Preliminary Results FY2026

RNS Number : 3911I Accsys Technologies PLC 16 June 2026

("Accsys", the "Group" or the "Company")

The manufacturer of high performance and sustainable Accoya wood

The comparative period, FY25, included 3,802m³ of Group sales to North America. Since the start-up of Accoya USA in September 2024 all North American sales are served by the JV. The like-for-like change in sales volumes and revenues excludes the effect of these sales from the FY25 Group comparators whilst including them within the FY25 JV sales volumes comparator.

²Accsys has a 60% shareholding in Accoya USA LLC, a joint venture (JV) with Eastman Chemical Company which commenced operations during H1 FY25. Whilst the JV is equity accounted for financial reporting purposes, the aggregated revenue figure includes 60% of the JV revenue.

³At constant exchange rates, aggregated revenue growth would be +26%

⁴Underlying EBITDA being EBITDA excluding exceptional items & excludes Accsys' share of results relating to Accoya USA JV

⁵Adjusted EBITDA being earnings before interest, tax, depreciation, amortisation and exceptional items of Accsys plus 60% of the JV's EBITDA

⁶Underlying basic earnings/(loss) per share being basic earnings/(loss) per share before exceptional items

⁷Total sales volumes include all Group sales and 100% of sales from the JV. All sales volumes figures are unaudited

"This strong set of results reflects disciplined execution of our FOCUS strategy in a challenging macroeconomic environment. Accsys has transformed into a leaner and more effective organisation, driving record global Accoya sales volumes, significant revenue and profitability growth, and market share gains.

Our Accoya USA joint venture had a standout performance, delivering EBITDA profitability in its first full financial year of trading, reinforcing the strength of our strategic positioning in North America. We saw significant sales volumes growth of 60% for the region, supported by solid operational execution.

We are delivering on the commitments set out in Phase One of our FOCUS strategy, while remaining focused on innovation, increasing capacity utilisation and driving further sustainable improvements in profitability."

• 21% growth in total Accoya sales volumes delivered against challenging macroeconomic conditions:

  • Robust growth in all markets: +60% North America, +12% UK&I, +21% Rest of Europe and +9% Rest of World

  • Accoya for Tricoya volumes +8%

• Group revenues increased by 20% to €153m on a like-for-like basis, driven by solid trading performance across all regions, continued pricing discipline, and a favourable sales mix with a higher year-on-year proportion of Accoya Color sales reflecting robust demand

• Significant improvement in profitability:

  • Adjusted EBITDA increased by 96% to €21.2m (FY25: €10.8m) driven by higher revenues, increased gross profit margin, positive JV EBITDA and Hull costs being recognised in the prior year

  • Adjusted EBITDA margin increased by 430bps to 11.6%, close to Phase I FY27 target of 12%

  • Statutory loss before taxation improved from €20.8m to €0.6m

  • Underlying basic earnings per share of 2.1 cents (FY25: loss per share of 5.0 cents)

• Stand out performance from Accoya USA JV:

  • 178% increase in revenue (60% JV) to €30.3m (FY25: €10.9m)

  • JV achieved an EBITDA profit of €0.1m, representing a €6.1m swing in EBITDA profitability year-on-year

  • Management has successfully mitigated the impact of tariffs on imported lumber into the USA, introduced in October 2025

• Continued focus on capital allocation and deleveraging:

  • Net debt of €41.4m (FY25: €42.6m) with operating cash flow conversion of 75% (Phase I FY27 target: >75%).

  • Increase in working capital, reflecting higher inventory levels to ensure product availability needed to support strong demand and high customer service levels as well as investment in the JV to support its ramp-up

  • Free cash flow of €10.2m after expansionary growth and maintenance capital expenditure of €5.6m

  • Reduction in leverage ratio to 1.96x. Excluding convertible loan notes leverage ratio is 0.74x

Disciplined execution supports on track delivery of Phase I of the FOCUS strategy:

* Run rate reflects the annualised level of total sales based on Q4 volumes

** Adjusted EBITDA margin is adjusted EBITDA as a percentage of aggregated revenue

Sustainable profitable growth:

• Expanding market share and product offering:

  • FY26 sales volume run rate of 97,248m3 (FY25: 82,288m3) close to Phase I target of 100,000m3 for the end of FY27

  • Substantial growth for our premium Accoya Color product, with global sales volumes up 51%, supported by capacity expansion and operational improvements

  • Addition of 10 new distributors, with three in North America and Mexico

  • Launch of the Decking Collection, the Group's first range of finished Accoya products, broadening access to end customers

• Outstanding North America sales growth of 60% reinforces the strength of our strategic positioning in the USA

  Lean and efficient:

• Improvement in like-for-like gross profit margin of 130bps to 30.9%

• Continued cost control discipline with savings retained from the FY24 business transformation programme

• Strong progress on optimisation of existing assets: €2.6m acetyls storage expansion project successfully completed in Arnhem

  to increase production efficiency; production capacity increased at Accoya Color Barry site

  Reduce debt:

• Reduction in leverage ratio from 2.52x to 1.96x. Excluding CLNs, leverage ratio is 0.74x

• Refinancing completed in October 2025 with new debt facilities of €55m providing additional liquidity and strengthening the Group's financial position on improved terms

Accoya continues to be chosen for high profile projects including: 'Platform 37' Google HQ, London; the Edelman Fossil museum, USA and the Queen Elizabeth II Memorial Garden, London.

The Group remains focused on innovation, market share gains, increasing capacity utilisation and driving further sustainable improvements in profitability.

While macroeconomic conditions remain uncertain with some inflationary pressures arising from the conflict in the Middle East, we are well positioned to manage the potential impact through product differentiation, geographical diversification, and pricing discipline. The Board will continue to monitor developments closely and respond as appropriate.

Whilst mindful of the dynamic macroeconomic backdrop, trading is in line with the Board's expectations for FY27, and the Group is on track to deliver against its Phase I FOCUS targets.

A video overview of the results is available on the Accsys website: Accsys Annual Reports & Financial Results - Company Information

There will be a full year results presentation at 9.00am BST on 16 June 2026. The presentation will take the form of a webcast and conference call, details of which are below:

Webcast link (for audio and visual presentation): Click on the link below or copy and paste ALL of the following text into your browser:

https://edge.media-server.com/mmc/p/qnx3s4qe

Phone participants: for those participants who would like to ask a question live over the phone lines, please register on the following link. You will then be sent a confirmation email with a link to dial-in numbers.

https://register-conf.media-server.com/register/BIbc57362160614dc887333e53613a5c37

CEO Review Overview

FY26 was an excellent year for Accsys. We delivered strong strategic execution and a material improvement in financial performance, achieving record total Accoya sales volumes and significant growth in profits. North America delivered a standout performance with Accoya sales volumes growing 60%, underscoring the success of our US strategy and the value of local manufacturing. This performance resulted in the JV making an EBITDA profit for the Group in its first full financial year of trading. These results were achieved against continued challenging market conditions, highlighting our resilient and differentiated offering.

With continued disciplined execution of our FOCUS strategy, we are delivering on the commitments set out in Phase I 'Transform and

Improve', and we are on track to hit our Phase I strategic targets by the end of FY27.

Accsys has transformed into a leaner and more effective organisation, supported by strong fundamentals and a clear pathway to sustained profitability.

Financial performance

Significantly increased profitability and margin progress

FY26 was a year of significant top-line momentum, with Group revenues rising 12% to €153m (FY25: €137m) and increasing by 20% on a like-for-like basis*. This performance demonstrates strong underlying global Accoya demand, the resilience of our premium pricing and disciplined commercial execution. When including our 60% share of JV revenue, Accsys' aggregated revenues reached

€183m, up 24% year-on-year.

The Group gross profit margin increased to 30.9% (FY25: 30.3%), remaining above our 30.0% target.

EBITDA improved significantly with underlying EBITDA of €21.1m (FY25: €16.8m). This was driven by strong Group Accoya sales volumes and resilient pricing, improved gross profit margin, increased royalties received from the JV and Hull costs being recognised in the prior year. When including the share of profit from the JV, adjusted EBITDA increased year-on-year by 96% to €21.2m.

We reported a total statutory profit after tax of €6.5m in FY26, compared with a total statutory loss after tax of €22.9m in FY25, supported by a €7.0m tax credit in the year; excluding this, the Group's underlying loss before tax narrowed significantly to €1.9m (FY25: €9.9m) reflecting a substantial year-on-year improvement in the Group's underlying financial performance, the recognition of the closure costs of the Hull site in FY25, and significant improvements in the financial performance of the JV as it continues to ramp-up.

The adjusted EBITDA margin improved to 11.6% (FY25: 7.3%), which is only marginally below the FY27 Phase I target of 12.0%.

The JV performance improved substantially with total revenues climbing to €50.5m (FY25: €18.1m) and passing the EBITDA breakeven point, achieving an EBITDA profit of €0.2m (FY25: loss of €10.1m).

*Sales transferred to the Accoya USA JV, represented 7% of Group volumes in FY25

Cash generation, leverage and capital allocation

Net cash flows from operating activities increased by €5.1m to €15.8m (FY25: €10.7m), supported by higher underlying EBITDA and improved operating cash flow conversion of 75%, an increase of 11% vs FY25 and close to our FY27 target of >75%.

Balance sheet strength remains a priority and this has continued to improve, with the leverage ratio moving from 2.52x at 31 March 2025 to 1.96x at 31 March 2026, reflecting the material decrease in leverage over the last two years. Our capital allocation priority remains focused on debt reduction to further strengthen the Group's financial position.

Net debt reduced to €41.4m at 31 March 2026 (31 March 2025: €42.6m), reflecting improved cash flow from operations partially offset by capital expenditure on plant optimisation, including an acetyls expansion project in Arnhem, as well as higher inventory levels needed for sustained growth and planned investment in Accoya USA to support its ramp-up.

In October 2025, we successfully refinanced our debt facilities, strengthening our capital structure, enhancing financial flexibility and further de-risking the Group to support the next phase of execution. We were also pleased to partner, alongside ABN AMRO, with HSBC for the first time, a tier one bank of significant strength and reputation. The revised terms are expected to improve annual cash flow by €2m.

Executing our FOCUS strategy Transform and Improve

Phase I of our FOCUS strategy, FY24-FY27 is delivering tangible results, with clear capital allocation priorities, improved operational discipline and stronger financial control across the business. This Phase is focused on strengthening returns from our existing asset base, improving margins and cash generation, and reinforcing the foundations for sustainable profitability.

Our ambition is to build a consistently strong, operationally efficient business that delivers for all stakeholders.

Optimising our assets

In Arnhem, as part of our Solid Roots operational efficiency programme, we completed a €2.6m project 'Elm Tree II', enhancing our acetyls storage capabilities. This investment will further reduce downtime by increasing on-site storage capacity, allowing parallel anhydride feeding of the reactors and lowering dependence on timings of third-party deliveries. We have also invested in improved ventilation, lighting and noise reduction in the Arnhem stacker hall to enhance the working environment for colleagues.

At our Barry site we doubled production capacity by adding a second shift to meet the growing demand for our premium Accoya Color product and support the launch of the 'Accoya Decking Collection'. This strategic decision supported a 51% growth in Accoya Color sales globally.

At our joint venture, Accoya USA, accelerating sales and increasing capacity utilisation of our asset were key operational priorities during the year. Local manufacturing has reinforced longstanding customer confidence in Accoya availability and supported excellent sales growth. To further expand market coverage, we onboarded two new distributors covering key high-growth regions, including Florida, Texas and California, and appointed our first direct distributor in Mexico, broadening our reach in North America.

Commercial momentum

Total sales volumes increased by 21% to 77,237m³, significantly outperforming the wider building materials market, reflecting strong

customer demand and an expanded commercial footprint. We closed FY26 with a run rate of 97,248m³, reflecting the annualised level of total sales based on Q4 volumes, placing us firmly on track to achieve our 100,000m³ run rate target for the end of FY27.

Globally, Accoya's core demand continues to be driven by joinery, cladding and decking applications, while landscaping applications, including public spaces and gardens, represent a growing opportunity driven by low lifetime costs, positive in-use experience and proven long-term performance.

In North America, growth was primarily driven by longstanding customers gaining confidence in improved local supply. During the year we were pleased to deepen relationships with three large US window and door manufacturers, who are now adopting Accoya on a broader basis following extensive testing and small-scale projects. As these programmes scale, we expect their full benefit to be realised in FY27. Alongside this, our focus for FY27 is to fully embed the new distribution partners added during the year, helping them maximise sell-through and capture the opportunity from expanded coverage.

In mainland Europe, volumes increased by 21%, with particularly strong demand for decking in Central Europe. The UK and Ireland delivered continued double-digit growth, reflecting Accoya's strong reputation in joinery, while Australia and New Zealand performed well within Rest of World.

