Accsys positively surprised the market by raising its guidance for FY25 after a strong H125 despite challenging market conditions. Volume growth was better than expected and volumes should maintain momentum due to increasing sales and marketing efforts, which should also benefit margins. Manufacturing performance at the new plant in the US is progressing well, with rapidly improving results expected after the first year of start-up costs. Accsys has simplified and de-risked its business with the decision to discontinue the project in Hull. On higher margin estimates, our discounted cash flow (DCF) rises to €0.95 per share (was €0.92 previously).

Accsys Technologies had a strong H125 with a return to revenue growth and gross margin exceeding its target of 30%. Adjusted EBITDA improved on the back of better than expected volume growth from the plant in Arnhem. The company has simplified and de-risked the group through the successful start-up of the plant in the United States and the decision to discontinue the project in Hull. After the good start of the year, Accsys increased guidance for the full year, with underlying profitability expected to improve in H2 as Accoya USA continues to ramp up.

Accsys will discontinue the Tricoya project in Hull, England, as it has not found a financial or strategic partner to finalise the construction of the plant. The project started in 2017 and was put on hold in November 2022 after several problems during construction. Accsys will write down the remaining book value of €20m and will need €4.5m for the discontinuation and winding up of the plant. Although this is a setback for the company’s strategy to boost Tricoya sales, Accsys will continue to supply Accoya material to produce Tricoya panels. Our discounted cash flow (DCF) comes in lower at €0.92 as we have taken out the option value for Hull, which is not fully compensated for by the absence of running costs for this plant.