Preliminary results for the year end 31 March 2025

About this update from Accsys Technologies Plc

[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n AIM: AXS \n Euronext Amsterdam: AXS \n   \n 24 June 2025 \n   \n Accsys Technologies PLC \n (\"Accsys\", the \"Group\" or the \"Company\") \n   \n   \n Preliminary results for the year ended 31 March 2025 \n   \n Significant profitability and strategic progression; good momentum heading into FY26 \n   \n \n \n \n \n    \n \n \n     \n \n \n Year to 31 March 2025 \n \n \n Year to 31 March 2024 \n \n \n % Change \n   \n \n \n \n \n Revenue \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Group   \n \n \n    \n \n \n €136.6m   \n \n \n €136.2m  \n \n \n +0.3%  \n \n \n \n \n Aggregated: Group + 60% JV 1 \n \n \n   \n \n \n €147.4m   \n \n \n €136.2m  \n \n \n +8.2%  \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Gross profit  \n \n \n     \n \n \n €41.4m   \n \n \n €40.9m  \n \n \n +1.2%   \n \n \n \n \n Gross margin  \n \n \n     \n \n \n 30.3%   \n \n \n 30.0%  \n \n \n +30bps \n \n \n \n \n Adjusted EBITDA 2   \n \n \n     \n \n \n €10.8m   \n \n \n €4.8m  \n \n \n +125% \n \n \n \n \n Net debt   \n \n \n     \n \n \n (€42.6)m   \n \n \n (€37.1)m  \n \n \n +€5.5m  \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Sales Volumes m³ \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n Group \n \n \n     \n \n \n 57,104m 3   \n \n \n 56,568m 3   \n \n \n +0.9%  \n \n \n \n \n JV \n \n \n   \n \n \n 6,760m 3 \n \n \n - \n \n \n - \n \n \n \n \n Total 3 \n \n \n     \n \n \n 63,864m 3   \n \n \n 56,568m 3   \n \n \n +12.9%  \n \n \n \n \n   \n   \n Notes   \n 1 Accsys has a 60% shareholding in Accoya USA, a joint venture (JV) with Eastman Chemical Company which commenced operations in September 2024. Whilst the JV is equity accounted for financial reporting purposes, the aggregated revenue figure includes Group revenue plus 60% of the JV revenue   \n 2 Adjusted EBITDA is defined as operating profit/(loss) before exceptional items and other adjustments, depreciation and amortisation, and includes the Group's 60% share of the JV's EBITDA. \n ³ Total Accoya sales volumes are Global Accoya sales volumes (Group + 100% of US JV) \n   \n   \n Dr Jelena Arsic van Os, CEO Accsys Technologies PLC said: \n   \n \"Accsys has delivered a year of strong execution and strategic progress; the business is now at an important inflection point. We achieved a significant step-change in profitability, successfully completed the launch of Accoya USA, and positioned the business for disciplined, high-return growth. \n   \n Today, Accsys stands as a compelling investment proposition: a business with a de-risked geographic and CapEx profile, proprietary and sustainable premium wood products, and fully operational manufacturing footprints in both Europe and the USA. With Phase I of our FOCUS Strategy already yielding results, we are optimising asset returns and driving profitable volume growth. Our roadmap is clear, we are focused on our priorities, and we have the experienced leadership team to deliver sustained value creation in the years ahead.\" \n   \n   \n   \n   \n   \n   \n   \n Financial overview \n   \n ·      Delivered FY25 results significantly ahead of prior year with adjusted EBITDA up 125% year-on-year to €10.8m \n   \n ·      13% increase in total Accoya sales volumes against a backdrop of challenging macroeconomic conditions, demonstrating strong product demand with double digit growth across all regions \n o  Encouraging growth in North America with a 16% year-on-year increase in total sales volumes \n   \n ·      Group revenues of €136.6m, in line with previous year, driven by strong growth in Europe that fully replaced the sales volumes transferred to Accoya USA JV \n o      8% increase in aggregated revenues at €147.4m driven principally by increased global sales volumes from the Group and the JV \n   \n ·      Improvement in gross margin to 30.3%, resulting from favourable sales mix, operational efficiencies and continued disciplined pricing \n   \n ·      Group Underlying EBITDA increased by €8.3m to €16.8m \n   \n ·      Delivered operational cost savings of €4.6m, arising from the business transformation programme and the Solid Roots operational efficiency initiative in Arnhem \n   \n ·      Net debt of €42.6m as at 31 March 2025 represents an increase of €5.5m compared to 31 March 2024, driven by planned investment in the JV, higher inventory levels, ensuring product availability to support strong demand and customer service, offset by the elimination of non-recourse debt in Tricoya UK Ltd. Leverage ratio*, improved from 4.4x to 2.5x, highlighting good progression in deleveraging the business \n   \n ·      Funding in place to support future growth prospects: \n o      In March 2025 the Group signed an 18-month extension to its primary debt facilities with ABN Amro extending the maturity to 30 September 