Our premium pricing power remains resilient, demonstrating the strength of the Accoya brand. In the US, the team effectively protected margins, managing the impact of tariffs on all imported lumber introduced in October 2025.

Globally our teams continued to promote awareness of Accoya amongst architects and end users via dedicated training, media outreach, social media and other marketing activities, including trade show presence.

During FY26, Accoya was featured in prominent international projects, including world-class museums, private residences, and notable landscaping initiatives. This includes Accoya being specified for the Queen Elizabeth II Memorial Park in London's Regent's Park, the façade of the soon-to-open Google landscraper in Kings Cross, London and for the façade of the Edelman Fossil Museum in New Jersey, USA.

Accoya for Tricoya continues to experience increased market growth, with demand expanding across mainland Europe and sales rising by 8% year over year.

Accoya has earned ongoing recognition from industry awards and was awarded Best Use of Treated Wood in Landscape at the Wood Protection Association awards 2025 for The National Autistic Garden, Carmine, Scotland.

Innovation to broaden customer adoption

Protecting our IP into the future remains a priority and this year we had 13 granted patents adding further protection to our core acetylation process and improvements on future Accoya and Tricoya technologies. Protection was also obtained for cleaning up our post-acetylation acid stream.

R&D investment of €1.2m focused on working with external partners to develop fire protection solutions, researching new wood species and enhancing our Accoya Color range. Building on last year's success with Accoya, an Accoya Color wall panel achieved compliance for use in Wildland Urban Interface (WUI) zones in the US, supporting adoption in the growing number of WUI-designated areas.

We are also working with coating partners on extended warranties - there are now several coatings companies offering warranties of 15 years for translucent and opaque finishes on Accoya, which is unique for the wood sector.

Health & Safety (HSE)

Health & Safety remains a top priority for the Group. LTIR (Lost-Time Incident Rate) reduced from 3.30 to 0.51, marking progress on our 'Zero Harm' ambition. FY26 saw the launch of a new health and safety video, continued roll out of our Life Saving Rules programme and bolstering of our teams at Arnhem and Barry with two new HSE leads, ensuring that we maintain the safety and wellbeing of our colleagues.

Sustainable growth

Responsible, sustainable growth is central to our vision and strategy. In November, we introduced "Accsys Cares," our first sustainability plan, setting commitments and targets based on our Double Materiality Assessment to support long-term value creation whilst reducing our impact.

We are proud to see our efforts recognised by the S&P Corporate Sustainability Assessment, in which we achieved a six point increase in our score to 62/100, maintaining our leadership position within the top 20% of companies in our industry sector.

Our products continued to make an impact. During FY26 our products captured 63,875 tonnes of carbon, equivalent to 6,882 homes' energy use in a year (US EPA). We continued our commitment to responsible sourcing, with 100% of wood sourced from certified sustainable sources (FSC® (CO12330), PEFC/16-37-2311, or equivalent).

Developing and engaging our teams

Our committed colleagues drive our success. Based on feedback from the FY25 Employee Engagement Survey, we continue to listen and enhance engagement and the employee experience, including supporting employee-led awards.

Our Learning Management System enabled consistent training delivery across the Group, with employees completing an average of

36.6 hours of training during FY26, supporting long-term capability, safety and compliance.

We close this record year with deep gratitude to our teams and leadership, whose commitment, resilience and belief in our direction have been the true drivers of our success. I am taking this opportunity to thank all our colleagues for their unwavering dedication, which remains a meaningful and enduring source of strength for the Group.

Outlook

The Group remains focused on innovation, market share gains, increasing capacity utilisation and driving further sustainable improvements in profitability.

While macroeconomic conditions remain uncertain with some inflationary pressures arising from the conflict in the Middle East, we are well positioned to manage the potential impact through product differentiation, geographical diversification, and pricing discipline. The Board will continue to monitor developments closely and respond as appropriate.

Whilst mindful of the dynamic macroeconomic backdrop, trading is in line with the Board's expectations for FY27, and the Group is on track to deliver against its Phase I FOCUS targets.

CFO Review

Statement of comprehensive income

Total Accoya sales volumes increased by 21% to 77,237m 3 (FY25: 63,864m3). Group sales volumes increased by 6% to 60,384m 3

(FY25: 57,104m3), which reflects strong growth in demand for Accoya products. On a like-for-like basis, excluding the 3,802m 3 of Group sales to North America in H1 FY25, prior to the commercial start-up of the JV, Group sales volumes increased by 13%. The

sales volume run rate including the JV was 97,248m3 at the year-end (FY25: 82,288m 3), which is just below the 100,000m 3 target we set for the end of Phase 1 of our FOCUS strategy at 31 March 2027.

Group revenue for the year increased 12% to €153m (FY25: €137m) with like-for-like revenue growth of 20%. Accoya sales of

€139m were up 12% reflecting the higher sales volumes and increased average selling price. Licence revenue increased significantly to €4.0m (FY25: €1.4m) resulting from the impressive sales growth of the JV with the Group earning a royalty on sales made by the JV. Tricoya panel revenue decreased slightly by €0.3m during the year to €3.4m (FY25: €3.7m), representing the Group purchasing Tricoya panels, produced by our Accoya for Tricoya customers, and selling them on to external Accoya customers.

Other revenue, which predominantly relates to the sale of the acetic acid by-product into the acetyls market, decreased by 8% to

€6.9m (2025: €7.5m) due to lower acetic acid sales prices and lower sales volumes as the Group benefited from improved anhydride usage efficiencies. The acetic acid sales act as a partial hedge against acetic anhydride costs which also decreased during the year.

Cost of sales increased from €95.2m to €106m, an increase of 11% remaining generally in line with increased sales volumes. Net acetyls costs (proportional combination of acetic anhydride cost and acetic acid sales price) were slightly lower than the prior year due to usage efficiencies offset against greater production volumes, changes in supplier mix, and the Group benefited from a foreign exchange gain on US Dollar denominated anhydride purchases given the weakness of the US Dollar against the Euro. Raw wood purchase prices remain in line with the prior year with higher appearance grade raw wood cost being offset by lower wood chip grade cost. Gross profit of €47.4m was 14% higher than the prior year (FY25: €41.4m) with the gross profit margin 60bps higher at 30.9%, which is above our FOCUS strategy target of maintaining the gross profit margin at above 30%. The like-for-like gross profit margin percentage increased by 130 bps to 30.9%.

Underlying other operating costs (excluding depreciation and amortisation and prior year Hull costs) increased by €3.7m from €24.6m to €26.3m as the Group invested in revenue generating headcount in our commercial organisation and operational headcount in Arnhem and Barry to support growth.

The depreciation and amortisation expense for the year was €8.8m compared to €9.2m in the prior year.

Underlying net finance expenses increased by €0.8m to €6.4m due mainly to the increase in the accounting value of the embedded derivative within the convertible loan notes that were taken out as part of the November 2023 equity raise.

Following the Board's decision in September 2024 to discontinue the Hull plant, and the subsequent placement of Tricoya UK Limited into voluntary liquidation on 17 December 2024, an exceptional credit of €1.3m has been recognised in FY26 (FY25: exceptional charge of €10.9m). This relates to the derecognition of €1.3m provision in relation to the repayment of the EU Life Grant. Following completion of the grant it was concluded that no further amounts were repayable to the EU.

The Group's share of the US JV's (Accoya USA, LLC) net loss after tax, which is accounted for using the equity method, decreased by €4.2m to €7.7m (FY25: net loss €11.9m) as the JV benefited from strong North American sales growth of 60% and a full year of sales after commencing commercial operations. The Group's share of the JV's EBITDA was a profit of €0.1m compared to a loss of

€6.0m in the prior year.

Underlying EBITDA, excluding the share of the JV and exceptional costs, increased by 26% from €16.8m to €21.1m, with a margin of 13.8% (FY25: 12.3%) showing the continued strong underlying profitability of the Group. Corporate costs were €0.1m lower than the

prior year at €3.6m. Adjusted EBITDA increased significantly by 96% to €21.2m compared to €10.8m in the prior year due to higher underlying profitability, improved profitability of the JV and Hull costs being recognised in the prior year. Accordingly, the adjusted EBITDA margin increased by 430bps from 7.3% to 11.6%, which is close to the FY27 Phase 1 target of 12.0%.

The Group achieved an underlying loss before tax of €1.9m (FY25: loss of €9.9m). After exceptional items, the statutory loss before tax amounted to €0.6m (FY25: €20.8m).

A net tax credit of €7.0m was recognised during the year (FY25: tax charge of €2.0m) as previously recognised tax provisions in the Netherlands were released following the finalisation of a bilateral advance pricing agreement with the UK and Dutch Tax Authorities which covered the years FY17 to FY25. Accordingly, the Group made a profit after tax and exceptionals of €6.5m compared to a loss of €22.9m the prior year, the highest profit after tax in the Group's history.

The Group delivered underlying earnings per share of 2.1 cents per share (FY25: loss of 5.0 cents per share), and a statutory earnings per share of 2.7 cents per share (FY25: loss of 9.5 cents per share).

Net cash flows from operating activities increased by €5.1m to €15.8m (FY25: €10.7m), resulting from the higher underlying EBITDA during the year, representing an operating cash flow conversion rate of 75% (FY25: 64%), almost achieving the FY27 Phase 1 target of >75%. The net working capital cash outflow amounted to €8.8m compared to a cash out flow of €7.0m in FY25. Inventory levels increased by €5.0m to ensure product availability needed to support strong demand and high levels of customer service, and there was a net outflow of €5.0m relating to amounts owed by the JV as it continued to ramp up. Working capital continues to be a key area of focus for the Group.

Plant and machinery additions of €4.8m in the year (FY25: €1.8m) consisted of expansionary growth capital expenditure in the Arnhem plant to provide further acetyls storage (€2.6m), thereby increasing future production efficiency, HSE improvements in the stacker hall (€0.6m), and maintenance CapEx.

Free cash flow (net cash flow from operating activities less CapEx) increased to €10.2m compared to €8.8m in FY25. The Group made a planned investment into the JV of €3.0m to support its growth and ramp up. Net cash outflows from financing activities amounted to €7.3m (FY25: €4.0m), primarily arising from the net repayment of loans (€2.9m), interest paid (€2.2m) and payment of lease liabilities (€1.4m).

At 31 March 2026, the Group held cash of €17.4m, in line with the prior year. Net debt decreased by €1.2m in the year to €41.4m (FY25: €42.6m) primarily due to the increased operating cash flow generated during the year offset by CapEx, investment in JV and financing cash flows. The free cash flow margin improved to 6.7% (FY25:6.5%).

Gross borrowings increased by €0.3m to €56.0m during the year (2025: €55.7m), with net loan repayments of €2.9m being offset by the accrued interest on the convertible loan notes of €2.3m and the increase in the accounting value of the embedded derivative within the convertible loan notes of €0.6m.

The leverage ratio (net debt to underlying EBITDA) improved to 1.96x compared to 2.52x in the prior year, and is significantly lower than the 4.35x at 31 March 2024. The continued deleveraging of the balance sheet is in line with our FOCUS strategy. Excluding the convertible loan notes, the leverage ratio was 0.74x (FY25: 1.1x).

On 27 October 2025, the Group successfully completed new debt facilities of €55m, provided on an equal basis by ABN AMRO N.V. and HSBC UK Bank Plc. The facilities comprise of a €20m term loan and a €35m revolving credit facility and are committed on a three-year term, maturing in October 2028. The facilities include an option, at the Banks' discretion, to extend the term for a further year to October 2029. The successful refinancing shows continued strong support from ABN AMRO and we are delighted to partner with HSBC, a tier one bank of significant strength and reputation. We are pleased to have secured improved financing facilities, providing additional liquidity for the Group, and strengthening our financial position on improved terms.

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future, and at least for the 12 months from the date these financial statements are approved (the 'going concern period'). As part of the Group's going concern review, the Directors have assessed the Group's trading forecasts, working capital and liquidity requirements, and bank facility covenant compliance for the going concern period under a base case scenario and a reverse stress test scenario.

The cash flow forecasts used for the going concern assessment represent the Directors' best estimate of trading performance and costs based on current agreements, market experience and consumer demand expectations. These forecasts indicate that, in order to continue as a going concern, the Group is dependent on achieving a certain level of performance relating to the production and sale of Accoya, and the management of its working capital.

The Directors have also considered the possible quantum and timing of any funding required to ramp up Accoya USA's operations. Accsys has a contractual obligation to fund its 60% share of Accoya USA, LLC on a pro-rata basis with its JV partner (Eastman Chemical Company). This funding has been considered in both scenarios.

The Group is also dependent on the Group's financial resources including its existing cash position and banking facilities (see note 26 for details).

