Interim Results for six months ended 30 Sept 2022

RNS Number : 1297H
Accsys Technologies PLC
22 November 2022
 


AIM: AXS

Euronext Amsterdam: AXS

22 November 2022

Accsys Technologies PLC

("Accsys", the "Group" or the "Company")

 

Interim Results for the six months ended 30 September 2022

 

Continued strong product demand - Accoya capacity expanded

 

Accsys, the fast-growing and eco-friendly company that combines chemistry and technology to create high performance, sustainable wood building products, announces its interim results for the six months ended 30 September 2022 ("H1 FY 23").

 


 

H1 FY 23

H1 FY 22

Change

Total Group revenue


€58.9m

56.2m

5%

Underlying gross profit


€18.1m

17.2m

5%

Accoya® Manufacturing margin1


30.8%

31.0%

(20bps)

Accoya Manufacturing gross profit/m 2


€755

€581

30%

Underlying EBITDA3


€4.5m

4.5m

-

Underlying EBIT4


€1.0m

1.5m

(33%)

Underlying (loss) before tax


(€0.6m)

(0.3m)


(Loss)/profit before tax


(€56.3m)

0.7m


Period end net (debt)/ cash5


(€61.4m)

2.4m


Accoya® sales volume

 

23,957m3

29,555m3

(19%)

 

 

 

 


 

Key highlights:

 

·     Good growth in Group revenue, up 5% to €58.9m driven by increased average sales prices and product mix, despite lower volumes.

·     Customer demand for Accoya® remains strong and in excess of production capacity, with a strong customer order book over the next 3 months and beyond.

·     Accoya® sales volumes limited by production capacity, down 19% to 23,957m3 due to the previously reported and now resolved shutdown at the Arnhem plant in April/May 2022 around the installation of the fourth reactor (R4).

·     Robust Accoya® profit with gross profit per cubic metre of Accoya up 30% to €755/m3:

Group Gross Profit, up 5% supported by Accoya® sales price increases offsetting higher raw material costs.

Accoya® manufacturing margin of 30.8% remaining above target level of 30%.

Underlying EBITDA flat year-on-year, with higher sales prices offsetting lower sales volumes and higher raw material costs.


·     Strategic growth projects:

Accoya® (Arnhem) plant - R4 expansion commenced commercial operation in September 2022, with production now ramping up over two years.

Accoya® USA JV - Construction of new 43,000m3 plant progressing in-line with expectations towards commercial operation due by March 2024.

World-first Tricoya® (Hull) plant:

Discussions and validation work across the period led to a restructuring of the Tricoya consortium in November 2022 with Accsys obtaining 100% control and ability to complete construction on our terms at the right time.

Up to €35m additional capital costs identified being key reason for €58m exceptional non-cash impairment of Tricoya assets recorded in H1 FY23.  

Construction Hold period of at least 6 months during which remaining construction work and costs will be validated while nature and extent of any required funding will be examined and the full range of potential options considered.

·     Group Net Debt5 increased by €34.2m to €61.4m, includes transfer of €29.1m cash raised in 2021 equity issuance into US JV as previously reported

·     Strong start to H2 FY 23, with October sales of 6,600m3, and targeting H2 sales volumes to be c.50% higher than H1.

·     H2 FY 23 focus on cost and cash management and expected reduction in inventory levels.

 

Notes

1 Accoya® Manufacturing margin is defined as Accoya® segmental underlying gross profit (excluding Licence income) divided by Accoya® segmental revenue (excluding Licence income and marketing services) (See note 2 to the financial statements)

2 Accoya® Manufacturing gross profit per m3 margin is defined as Accoya® segmental underlying gross profit (excluding Licence income) divided by Accoya® sales volume (See note 2 to the financial statements)

3 Underlying EBITDA is defined as Operating profit/(loss) before Exceptional items and other adjustments, depreciation and amortisation, and includes the Group's attributable share of our USA joint venture's underlying EBITDA. (See note 2 to the financial statements).

4 Underlying EBIT is defined as Operating profit/(loss) before Exceptional items and other adjustments, and includes the Group's attributable share of our USA joint venture's underlying EBIT. (See note 2 to the financial statements).

5 Net cash/(debt) is defined as short term and long-term borrowings (including lease obligations) less cash and cash equivalents. (See note 12 to the financial statements). Net Debt at 31 March 2022 was €27.2m.

 

 

 

Robert Harris, CEO, commented :

 

"We delivered a resilient Accoya® performance for the half. We continue to see strong demand for our Accoya® and Tricoya® products as customers focus on higher performance materials and sustainability in their procurement decisions.

 

With this demand, which continues to exceed supply, we have been able to substantially offset the wider market pressures from raw materials costs and supply chain disruption through price increases. 

 

We continued to progress our growth ambitions during the half as we completed the construction of a fourth Accoya® reactor in Arnhem and we expect to see the benefit of this in sales and volumes now coming through in the second half of FY23. We reported on challenges at our Hull plant in the period and I am pleased we have recently taken 100% control of the Tricoya project giving us the ability to complete the construction on our terms, at the right time. We have also made continued good progress on our US plant construction with Eastman.

 

As we move into the second half of the year, demand for our products remains strong, and production levels at Arnhem (reactors 1-3) have been at capacity, while R4 production is ramping up. Conversations with our customers and their orders continue to indicate that customer demand remains in excess of our production capacity. Customers are also pleased to be seeing the benefit of gradually increasing volumes with R4 now producing Accoya®. We remain confident in both the near-term and longer-term demand and growth opportunity for our market-leading products."

 

 



Analyst presentation

 

There will be a presentation relating to these results for analysts at 10:00am UK time (11:00am CET) today. The presentation will take the form of a webcast and conference call, details of which are below:

 

Webcast URL for Participants: (for audio and visual presentation): 

 

Click on the link below or copy and paste ALL of the following text into your browser:

 

https://edge.media-server.com/mmc/p/wrfcy3w9

 

Questions / Phone Participants : for those participants who would like to ask a question live over the phone lines, please register on the following link. You will then be sent a confirmation email with a link to dial-in numbers.

 

Click on the link below or copy and paste ALL of the following text into your browser to register and obtain audio details:

 

https://register.vevent.com/register/BIaa80734c70ab433791a4030f76ebe15e

 

For further information, please contact:

Accsys Technologies PLC
Investor Relations

+44 20 7421 4322

ir@accsysplc.com

Numis Securities (London)
Oliver Hardy (NOMAD), Ben Stoop

+44 (0) 20 7260 1000

Investec Bank plc (London)
Carlton Nelson, Alex Wright

+44 (0) 20 7597 5970

ABN Amro (Amsterdam)
Richard van Etten, Dennis van Helmond

+31 20 344 2000

FTI Consulting (UK)
Matthew O'Keeffe, Alex Le May, Cally Billimore

+44 (0) 20 3727 1340

Accsys@fticonsulting.com  

Off the Grid (The Netherlands)
Frank Neervoort, Yvonne Derske


+31 681 734 236

 

 

Accsys Technologies PLC

 

Chief executive's statement

Introduction

During the first half of the 2023 financial year, demand for our high-performance sustainable wood products has remained strong. Our customers continued to seek more product from us than we had capacity to produce in the period.

While our production capacity at Arnhem remained constrained during the period, we have been able to deliver 5% growth in Group revenue through increased average sales prices. This is despite a 19% decline in Accoya® sales volumes due to previously reported production outages linked to the completion of the Fourth Reactor in Arnhem during April and May.

Overall profitability remained resilient due to increased average sales prices and an energy price surcharge mechanism which have successfully offset raw material cost increases, including the impact of volatile and elevated acetyl and energy prices in Europe.

During the period we progressed two of our key strategic capacity expansion projects. We completed the expansion of our Accoya® plant at Arnhem, in which a fourth reactor (R4) has been added with commercial operations commencing in September and with production and sales volumes increasing as planned since then. In the USA, we commenced construction of a new 43,000m3 per annum capacity Accoya plant in Kingsport Tennessee in April, under our JV with Eastman Chemical Corporation which remains on track to be completed by March 2024.

Our Tricoya facility at Hull, UK, encountered further delays in the final construction and commissioning schedule. This led to a slow-down in work while trying to agree the funding of these associated cost overruns with our consortium partners in H1 FY23. Whilst these further delays and costs have been disappointing, we were pleased to subsequently announce a resolution to the challenges within the consortium in November 2022.

We continue to see strong customer traction and support for our product with leading industry partners and multinational companies, such as Google where Accoya® has been specified on the large new Google HQ building in Kings Cross, London. Accoya's outstanding performance has also been recognised through prestigious award wins, including the Green Building Product of the year from EmiratesGBC and the Best of Products from The Architect's Newspaper USA.

Summary of results

 


Six months ended 30 September 2022

Six months ended 30 September 2021

Change - %

Accoya ® segment - summary of results


Accoya® sales volume - cubic metres

23,957

29,555

(19%)

Accoya® segmental revenue

€58.7m

€55.4m

+6%

Accoya® wood revenue

€51.1m

€48.5m

+5%

Licence income

-

-


Acetic acid sales

€7.4m

€6.8m

+9%

Manufacturing margin - %

30.8%

31.0%

(0.2%)

Manufacturing gross profit/m3

755

581

+30%

Underlying EBITDA

€10.4m

€10.3m

+1%

Underlying EBIT

€7.7m

€8.0m

(4%)


The Accoya® business produced lower sales volumes (-19%) in H1 FY23, due to the April-May plant shutdown during the completion of the R4 capacity expansion. 

