Accsys reports Q1 revenue growth amid 'good demand'

4th Sep 2024 09:31

(Sharecast News) - Wood building materials supplier Accsys Technologies said on Wednesday that it had experienced "good demand and revenue growth" in the first quarter as it commenced commercial operations in the USA.

Accsys said Q1 revenues were up 3% year-on-year at €35.9m, despite global market headwinds for the construction and building materials industry, as the North American market, the group's largest growth area, experienced "solid growth".

The AIM-listed group also highlighted that it was realising the impact of the €3.0m annualised cost savings from its business transformation programme and embedded cost discipline and stated it had made a "good start" to Q2, with a healthy order book across the regions, providing confidence that it was back on a growth trajectory.

Accsys added that Accoya USA has now commenced commercial operations, with its newly constructed plant in Kingsport Tennessee, owned 60:40 by Accsys and Eastman Chemical, marking a "key step" in the group's goal of delivering volume of 100,000m³ within the next three years from its production facilities at Arnhem and Kingsport.

Chief executive Dr Jelena Arsic van Os said: "We have successfully established a local presence for our North American customers. This significant international expansion marks a major milestone for Accsys and Accoya USA. With this proximity, we can efficiently serve the largest and most attractive wood market in the world with Accoya, the most durable and stable wood in the marketplace. This achievement is a crucial step forward for our company.

"Furthermore, Q1 trading performance has been solid, continuing momentum from Q4 of our last financial year. This trend has continued into Q2 and our order book is healthy across our markets."

As of 1055 BST, Accsys shares were up 3.52% at 53.83p.

Reporting by Iain Gilbert at Sharecast.com