The Directors considered a reverse stress test scenario against the base case to determine the decrease in Group sales volumes required to breach bank covenants only, as there is far greater liquidity headroom within the Group. The Directors do not expect the assumptions in the reverse stress test scenario to materialise, but should they unfold, the Group has several mitigating actions it can implement to manage its going concern risk, such as deferring discretionary capital expenditure and implementing further cost reductions to ensure there are no covenant breaches during the going concern period. In the reverse stress test, a decrease of more than approximately 13.4% on Group sales volumes compared to the prior year or a decrease of more than approximately 28.5% compared to the equivalent base scenario period was required to breach the first bank covenant.

The Directors believe that while some uncertainty always inherently remains in achieving the budget, in particular in relation to market conditions outside of the Group's control, after carefully considering all the factors explained in this statement, there is sufficient liquidity and covenant headroom such that there is no material uncertainty with respect to going concern. Accordingly, the financial statements have been prepared on a going concern basis.

Chief Financial Officer

15 June 2026

The notes form an integral part of these financial statements.

* See note 5 for details of exceptional items .

** See note 3 for details of re-presentation.

The financial statements were approved by the Board of Directors on 15 June 2026 and signed on its behalf by

Sameet Vohra

The notes form an integral part of these financial statements.

Loss for the year

Other comprehensive loss for the year

Share based payments Shares issued

Premium on shares issued Share issue costs

Foreign exchange hedge

movement

Profit for the year

Other comprehensive gain/(loss) for the year

Share based payments Shares issued

Premium on shares issued Share issue costs

Share capital is the amount subscribed for shares at nominal value (note 23).

Share premium account represents the excess of the amount subscribed for share capital over the nominal value of these shares, net of share issue expenses. Share issue expenses comprise the costs in respect of the issue by the Company of new shares.

See note 24 for details concerning Other reserves.

Foreign currency translation reserve arises on the re-translation of the Group's USA subsidiary's net assets which are denominated in a different functional currency, being US dollars.

Accumulated losses represent the cumulative loss of the Group attributable to the owners of the parent.

The notes form an integral part of these financial statements.

The notes form an integral part of these financial statements.

1. Accounting Policies General Information

   The financial information set out in these preliminary results does not constitute the Company's statutory financial statements for the years ended 31 March 2026 or 31 March 2025. Statutory financial statements for the year ended 31 March 2025 have been filed with the Registrar of Companies and those for the year ended 31 March 2026 will be delivered to the Registrar in due course; both have been reported on by the auditors. The auditors' report on the Annual Report and Financial Statements for the year ended 31 March 2024 was unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. The auditors' report on the Annual Report and Financial Statements for the year ended 31 March 2026 is unqualified, did not draw attention to any matters by way of emphasis, and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

   Basis of accounting

   The Group's financial statements have been prepared under the historical cost convention (except for certain financial instruments and equity investments which are measured at fair value), in accordance with UK-adopted international accounting standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. In addition, the financial statements are also prepared in accordance with international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and the Dutch Financial Markets Supervision Act.

   Going Concern

   The consolidated financial statements are prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future, and at least for the 12 months from the date these financial statements are approved (the 'going concern period'). As part of the Group's going concern review, the Directors have assessed the Group's trading forecasts, working capital and liquidity requirements, and bank facility covenant compliance for the going concern period under a base case scenario and a reverse stress test scenario.

   The cash flow forecasts used for the going concern assessment represent the Directors' best estimate of trading performance and cost implications in the market based on current agreements, market experience and consumer demand expectations. These forecasts indicate that, in order to continue as a going concern, the Group is dependent on achieving a certain level of performance relating to the production and sale of Accoya, and the management of its working capital.

   The Directors' have also considered the possible quantum and timing of funding required to fund the ramp up of Accoya USA's operations. Accsys has a contractual obligation to fund its 60% share of Accoya USA, LLC on a pro rata basis with its joint venture partner (Eastman Chemical Company). This funding has been considered in both scenarios.

   The Group is also dependent on the Group's financial resources including its existing cash position, banking and finance facilities (see note 26 for details).

   The Directors considered a reverse stress test scenario against the base case to determine the decrease in Group sales volumes required to breach bank covenants only, as there is far greater liquidity headroom within the Group. The Directors do not expect the assumptions in the reverse stress test scenario to materialise, but should they unfold, the Group has several mitigating actions it can implement to manage its going concern risk, such as deferring discretionary capital expenditure and implementing further cost reductions to ensure there are no covenant breaches during the going concern period. In the reverse stress test, a decrease of more than approximately 13.4% on Group sales volumes compared to an equivalent prior year period or a decrease of more than approximately 28.5% compared to the equivalent base scenario period was required to breach the first bank covenant.

   The Directors believe that while some uncertainty always inherently remains in achieving the forecasts, in particular in relation to market conditions outside of the Group's control, after carefully considering all the factors explained in this statement, there is sufficient liquidity and covenant headroom such that there is no material uncertainty with respect to going concern and have prepared the financial statements on this basis.

   Exceptional Items

   Exceptional items are events or transactions that fall outside the ordinary activities of the Group and which by virtue of their size or incidence, have been separately disclosed in order to improve a users' understanding of the financial statements. These include impairment losses (or the reversal of previously recorded exceptional impairments), restructuring costs, significant gains or losses following the disposal of an asset and other significant one-off events or transactions. See note 5 for details of exceptional items.

   Business combinations

   A subsidiary is an entity over which the Group has control. Control is evident where the Group is exposed to, or has rights to, variable returns from its involvement with that entity and has the ability to affect those returns through its power over that entity. The consolidated financial statements present the results of the Group including the results of Accsys Technologies plc and its subsidiaries and joint venture. All Intra-group transactions and balances are eliminated in full.

   The consolidated financial statements incorporate the results of business combinations using the acquisition method. In the consolidated statement of financial position, the acquirer's identifiable assets, liabilities, and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of operations acquired or disposed are included in the consolidated statement of comprehensive income from the effective date of acquiring control or up to the effective date of disposal.

   As allowed under IFRS 1, some business combinations effected prior to transition to IFRS, were accounted for using the merger method of accounting. Under this method, assets and liabilities are included in the consolidation at their book values, not fair values, and any differences between the cost of investment and net assets acquired were taken to the merger reserve. The majority of the merger reserve arose from a corporate restructuring in the year ended 31 March 2006 which introduced Accsys Technologies PLC as the new holding Company.

   Non-controlling interests are measured, at initial recognition, as the non-controlling proportion of the fair values of the assets and liabilities recognised at acquisition.

   After initial recognition, non-controlling interests are measured as the aggregate of the value at initial recognition and their subsequent proportionate share of profits and losses less any distributions made. Changes in the Group's interests in subsidiaries that do not result in a change in control are accounted for as equity transactions. Any resulting difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration payable or receivable is recognised directly in equity and attributed to the shareholders.

   When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any

   retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognised in profit or loss.

   Revenue from contracts with customers

   Revenue is measured at the fair value of the consideration receivable. Revenue is recognised to the extent that it is highly probable that a significant reversal will not occur based on the consideration in the contract. The following specific recognition criteria must also be met before revenue is recognised.

   Manufacturing revenue

   Revenue is recognised from the sale of goods at a point in time and is measured at the amount of the transaction price received in exchange for transferring goods. The transaction price is the expected consideration to be received, to the extent that it is highly probable that there will not be a significant reversal of revenue in the future. Revenue is recognised when the Group's performance obligations under the relevant customer contract have been satisfied when the customer collects the goods or when delivered to the customer. Manufacturing revenue includes the sale of Accoya wood and Tricoya panels.

   Licensing fees

   Licence fees are recognised over the period of the relevant agreements according to the specific terms of each agreement or the quantities and/or values of the licensed product sold. The accounting policy for the recognition of licence fees is based upon satisfaction of the performance obligations set out in the contract such as an assessment of the work required before the licence is signed and subsequently during the design, construction and commissioning of the licensees' plant, with an appropriate proportion of the fee recognised upon signing and the balance recognised as the project progresses to completion. The amount of any cash received but not recognised as income is included in the financial statements as deferred income and shown as a liability.

   Other revenue

   Included within other revenue are raw wood and acetic acid sales. Revenue is recognised from the sale of goods at a point in time and is measured at the amount of the transaction price received in exchange for transferring goods. Revenue is recognised when the Group's performance obligations have been satisfied either when the customer collects the goods or when delivered to the customer.

   Finance income

   Interest accrues using the effective interest method, i.e. the rate that discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset.

   Finance expenses and borrowing costs

   Finance expenses include the fees, interest and other finance charges associated with the Group's loan notes, credit facilities and leases, which are expensed over the period that the Group has access to the loans, facilities and leases.

   Foreign exchange gains or losses on the loan notes and borrowings are included within finance expenses.

   Interest on borrowings directly relating to the construction or production of qualifying assets are capitalised until such time as the assets are substantially ready for their intended use or sale. Where funds have been borrowed specifically to finance a project, the amount capitalised represents the actual borrowing costs incurred.

   Where the funds used to finance a project form part of general borrowings, the amount capitalised is calculated using a weighted average of rates applicable to relevant general borrowings of the Group during the construction period. The capitalisation of borrowing costs is suspended during extended periods in which it suspends active development of a qualifying asset.

   Share based payments

   The Company awards nil cost options to acquire ordinary shares in the capital of the Company to certain Directors and employees. The Company has also previously awarded bonuses to certain employees in the form of the award of deferred shares of the Company.

   In addition, the Company has established an Employee Share Participation Plan under which employees subscribe for new shares which are held by a trust for the benefit of the subscribing employees. The shares are released to employees after one year, together with an additional, matching share on a one for one basis.

   The fair value of options and deferred shares granted are recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and is charged to the consolidated statement of comprehensive income over the vesting period during which the employees become unconditionally entitled to the options or shares.

   The fair value of share options granted is measured using a modified Black Scholes model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest only where vesting is dependent upon the satisfaction of service and non-market vesting conditions.

   Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options which eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

   Dividends

   Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

   Pensions

   The Group contributes to certain defined contribution pension and employee benefit schemes on behalf of its employees. These costs are charged to the consolidated statement of comprehensive income on an accruals basis.

   Taxation

   Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the consolidated statement of comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

   Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date together with any adjustment to tax payable in respect of previous years. Current tax includes the expected impact of claims submitted by the Group to tax authorities in respect of enhanced tax relief for expenditure on research and development.

   Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for:

   • the initial recognition of goodwill;

   • the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination; and

   • differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.

   The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. Recognition of deferred tax assets is restricted to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.

   Foreign currencies

   The individual financial statements of each Group company are presented in the currency of the primary economic environment in which it operates (the functional currency). For the purposes of the consolidated financial statements, the results and financial position of each Group company are expressed in Euro, which is the functional currency of the parent Company, and the presentation currency of the consolidated financial statements.

   In preparing the financial statements of the individual companies, transactions in currencies other than the entity's functional currencies are recognised at the rates of exchange prevailing on the date of the transactions. At each reporting date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

   Exchange differences are recognised in profit or loss in the period in which they arise.

   For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at exchange rates prevailing on the reporting date. Income and expense items are translated at the average monthly exchange rates prevailing in the month in which the transaction took place. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in the foreign currency translation reserve. Such translation differences are reclassified to profit and loss only on disposal or partial disposal of the overseas operation.

   Foreign exchange hedging

   The Group has adopted IFRS 9 hedge accounting in respect of the cash flow hedging instruments that it uses to manage the risk of foreign exchange movements impacting on future cash flows and profitability.

   The Group has prospectively assessed the effectiveness of its cash flow hedging using the 'hedge ratio' of quantities of cash held in the same currency as future foreign exchange cash flow quantities related to the underlying transaction. The Group has undertaken a qualitative analysis to confirm that an 'economic relationship' exists between the hedging instrument and the hedged item. It is also satisfied that credit risk will not dominate the value changes that result from that economic relationship.

   The Group applies hedge accounting in respect of foreign currency forward contracts. At each period end the Group calculates the fair value of all foreign currency forward contracts and the fair value gain or loss is recognised within other comprehensive income.

   Government grants

   Government grants are recognised at their fair value where there is reasonable assurance that the grant will be received and the Group will comply with the attached conditions. When the grant relates to an expense item, it is recognised as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate. Where the grant relates to an asset, they are credited to a deferred income account and released to the statement of comprehensive income over the expected useful life of the relevant asset on a straight line basis.

   Goodwill

   Goodwill arising on the acquisition of a subsidiary undertaking is the difference between the fair value of the consideration paid and the fair value of the identifiable assets and liabilities acquired. It is capitalised, and is subject to annual impairment reviews by the Directors. Any impairment arising is charged to the consolidated statement of comprehensive income. Where the fair value of the identifiable assets and liabilities acquired is greater than the fair value of consideration paid, the resulting amount is treated as a gain on a bargain purchase and is recognised in the consolidated statement of comprehensive income.