Accoya® segment revenue growth of 6% comprised wood revenue growth of 5% and acetic acid sales growth of 9%. The increase in wood revenue was driven by increased average sales prices, reflecting the continuing strong demand from customers and increased sales prices to offset higher raw material costs during the period. Price rises were implemented during the summer of 2022. An energy price premium was also introduced in the period which, in addition to the sales price increase, has mitigated the impact of high and volatile prices for acetic anhydride, the raw material we use in our acetylation process to acetylate the raw wood. Acetic anhydride prices have increased and become volatile in the period, with a corresponding trend in gas market pricing in Europe during the period due to wider macro-economic and geopolitical events.

Our sales of acetic acid, which is a by-product of our use of acetic anhydride for our acetylation process, increased by 9% driven by higher market pricing linked to the same macro-trend impacting our raw material purchase pricing. The business therefore has a part natural hedge against volatile acetic anhydride pricing.

As set out in further detail in the Financial Review, underlying Accoya segment EBITDA grew by 1% and the segment's manufacturing margin was 30.8%. While margin was down by 20 bps, it remains above our target level of over 30%. These profit outcomes reflect the impact of lower sales volumes while maintaining fixed operating costs, but where increased pricing has successfully mitigated the higher raw material costs in the period. As a result, profitability at the Accoya® product level has improved significantly and for each cubic metre of product sold in the segment, gross profit increased from €581/m3 to €755/m3 representing a 30% increase compared to the same period last year. We expect further good progress over time on this metric through operating with greater economies of scale and product mix.

We have continued to see strong underlying demand for Accoya® across our regions and with our Tricoya® panel manufacturing partners. The reduction in sales volumes by 19% overall, was reflective of the reduced production level following the shut down in April and May connected with the R4 project.

The year-on-year sales movements across our geographic regions reflect the lower volumes available to those regions due to the limited supply as we remained at capacity production levels while the Arnhem plant was operational. We expect sales volumes in these markets to improve as increased volumes become available from Arnhem with the new capacity from the new fourth reactor  now online and ramping up to capacity over the next two years.

 

Unaudited

Unaudited


6 months

6 months


ended

ended


30 Sept

30 Sept

  Sales volume by end market

2022

2021


 m3

 m3




 UK & Ireland

        6,383

       8,373

 Rest of Europe

        5,362

        7,871

 Tricoya®

6,452

        7,092

 Americas

4,049

        3,909

 Rest of World

1,711

2,310


23,957

29,555




Accoya®

Strategic progress

During the period, we were pleased to complete the expansion of our Accoya plant in Arnhem which adds a new 20,000m3 reactor, enabling the site's annual capacity to increase to 80,000 cubic metres.

As reported in May 2022, we experienced some unplanned delays in the final installation, tie-ins and supply of certain equipment, which led to a delay in the expected operational start-up earlier in H1. This also resulted in an unexpected second shutdown across the plant in April/May 2022. Subsequently, during commissioning and testing of the new expansion in June, defects were identified in certain installed items of equipment which required remedial work to repair. This was repaired over the following eight weeks. The remedial works costs were around €1m, and we continue to establish whether part of this may be recoverable.

In September, the new reactor commenced commercial operation. We have since started the operational ramp up of the reactor, where we are gradually increasing the reactor's output to full capacity over a two-year period. We continue to work closely with our customers who have been waiting patiently for more product and remain strong proponents of Accoya®.

North America represents the largest potential regional market for our product, with an achievable market for Accoya® of up to almost 1,000,000 cubic metres per annum. Under our joint venture with Eastman Chemical Company (Eastman), a world leader in the production of acetyls, we are building an Accoya® plant in USA with an initial approximately 43,000 cubic metres capacity at Eastman's Kingsport, Tennessee site. The plant will replicate our existing Accoya® technology at Arnhem. Under the JV, Accsys holds a 60% interest and Eastman a 40% interest.

In March 2022 we reached a final investment decision to proceed with the project and commenced construction with ground broken in April 2022.

During H1 FY23 we have made good progress together with Eastman in progressing the construction of the plant in line with our expected timeline and budget. The plant is expected to take around two years to build and to be operational by March 2024.

In the first part of the period, ground works and deep drilling were successfully completed. This has been followed by the commencement of steelwork. Construction of the main warehouse building is underway and progressing well. Photographs of this can be found in our H1 FY23 results presentation on our website in the investor relations section of the Accsys website.

Accsys and Eastman teams are working together seamlessly, reflecting the joint and complementary expertise and strong project leadership. The construction is managed by an EPC contractor, with Eastman taking a lead role within the JV in overseeing the EPC contractor and construction project management. A strong focus on project and cost management continues by the JV. All major equipment has now been procured and multiple large sub-contracts, including piping, have now been placed.  A small site team was put in place in the period as the construction continues across the site.

Safety has been established as a key priority for Accoya USA LLC at the site.  Around the end of H1 FY23 we were able to celebrate 50,000 hours worked without accident. 

In July 2021 we acquired a business in which to establish an Accoya Colour manufacturing plant in Barry, Wales. The 50,000 square foot (4,650 square metre) manufacturing plant has increased our ability to convert Accoya® wood into Accoya® Color - a product which combines the benefits of Accoya® wood with colour all the way through the wood from surface to core, through a patented process.

During the period, we have continued to increase production of Accoya® Color at the site compared to the end of the FY22, however the rate of increase has been moderated by the lower Accoya production volumes from Arnhem in the period.

The site is able to produce up to 12,500 cubic metres of Accoya® Color per annum, with future expansion being possible to support global demand. Accoya® Color generates higher gross profit per cubic metre than Accoya®,and will support our product-level margin over time. As we increase our Accoya production capacity, we continue to expect increased Accoya® Color sales in the medium term with its unique proposition proving attractive to customers in our target markets, particularly in the decking category where the surface-to-core grey colour will require less maintenance to retain over the long term.



Tricoya®

Strategic progress

Accsys and its former consortium partners in Tricoya UK Limited (TUK) have been building and looking to commission the world's first Tricoya® plant in Hull.

The construction of the plant was in its final stages across the period. .During the early part of H1 FY23 the project moved into the commissioning stage for the plant, with a small amount of construction work  being completed concurrently during the commissioning process. Based on third party specialist reports, as at November 2022, the construction of the plant is substantially complete.

During the period, the commissioning process identified that unplanned time and costs would be required in order for the plant to be brought into commercial operation. A number of factors have been identified which are relevant to this unplanned time and cost, including rework of certain areas - such as the plant's control system, the unique and 'world first' nature of the plant and its technologies and being unable to mitigate certain third-party costs, including in relation to mechanical, electrical, instrumentation, control and piping subcontractor work, to the extent previously forecast. The construction challenges and rework extended the timeline to completion and the project team costs required to oversee this, have also led to higher costs than expected.

From June 2022, Accsys moved into discussion with its consortium partners regarding the consortium's funding options for the additional costs. In September 2022, Accsys agreed to provide a further bridging loan facility of up to €8m (on a then uncommitted basis), to enable TUK to continue progressing a reduced level of commissioning activities whilst funding discussions continued. At this time, Accsys also reported that it had reduced the level of activity on site in order to reduce costs, during these discussions. These costs were lowered from a level of around €4m per month to €0.5m per month going forward. The company reported that commercial operation of Hull was unlikely to occur before the end of calendar year 2022, and that the project costs would be higher than previous estimates.

In November 2022 Accsys announced a resolution of these discussions which involved Accsys acquiring 100% of the Tricoya entities, including the Tricoya Hull plant, in exchange for issuing shares in Accsys representing 5.74% of its issued share capital. 

At the same time, the debt arrangements between TUK and Natwest have been restructured, resulting in the principal debt being reduced to €6m and put onto new 7-year terms, with no capital repayments during this period.

The solvent solution allows for the continuation of Ineos and Medite's supply and off-take agreements.  The reorganisation provides Accsys the option to take the Tricoya Hull Project forward on its own terms and to benefit from 100% of the long-term returns from Tricoya® wood including any future licencing in respect of the global Tricoya market opportunity.

Initially, we have stopped current site activity for at least six months (the "Hold Period"), to mitigate the

risk of weaker economics on start-up due to current high and volatile acetyls raw material prices in Europe.

 

Third party reports have been concluded confirming up to around €35m for the remaining project capital costs to bring the plant into commercial operation, with further reviews ongoing. This would bring the expected total capital costs for the project to up to around €138m compared to the previously announced maximum of €103m reported in June 2022. However, the final total project costs will remain subject to the timeline that the project is completed over and excludes up to €0.5m monthly costs anticipated during the Hold Period.

 

At normalised acetyls prices the Company expects that gross margins for the Hull plant of up to 40% continue to be achievable once operating at target capacity.

 

Further details of this agreement, the resulting restructure of the Tricoya project, and the Company's most recent outlook for the plant in terms of costs and the timing of the Hold Period, can be found in the Company's announcement of 2 November 2022 and in the notes to the financial statements.

Group Strategic Development

In the period we have continued to focus on maintaining a strong organisational platform on which to grow and develop our operating process.

 

We conducted a strategic review of our engineering capabilities and other actions to drive improved capital project delivery. This has led to the establishment of a Global Engineering Centre of Excellence within the Group, and further development of our R&D function. We have increased our skills and talent in key areas including project management in addition to engineering.

