Accsys Technologies (AXS) H2 2024 earnings summary

Executive summary

• Delivered full-year results ahead of market expectations despite macroeconomic headwinds and subdued construction demand, with a focus on transformation and sustainable growth initiatives.

• Successfully raised €34 million in funding, including €24 million in fresh capital, reducing net debt by €7 million year-over-year.

• Transformation program reduced cost base by 19% in H2 year-over-year, delivering €2.7 million in cost reductions, with further annualized savings expected.

• Achieved mechanical completion of the Kingsport plant in the U.S., adding 43,000m³ capacity and doubling production capacity in under two years.

• Strategic focus on operational excellence, capital efficiency, and leveraging growth platforms for future expansion.

Financial highlights

• Revenue for FY24 was €136.2 million, down 16% year-over-year, with sales volume at 56,568 cubic meters, down 11%.

• Gross margin was 30%, down from 34% in FY23 and at the lower end of the historical range.

• Underlying EBITDA was €4.8 million, a 78% decline from €22.9 million in FY23; free cash flow improved to €3.7 million from an outflow of €13.6 million last year.

• Net debt at year-end was €37.1 million, reduced from €44.1 million year-over-year.

• Tricoya segment EBITDA was €20.6 million, down from the prior year.

Outlook and guidance

• FY25 expected to be transitional, with ramp-up at Kingsport and transfer of U.S. volume from Arnhem, targeting double-digit growth in production volumes.

• Aiming for 100,000 cubic meters annual run rate by FY27.

• Committed to delivering €3 million in annualized cost savings in FY25.

• CapEx for FY25 to be modest at €3–4 million, focused on operational improvements.

• Resolution on Hull plant expected by end of H1 FY25.