   Joint venture

   The Group has entered into a joint venture agreement with Eastman Chemical Company, forming Accoya USA, LLC. The Group applies IFRS 11 for this joint arrangement, and following assessment of the nature of this joint arrangement, has determined it to be a joint venture. Interest in the joint venture is accounted for using the equity method, after initially being recognised at cost.

   Further details concerning the Accoya USA, LLC joint venture with Eastman Chemical Company are included in note 25.

   Other intangible assets

   Intellectual property rights, including patents, which cover a portfolio of novel processes and products, are shown in the financial statements at cost less accumulated amortisation and any amounts by which the carrying value is assessed during an annual review to have been impaired. The useful economic life of the intellectual property is considered to be 20 years. The amortisation charge in the year is within other operating costs in the statement of comprehensive income.

   Internal development costs are incurred as part of the Group's activities including new processes, process improvements, identifying new species and improving the Group's existing products. Research costs are expensed as incurred. Development costs are capitalised when all of the criteria set out in IAS 38 'Intangible Assets' (including criteria concerning technical feasibility, ability and intention to use or sell, ability to generate future economic benefits, ability to complete the development and ability to reliably measure the expenditure) have been met. These internal development costs are amortised on a straight line basis over their useful economic life, between eight and 20 years.

   Property, plant and equipment

   Property, plant and equipment are stated at cost less accumulated depreciation and any impairment charged. Cost includes the original purchase price of the asset as well as costs of bringing the asset to the working condition and location of its intended use. The capitalisation of costs is suspended during extended periods in which it suspends active development of a qualifying asset. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset, except freehold land, over its expected useful life on a straight line basis, as follows:

   Plant and machinery These assets comprise plant production facilities and machinery, and are depreciated from the date they become available for use over their useful lives of between five and 20 years

   Office equipment Useful life of between three and five years

   Leased land and buildings Land held under a finance lease is depreciated over the life of the lease

   Impairment of non-financial assets

   The carrying amount of non-current non-financial assets of the Group is compared to the recoverable amount of the assets whenever events or changes in circumstances indicate that the net book value may not be recoverable, or in the case of goodwill, annually. The recoverable amount is the higher of value in use and the fair value less cost to sell. In assessing the value in use, the expected future cash flows from the assets are determined by applying a discount rate to the anticipated pre-tax future cash flows. An impairment charge is recognised in the consolidated statement of comprehensive income to the extent that the carrying amount exceeds the assets' recoverable amount. The revised carrying amounts are amortised or depreciated in line with Group accounting policies. A previously recognised impairment loss, other than on goodwill, is reversed if the recoverable amount increases as a result of a reversal of the conditions that originally resulted in the impairment. This reversal is recognised in the consolidated statement of comprehensive income and is limited to the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised in prior years. Assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units) for purposes of assessing impairment.

   Leases

   To the extent that a right-of-control exists over an asset subject to a lease, a right-of-use asset, representing the Group's right to use the underlying leased asset, and a lease liability, representing the Group's obligation to make lease payments, are recognised in the consolidated statement of financial position at the commencement of the lease.

   The right-of-use asset is measured initially at cost and includes the amount of initial measurement of the lease liability, any initial direct costs incurred, including advance lease payments, and an estimate of the dismantling, removal and restoration costs required in terms of the lease. Depreciation is charged to the consolidated income statement so as to depreciate the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The lease term shall include the period of an extension option where it is reasonably certain that the option will be exercised. Where the lease contains a purchase option the asset is written off over the useful life of the asset when it is reasonably certain that the purchase option will be exercised.

   The lease liability is measured at the present value of the future lease payments, including variable lease payments that depend on an index and the exercise price of purchase options where it is reasonably certain that the option will be exercised, discounted using the interest rate implicit in the

   lease, if readily determinable. If the implicit interest rate cannot be readily determined, the lessee's incremental borrowing rate is used. Finance charges are recognised in the consolidated statement of comprehensive income over the period of the lease.

   Lease expenses for leases with a duration of one year or less and low-value assets are not recognised in the consolidated statement of financial position, and are charged to the consolidated income statement when incurred. Low-value assets are determined based on quantitative criteria.

   The Group has used the following practical expedients permitted by the standard:

   • The use of a single discount rate to a portfolio of leases with reasonably similar characteristics

   • Reliance on previous assessments on whether leases are onerous

   • The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

     Inventories

     Raw materials, which consist of unprocessed timber and chemicals used in manufacturing operations, are valued at the lower of cost and net realisable value. The basis on which cost is derived is a first-in, first-out basis.

     Inventory in the process of being produced is disclosed as work in progress and the costs associated to where it is in the process are capitalised to its value.

     Finished goods, comprising processed timber, are stated at the lower of weighted average cost of production or net realisable value. Costs include direct materials, direct labour costs and production overheads (excluding the depreciation of relevant property and plant and equipment) absorbed at an appropriate level of capacity utilisation. Net realisable value represents the estimated selling price less all expected costs to completion and costs to be incurred in selling and distribution.

     Fair value measurement

     Assets and liabilities that are measured at fair value, or where the fair value of financial instruments has been disclosed in notes to the financial statements, are based on the following fair value measurement hierarchy:

   • Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities;

   • Level 2 - inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices); and

   • Level 3 - inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

   Specific valuation methodologies used to value financial instruments include other techniques, including discounted cash flow analysis, are used to determine the fair values of other financial instruments.

   Financial assets

   Financial assets and financial liabilities are recognised in the Group's consolidated statement of financial position when the Group becomes party to the contractual provisions of the instrument.

   Financial assets are initially measured at fair value and in the case of investments not at fair value through profit or loss, fair value plus directly attributable transaction costs.

   Except where a reliable fair value cannot be obtained, unlisted shares held by the Group are classified as fair value through other comprehensive income and are stated at fair value. Gains and losses arising from changes in fair value are recognised directly in other comprehensive income, with dividends recognised in profit or loss. Where it is not possible to obtain a reliable fair value, these investments are held at cost less provision for impairment.

   Loans and receivables, which comprise non-derivative financial assets with fixed and determinable payments that are not quoted on an active market, are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.

   Trade and other receivables

   Trade receivables are initially recognised at fair value and are subsequently measured at amortised cost using the effective interest rate method, less allowance for impairments. The Group has elected to apply the IFRS 9 practical expedient option to measure the value of its trade receivables at transaction price, as they do not contain a significant financing element. The Group applies IFRS 9's 'simplified' approach that requires companies to recognise the lifetime expected losses on its trade receivables. At the date of initial recognition, the credit losses expected to arise over the lifetime of a trade receivable are recognised as an impairment and are adjusted, over the lifetime of the receivable, to reflect objective evidence reflecting whether the Group will not be able to collect its debts.

   Cash and cash equivalents

   Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in hand and short-term deposits, including liquidity funds, with an original maturity of three months or less. For the purpose of the statement of consolidated cash flow, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

   Financial liabilities Other financial liabilities

   Trade payables and other financial liabilities are initially recognised at fair value and subsequently carried at amortised cost using the

   effective interest method.

   Loans and other borrowings are initially recognised at the fair value of amounts received net of transaction costs and subsequently measured at amortised cost using the effective interest method.

   Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.

   Derivatives are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

   Financial guarantee contracts

   Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued.

   The liability is initially measured at fair value, which is determined based on the present value of the difference in cash flows between the contractual payments required under the FHB borrowing (provided to the Company's joint venture - Accoya USA) and the payments that are estimated to be required without the guarantee being provided by Accsys to FHB. To calculate the fair value of the guarantee, the present value calculation is then weighted by the probability of the guarantee being called by FHB.

   Where guarantees in relation to loans or other payables of associates are provided for no compensation, the fair values are accounted for as contributions and recognised as part of the cost of the investment.

   Share capital

   Financial instruments issued by the Group are treated as equity only to the extent that they do not meet the definition of a financial liability. The Group's shares are classified as equity instruments.

   Segmental Reporting

   Operating segments are reported in a manner consistent with the internal reporting provided to the Board of Accsys Technologies PLC, the chief operating decision makers (CODM) of the Group. The Board are responsible for allocating resources and assessing performance of the operating segments and has been identified as steering the committee that makes strategic decisions.

   Alternative Performance Measures

   The Group presents certain measures of financial performance, position or cash flows in the Annual Report and Financial Statements that are not defined or specified according to IFRS (International Financial Reporting Standards). These measures, referred to as Alternative Performance Measures (APMs), are prepared on a consistent basis for all periods presented in this report.

   The significant APMs are:

   Net debt

   A measure comprising short term and long-term borrowings (including lease obligations) less cash and cash equivalents. Net debt ignores movements in embedded derivatives to provide a measure of the Group's true net indebtedness or overall leverage.

   Underlying EBITDA

   Operating profit/(loss) before Exceptional items, depreciation and amortisation. Underlying EBITDA provides a measure of the cash-generating ability of the business that is comparable from year to year.

   Underlying EBIT

   Operating profit/(loss) before Exceptional items. Underlying EBIT provides a measure of the operating performance that is comparable from year to year.

   Adjusted EBITDA

   Underlying EBITDA plus the Group's attributable share of the Accoya USA joint venture's underlying EBITDA. Adjusted EBITDA provides a measure of the cash-generating ability of the business that is comparable from year to year.

   Adjusted EBIT

   Underlying EBIT plus the Group's attributable share of the Accoya USA joint venture's underlying EBIT. Adjusted EBIT provides a measure of the operating performance that is comparable from year to year.

   Free cash flow

   Net cash from operating activities less investment in property, plant and equipment and intangible assets. See note 26.

   Leverage ratio

   Leverage ratio is the ratio of net debt to underlying EBITDA.

2. Accounting judgements and estimates

   Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

   Accounting estimates Goodwill

   The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated above. The recoverable amounts of cash-generating units have been determined based on value in use calculations. These calculations require the use of judgements in relation to discount rates and future forecasts (See note 14 and 15). The recoverability of these balances is dependent upon the level of future licence fees and manufacturing revenues. While the scope and timing of the production facilities to be built under the Group's existing and future agreements remains uncertain, the Directors remain confident that revenue from own manufacturing, existing licensees, new licence agreements will be generated, demonstrating the recoverability of these balances.

   Intellectual property rights (IPR) and property, plant and equipment

   The Group tests the carrying amount of the intellectual property rights and property, plant and equipment whenever events or changes in circumstances indicate that the net book value may not be recoverable. These calculations require the use of estimates in respect of future cash flows from the assets by applying a discount rate to the anticipated pre-tax future cash flows. Within this process, the Group makes a number of key assumptions including operating margins, production volumes, discount rates, terminal growth rates and forecast cash flows. Additional information is disclosed in note 14 and 15, which highlights the estimates applied in the value-in-use calculations for those CGUs that are considered most susceptible to changes in key assumptions and the sensitivity of these estimates. The Group also reviews the estimated useful lives at the end of each annual reporting period (See note 14 and 15). The price of raw materials and other inputs vary according to market conditions outside of the Group's control. Should the price of the raw materials increase greater than the sales price or in a way which no longer makes Accoya competitive, then the carrying value of the property, plant and equipment or IPR may be in doubt and become impaired. The Directors consider that the current market and best estimates of future prices mean that this risk is limited.

   Fair value of financial derivative

   The Group has convertible loan notes with an embedded conversion option. The Group values the financial derivative based upon assumptions around the likelihood of conversion and the volatility of the share price to determine the fair value of the derivative. Any movements in the fair value of the derivative are recognised through the profit and loss. See note 26 for further details.

   Recovery of investment in the joint venture

   The Group, together with Eastman Chemical Company LLC formed Accoya USA, LLC, 60% owned by the Group and 40% owned by Eastman. The two parties are assessed to jointly control the entity, due to the operating agreement requiring both joint venture partners to approve key business decisions. The Group performs an impairment assessment on its investment in Accoya USA, LLC whenever events or changes in circumstances indicate that the carrying value may not be recoverable. This requires the Group to make an estimate and assumptions of the expected cash flows, sales volumes and choose a suitable discount rate in order to calculate the present value of those cash flows. See note 25 for further details.

   Accounting judgements

   In preparing the Consolidated Financial Statements, management has to make judgments on how to apply the Group's accounting policies and make estimates about the future. The critical judgements that have been made in arriving at the amounts recognised in the Consolidated Financial Statements and the key sources of uncertainty that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities in the next financial year are discussed below:

   Financial asset at fair value through profit or loss

   The Group has an investment in listed equity shares carried at nil fair value as a reliable fair value cannot be obtained since there is no active market for the shares and there is currently uncertainty around the future funding of the business. The Group makes appropriate enquiries and considers all of the information available to it in order to determine the fair value (See note 17).