 

Accsys also continues to invest in developing and protecting its valuable portfolio of intellectual property and confidential information. Our technology covers not only the physical equipment and engineering that underpins our manufacturing and production, but also the processes and methodology we follow in our entire supply and production chain, from the way we prepare our wood to the way we market and sell Accoya® and Tricoya® in the market.

 

Accsys' patent portfolio totals 402 patent family members, covering 28 distinct inventions in 45 countries with 75% of the patent family members now granted. The core technologies associated with our current and future plants for the production of Accoya® and Tricoya® wood products continue to be protected by using a combination of patenting and trade secrets to maintain our differentiation in the marketplace.

 

Our principal trademark portfolio covers our brands Accoya®, Tricoya®, the Trimarque device and Accsys®, protected by registrations in over 60 countries, with continued activity focused on increasing the strength of those brands. Accsys continues to maintain an active watch on the commercial and IP activity of third parties to ensure its IP rights are not infringed, and to identify any IP which could potentially hinder our commercial activity.

 

ESG

 

With its stated purpose of 'Changing wood to change the world', Accsys is committed to growing and operating its business in a responsible and sustainable way. Aligned with our values and business strategy, our ESG framework outlines the 10 key material issues and impact areas that we are focussed on, and how they line up against the 5 main UN Sustainable Development Goals that we look to contribute towards.

 

Having completed stage one of our 2020 sustainability strategy roadmap, we have moved into the second stage where we are focused on establishing specific development plans, including the setting of a site-based carbon intensity reduction target at our Arnhem facilities. We plan to have a target in place in time for the start of FY24.

 

Building on our commitment to transparency, Accsys is currently undergoing the re-submission process for year two of the S&P Global Corporate Sustainability Assessment (CSA). This third-party rating of ESG credentials benchmarks Accsys alongside forest and paper products industry companies, the strong majority of which are large companies with a market capitalisation of over €1bn. We intend to build on our baseline inaugural score of 38 (industry average 37) in parallel with our own internal performance metrics.

 



Safety

 

The Group has set 'Zero Harm' as a key target for our operations and is committed to developing best practice Health & Safety (HSE) across Accsys.

H1 FY23 has seen some positive HSE improvements. Our performance is improving as can be shown via our leading and lagging HSE metric indicators and also through discussions with our teams. The awareness around safety is growing day by day enabling us to develop a safety-first culture across our organisation.

Within H1 FY23 we have increased safety observation card reporting (SOC) to over 900, which is greater than our prior year total of 811. In addition, we have seen a significant increase in leadership safety tours to almost 500 tours within the first half of the year. We continue to hold monthly safety briefings for all staff and send out regular safety communications to help raise awareness.

In H1 FY23 our Lost Time Incident Rate (LTIR) per 200,000 hours worked has increased slightly from 0.5 to 0.7 (our interim target is 0.5), in part reflecting a reduction in contractor working hours from both the R4 and Hull construction projects. Our Total Recordable Incidence Rates (TRIR) has improved from 4.9 to 3.5 per 200,000 hours worked.

 

Outlook

 

We continue to see strong demand for our Accoya® and Tricoya® products as customers focus on higher performance materials and sustainability in their procurement decisions.

 

With this demand, we have been able to substantially offset the wider market pressures from raw materials costs and supply chain disruption through price increases. 

 

Construction of a fourth Accoya® reactor in Arnhem is complete and we expect to see the benefit of this with additional volumes now coming through. We reported on challenges at our Hull plant in the period and I am pleased we have recently taken 100% control of the Tricoya project giving the option to complete the plant on our terms and at the right time. We have also made continued progress on our US plant construction with Eastman.

 

As we move into the second half of the year, demand for our products remains strong, and production levels at Arnhem (reactors 1-3) have been at capacity, while R4 production is ramping up. We recorded sales of 6,600 cubic meters in October 2022, which benefitted from R4 and some unwinding of higher inventory (work in progress) levels and are now targeting sales for the second half of the year to be approximately 50% higher than the first half.

 

The Hold period of at least six months for the Hull plant will allow us to focus on cash generation from Accoya® sales.  Together with careful cost management and an expected reduction in inventory levels, this will help strengthen the balance sheet now that the Accoya fourth reactor has been completed.

 

Expectations for customer orders, as we plan over the next three months and beyond, continue to indicate customer demand remains in excess of our production capacity, while customers are also pleased to be seeing the benefit of gradually increasing volumes with R4 now producing Accoya. We remain confident both in the near term and longer-term demand and growth opportunity for our market-leading products.

 

Rob Harris

Chief Executive

22 November 2022


Accsys Technologies PLC

 

Financial review

 

Introduction

 

Accsys has delivered a good performance in the first half of the 2023 financial year, with 5% revenue growth, on lower sales volumes, driven by increased sales prices and strong ongoing demand for our products.

 

Accoya® manufacturing margin per cubic metre increased 30% to €755/m3 with increased sales prices and the energy price premium implemented during the first half more than offsetting the increase in variable input costs during the first half. Gross profit increased 5% to €18.1m, with the increased margin per cubic metre offsetting the 19% decrease in sales volumes, due to the previously reported shutdown at the Arnhem Accoya® plant in April/May 2022 for the final fourth reactor expansion project tie-ins.

 

Underlying EBITDA was in line with the prior year at €4.5m.

 

Net debt increased by €34.2m in the period to €61.4m due to Capex investments of €22.6m into our Accoya® Arnhem reactor 4 project, our Tricoya® Hull project and the planned investment into Accoya USA following the final investment decision in March 2022 (€29.1m).  This was partially offset by a successful Placing in May 2022 raising net proceeds of approximately €19m to strengthen the Group's balance sheet, increase liquidity headroom, provide additional working capital and fund additional costs to complete Arnhem's fourth reactor expansion project.

 

As detailed in the CEO report, on-going challenges have been experienced on the Tricoya® Hull project during the first half, with additional work and re-work being identified during the commissioning process to complete the project, resulting in additional costs.

 

Following discussions with its Tricoya® consortium partners regarding the consortium's funding options for the additional costs, Accsys agreed to provide a further bridging loan facility of up to €8m (on an uncommitted basis) in addition to the €17m loan already provided to TUK, to enable TUK to continue progressing a reduced level of commissioning activities whilst funding discussions continued. The level of activity on site was also reduced in order to decrease costs with Accsys reporting that commercial operation of Hull was unlikely to occur before the end of calendar year 2022, and that the project costs would be higher than previous estimates.

After the end of the period in November 2022, Accsys announced a resolution in the discussions with our Tricoya® consortium partners which has since resulted in Accsys agreeing to acquire 100% of the Tricoya® entities, including the Tricoya® Hull plant. Further details of this agreement, the resulting restructure of the Tricoya® project, and the Company's most recent outlook for the plant in terms of costs and the timing of the Hold Period are included in the CEO report and can be found in the Company's announcement of 2 November 2022.

 

Following these events, an impairment assessment was required to be performed under IAS 36 (Impairment of Assets) on the Tricoya® segment's Gross assets with an impairment loss of €58m being recognised as an exceptional item in the first half. The calculated impairment was impacted by:

1)  An increase in the capex to complete the construction of the Tricoya® Hull plant of €35m, as reported on 2 November 2022

2)  A higher pre-tax WACC rate (used for the discount rate) increasing by 2.3% to 12.8% principally due to higher market interest rates

3)  An adverse impact on future operational cashflows as assessed at the end of September 2022 due to higher market acetyl prices

The impairment loss recognised is a non-cash item.

 


Statement of comprehensive income

 

Group revenue increased by 5% to €58.9m for the period ended 30 September 2022 (H1 FY22: €56.2m). Group revenue growth was driven by continuing strong market demand for Accoya® and Tricoya® and increases in average product sales prices for both wood and acetic acid during the year and the effect of increases introduced in the prior year, which were implemented to address rising raw material costs. An energy price premium , a surcharge added to the sales price to customers, was also successfully introduced during the first half, to offset the significant increase in acetyl prices. This resulted in revenue from Accoya® wood increasing by 5% to €51.1m.

 

Accoya® sales volumes of 23,957m3 were 19% lower than the prior year period due to the previously reported shutdown at the Arnhem Accoya® plant in April/May 2022 for the final fourth reactor expansion project tie-ins. The fourth reactor has since been successfully commissioned and operational from the start of September 2022.

 

Included within Accoya® wood revenue, in the Accoya® segment, are sales to Medite and Finsa for the manufacture of Tricoya® panels used to develop the market for Tricoya® products ahead of the start-up of the Tricoya® plant. This revenue was in-line with the prior year at €8.7m (H1 FY22: €8.5m), with the associated volume representing 27% of Accoya® sales volumes (H1 FY22: 24%).

 

Tricoya® panel revenue of €0.2m (H1 FY22: €0.9m), in the Tricoya® segment, represented sales of Tricoya® panels, purchased from our Tricoya® licensees, to sell into other geographies in order to provide initial market seeding material for the global Tricoya® market.

 

Other Revenue, which predominantly relates to the sale of our acetic acid by-product, increased by 10% to €7.6m (H1 FY22: €6.9m) due to higher acetyls market pricing.

 

Group gross profit of €18.1m was 5% higher than the prior year (H1 FY22: €17.2m).

