Accsys reports flat Accoya wood revenues, delays to Hull plant

Chemical technology group Accsys Technologies said on Monday that Accoya wood revenues were broadly flat year-on-year as volumes were limited by production capacity and cautioned that its Hull plant would likely no longer become operational in 2022.

Accsys Technologies stated it had witnessed continuing strong demand and stable Accoya wood revenue for the first five months of the 2023 financial year.

However, Accsys said revenues were little changed at approximately €39.0m as higher average sales prices offset the impact of a 24% drop in sales volumes to roughly 18,803m³.

The AIM-listed group also stated it was in discussions with other members of the consortium building the Tricoya plant in Hull after delays, rising costs, and declining profitability due to heightened natural gas prices pushed the expected total cost of the project to €94.0m-103.0m.

As a result, Accsys no longer expects the plant to become operational in 2022 and also sees costs rising even further still, with the group agreeing to a bridging loan of up to €8.0m in order to continue building.

"At this time, the Accsys board is investigating and evaluating all available options for the Hull plant," said Accsys.

As of 0935 BST, Accsys shares were down 5.62% to 84.0p.

Reporting by Iain Gilbert at Sharecast.com