   New standards and interpretations in issue at the date of authorisation of these financial statements: New standards, amendments and interpretations

   The following amendments to Standards and a new Interpretation have been adopted for the financial year beginning on 1 April 2025:

   • Amendments to IAS 21;

   • Amendments to IFRS 19; and

   • Amendments to IFRS 7 and IFRS 9.

   The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

   New standards, amendments and interpretations not yet adopted

   Certain new accounting standards and interpretations have been published that are not mandatory for 31 March 2026 reporting periods and have not been early adopted by the Group.

   In April 2024, the IASB issued IFRS 18 'Presentation and Disclosure in Financial Statements'. The new presentation requirements introduced in IFRS 18 will increase comparability of the financial performance of similar entities, especially related to how 'operating profit or loss' is defined. The new disclosure requirements for 'management-defined performance measures' will enhance transparency. IFRS 18 is

   effect from 1 January 2027 and has not yet been adopted by the Group.

   Accsys Technologies plc is in the process of determining the impact on the Group of applying IFRS 18. The Group is preparing a transition plan to report our first IFRS 18-compliant interim financial statements for the period ending September 2027 and annual financial statements for the year ended March 2028. The standard is anticipated to not have a significant impact on the presentation of the Consolidated Income Statement.

   Other new accounting standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions.

3. Segmental reporting

   The Group's business is the manufacturing of and development, commercialisation and licensing of the associated proprietary technology for the manufacture of Accoya wood, Tricoya wood elements and related acetylation technologies. Segmental reporting is divided between corporate activities and activities directly attributable to Accoya.

   Accoya Accoya Segment

   	Year ended 31 March 2026	Year ended 31 March 2026	Year ended 31 March 2026	Year ended 31 March 2025	Year ended 31 March 2025	Year ended 31 March 2025
   		Exceptional			Exceptional
   	Underlying	items	TOTAL	Underlying	items	TOTAL
   	€'000	€'000	€'000	€'000	€'000	€'000
   Accoya wood revenue	138,947	-	138,947	124,047	-	124,047
   Tricoya panel revenue	3,447	-	3,447	3,698	-	3,698
   Royalties and licence revenue*	3,981	-	3,981	1,372	-	1,372
   Other revenue	6,901	-	6,901	7,515	-	7,515
   Total Revenue	153,276	-	153,276	136,632	-	136,632
   Cost of sales	(105,909)	-	(105,909)	(95,205)	-	(95,205)
   Gross profit	47,367	-	47,367	41,427	-	41,427
   Other operating costs	(31,481)	1,300	(30,181)	(30,084)	(12,030)	(42,114)
   Operating profit/(loss)	15,886	1,300	17,186	11,343	(12,030)	(687)

   Operating profit/(loss)	15,886	1,300	17,186	11,343	(12,030)	(687)
   Depreciation and amortisation	8,826	-	8,826	9,219	-	9,219
   Profit on disposal of assets	-	-	-	-	(12)	(12)
   Impairment	-	-	-	-	18,320	18,320
   Gain on disposal of investment	-	-	-	-	(10,382)	(10,382)
   EBITDA	24,712	1,300	26,012	20,562	(4,104)	16,458

   Reconciliation of Accoya Adjusted EBIT and EBITDA
   	Year ended 31	Year ended
   	March 2026	31 March 2025
   Operating profit	€'000 15,886	€'000 11,343
   Share of Accoya USA EBIT	(4,953)	(9,621)
   Adjusted EBIT	10,933	1,722

   	Year ended 31 March 2026	Year ended 31 March 2025
   Underlying EBITDA	€'000 24,712	€'000 20,562
   Share of Accoya USA EBITDA	90	(6,045)
   Adjusted EBITDA	24,802	14,517

   Revenue includes the sale of Accoya , licence and royalty income and other revenue, principally relating to the sale of acetic acid. Revenue also includes sales of lower visual grade Accoya to Tricoya customers for the purposes of producing Tricoya panels.

   All costs of sales are allocated against manufacturing activities in Arnhem and Barry (Wales) unless they can be directly attributable to a licensee. Other operating costs include all costs associated with the operation of the Arnhem and Barry manufacturing sites, including directly attributable administration, sales and marketing costs.

   See note 5 for explanation of Exceptional items.

   * To better reflect revenue earned from Group intellectual property, royalties previously presented within the 'other revenue' line item in the prior year have been reclassified and are now presented within the 'royalties and licence revenue' line item.

   Corporate Corporate Segment

   	Year ended 31 March 2026	Year ended 31 March 2026	Year ended 31 March 2026	Year ended 31 March 2025	Year ended 31 March 2025	Year ended 31 March 2025
   		Exceptional			Exceptional
   	Underlying	items	TOTAL	Underlying	items	TOTAL
   	€'000	€'000	€'000	€'000	€'000	€'000
   Accoya wood revenue	-	-	-	-	-	-
   Tricoya panel revenue	-	-	-	-	-	-
   Royalties and licence revenue	-	-	-	-	-	-
   Other revenue	-	-	-	-	-	-
   Total Revenue	-	-	-	-	-	-
   Cost of sales	-	-	-	-	-	-
   Gross result	-	-	-	-	-	-
   Other operating costs	(3,597)	-	(3,597)	(3,694)	-	(3,694)
   Operating profit/(loss)	(3,597)	-	(3,597)	(3,694)	-	(3,694)

   Operating profit/(loss)	(3,597)	-	(3,597)	(3,694)	-	(3,694)
   Depreciation and amortisation	-	-	-	-	-	-
   EBITDA	(3,597)	-	(3,597)	(3,694)	-	(3,694)

   Corporate costs are those costs not directly attributable to Accoya activities. This includes management and the Group's corporate and general administration costs, including the head office in London. See note 5 for explanation of Exceptional items.

   Total Total

   	Year ended 31 March 2026	Year ended 31 March 2026	Year ended 31 March 2026	Year ended 31 March 2025	Year ended 31 March 2025	Year ended 31 March 2025
   		Exceptional			Exceptional
   	Underlying	items	TOTAL	Underlying	items	TOTAL
   	€'000	€'000	€'000	€'000	€'000	€'000
   Accoya wood revenue	138,947	-	138,947	124,047	-	124,047
   Tricoya panel revenue	3,447	-	3,447	3,698	-	3,698
   Royalties and licence revenue	3,981	-	3,981	1,372	-	1,371
   Other revenue	6,901	-	6,901	7,515	-	7,515
   Total Revenue	153,276	-	153,276	136,632	-	136,632
   Cost of sales	(105,909)	-	(105,909)	(95,205)	-	(95,205)
   Gross profit	47,367	-	47,367	41,427	-	41,427
   Other operating costs	(35,077)	1,300	(33,777)	(33,778)	(12,030)	(45,808)
   Operating profit/(loss)	12,290	1,300	13,590	7,649	(12,030)	(4,381)
   Finance income	69	-	69	304	-	304
   Finance expense	(6,509)	-	(6,509)	(5,960)	1,102	(4,858)
   Share of net loss from joint venture	(7,720)	-	(7,720)	(11,871)	-	(11,871)
   Loss before taxation	(1,870)	1,300	(570)	(9,878)	(10,928)	(20,806)
   See note 5 for details of Exceptional items.
   Reconciliation of Underlying EBIT and EBITDA

   	Year ended	Year ended	Year ended	Year ended	Year ended	Year ended
   	31 March	31 March	31 March	31 March	31 March	31 March
   	2026	2026 Exceptional items	2026 TOTAL	2025	2025 Exceptional items	2025 TOTAL
   	€'000	€'000	€'000	€'000	€'000	€'000
   Operating profit/(loss)	12,290	1,300	13,590	7,649	(12,030)	(4,381)
   Depreciation and amortisation	8,826	-	8,826	9,219	-	9,219
   Profit on disposal of assets	-	-	-	-	(12)	(12)
   Impairment	-	-	-	-	18,320	18,320

   Gain on disposal of investment - - - - (10,382) (10,382)

   EBITDA 21,116 1,300 22,416 16,868 (4,104) 12,764

   Reconciliation of Adjusted EBIT and EBITDA	Year	Year
   	ended 31 March 2026	ended 31 March 2025
   Operating profit	€'000 12,290	€'000 7,649
   Share of Accoya USA EBIT	(4,953)	(9,621)
   Adjusted EBIT	7,337	(1,972)

   	Year ended 31 March 2026	Year ended 31 March 2025
   Underlying EBITDA	€'000 21,116	€'000 16,868
   Share of Accoya USA EBITDA	90	(6,045)
   Adjusted EBITDA	21,206	10,823

   Analysis of Revenue by geographical area of customers:	2026 €'000	2025 €'000
   UK and Ireland	58,085	54,103
   Rest of Europe	63,030	51,276
   Americas	16,802	15,921
   Rest of World	15,359	15,332
   	153,276	136,632

   Revenue generated from one customer exceeded 10% of Group revenue of 2026. This customer represented 17% of Group revenue. Revenue generated from two customers exceeded 10% of Group revenue for 2025. This included 13% and 15% of Group revenue.

   Assets and liabilities on a segmental basis:

   	Accoya	Corporate	TOTAL		Accoya	Corporate	TOTAL
   	2026	2026	2026		2025	2025	2025
   	€'000	€'000	€'000		€'000	€'000	€'000
   Non-current assets	108,375	1,766	110,141		115,505	1,661	117,166
   Current assets	77,329	6,573	83,902		52,142	11,645	63,787
   Current liabilities	(8,023)	(29,315)	(37,338)		(20,455)	(9,779)	(30,234)
   Net current assets	69,306	(22,742)	46,564		31,687	1,866	33,553
   Non-current liabilities	(2,066)	(49,492)	(51,558)		(2,663)	(50,734)	(53,397)
   Net assets/(liabilities)	175,615	(70,468)	105,147		144,529	(47,207)	97,322

   The Investment accounted for using the equity method (Investment into Accoya USA) is included in the Accoya segment . See note 25.

   Analysis of non-current assets (other than financial assets and deferred tax):
   	2026 €'000	2025 €'000
   UK	4,002	4,169
   USA	28,358	33,854
   Mainland Europe	73,550	74,912
   Un-allocated - Goodwill	4,231	4,231

   110,141 117,166

   The segmental assets in the current year were predominantly held in the UK, USA and mainland Europe. Additions to property, plant, equipment and intangible assets in the current year were predominantly incurred in the UK and mainland Europe. The increase in Investment accounted for using the equity method (investment into Accoya USA) incurred in the USA. There are no significant intersegment revenues.

4. Other operating costs

   Other operating costs consist of the operating costs/(credits), other than the cost of sales, associated with the operation of the plant in Arnhem, Barry

   and the office in London.
   	2026 €'000	2025 €'000
   Sales and marketing	5,640	4,805
   Research and development	1,227	1,190
   Other operating costs	3,217	4,392
   Administration costs	16,167	14,172
   Exceptional items*	(1,300)	4,092
   Other operating costs excluding depreciation, amortisation, impairment and gains on disposals	24,951	28,651
   Depreciation and amortisation	8,826	9,219
   Impairment loss - exceptional items*	-	18,320
   Gain on disposal of investment*	-	(10,382)
   Total other operating costs	33,777	45,808

   Administrative costs include costs associated with Business Development and Legal departments, Intellectual Property as well as Human Resources, IT, Finance, Management and General Office and includes the costs of the Group's head office costs in London.

   Other operating costs are those costs directly attributable to Accoya. This includes staff costs for the Arnhem and Barry sites and support functions not captured in Corporate, Sales and Marketing or general administrative costs for the Arnhem and Barry sites.

   During the period, €431,000 (2025: €134,000) of internal development and patent-related costs were capitalised and included in intangible fixed assets.

   *Refer to note 5 for description of exceptional costs.

   5. Exceptional items
   	2026 €'000	2025 €'000
   Impairment of the Tricoya segment assets	-	(18,320)
   Hull closure costs	1,300	(4,092)
   Gain on disposal of investment	-	10,382
   Total exceptional operating costs	1,300	(12,030)
   Revaluation/recognition of Valuation Recovery Instrument 'VRI' liability	-	1,102
   Total exceptional financing costs	-	1,102
   Total exceptional items	1,300	(10,928)

   Exceptional Items

   In the year:

   • A restructuring gain of €1.3m has been recognised in relation to restructuring costs relating to the discontinuing and winding-up the Hull plant which did not materialise.

     In the prior year:

   • An impairment loss (non-cash item) of €18.3m has been recognised in the year reflecting the full remaining impairment of the Tricoya segment assets related to the Hull plant (2024: €7.0m).

   • A restructuring cost of €4.1m has been recognised for the costs related to discontinuing and winding-up the Hull plant.

   • An exceptional gain of €10.4m (non-cash item) has been recognised in the year reflecting the deconsolidation of Tricoya UK Ltd following the loss of control from the Group. The majority of this gain relates to the removal of the non-recourse NatWest facility of €7.1m and the lease liability on the land of €1.2m. See note 26 for further details.