 

Cost of sales increased by 4%, on 19% lower sales volumes, driven primarily by higher cost of raw materials, with the largest raw material cost increase in acetic anhydride. Accsys sells its acetic acid by-product back into the same acetyls market, which continued to act as a partial hedge to these higher costs. The net acetyls cost, increased by 49% in H1 FY23 compared to H1 FY22.

 

Raw wood input costs were also moderately higher however the cost of this raw material overall remains more stable than the wider lumber market as we purchase appearance-grade wood under long term supply contracts with many of our partners.

 

Underlying Gross Profit margin was in-line with the prior year at 31% with Accoya® manufacturing margin per cubic metre of Accoya® sold increasing by 30% to €755/m3. Looking forward, there is opportunity for further growth as we expect to benefit from economies of scale from the expanded Accoya® plant and further changes to product mix after the Tricoya® plant in Hull commences operation.

 

Underlying other operating costs excluding depreciation and amortisation, increased from €12.6m to €13.3m due primarily to higher insurance and audit fee costs.

 

Depreciation and amortisation charges increased by €0.5m to €3.5m following the purchase of assets in Barry, UK to grow production of Accoya® Color in July 2021, and the fourth reactor commencing operational production from the start of September 2022.

 

Underlying finance expenses decreased €0.2m to €1.5m, following the refinance of Group Debt Facilities in October 2021 which decreased the average interest rate payable on the Group's borrowings, partially offset by interest payable on the Convertible loan agreed with De Engh in March 2022 related to the funding agreements for Accoya USA JV.

 

An impairment loss (exceptional item) of €58m has been recognised in the period relating to the Tricoya® segment. Following the project challenges detailed in the CEO report, an impairment assessment was performed on the Tricoya® segment. The calculated impairment is described above in the Introduction and has been recognised as a non-cash exceptional item.

 

An exceptional item of €0.5m was also recognised representing advisory fees incurred in relation to the Tricoya® Consortium reorganisation completed subsequent to the period end.  In the prior year period, redundancy costs of €0.1m were recognised in relation to the purchase of assets in Barry, UK utilised to manufacture Accoya® Color.

 

Other adjustments for the year, which are also excluded from Underlying results, include a foreign

exchange gain of €1.4m related to US dollars held as Cash for investment into Accoya USA. Following the May 2021 equity raise, the amount raised to invest into Accoya USA was translated into US dollars and held in cash ensuring that foreign exchange movements did not decrease the amount raised below the future US dollar investment into Accoya USA. This treatment did not meet the requirements for hedge accounting under IFRS 9, Financial instruments and therefore the foreign exchange gain on the revaluation of the US dollars has been accounted for in Finance Expenses as an Other adjustment. Also included in Other adjustments is a foreign exchange gain of €1.3m related to USD cash pledged to ABN Amro for the Letter of credit provided to FHB as part of the Accoya USA funding arrangements. See note 12 for further details.

 

Underlying loss before tax increased to €0.6m (H1 FY22: €0.3m). After taking into account exceptional items (including the impairment loss) and other adjustments, loss before tax increased to €56.3m (H1 FY22 profit: €0.7m).

 

The tax charge decreased by €0.2m to €0.4m (H1 FY22: €0.6m).

 

Cash flow

 

Cash flows generated from operating activities before changes in working capital and exceptional items increased by €0.2m to €5.2m (H1 FY22: €5.0m) reflecting continued good operational cash flow generated by the Arnhem Accoya® plant.

 

Inventory levels increased by €12m during the period with higher raw material levels held due to the expected ramp-up of the fourth reactor, which increases production capacity by 33% but which was also partially impacted by the delay in start-up of the fourth reactor and the long lead time for raw material purchases from New Zealand. There was also a temporary build up in WIP & finished goods balances following the commercial start-up of the fourth reactor and wood automation equipment.  The inventory balance is expected to decrease significantly in the second half of the financial year.

 

In May 2022, Accsys completed a successful Placing for an issue of shares in the Company, raising net proceeds of approximately €19.0 million. The net proceeds have been used primarily to strengthen the Group's balance sheet, increase liquidity headroom, provide additional working capital and fund additional costs to complete Arnhem's fourth reactor expansion project.

 

At 30 September 2022, the Group held cash balances of €18.1m, representing a €24m decrease in the period. The cash decrease in the period is attributable to construction progress made on the Arnhem plant expansion project (€6.3) and our Tricoya® plant construction in Hull (€16.3m), planned investment into Accoya USA following the final investment decision in March 2022 (€29.1m) and the increase in inventory referred to above.  This was partially offset by the successful Placing and, proceeds from loans (€10m, explained further below) and cash flow generated from operating activities referred to above. When adjusting for the Cash pledged for the Letter of Credit provided to First Horizon Bank ('FHB') ($11m - see note 12) and in the prior year adjusting for the cash earmarked to be invested into Accoya USA, Adjusted Cash increased during the period to €7.2m (see note 12).

 

 

Financial position

 

Plant and machinery additions of €20.5m (H1 FY22: €7.5m) in the period largely consisted of the construction of the fourth reactor expansion project in Arnhem and the Tricoya® plant in Hull. The prior year primarily related to construction on the Tricoya® plant build in Hull and the fourth Reactor expansion project in Arnhem.

 

Trade and other receivables decreased to €11.3m (H1 FY22: €12.5m) primarily due to a €1m decrease in trade receivables relating to close working capital management.

 

Trade and other payables increased €4.8m to €26.6m (H1 FY22: €21.8m) with an increase in trade payables due to the timing of payments on our expansion projects in Hull and Arnhem.

 

Amounts payable under loan agreements increased to €74.9m (FY22: €64.0m) due to the drawdown of €5m on the ABN Revolving credit facility and €5m on the Tricoya® Natwest €17.2m facility.

 

Net debt increased by €34.2m in the period to €61.4m (FY22: €27.2m) due to Capex investments of €22.6m, investment into Accoya USA (€29.1m) and the increase in inventory partially offset by the successful Placing (net proceeds of €19.0m). Net debt is expected to reduce in H2 as a result of the amended agreement with Natwest associated with the Hull plant, which has resulted in the principal debt being reduced by approximately €9m, together with cash expected to be generated from the Accoya business including reduction in inventory levels.

 

Tricoya ® consortium restructuring

 

As detailed in the CEO report, after the end of the period in November 2022, Accsys agreed to acquire 100% of the two Tricoya ® entities (Tricoya UK Limited and Tricoya Technologies Limited), including the Tricoya ® Hull plant. Further details of this agreement, the resulting restructure of the Tricoya ® project, and the Company's most recent outlook for the plant in terms of costs and the timing of the Hold Period can be found in the CEO's report, and in note 15.

Risks and uncertainties

As described on page 42 to 48 of the 2022 Annual report, the business, financial condition or results of operations of the Group could be adversely affected by a number of risks. The Group's systems of control and protection are designed to help manage and control risks to an appropriate level rather than to eliminate them. These specific principal risks and related mitigations (as described in the 2022 Annual report) as currently identified by Accsys' risk management process, have not changed significantly since the publication of the last Annual Report.

These risks relate to the following areas:

Finance, Health, Safety & Environment; Hull plant; Supply chain stability; Manufacturing; Licensing/Partnering; Litigation & disputes; Expansion; Development and Supply of Raw Materials; Personnel; Sale of Products; Protection of Intellectual Property & trade secrets; Environmental, Social & Governance (ESG) and Sustainability; IT; Reputational risk and Governance, Compliance & Law.

Going concern

 

These condensed consolidated financial statements are prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future, and at least 12 months from the date these financial statements are approved.

 

As part of the Group's going concern review, the Directors have assessed the Group's trading forecasts, working capital requirements and covenant compliance for the foreseeable future under a base case scenario, taking into account the Group's financial resources including the current cash position and banking and finance facilities which are currently in place.  The Directors have also assessed a severe but plausible downside scenario with reduced sales volumes and lower gross margin, also reflecting the possible impact of volatile raw material costs.

 

These forecasts indicate that, in order to continue as a going concern, the Group is dependent on achieving certain operating performance measures relating to the production and sales of Accoya® wood from the plant in Arnhem with the collection of on-going working capital items in line with internally agreed budgets.  In both scenarios, the Directors have assumed no commitment will be made to complete the construction and start-up of the Tricoya® plant in Hull until appropriate funding arrangements have been put in place.

 

The Directors' have taken into account the reorganisation of the Tricoya® consortium and restructuring of its bank debt completed in November 2022 which resulted in Accsys becoming the 100% owner of the Tricoya® plant and with a commitment to fund the balance of the €8m loan which was previously put in place. 

 

The Directors' have also considered the possible amount and timing of capital expenditure required to complete the Accoya® plant in the USA, noting that notwithstanding that the construction project benefits from certain contractual measures in place with the lead construction contractor, Accsys has guaranteed to fund its 60% share of cost overruns, should they arise.

 

The Directors believe there are a sufficient number of alternative actions and measures within the control of the Group that can and would be taken in order to ensure on-going liquidity including reducing/deferring costs in some discretionary areas as well as larger capital projects if necessary.

 

The Directors believe that while some uncertainty always inherently remains in achieving the budget, in particular in relation to market conditions outside of the Group's control, under both the base scenario and severe but plausible downside scenario, there is sufficient liquidity and covenant headroom such that there is no material uncertainty with respect to going concern and have prepared the financial statements on this basis.

