Accsys Technologies (AXS) H1 2025 earnings summary

Executive summary

• Achieved strong H1 FY25 performance with 10% increase in Accoya sales volumes to 31,553m³, driven by transformation initiatives and operational efficiencies, outpacing flat building markets.

• Opened second production site in Kingsport, Tennessee, via US JV, adding 43,000m³ capacity and supporting North American growth.

• Discontinued Hull (Tricoya UK) plant, incurring €3.9m restructuring cost and €18m non-cash impairment, with expected annual savings of €3m.

• Business transformation program delivered €2.5m in cost savings and improved agility.

• Appointment of Sameet Vohra as CFO.

Financial highlights

• Aggregated revenue (including JV) up 4% to €74.1m; group revenue €72.2m (+1%); gross profit up 9% to €22.2m; gross margin improved 210bps to 30.7%.

• Adjusted EBITDA more than doubled to €4.0m (H1 FY24: €1.6m); underlying EBITDA €8.3m.

• Net debt at €40.2m, mainly due to €7.2m investment in US JV; free cashflow improved to €8.1m inflow.

• Statutory loss before tax: €26.2m, reflecting exceptional items from Hull closure.

• Operational cost savings of €2.5m achieved compared to last year.

Outlook and guidance

• Full-year results expected to be significantly ahead of market consensus for FY25 Adjusted EBITDA (€7.6m), with continued sales volume growth and improved profitability as US JV ramps up.

• Focus on maximizing sales and marketing from Arnhem and Kingsport, expanding commercial presence in North America and Europe.

• Investor strategy day scheduled for January 30, 2025.

• Targeting 100,000m³ sales volume run rate by end of FY27.