   • The financial liability previously raised to account for the Value Recovery Instrument ('VRI') of €1.1m has been released.

1. Employees 2026 2025 €'000 €'000

   Staff costs (including Directors) consist of:

   Wages and salaries 18,691 15,402

   Social security costs 2,753 2,407

   Other pension costs 1,378 1,101

   Share based payments 720 1,734

   23,542 20,644

   Pension costs relate to defined contribution plan contributions.

   The average monthly number of employees, including Executive Directors, during the year was as follows:

   2026 2025

   Sales and marketing, administration, research and engineering 133 120

   Operating 102 95

   235 215

2. Directors' remuneration 2026 2025 €'000 €'000

   Directors' remuneration consists of:

   Directors' emoluments 1,750 1,867

   Company contributions to money purchase pension schemes 61 57

   1,811 1,924

   Compensation of key management personnel included the following amounts:

   	2026 Salary, bonus and		2026 Share based	2026	2025 Salary, bonus and		2025 Share based	2025
   	short term	2026	payments		short term	2025	payments
   	benefits	Pension	charge	Total	benefits	Pension	charge	Total
   	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
   Jelena Arsic van Os	866	36	180	1,082	916	37	129	1,082
   Steven Salo	-	-	-	-	196	3	22	221
   Sameet Vohra	554	25	71	650	309	13	44	366
   Hans Pauli	-	-	-	-	130	4	4	138
   	1,420	61	251	1,732	1,551	57	199	1,807

   The Group made contributions to two (2025: two) Director's personal pension plans, with both Directors receiving cash in lieu of pension.

   The figures in the above table are impacted by foreign exchange noting that the remuneration for Jelena Arsic van Os and Sameet Vohra, are denominated in Pounds Sterling.

   In the prior year, the compensation in the above table for Sameet Vohra, Steven Salo and Hans Pauli represents the period in which they were appointed as a Director and not a full year.

   Key management personnel includes the Executive Directors. For further details on all Director's remunerations, see the Remuneration Report on page 74.

3. Operating profit/(loss)

   	2026 €'000	2025 €'000
   This has been arrived at after charging/(crediting):
   Staff costs (note 6)	23,542	20,644
   Depreciation of property, plant and equipment, and right of use assets	8,131	8,171
   Impairment	-	18,320
   Amortisation of intangible assets	695	1,048
   Short term lease rentals	155	91
   Foreign exchange (gain)/losses	(48)	129
   Research & development (excluding staff costs)	458	452
   Fees payable to the Company's auditors for the audit of the Group's annual financial statements	272	295
   Fees payable to the Company's auditors for other services: - audit of the Company's subsidiaries pursuant to legislation	85	104
   - other assurance services	109	53
   Fees payable to Component auditors for audit of subsidiaries	209	201
   Fees payable to Component auditors for audit of joint venture	111	134
   Total audit and audit related services:	786	787

4. Finance income

Interest receivable on bank and other deposits 69 304

During the year, following finalisation of the Group's Advance Pricing Agreement relating to the periods FY17 - FY25, it was agreed with the UK and Dutch Tax Authorities that €33.2m of UK tax trading losses, with a tax impact of €8.5m, would be transferred from the UK subsidiary, Titan Wood Limited to the Netherlands subsidiary, Titan Wood B.V. As a result of this transfer, Titan Wood B.V. was able to offset €6.4m of its historically recorded tax liability from trading profits and recognise the remainder a deferred tax asset of €1.9m to be offset against future tax payable on taxable trading profits. This is expected to be utilised within the next 12 months.

Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements. See note 18.

1. Basic and diluted earnings per Ordinary share

   The calculation of earnings/(loss) per Ordinary share is based on loss after tax and the weighted average number of Ordinary shares in issue during the year.

   2026 2026 2025 2025

   	Underlying	Total	Underlying	Total
   Basic earnings per share
   Weighted average number of Ordinary shares in issue ('000)	242,304	242,304	240,086	240,086
   Profit/(loss) for the year attributable to owners of Accsys Technologies PLC (€'000)	5,176	6,476	(11,922)	(22,850)
   Basic earnings/(loss) per share (cents)	2.14	2.67	(4.97)	(9.52)
   Diluted earnings per share
   Weighted average number of Ordinary shares in issue ('000)	242,304	242,304	-	-
   Number of equity options attributable to BGF (see note 27)	8,449	8,449	-	-*
   Number of LTIP options expected to vest (see note 13)	2,727	2,727	-	-*
   Number of equity options attributable to convertible loan note issued (see note 26)	-	-	-	-
   Weighted average number of Ordinary shares in issue and potential Ordinary shares ('000)	253,480	253,480	-	-
   Profit for the year attributable to owners of Accsys Technologies PLC (€'000)	5,176	6,476	-	-
   Diluted earnings/(loss) per share (cents)	2.04	2.55	-	-*

   * Diluted loss per share is not disclosed for Total diluted loss per share. IAS 33 'Earning per share' defines Dilutive share options as share options which would decrease profit per share or increase loss per share. Equity options to BGF are disclosed in note 27 and convertible loan notes in note 26, which if exercised, would decrease Total loss per share. As a result, these are anti-dilutive and therefore shown as nil.

2. Share based payments

The Group operates a number of share schemes which give rise to a share-based payment charge. The Group operates a Long-Term Incentive Plan ('LTIP') in order to reward certain members of staff including the Senior Leadership team and the Executive Directors.

The following figures take into account options awarded under the LTIP, together with share options awarded in previous years under the 2008 Share Option schemes.

Outstanding options granted are as follows:

1 - 701,827 nil cost options are outstanding in the 2023 LTIP award at 31 March 2026 and 70,183 options are estimated to vest on the vesting date in the 2026 calendar year.

The exercise price of options outstanding at the end of the year was €nil (for LTIP options) (2025: €nil) and their weighted average contractual life was 8.3 years (2025: 8.3 years).

Of the total number of options outstanding at the end of the year 311,122 (2025: 254,255) had vested and were exercisable at the end of the year.

The Group recognised a total share-based payment charge of €720,000 in the year (2025: €1,747,000).

In 2013, the Group established a Long-Term Incentive Plan, the participants of which are key members of the Senior Management Team, including Executive Directors. The establishment of the LTIP was approved by the shareholders at the AGM in September 2013.

The LTIP in 2016 awarded 1,070,255 nil cost options and 494,433 vested in the financial year ended 31 March 2020. 93,188 nil cost options remain as at 31 March 2026 after allowing for forfeitures and options exercised in the year.

The LTIP in 2017 awarded 1,087,842 nil cost options and 326,999 vested in the financial year ended 31 March 2021. 72,999 nil cost options remain as at 31 March 2026 after allowing for forfeitures and options exercised in the year.

The LTIP in 2018 awarded 1,170,160 nil cost options and 185,840 vested in the financial year ended 31 March 2022. 45,154 nil cost options remain as at 31 March 2026 after allowing for forfeitures and options exercised in the year.

The LTIP in 2021 awarded 918,659 nil cost options and 42,914 vested in the financial year ended 31 March 2024. 42,914 nil cost options remain as at 31 March 2026 after allowing for forfeitures and options exercised in the year.

During 2024, a total of 620,698 LTIP awards were granted to members of the Senior Leadership team including the Executive Directors:

The performance targets for these awards are as follows:

• Vesting is on a straight-line basis between points in the schedule.

• Appropriate adjustments may be made to ensure fair and consistent performance measurement over the performance period in line with the business plan and intended stretch of the targets at the point of award.

• Gross contribution defined as Revenue from sale of Accoya/Tricoya less Net acetyls and raw wood cost.

• Sales Volume is defined as combined sales volume (in cubic metres, or equivalent) of Accoya and Tricoya.

• Share performance is compared to AIM Index performance excluding Financial services and natural resource stocks

  Element	Element A (Sales volume growth)	Element B (Gross Contribution %)	Element C (Share price growth)	Element D (ESG Reporting Metrics)
  Grant date	12 Jul 22	12 Jul 22	12 Jul 22	12 Jul 22
  Share price at grant date ( €)	1.21	1.21	1.21	1.21
  Exercise price (€)	0.00	0.00	0.00	0.00
  Expected life (years)	3	3	3	3
  Contractual life (years) Vesting conditions (Details set out above)	10 Sales volume	10 Gross Contribution %	10 Share price	10 ESG reporting metrics
  Risk free rate	0.45%	0.45%	0.45%	0.45%
  Expected volatility	20%	20%	20%	20%

  Expected dividend yield	0%	0%	0%	0%
  Fair value of option	€ 1.21	€ 1.21	€ 0.90	€ 1.21

  All of the above awards, made in summer 2022, are subject to a three-year performance period (i.e. year end 31 March 2026) and a further two-year holding period. In addition, awards are also subject to malus/clawback provisions.

  The volatility used for the share option grants above derive from historic volatility experienced by the Group during the period from listing.

  Awards made in July 2023 and LTIP Award performance conditions

  During the prior year, a total of 1,438,216 LTIP awards were made to members of the Senior Leadership team including the Executive Directors:

  The performance targets for 1,306,659 of these awards are as follows:

  Metric	Weighting (% of award)	Threshold	Maximum
  Vesting (% of maximum)		25%	100%
  Cumulative Sales Revenue (FY24 to FY26) (€)	45%	€500m	€600m
  Underlying EBITDA per share (€)	45%	0.18	0.20
  	10%	6% improvement in S&P ESG score over	9% improvement in S&P ESG score
  ESG - improvement in reporting ratings		the three-year period	over the three- year period

• Vesting is on a straight-line basis between points in the schedule.

• Appropriate adjustments may be made to ensure fair and consistent performance measurement over the performance period in line with the business plan and intended stretch of the targets at the point of award.

• Sales Revenue excludes revenue from Accoya USA, LLC.

  The remaining 131,557 of these awards related to a buy-out award granted to Jelena Arsic van Os, the Group's CEO, in respect of remuneration forfeited at her former employer as a result of joining Accsys. The awards vested on 27 June 2024. The fair value of these options were €1.22 on their Grant date.

  Element	Element A (Cumulative sales revenue)	Element B (Underlying EBITDA per share)	Element C (ESG Reporting Metrics)
  Grant date	28 Jul 23	28 Jul 23	28 Jul 23
  Share price at grant date ( €)	1.24	1.24	1.24
  Exercise price (€)	0.00	0.00	0.00
  Expected life (years)	3	3	3
  Contractual life (years)	10	10	10
  Vesting conditions (Details set out above)	Sales revenue	EBITDA per share	ESG reporting metrics
  Risk free rate	2.755%	2.755%	2.755%
  Expected volatility	20%	20%	20%
  Expected dividend yield	0%	0%	0%
  Fair value of option	€ 1.24	€ 1.24	€ 1.24

  All of the above awards, made in summer 2023, are subject to a three-year performance period (i.e. year end 31 March 2027) and a further two-year holding period. In addition, awards are also subject to malus/ clawback provisions.

  The volatility used for the share option grants above derive from historic volatility experienced by the Group during the period from listing.

  Awards made in July 2024 and November 2024 and LTIP Award performance conditions

  During the financial year ended 31 March 2025, a total of 1,963,768 LTIP awards were made primarily to members of the Senior Leadership team including the Executive Directors:

  The performance targets for these awards are as follows:

  Metric Vesting (% of maximum) Share performance compared to AIM

  Weighting (% of award)

  Threshold 25% Median

  Maximum 100% Top quartile

  Index EMBeItTriDcA per share in FY27	Weig 30% (% of hting aw40a%rd)	Threshold €0.07	Maximum €0.13
  Cumulative Cash generation	30%	€0m cash inflow	€10m cash inflow

• Vesting is on a straight-line basis between points in the schedule.

• Appropriate adjustments may be made to ensure fair and consistent performance measurement over the performance period in line with the business plan and intended stretch of the targets at the point of award.

• EBITDA per share targets exclude exceptional items and Tricoya UK but include the Company's proportion of Accoya USA results.

• Share performance is compared to AIM Index performance excluding Financial services and natural resource stocks

• Cumulative cash generation is based on total cash generation excluding Loan and interest payments

  Element	Element A (Share price growth)	Element B (Adjusted EBITDA per share)	Element C (Cumulative Cash generation)
  Grant date	18 Jul 24	18 Jul 24	18 Jul 24
  Share price at grant date ( €)	0.65	0.65	0.65
  Exercise price (€)	0.00	0.00	0.00
  Expected life (years)	3	3	3
  Contractual life (years)	10	10	10
  Vesting conditions (Details set out above)	Share price	EBITDA	Cash
  Risk free rate	2.53%	2.53%	2.53%
  Expected volatility	20%	20%	20%
  Expected dividend yield	0%	0%	0%
  Fair value of option	€ 0.65	€ 0.65	€ 0.65

  On 27 November 2024, a total of 401,516 LTIP awards (included in the 1,963,768 LTIP awards above) were made with the same performance targets as illustrated above. The fair value of these awards were €0.58 per option.

