side of the biz that models well. cf. ARM Holdings!