 

 

William Rudge

Finance Director

22 November 2022

 

 


Accsys Technologies PLC

 

Directors responsibility statement

 

The Directors confirm to the best of their knowledge that:

 

• the condensed set of financial statements has been prepared in accordance with the AIM Rules for Companies and IAS 34 Interim Financial Reporting as endorsed by the European Union and as adopted for use in the United Kingdom and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and its subsidiaries;

 

• the interim management report for the six months ended 30 September 2022 gives a fair review of the information required under the Dutch Financial Markets Supervision Act.

 

By order of the Board

 

 

 

Nick Hartigan

Company Secretary

22 November 2022

 

 

 



Accsys Technologies PLC

 

Condensed consolidated s tatement of comprehensive income for the six months ended 30 September 2022

 


Note

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

 

 

Audited

Audited

Audited



6 months

6 months

6 months

6 months

6 months

6 months


 

Year

Year

Year



ended

ended

ended

ended

ended

ended


 

ended

ended

ended



30 Sept

30 Sept

30 Sept

30 Sept

30 Sept

30 Sept


 

31 March

31 March

31 March



2022

2022

2022

2021

2021

2021


 

2022

2022

2022



€'000

€'000

€'000

€'000

€'000

€'000


 

€'000

€'000

€'000




Underlying

Exceptional
items & other adjustments*


Total


Underlying

Exceptional
items & other adjustments*


Total


 


Underlying

Exceptional
items & other adjustments*


Total

Accoya® wood revenue


51,088

-

51,088

48,465

-

48,465



105,053

-

105,053

Tricoya® panel revenue


201

-

201

860

-

860



1,459

-

1,459

Licence revenue


11

-

11

9

-

9



416

-

416

Other revenue


7,584

-

7,584

6,901

-

6,901



13,924

-

13,924













 

Total revenue

2

58,884

-

58,884

56,235

-

56,235


 

120,852

-

120,852

 












 

Cost of sales


 (40,742)

-

 (40,742)

 (39,032)

-

 (39,032)


 

 (84,852)

-

(84,852)

 












 

Gross profit


18,142

-

18,142

17,203

-

17,203


 

36,000

-

36,000

Other operating costs

3

 (16,773)

 (58,481)

 (75,254)

 (15,655)

 (151)

 (15,806)


 

 (31,541)

 (136)

(31,677)





 



 


 



 

Operating profit/(loss)


1,369

 (58,481)

 (57,112)

1,548

 (151)

1,397

 

 

4,459

 (136)

4,323





 



 


 



 

Finance expense


 (1,530)

2,699

1,169

 (1,722)

1,078

 (644)


 

 (2,893)

544

 (2,349)

Share of net loss of joint venture accounted for using the equity method

14

 (403)

-

 (403)

 (91)

-

 (91)


 

 (261)

-

 (261)













 

(Loss)/profit before taxation


 (564)

 (55,782)

 (56,346)

 (265)

927

662


 

1,305

408

1,713

 












 

Tax expense

5

 (357)

-

 (357)

 (622)

-

 (622)


 

 (1,015)

-

 (1,015)













 

(Loss)/profit for the period


 (921)

 (55,782)

 (56,703)

 (887)

927

40


 

290

408

698













 

Items that may be reclassified to profit or loss











 

Gain arising on
 translation of foreign operations


67

-

67

213

-

213


 

153

-

153

Gain arising on foreign currency cash flow hedges


-

90

90

-

 (268)

 (268)


 

-

66

66





 



 


 



 

Total other comprehensive income


67

90

157

213

 (268)

 (55)


 

153

66

219













 

Total comprehensive
(loss)/gain for the period


 (854)

 (55,692)

 (56,546)

 (674)

659

 (15)


 

443

474

917

 












 

Total comprehensive (loss)/gain for the year is attributable to:












 

Owners of Accsys Technologies PLC


 (214)

 (26,155)

 (26,369)

219

692

911


 

2,083

474

2,557

Non-controlling interests


 (640)

 (29,537)

 (30,177)

 (893)

 (33)

 (926)


 

 (1,640)

-

 (1,640)













 

Total comprehensive
(loss)/gain for the period


 (854)

 (55,692)

 (56,546)

 (674)

659

 (15)


 

443

474

917

Basic (loss)/profit per ordinary share

6

€(0.00)


€(0.13)

€0.00


€0.01


 

€0.01


€0.01

Diluted (loss)/profit per ordinary share

6

€(0.00)


€(0.12)

€0.00


€0.00


 

€0.01


€0.01

 

 

The notes set out on pages 20 to 40 form an integral part of these condensed financial statements.

 

* See note 4 for details of exceptional items and other adjustments.

 

 



Accsys Technologies PLC

 

Condensed consolidated s tatement of financial position at 30 September 2022

 



Unaudited

Unaudited

Audited



6 months

6 months

Year



ended

ended

ended


 

30 Sept

30 Sept

31 March


Note

2022

2021

2022


 

€'000

€'000

€'000






Non-current assets





Intangible assets

8

6,852

10,962

10,834

Investment accounted for using the equity method

14

31,942

1,421

3,216

Property, plant and equipment

9

140,422

145,206

176,661

Right of use assets


4,087

5,120

4,632

Financial asset at fair value through profit or loss


-

-

-








183,303

162,709

195,343

Current assets





Inventories


32,354

18,105

20,371

Trade and other receivables


11,333

12,540

16,934

Cash and cash equivalents


18,123

60,921

42,054

Corporation tax receivable


503

153

435

Derivative financial instrument


-

106

3








62,313

91,825

79,797






Current liabilities





Trade and other payables


 (26,620)

 (21,767)

 (29,880)

Obligation under lease liabilities


 (790)

 (1,108)

 (1,024)

Short term borrowings

12

 (19,686)

 (16,269)

 (11,654)

Corporation tax payable


 (3,615)

 (2,514)

 (3,184)

Derivative financial instrument


 (77)

-

-








 (50,788)

 (41,658)

 (45,742)






Net current assets


11,525

50,167

34,055






Non-current liabilities





Obligation under lease liabilities


 (3,806)

 (4,630)

 (4,193)

Other long term borrowing

12

 (55,210)

 (36,535)

 (52,335)

Financial guarantee


-

-

-








 (59,016)

 (41,165)

 (56,528)
















Total net assets


135,812

171,711

172,870











Equity





Share capital

10

10,343

9,619

9,638

Share premium account


241,662

223,035

223,326

Other reserves

11

114,791

114,367

114,701

Accumulated loss


 (236,584)

 (211,795)

 (210,505)

Own shares


 (6)

 (5)

 (6)

Foreign currency translation reserve


257

250

190






Capital value attributable to owners of Accsys Technologies PLC


130,463

135,471

137,344

 





Non-controlling interest in subsidiaries


5,349

36,240

35,526











Total equity


135,812

171,711

172,870






 

 

The notes set out on pages 20 to 40 form an integral part of these condensed financial statements.

 

 

 

Accsys Technologies PLC

 

Condensed consolidated statement of changes in equity for the six months ended 30 September 2022

 

 

Share capital Ordinary

Share premium

Other reserves

Own Shares

Foreign currency trans-
lation reserve

Accumulated loss

 Total equity attributable to equity shareholders of the company

 Non-Controlling interests

 Total Equity


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

Balance at
31 March 2021

8,466

189,598

114,635

 (36)

37

 (213,263)

99,437

37,166

136,603











Profit/(Loss) for the year

-

-

 (268)

-

-

966

698

 (926)

 (228)

Other comprehensive income for the year

-

-

-

-

213

-

213

-

213

Share based payments

-

-

-

-

-

533

533

-

533

Shares issued

1,153

-

-

31

-

 (31)

1,153

-

1,153

Premium on shares issued

-

35,531

-

-

-

-

35,531

-

35,531

Share issue costs

-

 (2,094)

-

-

-

-

 (2,094)

-

 (2,094)











Balance at
30 Sept 2021(unaudited)

9,619

223,035

114,367

 (5)

250

 (211,795)

135,471

36,240

171,711

 










Profit/(Loss) for the year

-

-

-

-

-

1,372

1,372

 (714)

658

Other comprehensive income for the year

-

-

334

-

 (60)

-

274

-

274

Share based payments

-

-

-

-

-

 (70)

 (70)

-

 (70)

Shares issued

19

-

-

 (1)

-

 (12)

6

-

6

Premium on shares issued

-

391

-

-

-

-

391

-

391

Share issue costs

-

 (100)

-

-

-

-

 (100)

-

 (100)











Balance at
31 March 2022

9,638

223,326

114,701

 (6)

190

 (210,505)

137,344

35,526

172,870

 










Profit/(Loss) for the year

-

-

-

-

-

 (26,526)

 (26,526)

 (30,177)

(56,703)

Other comprehensive income for the year

-

-

90

-

67

-

157

-

157

Share based payments

-

-

-

-

-

462

462

-

462

Shares issued

705

-

-

-

-

 (15)

690

-

690

Premium on shares issued

-

19,422

-

-

-

-

19,422

-

19,422

Share issue costs

-

 (1,086)

-

-

-

-

 (1,086)

-

 (1,086)











Balance at
30 Sept 2022(unaudited)

10,343

241,662

114,791

 (6)

257

 (236,584)

130,463

5,349

135,812

 

 

 

Share capital is the amount subscribed for shares at nominal value (note 10).

