Accsys Technologies Share Discussion Threads

[ppmm] 20/9/2021 23:11

I’m surprised to see such fundimental elements of the business being worked through. The current timber supply issues represents a significant opportunity for even further growth in prices and volumes. The question to me is has the manangent got sufficiently aggressive production growth plans or will another bigger player see an opportunity to make an offer and be in a position to expand production at a much faster rate.

[karatechop] 20/9/2021 18:24

Accoya buys a relatively cheap and readily available softwood, and modified it using chemicals, science and a bit of wizardry. Then it charges quite a lot for the finished article. The wood element is only a percentage of their cost. So it’s not as affected with fluctuations in the price of timber as any of the other suppliers who deal purely in timber. I hope that explains things. I suggest big raises in prices of other timbers like cedar actually plays to their advantage as they appear better value.

[roddiemac2] 20/9/2021 11:00

This is me,

AXS have to buy timber to treat it. They will have to pay increased prices like everyone else, so why would there be a smaller percentage difference between treated and untreated timber?
I tend to agree with Mr MacGregor-----the truth is a victim here.

[this_is_me] 17/9/2021 06:50

It looks like the planned maintenance stop has been moved to be as late as possible given that the new reactor should be operational in around 6 months.

Wood prices have gone through the roof but may well be covered by price increases. This should mean that there is a smaller percentage difference between the price of accoya and raw wood.

[mr macgregor] 24/8/2021 09:20

One more point. Problems with the foundations were announced in March 2019. Just prior to that RNS their guided completion date for construction had been mid 2019 ie. three to four months work to completion.
So, when they announced the construction issues were resolved in June 2019, IF they had been telling the truth the plant whould have been completed by October 2019.
It’s easy to blame Engie Fabricom and think it’s a positive that Accys have got rid of them and have taken on management of the project. My take is that no self-respecting third party would touch the EPC so Accys were cornered. I don’t trust a word these directors say but DYOR.

[mr macgregor] 23/8/2021 17:11

If the ground was good for supporting what was put on it, the plant would have been up and running a year before covid could be used as an excuse.

"The total funding requirements for the Tricoya® Project are expected to be approximately €68 million. Pre-construction engineering and design work for the Hull Plant was finished in 2016 and its construction is expected to be completed by early 2019."

Note pre-construction engineering design completed 2016, whereas the EPC contractor, Engie Fabricom was appointed 2018, so blaming them is to bark up the wrong tree and I expect choice of site was the crux of their defence ie. they were sold a pup.

The plant is currently projected to be over three years late and 22 to 28 million euros over budget. For a while it looked like shedding Clegg, after news of the fiasco slipped out, helped them get a grip, but that was back in June 2019, just after the company told shareholders:
"Construction issues at the new Tricoya® plant in Hull have been resolved."
It's obvious to me that the problems run deeper but DYOR.

[ryesloan] 23/8/2021 15:31

Was the site not chosen specifically for its proximity to its proximity to the INEOS plant which will provide the key chemical inputs and in Saltend Chemicals Park, which is now a designated Freeport?If so it's hard to understand how that could be so wrong a decision. What's the reason you say it was?

[ryesloan] 23/8/2021 15:24

AXS only has a c50% interest in Tricoya U.K. so would only be on the hook for half the figures in the RNS. That's assuming they don't look to fund this via bank loans or the like directly from the Tricoya U.K. entity.

[zipstuck] 23/8/2021 14:55

Just wondering if they will be short of cash and meed another placing to make up for the additional cost of 9-15m euro which seems to be after settlement of claims

[ryesloan] 23/8/2021 14:11

Maybe the contractors have provided compensation already..hence the 'settle' part of the sentence.Delays are a pain and obviously frustrating and expensive but with Covid and now contractor issues it's all part of the game.Seems to me they have a handle on this now and that's the main thing

[jadeticl3] 23/8/2021 13:16

Thanks MrMac.

