Financial overview
• FY24 results ahead of FY24² consensus - As a result of resilient trading in Q4 FY24 and cost saving initiatives,
adjusted EBITDA at €4.8m.
o Full year adjusted EBITDA adversely impacted by: lower sales volumes, increased mix of lower margin
sales, a €3m proportional increase in our US Joint venture’s EBITDA loss as it progresses its pre-operational
activities and a change in accounting method for Hull, with ongoing running costs being treated as operating
expenditure.
o Good sales pricing discipline maintained through the year against competitors in a challenging market,
resulting in maintenance of high ASP.
• Revenues at €136.2m - Impacted by lower sales volumes due to high customer inventory levels at the beginning of
the financial year combined with a challenging macroeconomic trading environment for the construction and building
materials sector, particularly in Q3. Revenues were also impacted by lower volumes and lower average sales prices
for acetic acid and nonrecurrence of the energy price premium.
o Resilient trading in Q4, driven by increased investment in sales and marketing and the addition of new
distribution channels.
• Double digit year on year growth in sales volumes for Accoya Color and Accoya for Tricoya - Strong
demand for Accoya Color decking; 14% year-on-year Accoya for Tricoya sales growth.
Notes
1Adjusted EBITDA is defined as Operating profit/(loss) before exceptional items, depreciation and amortisation, and includes the Group’s attributable share of the USA joint venture’s
underlying EBITDA (see note 3 to the financial statements).
²Accsys considers consensus FY24 Adjusted EBITDA to be €2.5 million as of 01 May 2024.
• Business transformation programme and working capital initiatives showing encouraging results – The
Group’s business transformation programme realised more than €3.0m annualised savings. Tight working capital
management through FY24, including a €4.2m decrease in inventory levels during the year.
o On a half yearly basis, H2 operating costs decreased €2.7m, 19% reduction on the prior year period
reflecting management cost actions.
• Reduction in net debt – Net debt of €37.1m at 31 March 2024, a reduction of €7.0m from 31 March 2023
(€44.1m), following the successful capital raise in November 2023, with €5.0m invested into our US Joint venture
during the year.
Strategic highlights
• Accoya USA JV – Plant completed with commissioning underway and first batches expected to be produced in the
coming weeks, adding 43,000m³ of additional production capacity.
• Transformation and reshaping of the business under new leadership to simplify operational processes, drive
cost efficiencies, and focus on commercial and operational performance improvements.
• Sales and marketing acceleration to drive demand creation, including the addition of seven new distributors
(four in EMEA and three in the USA) and three direct manufacturing customers (one in North America and two in
Central and Eastern Europe).
• Focus on maximising returns on existing assets with our ‘Solid Roots’ operational reliability programme in
Arnhem targeting efficiency improvements³.
• During FY24 the Company engaged a financial advisor to assist us in seeking a strategic and/or financing partner
to complete the Hull plant. Accsys is on track to come to a resolution within H1 FY25 as previously outlined in the
May trading update.
• The Group has set four operational targets for the year ahead: (1) Kingsport to be commercially operational by the
end of summer 2024; (2) Improved incentive plans; (3) Deliver €3m operating cost savings in the year; (4) Solid
Roots 500 bps reliability improvement in (Overall Equipment Effectiveness) OEE for key equipment in Arnhem.
• The Senior Leadership Team is undertaking a thorough review of the Company’s strategy. An investor event will be
held in H2 FY25 providing a full update on strategy.
Outlook
The Company has made a good start to FY25. While market headwinds in the building materials and construction
industry persist and are expected until the end of the calendar year, Q1 sales for the Company are in line with
expectations.
Starting in Q2, our North American sales will gradually transition from being supplied by our Arnhem, NL plant to our
Kingsport plant (USA joint venture). To support this shift and the ramp up of sales from Kingsport, we will continue to
accelerate our commercial efforts and invest in our sales and marketing, adopting a targeted approach by segment and
geography. The Company has set a target to refill the lost capacity at Arnhem within 12 months of migrating to
Kingsport on a run rate basis, which equates to double digit growth in underlying sales volume outside of North America
during the period.
FY25 will continue to be transformative for the Company with our successful expansion in North America and resolution
of Hull. In the coming year, we expect to leverage the benefits from greater economies of scale associated with the
ramp-up of Accoya USA in Kingsport.
The Board remains confident about the long-term potential of Accsys and sees the opportunity to deliver approximately
100,000m³ production volume across Arnhem and Kingsport by the end of FY2027. With the Company’s focus on
driving operational excellence and maximising the potential of two production facilities, the Company is well placed to
demonstrate long-term value creation and sustainable cash generation.