 

Share premium account represents the excess of the amount subscribed for share capital over the nominal value of these shares, net of share issue expenses. Share issue expenses comprise the costs in respect of the issue by the Company of new shares.

 

See note 11 for details concerning other reserves.

 

Non-controlling interests relates to the investment of various parties into Tricoya Technologies Limited and Tricoya UK Limited (note 7).

 

Foreign currency translation reserve arises on the re-translation of the Group's USA subsidiary's net assets which are denominated in a different functional currency, being US dollars.

 

Accumulated losses represent the cumulative loss of the Group attributable to the owners of the parent.

 

The notes set out on pages 20 to 40 form an integral part of these condensed financial statements.

 



Accsys Technologies PLC

 

Condensed consolidated statement of cash flow for the six months ended 30 September 2022

 

 



Unaudited

Unaudited

Audited



6 months

6 months

Year



ended

ended

ended



30 Sept

30 Sept

31 March



2022

2021

2022



€'000

€'000

€'000

(Loss)/profit before taxation before exceptional items and other adjustments

 

 (564)

 (265)

1,305

Adjustments for:

 

 

 


Amortisation of intangible assets


389

366

745

Depreciation of property, plant and equipment and right of use assets


3,095

2,643

5,419

Net (gain) on disposal of property, plant and equipment


 (3)

-

-

Net finance expense


1,493

1,722

2,891

Equity-settled share-based payment expenses


462

533

463

Accsys portion of Licence fee received from joint venture


-

-

600

Share of net loss of joint venture


403

91

261

Currency translation gain/(loss)


 (116)

 (93)

 (171)






Cash inflows from operating activities before changes in working capital and exceptional items

 

5,159

4,997

11,513

 

 




Exceptional Items in operating activities (see note 4)

 

 (484)

 (133)

 (133)


 




Cash inflows from operating activities before changes in working capital

 

4,675

4,864

11,380

 

 




Decrease/(increase) in trade and other receivables


5,550

255

 (5,058)

(Decrease) in deferred income


-

-

 (33)

(Increase) in inventories


 (11,982)

 (5,843)

 (8,110)

(Decrease)/Increase in trade and other payables


 (515)

1,186

4,034






Net cash from operating activities before tax

 

 (2,272)

462

2,213






Tax received

 

6

59

56






Net cash from operating activities

 

 (2,266)

521

2,269

Cash flows from investing activities

 




Investment in property, plant and equipment


 (22,595)

 (17,196)

 (44,612)

Foreign exchange deal settlement related to hedging of Hull capex


-

-

190

Investment in intangible assets


 (207)

 (463)

 (714)

Investment in joint venture


 (29,132)

 (1,186)

 (3,751)






Net cash used in investing activities

 

 (51,934)

 (18,845)

 (48,887)

Cash flows from financing activities

 




Proceeds from loans


10,000

-

54,500

Other finance costs


 (173)

 (36)

 (392)

Interest Paid


 (992)

 (1,251)

 (2,241)

Repayment of lease liabilities


 (538)

 (504)

 (1,089)

Repayment of loans/rolled up interest


-

 (2,097)

 (46,939)

Proceeds from issue of share capital/sale of own shares


20,112

36,684

37,094

Share issue costs


 (1,086)

 (2,094)

 (2,194)






Net cash from financing activities

 

27,323

30,702

38,739

Net (decrease)/increase in cash and cash equivalents

 

 (26,877)

12,378

 (7,879)

Effect of exchange gain/(loss) on cash and cash equivalents


2,946

945

2,335

Opening cash and cash equivalents

 

42,054

47,598

47,598






Closing cash and cash equivalents

 

18,123

60,921

42,054

 

The notes set out on pages 20 to 40 form an integral part of these condensed financial statements.



 

Accsys Technologies PLC

 

Notes to the financial statements for the six months ended 30 September 2022

 

1.  Accounting policies

 

General Information

 

The principal activity of the Group is the production and sale of Accoya® solid wood and exploitation of technology for the production and sale of Accoya® wood and Tricoya® wood chips. Manufactured through the Group's proprietary acetylation processes, these products exhibit superior dimensional stability and durability compared with alternative natural, treated and modified woods as well as more resource intensive man-made materials.

 

The Company is a public limited company, which is listed on AIM in the United Kingdom and Euronext in the Netherlands, and is domiciled in the United Kingdom. The registered office is Brettenham House, 19 Lancaster Place, London, WC2E 7EN.

 

The condensed consolidated financial statements were approved for release on 22 November 2022. These condensed consolidated financial statements have not been audited.

 

Basis of accounting 

 

The Group's condensed consolidated financial statements in these interim results have been prepared in accordance with IFRS issued by the International Accounting Standards Board as endorsed by the European Union and as adopted for use in the United Kingdom, in particular International Accounting Standard (IAS) 34 "interim financial reporting" and the AIM Rules for Companies and the Dutch Financial Markets Supervision Act.

 

On 31 December 2020, IFRS as adopted by the European Union at that date, was brought into UK law and became UK-adopted International Accounting Standards, with future changes being subject to endorsement by the UK Endorsement Board. The Group transitioned to UK-adopted International Accounting Standards in its consolidated financial statements on 1 April 2021. This change constitutes a change in accounting framework. However, there is no impact on recognition, measurement or disclosure in the period reported as a result of the change in framework.

 

The financial information for the six months ended 30 September 2022 and the six months ended 30 September 2021 is unaudited. The comparative financial information for the full year ended 31 March 2022 does not constitute the Group's statutory financial statements for that period although it has been derived from the statutory financial statements for the year then ended. A copy of those statutory financial statements has been delivered to the Registrar of Companies and which were approved by the Board of Directors on 30 June 2022. The auditors' report on those accounts was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. This financial information is to be read in conjunction with the annual report for the year ended 31 March 2022, which has been prepared in accordance with both International Accounting Standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union.

 

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

 

In preparing these interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 March 2022. The results for the six months ended 30 September 2021 have been restated to show a reclassification of an other adjustment of €847,000 from the Hedge effectiveness reserve to Finance Expenses. This amount relates to a foreign exchange gain on Cash held for investment into our USA Joint Venture and has been reclassed following the accounting treatment followed in the results for the year ended 31 March 2022. (see note 4).

 

Accounting policies

 

No new accounting standards, amendments or interpretations have been adopted in the period which have any impact on these condensed financial statements, or are expected to affect the Group's 2023 Annual Report. The accounting policies applied for preparation of condensed consolidated financial statements are consistent with those of the annual financial statements for the year ended 31 March 2022, as described in those financial statements.

 



 

1.  Accounting policies (continued)

 

Going concern

 

These condensed consolidated financial statements are prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future, and at least 12 months from the date these financial statements are approved.

 

As part of the Group's going concern review, the Directors have assessed the Group's trading forecasts, working capital requirements and covenant compliance for the foreseeable future under a base case scenario, taking into account the Group's financial resources including the current cash position and banking and finance facilities which are currently in place.  The Directors have also assessed a severe but plausible downside scenario with reduced sales volumes and lower gross margin, also reflecting the possible impact of volatile raw material costs.

 

These forecasts indicate that, in order to continue as a going concern, the Group is dependent on achieving certain operating performance measures relating to the production and sales of Accoya® wood from the plant in Arnhem with the collection of on-going working capital items in line with internally agreed budgets.  In both scenarios, the Directors have assumed no commitment will be made to complete the construction and start-up of the Tricoya® plant in Hull until appropriate funding arrangements have been put in place.

 

The Directors' have taken into account the reorganisation of the Tricoya consortium and restructuring of its bank debt completed in November 2022 which resulted in Accsys becoming the 100% owner of the Tricoya plant and with a commitment to fund the balance of the €8m loan which was previously put in place. 

 

The Directors' have also considered the possible amount and timing of capital expenditure required to complete the Accoya® plant in the USA, noting that notwithstanding that the construction project benefits from certain contractual measures in place with the lead construction contractor, Accsys has guaranteed to fund its 60% share of cost overruns, should they arise.

 

The Directors believe there are a sufficient number of alternative actions and measures within the control of the Group that can and would be taken in order to ensure on-going liquidity including reducing/deferring costs in some discretionary areas as well as larger capital projects if necessary.

 

The Directors believe that while some uncertainty always inherently remains in achieving the budget, in particular in relation to market conditions outside of the Group's control, under both the base scenario and severe but plausible downside scenario, there is sufficient liquidity and covenant headroom such that there is no material uncertainty with respect to going concern and have prepared the financial statements on this basis.



 

2.  Segmental reporting

 

The Group's business is the manufacturing of and development, commercialisation and licensing of the associated proprietary technology for the manufacture of Accoya® wood, Tricoya® wood chips and related acetylation technologies. Segmental reporting is divided between corporate activities, activities directly attributable to Accoya ® , to Tricoya ® or research and development activities. The Group's operating segments are reported in a manner consistent with the internal reporting provided to the executive committee, the chief operating decision-making body.

