Accsys today issues its Interim Management Statement. Key highlights include:
? Revenue increased by 36% to €13.4m for the nine months ended December 2012 (2011: €9.8m);
? Revenue from sales to Accoya® customers increased by 42% for the nine months ended December 2012 to €11.6m (2011: €8.2m);
? Tricoya Technologies Limited (‘TTL’), the newly formed joint venture with Ineos, has made a positive start, developing both new and existing Tricoya® licence opportunities;
? Continued progress with Rhodia towards fully effective licence agreement;
? Granted Accoya® product and process patents in New Zealand and Singapore, further to the UK product patent announced in July 2012, with further product patent applications filed covering seven patent families;
? Total of 39 Accoya® distributor and agency agreements now in place covering most of Europe, Australia, Canada, Chile, China, India, Mexico, Morocco, New Zealand, parts of South-East Asia and the USA;
? Accoya® and Tricoya® continue to gain market recognition, winning prestigious awards:
o Accoya® and Tricoya® named the Best Wood Innovation in Holland’s Houtwereld
2012 Top Suppliers Awards; and
o Accoya® Alder received a gold standard in MBDC’s Cradle to Cradle® Certification program.
? Cash balance of €21.2m at 31 December 2012 (September 2012: €20.7m); and
? €1.7m received in February 2013 on successful completion of the second part of sale and
leaseback of land in Arnhem.
Trading update
Accsys has made further progress towards achieving its long term objectives.
We have continued to work closely with Rhodia since the signing of an Accoya® licence in June 2012. Following the first stages of the Process Design Package which were completed in November 2012, Accsys and Rhodia have continued to work towards completing the full Process Design Package which will enable the detailed engineering to be completed. The respective sales teams have continued to develop the Accoya® market (including market trials and detailed prototype testing) with new and
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existing customers resulting in positive interest from large prospects in Rhodia’s target territories. We continue to expect the licence agreement to become unconditional following the approval of Rhodia’s board of directors which is due in the second half of 2013.
Revenue from Accoya® customers increased by 42% in the nine months to December 2012 compared to the same period last year reflecting continuing growth in demand. Continued increases in sales volume, together with the resulting improvement in profitability, are expected to enable the Arnhem manufacturing facility to achieve an EBITDA positive level at only 50% of its current capacity; a level which also demonstrates the potential returns a prospective licensee may be able to generate.
Accsys and TTL have continued to develop a number of new and existing potential Accoya® and Tricoya® licence opportunities respectively, with counterparties whose combined existing total wood product manufacturing or processing capacity is in excess of 10 million m3 per annum. These discussions remain ongoing and due to the complex nature and investment required, mean that the timing and certainty of their completion remains difficult to predict.
Tricoya Technologies Limited
INEOS and Accsys Technologies joint venture, TTL, has made strong progress since its formation in October 2012 with work progressing in all areas including engineering, product development, marketing and business development.
Medite, our joint development partner, has continued to grow sales of Medite Tricoya Extreme Durable MDF since its launch at the end of 2011, with panels now being sold in five European countries. Heads of Terms relating to a Tricoya licence were entered into between Medite, Accsys and TTL in December 2012. This Heads of Terms sets out the key elements for inclusion in a licence agreement and covers the different stages involved in the commissioning of a Tricoya plant and takes into account the level of work carried out to date by Accsys, TTL and Medite.
The Latin American licence option holder is undertaking market and product development work ahead of deciding whether to proceed with a licence.
Intellectual Property
We received confirmation from the Intellectual Property Office in New Zealand and Singapore of the grant of Accoya® product and process patent claims which successfully secure monopoly rights for Accoya® in those territories for 20 years from the patent filing date. These recent granted patents are in addition to those recently obtained in the United Kingdom and South Africa, and further strengthens Accsys’ patent portfolio, securing protection for Accsys, its licensees and distributors across the globe.
Accsys has continued to file further patent applications in the recent period and now currently owns seven different Accoya® patent families, with 26 granted patents and 20 further applications filed across 24 countries world-wide.
Financial results
Total revenue for the nine months ended 31 December 2012 increased by 36% to €13.4m (2011: €9.8m). In the same period, Accoya® revenue increased by 42%, excluding sales to Medite for the manufacture of Tricoya, to €11.6m (2011: €8.2m).
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Cash balance as at 31 December 2012 of €21.2m represents a decrease of €0.5m since 30 September 2012. The decrease is after taking account of €4m received from INEOS following their subscription for 24 million shares in Accsys (at €0.17 per share) and also reflects an increase in working capital.
€1.7m of proceeds were received in February 2013 following the completion of the second part of the sale and leaseback of the land in Arnhem.
Commenting on the Interim Management Statement released today, Paul Clegg, CEO of Accsys Technologies PLC said: “We have made solid progress in all areas. Our joint venture with INEOS has started well, developing both existing and new opportunities. The progression made with the Rhodia licence agreement and the continuing success experienced by Accoya®, including sales growth, further industry awards and new distributors, provides confidence concerning our longer term objective of achieving profitability and increasing revenues from licensing our technologies worldwide.”
Ends