Quarterly Performance Update
Accsys Technologies PLC
12 February 2008
12th February 2008
AIM: AXS
NYSE Euronext Amsterdam: AXS
Quarterly Performance Update
Accsys Technologies PLC ('Accsys' or 'the Company') announces its quarterly
statement for the period to 31st December 2007.
The most significant event for the Group during the quarter was the signing of a
license agreement with Diamond Wood China Limited ('Diamond Wood'), in respect
of rights to manufacture Accoya(R) wood in The People's Republic of China for an
annual nameplate capacity of 500,000 cubic metres of production. This provided
for an initial payment of €9.5 million. This project will generate further
license income of €90 million, phased over the construction and commissioning
period, budgeted over a four year time frame by the Company.
The signing of the Diamond Wood license triggered the recognition for revenue
purposes of the received but unrecognised €8.0 million balance in relation to a
previously announced License Agency Agreement.
The Group also announced the signing of a Licence Option Agreement with Al Rahji
Holdings WLL for an annual nameplate capacity of 150,000 cubic metres of
production of Accoya(R). This agreement provides conditional exclusivity in
respect of the Kingdom of Saudi Arabia, United Arab Emirates, Bahrain, Oman,
Qatar and Kuwait, collectively the Gulf Co-operation Committee ('GCC') states.
The Group's Accoya(R) production facilities in Arnhem, the Netherlands, which is
a technology validation plant run as a commercial scale operation, continued an
active development programme. Operations combined production for end use
customers and prospective licensees, species testing and certain other product
development activities. A highly reputable process certification agency has been
selected to undertake detailed certification of the Group's acetylation process.
This will provide validation for prospective licensees of materials and
utilities consumption factors for specified wood species and wood
specifications. Quarter on quarter production of Accoya(R) rose 65%, commercial
sales volumes rose 36% and gross revenue rose 34%.
Willy Paterson-Brown, Executive Chairman of Accsys commented, 'This last quarter
of 2007 saw good progress made on a number of fronts, and the year ahead is full
of promise. Approaching the Company's March 31st year end, the Directors believe
that the Company remains broadly in line with their expectations'.
- ENDS -
For further information, please contact:
Accsys Technologies PLC William Paterson-Brown, +44 (0) 20 8150 8836
Executive Chairman
www.accsysplc.com
Collins Stewart Europe Limited Tim Mickley / Michael O'Brien +44 (0) 20 7523 8000
Parkgreen Communications Justine Howarth / +44 (0) 20 7851 7480
Bex Sanders-Hewett
Citigate First Financial B.V. Wouter van de Putte / + 31 (0) 20 575 4080
Laurens Goverse
Notes to Editors:
Titan Wood Limited (www.titanwood.com) is a wholly owned subsidiary of the
Accsys Technologies PLC (www.accsysplc.com) group of companies. Accsys
Technologies PLC is listed on the London Stock Exchange AIM market, and on
Euronext Amsterdam by NYSE Euronext, under the symbols 'AXS'.
Wood Acetylation is a process, which increases the amount of 'acetyl' molecules
in wood, thereby changing its physical properties. The process protects wood
from rot by making it 'inedible' to most micro-organisms and insects, without -
unlike conventional treatments - making it toxic. It also greatly reduces the
wood's tendency to swell and shrink, making it less prone to cracking and
ensuring that when painted it requires dramatically reduced maintenance.
Accoya(R) wood (www.accoya.info) is produced using a patented process that
effectively converts sustainably grown softwoods and non-durable hardwoods into
what is best described as a 'new wood species'. Distinguished by its
durability, dimensional stability and, perhaps most importantly of all, its
reliability (in terms of consistency of both supply and quality), Accoya(R) wood
is particularly suited to exterior applications where performance and appearance
are valued. Unlike most tropical and European hardwoods, its colour does not
degrade when exposed to ultraviolet light. Moreover, the Accoya(R) wood
production process does not compromise the wood's strength or machinability.
The combination of UV resistance, dimensional stability, durability and retained
strength means that Accoya(R) wood offers a wealth of new opportunities to
architects, designers and specifiers. For marine uses where weight is also
important, Accoya(R) wood for the first time provides boat builders with a wood
that is strong, lightweight, durable and which retains its natural beauty for
far longer.
ACCOYA is a registered trademark owned by Titan Wood Limited
This information is provided by RNS
The company news service from the London Stock Exchange