 

Accoya ®


Accoya® Segment


6 months ended 30 September 2022

Underlying

6 months ended 30 September 2022

Exceptional items & Other Adjustments

6 months ended 30 September 2022

TOTAL

6 months ended 30 September 2021

Underlying

6 months ended 30 September 2021

Exceptional items & Other Adjustments

6 months ended 30 September 2021

TOTAL

12 months ended 31 March
2022

Underlying

12 months ended 31 March
2022

Exceptional items & Other Adjustments

12 months ended 31 March
 2022

TOTAL


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

Accoya® wood revenue

51,088

-

51,088

48,465

-

48,465

105,053

-

105,053

Licence revenue

-

-

-

-

-

-

400

-

400

Other revenue

7,584


7,584

6,895


6,895

13,879

-

13,879

Total Revenue

58,672

-

58,672

55,360

-

55,360

119,332

-

119,332

 



 



 



 

Cost of sales

 (40,580)

-

 (40,580)

 (38,184)

-

 (38,184)

 (83,435)

-

 (83,435)

 



 



 



 

Gross profit

18,092

-

18,092

17,176

-

17,176

35,897

-

35,897

 



 



 



 

Other operating costs

 (10,035)

-

 (10,035)

 (9,097)

 (133)

 (9,230)

 (19,116)

 (133)

 (19,249)

 



 



 




Profit from operations

8,057

-

8,057

8,079

 (133)

7,946

16,781

 (133)

16,648




 



 



 




 



 



 

Profit from operations

8,057

-

8,057

8,079

 (133)

7,946

16,781

 (133)

16,648

Share of Accoya® USA EBITDA

 (403)

-

-

 (91)

-

-

 (261)

-

-

EBIT

7,654

-

8,057

7,988

 (133)

7,946

16,520

 (133)

16,648

Depreciation and amortisation

2,786

-

2,786

2,297

-

2,297

4,787

-

4,787

EBITDA

10,440

-

10,843

10,285

 (133)

10,243

21,307

 (133)

21,435

 

Revenue includes the sale of Accoya®, licence income and other revenue, principally relating to the sale of acetic acid and other licensing related income.

 

All costs of sales are allocated against manufacturing activities in Arnhem and in Barry (Wales) unless they can be directly attributable to a licensee. Other operating costs include depreciation of the Arnhem and Barry property, plant and equipment together with all other costs associated with the operation of the Arnhem and Barry manufacturing site, including directly attributable administration, sales and marketing costs. 

 

See note 4 for explanation of Exceptional Items and other adjustments.

 

Average headcount = 168 (H1 FY22: 159)

 

The below table shows details of reconciling items to show both Accoya ® EBITDA and Accoya ® Manufacturing gross profit, both including and excluding licence and licensing related income, which has been presented given the inclusion of items which can be more variable or one-off.


6 months ended 30 September 2022

6 months ended 30 September 2021

Year ended 31 March 2022


€'000

€'000

€'000

Accoya® segmental underlying EBITDA

10,440

10,285

21,307

  Accoya® underlying Licence Income

-

-

 (400)

Accoya® segmental manufacturing EBITDA (excluding licence income)

10,440

10,285

20,907





Accoya® segmental gross profit

18,092

17,176

35,897

  Accoya® Licence Income

-

-

 (400)

Accoya® Manufacturing gross profit

18,092

17,176

35,497





Gross Accoya® Manufacturing Margin

30.8%

31.0%

30.0%

 

2.  Segmental reporting (continued)

 


6 months ended 30 September 2022

6 months ended 30 September 2021

Year ended 31 March 2022



 

 

 

Accoya® Manufacturing gross profit - €'000

18,092

17,176

35,497





Accoya® sales volume - m3

23,957

29,555

59,649





Accoya® manufacturing gross profit per m3

755

581

595

 

 

 

Tricoya®

 


Tricoya® Segment


6 months ended 30 September 2022

Underlying

6 months ended 30 September 2022

Exceptional items & Other Adjustments

6 months ended 30 September 2022

TOTAL

6 months ended 30 September 2021

Underlying

6 months ended 30 September 2021

Exceptional items & Other Adjustments

6 months ended 30 September 2021

TOTAL

12 months ended 31 March
2022

Underlying

12 months ended 31 March
2022

Exceptional items & Other Adjustments

12 months ended 31 March
 2022

TOTAL


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

Tricoya® panel revenue

201

-

201

860

-

860

1,459

-

1,459

Licence revenue

11

-

11

9

-

9

16

-

16

Other revenue

-

-

-

6

-

6

45

-

45

Total Revenue

212

-

212

875

-

875

1,520

-

1,520

 



 



 



 

Cost of sales

 (162)

-

 (162)

 (848)

-

 (848)

 (1,417)

-

 (1,417)

 



 



 



 

Gross profit

50

-

50

27

-

27

103

-

103

 



 



 



 

Other operating costs

 (1,733)

 (57,997)

 (59,730)

 (2,028)

 (18)

 (2,046)

 (3,811)

 (3)

 (3,814)

 



 



 




Loss from operations

 (1,683)

 (57,997)

 (59,680)

 (2,001)

 (18)

 (2,019)

 (3,708)

 (3)

 (3,711)




 



 



 




 



 



 

Loss from operations

 (1,683)

 (57,997)

 (59,680)

 (2,001)

 (18)

 (2,019)

 (3,708)

 (3)

 (3,711)

Depreciation and amortisation

258

58,000

58,258

262

-

262

505

-

505

EBITDA

 (1,425)

3

 (1,422)

 (1,739)

 (18)

 (1,757)

 (3,203)

 (3)

 (3,206)













 

Revenue and costs are those attributable to the business development of the Tricoya® process and establishment of Tricoya® Hull Plant.

 

See note 4 for explanation of Exceptional Items and other adjustments.

 

Average headcount = 31 (H1 FY22: 36), noting a substantial proportion of the costs to date have been incurred via recharges from other parts of the Group or have resulted from contractors.

 

 

 

 

 

 

 

 



 

2.  Segmental reporting (continued)

 

Corporate 

 

Corporate Segment


6 months ended 30 September 2022

Underlying

6 months ended 30 September 2022

Exceptional items & Other Adjustments

6 months ended 30 September 2022

TOTAL

6 months ended 30 September 2021

Underlying

6 months ended 30 September 2021

Exceptional items & Other Adjustments

6 months ended 30 September 2021

TOTAL

12 months ended 31 March
2022

Underlying

12 months ended 31 March
2022

Exceptional items & Other Adjustments

12 months ended 31 March
 2022

TOTAL


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000




 



 



 

Total Revenue

-

-

-

-

-

-

-

-

-

 



 



 



 

Cost of sales

-

-

-

-

-

-

-

-

-

 



 



 



 

Gross result

-

-

-

-

-

-

-

-

-

 



 



 



 

Other operating costs

 (4,277)

 (484)

 (4,761)

 (3,908)

-

 (3,908)

 (7,430)

-

 (7,430)

 



 



 




Loss from operations

 (4,277)

 (484)

 (4,761)

 (3,908)

-

 (3,908)

 (7,430)

-

 (7,430)




 



 



 




 



 



 

Profit/(Loss) from operations

 (4,277)

 (484)

 (4,761)

 (3,908)

-

 (3,908)

 (7,430)

-

 (7,430)

Depreciation and amortisation

406

-

406

416

-

416

805

-

805

EBITDA

 (3,871)

 (484)

 (4,355)

 (3,492)

-

 (3,492)

 (6,625)

-

 (6,625)

 

Corporate costs are those costs not directly attributable to Accoya®, Tricoya® or Research and Development activities. This includes management and the Group's corporate and general administration costs including the head office in London. 

 

See note 4 for explanation of Exceptional Items and other adjustments.

 

Average headcount = 32 (H1 FY22: 36).

 

Research and Development

 

Research & Development Segment


6 months ended 30 September 2022

Underlying

6 months ended 30 September 2022

Exceptional items & Other Adjustments

6 months ended 30 September 2022

TOTAL

6 months ended 30 September 2021

Underlying

6 months ended 30 September 2021

Exceptional items & Other Adjustments

6 months ended 30 September 2021

TOTAL

12 months ended 31 March
2022

Underlying

12 months ended 31 March
2022

Exceptional items & Other Adjustments

12 months ended 31 March
 2022

TOTAL


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000




 



 



 

Total Revenue

-

-

-

-

-

-

-

-

-

 



 



 



 

Cost of sales

-

-

-

-

-

-

-

-

-

 



 



 



 

Gross result

-

-

-

-

-

-

-

-

-

 



 



 



 

Other operating costs

 (728)

-

 (728)

 (621)

-

 (621)

 (1,184)

-

 (1,184)

 



 



 




Loss from operations

 (728)

-

 (728)

 (621)

-

 (621)

 (1,184)

-

 (1,184)




 



 



 




 



 



 

Loss from operations

 (728)

-

 (728)

 (621)

-

 (621)

 (1,184)

-

 (1,184)

Depreciation and amortisation

34

-

34

34

-

34

68

-

68

EBITDA

 (694)

-

 (694)

 (587)

-

 (587)

 (1,116)

-

 (1,116)

 

Research and Development costs are those associated with the Accoya® and Tricoya® processes. Costs exclude those which have been capitalised in accordance with IAS 38. (see note 8). 

 

See note 4 for explanation of Exceptional Items and other adjustments.

 

Average headcount = 14 ( H1 FY22 : 9).

