Accsys Technologies - Warning of lower demand
In its trading update for the first four months of FY24, Accsys warned of weaker building materials and construction markets, caused by the higher interest rates and high inflation environment. Distributors are facing significantly lower volumes and high levels of destocking, which is now also felt by Accsys. Assuming market uncertainty continues, Accsys expects FY24 revenue to be below consensus and EBITDA to be significantly below consensus. We contacted the company and according to management it expects to be (just) compliant with debt covenants. On lowered estimates and a raised risk profile, our discounted cash flow (DCF) now points at a value of €0.93 per share (previously €1.25).Accsys Technologies is a holding company. Through its subsidiaries, Co. is a chemical technology group focused on the development and commercialization of a range of transformational technologies based upon the acetylation of solid wood and wood elements (wood chips, fibres and particles) for use as construction materials. Co.'s business consists of the following: commercial scale Accoya® wood production and sales facility in Arnhem; building and operating of Tricoya® wood chip acetylation plant in Hull; Accoya and Tricoya technology licensing and business development; and technology and product development.
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