  All of the above awards, made in July and November 2024 are subject to a three-year performance period and the awards made to the two Executive Directors include a further two-year holding period. In addition, awards are also subject to malus/clawback provisions.

  The volatility used for the share option grants above derive from historic volatility experienced by the Group during the period from listing.

  Awards made in June 2025 and LTIP Award performance conditions

  During the financial year ended 31 March 2026, a total of 3,055,3073 LTIP awards were made primarily to members of the Senior Leadership team including the Executive Directors:

  The performance targets for these awards are as follows:

  Metric	Weighting (% of award)	Threshold	Maximum
  Vesting (% of maximum)		25%	100%
  Adjusted EPS	30%	2.7 cents	3.6 cents
  FY28 Adjusted EBITDA	30%	€34.0m	€54.4m
  Cumulative Free Cash Flow Generation	40%	€41.3m	€55.1m

• Vesting is on a straight-line basis between points in the schedule.

• Appropriate adjustments may be made to ensure fair and consistent performance measurement over the performance period in line with the business plan and intended stretch of the targets at the point of award.

• Adjusted EPS and adjusted EBITDA targets exclude exceptional items but include the Company's proportion of Accoya USA results.

• Cumulative free cash flow generation is based on cash flow generation from operations less CapEx.

All of the above awards, made in June 2025 are subject to a three-year performance period and the awards made to the two Executive Directors include a further two-year holding period. In addition, awards are also subject to malus/clawback provisions.

The volatility used for the share option grants above derive from historic volatility experienced by the Group during the period from listing.

177,582 Ordinary shares are held by an Employee Benefit Trust (2025: 428,689). The shares relate to part of the annual bonus, in connection with the employee remuneration and incentivisation arrangements for the period from 1 April 2023 to 31 March 2024, the beneficiaries of which are primarily senior employees. Of the total amount of shares held as at 31 March 2025, 351,003 new Ordinary shares vested on 1 July 2025 and were exercised. As at 31 March 2026, the Employment Benefit Trust was consolidated by the Company and the 177,582 shares are recorded as Own Shares within equity.

The Employee Share Participation Plan (the 'Plan') is intended to promote the long-term growth and profitability of Accsys by providing employees with an opportunity to acquire an ownership interest in new Ordinary shares ('Shares') in the Company as an additional benefit of employment. Under the terms of the Plan, the Company issues these Shares to a trust for the benefit of the subscribing employees. The Shares are released to employees after one year, together with an additional Share on a one for one matched basis provided the employee has remained in the employment of Accsys at that point in time (subject to good leaver provisions). The Plan is in line with industry approved employee share plans and the maximum amount available for subscription by any employee is €5,000 per annum. In January 2026 various employees subscribed for a total of 246,204 shares at an acquisition price of €0.72 per share.

Following the Group upgrading their computer software in FY26, all software has been reclassified from office equipment.

Refer to note 15 for the recoverability assessment of these intangible assets.

Following the Group upgrading their computer software in FY26, all software has been reclassified from office equipment.

Impairment review

The carrying value of the property, plant and equipment, internal development costs, goodwill and intellectual property rights are all within one cash generating unit (CGU), Accoya. The recoverable amount is determined based on a value in use calculation which uses cash flow projections based on Board approved financial forecasts. Cash flows have been projected for a period of five years plus a terminal value discounted at a pre-tax discount rate of 14.1% per annum (2025: 16.5%) and a growth rate of 2% to determine their present value (2025: 2%).

The key assumptions used in the value in use calculations are:

• Revenues and operating margins;

• the long-term growth rate; and

• the discount rate.

No reasonably possible change in assumptions or discount rate would lead to an impairment.

1. Leases

   1. Amounts recognised in the statement of financial position

      The statement of financial position shows the following amounts relating to leases:

      Right-of-use assets

      Right-of-use assets	2026 €'000	2025 €'000
      Properties	1,848	2,424
      Plant equipment	781	1,137
      	2,629	3,561
      Additions to the right-of-use assets during the financial year were €76,000 (2025: €2,036,000).

      Present value of minimum lease payments

      Amounts payable under lease liabilities:	2026 €'000	2025 €'000
      Within one year	1,014	1,126
      In the second to fifth years inclusive	1,976	2,892
      After five years	1,579	1,580

      Less: future finance charges (1,232) (1,315)

      Present value of lease obligations 3,337 4,283

      Minimum lease payments

      Amounts payable under lease liabilities:	2026 €'000	2025 €'000
      Within one year	831	961
      In the second to fifth years inclusive	1,101	1,799
      After five years	1,405	1,523
      Present value of lease obligations	3,337	4,283

   2. Amounts recognised in the statement of profit and loss

The Group leases various offices, land and plant equipment. Rental contracts are typically made for fixed periods of one to ten years, although, if appropriate, a longer term may be entered into. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. Lease extension options and lease termination options are only included in the calculation of the lease liability if there is reasonable certainty that they will be exercised. Some of the Group's leases have extension and termination options attached to them.

Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of comprehensive income over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right of use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:

• Fixed payments (including in-substance fixed payments), less any lease incentives receivable;

• Variable lease payments that are based on an index or a rate;

• Amounts expected to be payable by the lessee under residual value guarantees;

• The exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and

• Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

  The lease payments are discounted using the Group's incremental borrowing rate, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar economic environment within similar terms and conditions.

  Right of use assets are measured at cost comprising the following:

• The amount of initial measurement of lease liability;

• Any lease payments made at or before the commencement date less any lease incentives received;

• Any initial direct costs; and

• Restoration costs.

Payments associated with short-term leases and leases of low value are recognised on a straight-line basis as an expense in the statement of comprehensive income. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise of small items of office furniture and equipment.

Accsys Technologies PLC had previously purchased a total of 21,666,734 unlisted Ordinary shares in Diamond Wood China Limited. On 23 December 2016, Cleantech Building Materials PLC acquired Diamond Wood China. On 19 April 2017 Cleantech Building Materials acquired the 21,666,734 shares previously owned by the Company and in return the Company has been issued with 520,001 shares in Cleantech Building Materials PLC.

There continues to be no active market for these shares as at 31 March 2026. As such a reliable fair value cannot be calculated and the investment is carried at a nil fair value (2025: nil).

A total of 498,522 shares were held at 31 March 2026 (2025: 498,522).

1. Deferred taxation

   The Group has a recognised deferred tax asset of €2,226,000 (2025: €411,000) offsetting a recognised deferred tax liability of €330,000 (2025:

   €411,000). Within the €2,226,000, €1,896,000 relates to a deferred tax asset in relation to trading losses. See note 11.

   The Group also has an unrecognised deferred tax asset of €26,749,000 (2025: €37,071,000) which is largely in respect of trading losses of the UK subsidiaries and has been calculated using the tax rate which is expected to be applicable when the tax losses are expected to be utilised. The Group has gross tax losses of €106,995,000 (2025: €148,284,000). The deferred tax asset has been recognised only to the extent of the deferred tax liability, due to the uncertainty of the timing of future expected profits of the related legal entities which is dependent on the profits attributable to licensing and future manufacturing income.

2. Subsidiaries

The Directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value. Trade and other receivables in the above table are stated net of provision for doubtful debts. The majority of trade and other receivables is denominated in Euros, with

€5,017,000 of the trade and other receivables denominated in US Dollars (2025: €401,000).

Based on the current debtor profile the Group does not expect any bad debts to occur. As a result of this, no material expected credit losses are expected and therefore no ECL provision has been provided for within these financial statements.

In the year ended 31 March 2025:

In May 2024, 80,816 Ordinary shares were issued following the exercise of nil cost options, granted under the Company's 2023 LTIP.

In September 2024, 809,892 Ordinary shares were issued to an Employee Benefit Trust at nominal value, as part of the annual bonus, in connection with the employee remuneration and incentivisation arrangements for the period from 1 April 2023 to 31 March 2024.

In September 2024, 36,487 Ordinary shares were issued following the vesting of nil cost options granted under the Company's Deferred bonus plan.

In the year ended 31 March 2026:

In July 2025, 2,248,645 Ordinary shares were issued following the vesting of nil cost options granted under the Company's Deferred bonus plan.

In January 2026, following the subscription by employees in the prior year for shares under the Employee Share Participation Plan (the 'Plan'), 50% of the 442,665 Ordinary shares were issued at €0.54 per share and the remaining 50% were matched at nominal value as part of the plan.

In January 2026, following the subscription by employees for shares under the Employee Share Participation Plan (the 'Plan'), 246,204 Ordinary shares were issued at €0.72 per share as part of the plan.

The closing balance of the capital redemption reserve represents the amounts transferred from share capital on redemption of deferred shares in a previous year.

The merger reserve arose prior to transition to IFRS when merger accounting was adopted.

The hedging effectiveness reserve reflects the total accounted unrealised gains/losses on foreign exchange forwards accounted for under IFRS 9 (see note 29).

The other reserve represents the amounts received for subsidiary share capital from non-controlling interests net with the carrying amount of non-controlling interests issued.

1. Investment in Joint Venture

   In August 2020, Accsys together with Eastman Chemical Company formed a new Company, Accoya USA, LLC, 60% owned by Accsys and 40% owned by Eastman. Accoya USA, LLC owns and operates an Accoya plant in Kingsport, Tennessee, USA to serve the North American market. The plant has a current capacity to initially produce approximately 43,000 cubic metres of Accoya per annum and to allow for cost-effective expansion.

   Under IFRS 11 - Joint arrangements, the two parties are assessed to jointly control the entity, due to the operating agreement requiring both joint venture partners to approve key business decisions. Accoya USA is accounted for as a joint venture and equity accounted for within the financial statements.

   An eight-year term loan of $70 million has been provided by First Horizon Bank ('FHB') of Tennessee, USA. FHB are also providing a further $15 million revolving line of credit for plant commissioning and working capital purposes. The FHB term loan is secured on the assets of Accoya USA and is supported by Accoya USA's shareholders, including $50 million through a limited guarantee provided on a pro-rata basis, with Accsys' 60% share representing $30 million (see note 28). The interest rate varies between 1.3% to 2.1% over USD SOFR. Principal repayments commenced in January 2026 and are calculated on a ten-year amortisation period.

   The carrying amount of the equity-accounted investment is as follows:
   Opening balance	2026 €'000 33,854	2025 €'000 31,685
   Investment in Accoya USA	3,032	14,490
   Less: Accsys proportion (60%) of Licence fee received	(834)	(450)
   Share of loss for the year	(7,720)	(11,871)
   Closing balance	28,332	33,854
   The Group has equity accounted for the joint venture in these consolidated financial statements.

   Reconciliation of investment in Accoya USA:
   	2026	2025
   	€'000	€'000
   Net assets of Accoya USA (USD)	56,971	65,003
   60% of net assets of Accoya USA (Eur)	29,769	36,024
   Less: Accsys proportion (60%) of Licence fee received to date	(2,500)	(1,950)
   Less: Provision for unrealised profit	(445)	-
   Foreign exchange
   movements	1,508	(220)
   Closing balance	28,332	33,854
   Impairment review

   The carrying value of the investment in joint venture is considered its own cash generating unit. The recoverable amount of the investment is determined on a value in use calculation which uses cash flow projections based on Joint Venture Board-approved financial forecasts. Cash flows have been projected for a period of five years plus a terminal value discounted at a pre-tax discount rate of 14.1% per annum and a growth rate of 2% to determine their present value. As a result of the value in use calculation, no impairment charge was required. No impairment triggers were identified in 2025.

   The key assumptions used in the value in use calculations are:

   • Sales volumes and operating margins;

   • the long-term growth rate; and

   • the discount rate.

     Sensitivity analysis has been undertaken on the impairment review. If the sales volume CAGR for the five-year period reduced from 19% per annum to 10% per annum, or the discount rate increased from 14.1% to 21.6%, then the carrying value of the joint venture would equal it's value in use.