 



 

2.  Segmental reporting (continued)

 

Total


TOTAL


6 months ended 30 September 2022

Underlying

6 months ended 30 September 2022

Exceptional items & Other Adjustments

6 months ended 30 September 2022

TOTAL

6 months ended 30 September 2021

Underlying

6 months ended 30 September 2021

Exceptional items & Other Adjustments

6 months ended 30 September 2021

TOTAL

12 months ended 31 March
2022

Underlying

12 months ended 31 March
2022

Exceptional items & Other Adjustments

12 months ended 31 March
 2022

TOTAL


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000




 



 



 

Accoya® wood revenue

51,088

-

51,088

48,465

-

48,465

105,053

-

105,053

Tricoya® panel revenue

201

-

201

860

-

860

1,459

-

1,459

Licence revenue

11

-

11

9

-

9

416

-

416

Other revenue

7,584

-

7,584

6,901

-

6,901

13,924

-

13,924

Total Revenue

58,884

-

58,884

56,235

-

56,235

120,852

-

120,852

 



 



 



 

Cost of sales

 (40,742)

-

 (40,742)

 (39,032)

-

 (39,032)

 (84,852)

-

 (84,852)

 



 



 



 

Gross profit

18,142

-

18,142

17,203

-

17,203

36,000

-

36,000

 



 



 



 

Other operating costs

 (16,773)

 (58,481)

 (75,254)

 (15,655)

 (151)

 (15,806)

 (31,541)

 (136)

 (31,677)




 



 



 

Profit from operations

1,369

 (58,481)

 (57,112)

1,548

 (151)

1,397

4,459

 (136)

4,323




 



 



 

Finance expense

 (1,530)

2,699

1,169

 (1,722)

1,078

 (644)

 (2,893)

544

 (2,349)

Investment in joint venture

 (403)

-

 (403)

 (91)

-

 (91)

 (261)

-

 (261)




 



 



 

Profit/(Loss) before taxation

 (564)

 (55,782)

 (56,346)

 (265)

927

662

1,305

408

1,713

 

See note 4 for explanation of Exceptional Items and other adjustments.

 

Reconciliation of underlying earnings

 


Reconciliation of underlying earnings


6 months ended 30 September 2022

Underlying

6 months ended 30 September 2022

Exceptional items & Other Adjustments

6 months ended 30 September 2022

TOTAL

6 months ended 30 September 2021

Underlying

6 months ended 30 September 2021

Exceptional items & Other Adjustments

6 months ended 30 September 2021

TOTAL

12 months ended 31 March
2022

Underlying

12 months ended 31 March
2022

Exceptional items & Other Adjustments

12 months ended 31 March
 2022

TOTAL

 


€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

€'000

 




 



 



 

 

Profit from operations

1,369

 (58,481)

 (57,112)

1,548

 (151)

1,397

4,459

 (136)

4,323

 

Share of Accoya® USA EBITDA

 (403)

-

-

 (91)

-

-

 (261)

-

-

 

EBIT

966

 (58,481)

 (57,112)

1,457

 (151)

1,397

4,198

 (136)

4,323

 

 



 



 



 

 

Depreciation and amortisation

3,484

58,000

61,484

3,009

-

3,009

6,164

-

6,164

 

 



 



 



 

 

EBITDA

4,450

 (481)

4,372

4,466

 (151)

4,406

10,362

 (136)

10,487

 

 


 

2.  Segmental reporting (continued)

 

 

Segmental reporting continued

 

Assets and liabilities on a segmental basis:


Accoya®

Tricoya®

Corporate

R&D

TOTAL


Sept 2022

Sept 2022

Sept 2022

Sept 2022

Sept 2022


€'000

€'000

€'000

€'000

€'000

Non-current assets

122,915

55,803

4,390

195

183,303






 

Current assets

35,276

3,827

23,141

69

62,313






 

Current liabilities

 (10,998)

 (32,006)

 (7,718)

 (66)

 (50,788)






 

Net current assets

24,278

 (28,179)

15,423

3

11,525






 

Non-current liabilities

 (2,547)

 (1,174)

 (55,210)

 (85)

 (59,016)






 

Net assets

144,646

26,450

 (35,397)

113

135,812

 





 


Accoya®

Tricoya®

Corporate

R&D

TOTAL


Sept 2021

Sept 2021

Sept 2021

Sept 2021

Sept 2021


€'000

€'000

€'000

€'000

€'000

Non-current assets

78,153

79,895

4,399

262

162,709






 

Current assets

44,766

9,425

34,194

3,440

91,825






 

Current liabilities

 (19,198)

 (10,766)

 (11,599)

 (95)

 (41,658)






 

Net current assets

25,568

 (1,341)

22,595

3,345

50,167






 

Non-current liabilities

 (20,006)

 (10,188)

 (10,836)

 (135)

 (41,165)






 

Net assets

83,715

68,366

16,158

3,472

171,711

 





 


Accoya®

Tricoya®

Corporate

R&D

TOTAL


March 2022

March 2022

March 2022

March 2022

March 2022


€'000

€'000

€'000

€'000

€'000

Non-current assets

91,278

99,718

4,119

228

195,343






 

Current assets

36,899

4,425

33,452

5,021

79,797






 

Current liabilities

 (19,399)

 (21,112)

 (5,156)

 (75)

 (45,742)






 

Net current assets

17,500

 (16,687)

28,296

4,946

34,055






 

Non-current liabilities

 (2,826)

 (1,252)

 (52,339)

 (111)

 (56,528)






 

Net assets

105,952

81,779

 (19,924)

5,063

172,870

 

 

The segmental assets in the current year were predominantly held in the UK and mainland Europe (Prior Year UK and mainland Europe). Additions to property, plant, equipment and intangible assets in the current year were predominantly incurred in the UK and mainland Europe (Prior Year UK and mainland Europe). There are no significant intersegment revenues.



 

2.  Segmental reporting (continued)

 

Segmental reporting continued

 

Analysis of revenue by geographical destination:

   

 

Unaudited

Unaudited

Audited


6 months

6 months

Year


ended

ended

ended


30 Sept

30 Sept

31 March


2022

2021

2022


€'000

€'000

€'000





 UK & Ireland

21,182

21,484

43,053

 Rest of Europe

22,400

22,557

45,980

 Americas

11,084

7,940

21,069

 Rest of World

4,218

4,254

10,750


58,884

56,235

120,852

 

 

Sales to UK and Ireland include the sales to MEDITE.

 

3.  Other operating costs

 

Other operating costs consist of the operating costs, other than the cost of sales, associated with the operation of the plant in Arnhem, the site in Barry, the offices in Dallas and London and certain pre-operating costs associated with the plant in Hull:

 




Unaudited

Unaudited

Audited




6 months

6 months

Year




ended

ended

ended




30 Sept

30 Sept

31 March




2022

2021

2022




€'000

€'000

€'000







Sales and marketing


2,200

2,483

5,121

Research and development


694

587

1,116

Other operating costs


4,491

3,907

6,856

Administration costs


5,904

5,669

12,284

Exceptional Items and other adjustments (refer to note 4)

481

151

136







Other operating costs excluding depreciation and amortisation

13,770

12,797

25,513







Depreciation and amortisation


3,484

3,009

6,164

Impairment loss



58,000

-

-







Total other operating costs


75,254

15,806

31,677

 

 

Administrative costs include costs associated with Business Development and Legal departments, Intellectual Property as well as Human Resources, IT, Finance, Management and General Office and include the costs of the Group's head office costs in London and the US office in Dallas.

 

The total cost of €75.3m in the current period includes €1.7m in respect of Tricoya® segment (H1 FY22: €2.0m) and €58m related to the impairment of the Tricoya segment assets, see note 4.

 

Group average employee headcount increased to 245 in the period to 30 September 2022, from 241 in the period to 30 September 2021.

 

During the period, €207,000 (H1 FY22: €408,000) of internal development & patent related costs were capitalised and included in intangible fixed assets, including €154,000 (H1 FY22: €301,000) which were capitalised within Tricoya Technologies Limited ('TTL'). In addition, €114,000 of internal costs have been capitalised in relation to our Arnhem Accoya® plant expansion project (H1 FY22: €187,000) and €566,000 of internal costs have been capitalised in relation to our plant build in Hull, UK (H1 FY22: €389,000). Both are included within tangible fixed assets.

 

 

4.  Exceptional Items and Other Adjustments

 

 

Unaudited

Unaudited

Audited


6 months

6 months

Year


ended

ended

ended


30 Sept

30 Sept

31 March


2022

2021

2022


€'000

€'000

€'000

Redundancy costs in relation to purchase of assets to grow Accoya® Color production

-

 (133)

 (133)

Early termination of loans -  redemption fee & accelerated amortisation of transaction costs

-

-

 (1,619)

Advisor fees in relation to Tricoya consortium reorganisation

 (484)

-

-

Impairment of the Tricoya segment assets

 (58,000)

-

-





Total exceptional items

 (58,484)

 (133)

 (1,752)





Foreign exchange differences arising on Tricoya® cash held - Operating costs (loss)/profit

3

 (18)

 (3)

Foreign exchange differences arising on Loan Notes - incl. in Finance expense profit/(loss)

-

231

231

Foreign exchange differences on cash held - Other comprehensive profit/(loss)

167

 (240)

8

Foreign exchange differences on Corporate USD cash held for investment in to USA JV- incl. in Finance expense

1,380

847

2,080

Revaluation of USD cash pledged to ABN Amro - incl. in Finance expense

1,319

-

 (148)

Revaluation of FX forwards used for cash-flow hedging - Other comprehensive (loss)/profit

 (77)

 (28)

58





Total other adjustments

2,792

792

2,226





Tax on exceptional items and other adjustments

-

-