[mr macgregor] 23/8/2021 11:25

If the delay was the contractors’ fault the company should be suing them given they ran away from the problem. Clearly the company was scared of being counter-sued
“the parties have agreed to settle and release each other from liability for claims against each other”
Why is that?
The bottom line is the plant was due to be operational in early 2019. As recently as this April the target date possibilities were July 2021, October 2021 or January 2022 depending on who you believed, the contractor or the company. They’re now hoping for July 2022.
March 2019 RNS
Construction of the Hull Tricoya® plant continues to progress. However, the Company has recently been notified by its lead contractor responsible for delivery of the project that structural engineering issues need to be addressed, principally re-enforcement of the main tower foundations and steel framework. This issue is the responsibility of the contractor and does not relate to Accsys' Tricoya® acetylation technology. A process is underway with the contractor to rectify the issue. As a result the operational start-up of the Hull Tricoya® plant is now expected to be delayed by a number of months into the 2020 calendar year. The Hull plant is now unlikely to generate revenue in the financial year ending on 31 March 2020 with the Arnhem plant also continuing to sell lower value Accoya for the manufacture of Tricoya panels. Group EBITDA for the year ended 31 March 2020 is now anticipated to be marginally below the previous range of market expectations. Revenue and profits from the Hull plant are now expected to be recorded in the financial year commencing 1 April 2020.

Petrocelli built his house quicker than these clowns and I don’t believe a word they say.

[jadeticl3] 23/8/2021 10:07

Mr Mac, I know nothing really about the choice of site or choice of contractors, but why do you choose the site when it looks to me more like the contractors? Good contractors should have known if the site choice was poor.
Is today’s news going to set the share price back significantly, or had that already happened?

[this_is_me] 23/8/2021 06:18

It looks like the mess has been sorted out and everything is back on track for a delayed start up.

[this_is_me] 07/6/2021 07:05

That looks like an excuse from the Belgium firm. Lockdown is coming to an end. That excuse is not going to stand up in court now; it might have a year ago. They have an address at Saltend Chemicals Park where the plant is being constructed which, I presume they are going to shut.

From RNS on 16th April:
"-- Based upon management experience, we believe that this schedule is at risk of being delayed by around three to six months due to COVID-19 related challenges, recent engineering changes, and the final stages of construction taking longer than anticipated. As a result, we believe that full operational ramp-up is now likely to commence in H2 FY22.

-- We are considering a full range of options to mitigate these risks to the schedule. We have engaged expert third party consultants to assess the lead contractor's schedule and options for optimisation and redeployment of staff. Changing the approach to commissioning and contractual options are also under consideration. Our goal is to commence production safely and swiftly; plant operator teams are in place to take over plant areas and systems as soon as they are ready."

It looks like there has been a major falling out and the third party consultants have given the Belgium firm a really bad report.

[zipstuck] 07/6/2021 06:30

Surely Force Majaure is not a surprise. But at least they had a rights issue.

We will update the market on any possible implications for the timeline and costs for the project as soon as possible, and will be releasing Accsys' preliminary results for the year ended 31 March 2021 later this month.

[this_is_me] 01/6/2021 17:47

I had my shares credited to my CREST account (Charles Stanley) on the 26th May and the excess money was credited to my account on 28th May.

[ryesloan] 01/6/2021 15:46

Nothing from AJBell on the additional shares I asked for yet either...I can wait though as not planning to sell here for some time yet. A clear runway to greater turnover and greater profit for the next couple of years already and that's before Petronas jump on board!!

[irenekent] 01/6/2021 09:48

I got my certificate but no details and no refund yet. Hopefully a cheque today.

[jadeticl3] 01/6/2021 09:25

Great news. But in the recent offer my dealer took the money from my account and it hasn’t come back, but neither have they told me how many shares I was able to buy. Is this normal at this stage??

[this_is_me] 01/6/2021 08:05

New 10 year high again.