     The income statement, balance sheet and cash flows for Accoya USA, LLC are set out below:
     Accoya USA statement of comprehensive income:	2026 €'000	2025 €'000
     Total revenue	50,541	18,089
     Cost of sales	(40,923)	(17,939)
     Gross profit	9,618	150
     Operating costs	(17,872)	(16,185)
     Operating loss	(8,254)	(16,035)
     Interest payable	(4,610)	(3,750)
     Loss before taxation	(12,864)	(19,785)
     Tax expense	-	-
     Total comprehensive loss for the financial year	(12,864)	(19,785)
     Accsys share (60%) of US JV EBITDA	90	(6,045)
     Accsys share (60%) of US JV EBIT	(4,953)	(9,621)
     Accsys share (60%) of US JV total loss before tax	(7,720)	(11,871)

     Statement of financial position: 2026 2025 €'000 €'000 Non-current assets

     Property, plant and equipment Intangible assets	109,587 4,197	123,158 3,384
     Right of use assets	5,656	6,328
     	119,440	132,870
     Current assets Inventories	14,239	9,021
     Trade and other receivables	8,704	1,162
     Cash and cash equivalents	2,324	1,675
     	25,267	11,858
     Current liabilities Trade and other payables	(18,748)	(2,879)

     Obligation under lease liabilities

     (491) (651)

     (19,239) (3,530)

     Net current assets 6,028 8,328 Non-current liabilities

     Obligation under lease liabilities	(5,548)	(5,909)
     Other long term borrowing	(70,305)	(75,249)
     	(75,853)	(81,158)
     Net assets	49,615	60,040
     Value attributable to Accsys Technologies	29,769	36,024

     To better reflect the nature of the Joint venture's non-current assets, some of the assets from property plant and equipment have been reclassified

     into intangibles.
     	2026	2025
     	€'000	€'000
     Cash flows from operating activities	(2,165)	(26,441)
     Cash flows from investing activities	(2,363)	(7,978)
     Cash flows from financing activities	5,177	30,004
     Net increase/(decrease) in cash and cash equivalents	649	(4,415)

     The following transactions have occurred between the Group and the joint venture during the year:
     	2026 €'000	2025 €'000
     Sales made to the joint venture	16,517	9,084
     Purchases from the joint venture	7,042	1,472
     Amounts owed from the joint venture as at 31 March	13,410	-
     Amounts owed to the joint venture as at 31 March	6,944	-

     The above balances are non-interest bearing and are repayable on demand.

     26. Commitments under loan agreements
     Loan obligations	2026 €'000	2025 €'000
     Within one year	6,936	5,625
     In the second to fifth years inclusive	49,052	50,075
     Present value of loan obligations	55,988	55,700
     Amounts payable under loan agreements - undiscounted cash flows: Within one year	9,302	7,285
     In the second to fifth years inclusive	58,363	64,505
     Less future finance charges	(11,677)	(16,090)
     Present value of loan obligations	55,988	55,700

     Reconciliation of loan agreements:
     		2026			2025
     	Debt facilities	Convertible loan note with embedded derivative	Total	Debt facilities	Convertible loan note with embedded derivative	Total
     	€'000	€'000	€'000	€'000	€'000	€'000
     Loan balance Fair value of embedded	29,656	25,181	54,837	32,479	22,608	55,087

     derivative	-	1,151	1,151	-	613	613
     Loan balance as at 31 March	29,656	26,332	55,988	32,479	23,221	55,700

     Debt Facilities

     In October 2025 , Accsys, ABN AMRO and HSBC agreed to replace the existing ABN agreement with a new €55m facility equally split between ABN and HSBC which would be the Group's main borrowing facilities. The facilities have a maturity in October 2028 and have an option, at the Banks' discretion for a further one year extension to October 2029. The facilities agreement comprise a:

     • €20m remaining Term Loan Facility.

     • €35m Revolving Credit Facility ('RCF').

     • The Term Loan has capital repayments commencing on 31 March 2026 of €0.65m and then quarterly payments of €0.65m thereafter.

     • Term Loan and RCF interest varies between 2.90% and 3.50% above EURIBOR, based on a ratcheted leverage grid.

Approximately €17.5m of the RCF has been utilised to provide a $20m letter of credit guarantee to FHB in support of the Accoya USA JV funding arrangements, a further €1.0m to cover other operational performance guarantees and €6.1m was undrawn at 31 March 2026.

The facilities are secured against the assets of the Group which are 100% owned by the Company and include net leverage and interest cover covenants which is based upon the results and assets which are 100% owned by the Company. There have been no breaches to covenants during the year.

The renegotiation was assessed under IFRS 9 where we conducted the required quantitative and qualitative tests in order to conclude on whether the renegotiated instrument constituted as a substantive modification or not. We concluded that the loan was not substantially modified and there remeasured the loan in line with the requirements of IFRS 9. Changes arising from the remeasurement and transaction costs of €1.1 million directly attributable to the new facilities were deducted from the carrying amount of the new borrowing and expensed as incurred in the current year profit and loss.

Convertible Loan notes

In the November 2023 capital raise, new unsecured, non-transferable convertible loan notes were issued totalling €21 million (including the refinancing and discharge of the existing €10 million 2022 Convertible Loan).

The convertible loans have a six year term and carry a fixed rate coupon of 9.5%. For the first 2.5 years the coupon is rolled up and deferred and following the 2.5 year period, the deferred interest can either be converted into Ordinary shares of the Company or paid in cash over the remaining

3.5 years at the option of the holders of the convertible loan notes. Following that 2.5 year period, interest shall be payable in cash or equity.

The convertible loan note holders have the right to convert the convertible loan notes they hold into Ordinary Shares of the Company at a price of

83.22 Euro cents per share, giving rise to an embedded derivative in the current year. A Monte-Carlo valuation method has been used to calculate the fair value of the embedded derivative. The following assumptions were used when calculating the fair value of the embedded derivative:

Level 1 inputs:

Share price - the share price on each reporting date has been taken and used in the valuation model.

Level 2 inputs:

Volatility - the rate of volatility is based upon the historical movement in the share price.

Interest rate - the convertible loan notes have a 9.5% interest rate attached to them and this rate has been applied in the valuation. Risk free rate - the Euribor forward rate at the valuation date has been applied within the model.

Level 3 inputs:

Discount rate - the Group uses its WACC of 14.1% (2025: 16.5%) as the discount rate.

Accoya USA facility:

In March 2022 the Company's joint venture, Accoya USA agreed an eight-year $70 million loan from First Horizon Bank ('FHB') of Tennessee, USA in respect of the construction and operation of the Accoya USA plant. FHB are also providing a further $15 million revolving line of credit for plant commissioning and working capital purposes. The FHB term loan is secured on the assets of Accoya USA and is supported by Accoya USA's shareholders, including $50 million through a limited guarantee provided on a pro-rata basis, with Accsys' 60% share representing $30 million (see note 25 and 28). The interest rate varies between 1.3% to 2.1% over USD SOFR. Principal repayments commenced in January 2026 are calculated on a ten-year amortisation period. Accoya USA is equity accounted for in these financial statements, therefore this Borrowing is not included in the Group's borrowings (See note 25).

To support Accsys' limited guarantee, Accsys provided a $20 million Letter of Credit ('LC') to FHB. The LC is issued by HSBC and ABN AMRO,

utilising part of the revolving credit facility.

Add:

Fair value movement on embedded derivative 538 -Net debt (41,385) (42,560)

Other changes relate to accrued interest and other financing costs.

1. Equity options

   On the 29 March 2017, the Company announced the formation of the Tricoya Consortium and as part of this, funding was agreed with BGF Business Growth Fund. In addition to the issue of the Loan Notes, which have since been repaid as part of the Group re-financing in October 2021, the Company issued 8,449,172 options over Ordinary shares of the Company to BGF, exercisable at a price of £0.5971 per Ordinary share at any time until 31 December 2026 (the 'Options').

   At 31 March 2026 a total 8,449,172 (2025: 8,449,172) options exist attributable to BGF. This represents 3.5% (2025: 3.5%) of the issued share capital of the Company as at 31 March 2026.

   See note 26 for details on the convertible loan notes issued during the November 2023 capital raise.

2. Financial guarantee

   In March 2022 the Company's joint venture, Accoya USA agreed an eight-year $70 million loan from First Horizon Bank ('FHB') of Tennessee, USA in respect of the construction and operation of the Accoya USA plant and a further $15 million revolving line of credit for plant commissioning and working capital purposes (see note 25 and 26). The FHB term loan is supported by Accoya USA's shareholders, including $50 million through a limited guarantee provided on a pro-rata basis, with Accsys' 60% share representing $30 million (see note 25).

   To support Accsys' limited guarantee, Accsys provided a $20 million Letter of Credit, issued by HSBC and ABN AMRO, t o FHB (see note 27), together with a $10 million cash guarantee.

   The $30 million limited guarantee provided to FHB is accounted for under IFRS 9 'Financial instruments' and held at a fair value of € nil (2025: €nil), representing a present value calculation of €8.7 million (2025: €8.6 million) weighted by the estimated probability of FHB calling on the guarantee being close to 0%, and therefore any remaining value being close to €nil. This probability has been assessed due to the requirements in place under the joint venture operating agreement for the joint venture shareholders to fund Accoya USA.

3. Financial instruments Financial instruments Lease liabilities

   Lease creditors of €3,337,000 as at 31 March 2026 (2025: €4,283,000) relates to various offices, land, plant and equipment that the Group leases (see note 16).

   Capital risk management

   The Group manages its capital base to ensure that entities in the Group will be able to continue as a going concern and to maintain investor, creditor and market confidence in sustaining the future development of the Group.

   The capital structure of the Group consists of equity attributable to owners of the parent Company, comprising share capital, reserves and accumulated losses, together with undrawn committed debt facilities.

   The Board reviews the capital structure on a regular basis. The Group's capital allocation strategy is to de-leverage the balance sheet. As at 31 March 2026, the leverage ratio (net debt/underlying EBITDA) was 1.96x (2025: 2.52x).

   The Group's primary debt facilities with HSBC and ABN AMRO include covenants on leverage and interest cover. The Group has fully complied with these covenants during the year, and there are no indications that the Group would have difficulty complying with the covenants when they will be next tested on 30 June 2026.

   No final dividend is proposed in 2026 (2025: €nil). The Board deems it prudent for the Group to maintain a strong statement of financial position during phases one and two of the Group's FOCUS strategy.

   All assets and liabilities mature within one year except for the lease liabilities, for which details are given in note 16 and loans, for which details are given in note 26.

   Trade payables are payable on various terms, typically not longer than 30 to 90 days.

   Derivative financial instruments measured at fair value through other comprehensive income comprise foreign currency forward contracts used by the Group to manage its foreign exchange risk.

   Market risk

   The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

   Financial risk management objectives

   The Group's treasury policy is structured to ensure that adequate financial resources are available for the development of its business whilst managing its currency, interest rate, counterparty credit and liquidity risks. The Group's treasury strategy and policy are developed centrally and

   approved by the Board.
   Financial Instruments by category
   	Fair value	At amortised cost	At fair	At fair	Total
   	hierarchy		value	value
   			though	through
   			profit or	OCI
   2026/€'000			loss
   Financial assets
   Trade and other receivables		25,867	-	-	25,867
   Cash and cash equivalents		17,402	-	-	17,402
   Derivative financial instruments measured at fair - - 386 386
   value through other comprehensive income
   Total		43,269	-	386	43,655
   	Fair value	At amortised cost	At fair	At fair	Total
   	hierarchy		value	value
   			though	through
   			profit or	OCI
   2025/€'000			loss
   Financial assets
   Trade and other receivables		13,390	-	-	13,390
   Cash and cash equivalents		17,423	-	-	17,423
   Total		30,813	-	-	30,813
   	Fair value	At amortised cost	At fair	At fair	Total
   	hierarchy		value	value
   			though	through
   			profit or	OCI
   2026/€'000			loss
   Financial liabilities
   Borrowings - loans		(54,837)	(1,151)	-	(55,988)
   Lease liabilities		(3,337)	-	-	(3,337)

   Trade and other payables		(19,264)	-	-	(19,264)
   Total		(77,438)	(1,151)	-	(78,589)
   2025/€'000	Fair value hierarchy	At amortised cost	At fair value though profit or loss	At fair value through OCI	Total
   Financial liabilities Borrowings - loans		(55,087)	(613)	-	(55,700)
   Lease liabilities		(4,283)	-	-	(4,283)
   Trade and other payables		(8,436)	-	-	(8,436)
   Total		(67,806)	(613)	-	(68,419)
   Foreign currency risk management

   The Group's functional currency is the Euro with the majority of operating costs and balances denominated in Euros. Equity contributions into Accoya USA and a smaller proportion of revenue and expenditure are incurred in US dollars and expenditure is also incurred in pounds sterling. In addition some raw materials, while priced in Euros, are sourced from countries which are not within the Eurozone. The Group undertakes rolling 12 month hedging on a proportion of US dollar-based acetic anhydride supply. The Group monitors any potential underlying exposure to other exchange rates.

   If exchange rates changed by 5% from exchange rates at 31 March 2026, the effect on the P&L from the revaluation of:

   • Trade Receivables - P&L impact would not be material (2025: not material). The details of the Trade receivables per Currency is disclosed in note 21 with the US Dollar receivables held in Titan Wood Inc, which has a US Dollar reporting currency.

   • Trade payables - P&L impact would be approximately €178,000 (2025: €104,000).