Accsys Technologies Share Discussion Threads

[petewy] 06/3/2022 15:22

Has the huge increase in the price of wood changed anything.
Note: Tricoya’s wood chips are sourced in the UK.

[this_is_me] 04/3/2022 07:25

Huge increase in production over the next few months. Currently they can sell all they can produce and can sell all the increased production.

[km18] 26/11/2021 14:07

From WealthOracleAM a few months ago....

Accsys Technologies issued a trading update for the 5 months to August 2021. Trading has been strong, management remain confident in delivering on full-year expectations and for the longer run also “continue to make progress towards our ambitious 2025 fivefold increase in production target.” Volume times price equals revenues. A fivefold increase in production volumes by 2025 would be no mean achievement, management sound confident and have been investing in capacity, building a new plant in Hull, UK, expanding a plant in Arnheim, The Netherlands and entering a joint venture with Eastman Chemical Corporation in the US. The message, production and revenues will grow strongly over the next few years, so too should profits. So too should the share price. But valuation is rich for now and investment work is ongoing, extra production will only come on stream through Q2 2022 onwards. AXS is one to monitor for now.

[tomps2] 26/11/2021 09:16

Alexandra Jackson Interview with PIWORLD

Alexandra Jackson mentions Accsys Technologies #AXS at 22m14s in the latest PIWORLD interview

Watch the video here:

Or listen to the podcast here:

[jonny_wright] 08/11/2021 13:33

I agree, hopefully we can move out of this year long range

[spudders] 08/11/2021 10:19

News, appears promising 👍🏻

[shawzie] 13/10/2021 15:17

Article in Scottish Field magazine (Nov 2021 issue) showing Armadilla modular accommodation clad in Accoya and giving a 50 year warranty against rot.
Worth a read and encouraging for shareholders of Accsys.

[this_is_me] 05/10/2021 07:36

A big reduction in borrowing costs is good news as well as showing the bank's confidence in the company.

[karatechop] 21/9/2021 22:40

Roddiemac2,

TBH I’m not sure whether softwoods have gone more than hardwoods. You’re right that treated softwood is competing with hardwood though. The advantage accoya has is that the wood element is only part of the cost. Other constituents used in the modifying process such as acetic anhydride tend to correlate with crude oil prices which haven’t seen the same level of price hikes.

[roddiemac2] 21/9/2021 10:54

Karate Chop,

I am told ( rightly or wrongly ) that the price of hardwoods has gone up less than the price of softwoods. Treated softwood is competing with hardwood to a certain extent.-----?

[ppmm] 21/9/2021 00:25

I Invested about 9 months ago and I myst admit thought that, on the news of the delay in commissioning the Hull plant that it might be sensible to sell and buy back once production expansion has been secured, but I’ve decided to hold on as the story is improving, in my opinion

[ppmm] 21/9/2021 00:11

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 19:24

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 12:00

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 07:50

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 10:20

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 18:11

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 16:31

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 16:24

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 15:55

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 15:11

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 14:16

Thanks MrMac.

[mr macgregor] 23/8/2021 12:25

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 11:07

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?