Business
Quarterly Performance Update
Quarterly Performance Update.
About this update from Accsys Technologies Plc
[{"type":"text","content":"\n Accsys Technologies PLC\n12 February 2008\n\n12th February 2008\n\n AIM: AXS\n NYSE Euronext Amsterdam: AXS\n\n\n Quarterly Performance Update\n\n\nAccsys Technologies PLC ('Accsys' or 'the Company') announces its quarterly\nstatement for the period to 31st December 2007.\n\nThe most significant event for the Group during the quarter was the signing of a\nlicense agreement with Diamond Wood China Limited ('Diamond Wood'), in respect\nof rights to manufacture Accoya(R) wood in The People's Republic of China for an\nannual nameplate capacity of 500,000 cubic metres of production. This provided\nfor an initial payment of €9.5 million. This project will generate further\nlicense income of €90 million, phased over the construction and commissioning\nperiod, budgeted over a four year time frame by the Company.\n\nThe signing of the Diamond Wood license triggered the recognition for revenue\npurposes of the received but unrecognised €8.0 million balance in relation to a\npreviously announced License Agency Agreement.\n\nThe Group also announced the signing of a Licence Option Agreement with Al Rahji\nHoldings WLL for an annual nameplate capacity of 150,000 cubic metres of\nproduction of Accoya(R). This agreement provides conditional exclusivity in\nrespect of the Kingdom of Saudi Arabia, United Arab Emirates, Bahrain, Oman,\nQatar and Kuwait, collectively the Gulf Co-operation Committee ('GCC') states.\n\nThe Group's Accoya(R) production facilities in Arnhem, the Netherlands, which is\na technology validation plant run as a commercial scale operation, continued an\nactive development programme. Operations combined production for end use\ncustomers and prospective licensees, species testing and certain other product\ndevelopment activities. A highly reputable process certification agency has been\nselected to undertake detailed certification of the Group's acetylation process.\nThis will provide validation for prospective licensees of materials and\nutilities consumption factors for specified wood species and wood\nspecifications. Quarter on quarter production of Accoya(R) rose 65%, commercial\nsales volumes rose 36% and gross revenue rose 34%.\n\nWilly Paterson-Brown, Executive Chairman of Accsys commented, 'This last quarter\nof 2007 saw good progress made on a number of fronts, and the year ahead is full\nof promise. Approac...