Accsys to raise EUR 20m ahead of 'pivotal year'

Chemistry and technology-focussed wood building products developer Accsys announced plans to raise gross proceeds of €20m (£17.07m), to strengthen its balance sheet, increase its headroom, and fund additional costs at Arnhem.

The AIM-traded firm said it would raise the funds through a placing and subscription for new shares at a price of 145 euro cents each.

It said the net proceeds would be used to strengthen its balance sheet, increase liquidity headroom, and fund additional costs to complete the Arnhem Plant Reactor 4 (R4) capacity expansion.

The Issue would also provide increased working capital in the 2023 financial year, to support the wider Accsys organisation in what the board called a “pivotal year”, as the equivalent of an additional 60,000 cubic metres of new capacity projects were due to come online in the next three months, increasing the group’s total capacity to 120,000 cubic metres.

Accsys chairman Stephen Odell, chief executive officer Rob Harris, and non-executive director Nick Meyer intended to subscribe for new shares at the issue price, representing a total investment of £0.23m.

“We are very excited to approach the completion of the R4 and Hull projects in the next three months, which brings the opportunity to enhance profitability through economies of scale as we double production capacity across Accsys,” said CEO Rob Harris.

“Demand for our high-performance and sustainable building products, Accoya and Tricoya, remains strong, and Accsys continues to deliver its targeted fivefold increase in production capacity to 200,000 cubic metres by 2025.”

At 1229 BST, shares in Accsys Technologies were down 8.38% at 123p.

Reporting by Josh White at Sharecast.com.