2027 \n   \n * calculated as net debt divided by underlying EBITDA \n   \n Strategic highlights \n   \n ·      Investor Strategy Day in January 2025 - implementing our FOCUS strategy: \n o  Phase 1 - 'Transform and Improve' (FY24-FY27): Focus on driving sustainable, profitable growth from existing assets, improving and maintaining cost efficiencies, and reducing debt; \n o  Phase 2 - 'Optimise' (FY28-30): Implementing operational efficiencies to achieve full capacity utilisation, and continued debt reduction driven by strong cash flow generation; \n o  Phase 3 - 'Grow' (FY30+): Pursue further growth opportunities supported by a strong balance sheet. \n   \n ·      Successful delivery and operational start-up of Accoya USA JV \n   \n ·      The Group is significantly simplified and de-risked with the completion of major CapEx projects and the closure of the Hull site and voluntary liquidation of Tricoya UK \n   \n ·      Appointment of Sameet Vohra as CFO to drive financial discipline and strengthen Accsys' strategic financial leadership as the Group focuses on delivering sustainable, profitable growth \n   \n Outlook \n   \n ·      We are encouraged by the positive start to the year. Whilst noting continuing macroeconomic challenges, Accsys is confident it will continue to deliver sales growth and execute on its strategic priorities for the year ahead, consistent with the Board's expectations. \n   \n ·      The Group's resilient premium pricing and operational leverage continues to support sustainable margin progression. The FY25 results have demonstrated the benefits of Accsys' strategic plans and disciplined execution. \n   \n ·      Having successfully expanded our geographic footprint, the Group's focus is on accelerating sales and capacity utilisation, further driving profitability improvements.  \n   \n Ends \n   \n There will be a presentation relating to these results at 9.00am UK time on 24 June 2025. The presentation will take the form of a webcast and conference call, details of which are below:   \n   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/hr85ed6z \n   \n 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/BIcba44a1980b14572a167a14db5f85862 \n   \n Enquiries: \n \n \n \n \n Accsys Investor Relations \n \n \n \n \n \n [email protected] \n \n \n \n \n Panmure Liberum (London) - Nomad and Broker \n Nicholas How (NOMAD), Will King         \n \n \n   \n \n \n +44 (0) 20 3100 2000 \n \n \n \n \n ABN Amro (Amsterdam ) - Broker \n Richard van Etten, Dennis van Helmond \n \n \n   \n \n \n +31 (0) 20 344 2000 \n   \n \n \n \n \n Media:  \n \n \n   \n \n \n   \n \n \n \n \n Camarco (UK) - Ginny Pulbrook, Tom Huddart, Tilly Butcher \n \n \n   \n \n \n [email protected] \n +44 (0)20 3757 4980 \n \n \n \n \n Huijskens Sassen Communications (NL) - Clemens Sassen, Tessa Nelissen \n \n \n   \n \n \n +31 (0) 20 68 55 955 \n \n \n \n \n \n \n \n CEO Review \n   \n Accsys is at an inflection point with a clearly defined strategy to continue driving profitable growth in earnings and returns. \n FY25 has been a transformative year for Accsys, as we delivered strong progress through disciplined execution on our strategic initiatives. A key milestone was our successful expansion to the USA, with Accoya USA commencing commercial operations in September 2024. This expansion has firmly established Accsys in the world's most attractive wood market, significantly enhancing our global presence and providing a robust platform for sustained profitable growth. \n Our purpose, 'Changing Wood to Change the World', continues to guide every decision we make. In FY25, this purpose was further strengthened by the introduction of our new FOCUS strategy - designed to give us greater control, optimise value creation, and ensure we retain more of the financial upside from our operations. \n We have already made an encouraging start in delivering on this strategy, marking the beginning of a new phase of growth and maturity for Accsys. With major capital investments now complete, including the successful launch of Accoya USA, and the business derisked with the discontinuation of our Tricoya plant in Hull, we are transitioning into a period of sales acceleration, operational stability, improved cash generation, and stronger financial performance. \n We enter FY26 with positive sales momentum, improved efficiency and a strengthened, motivated team. With differentiated, premium-priced products and established manufacturing bases in both Europe and North America, we are well placed to capture further share in the global wood products market - a $990 billion sector expected to grow at a CAGR of 7% between 2024 and 2029 (Source: The Business Research Company). We are confident in our ability to capitalise on this opportunity and deliver long-term value for all our stakeholders. \n Financial Performance: Strong profitability growth and increased free cash flow generation.  125% increase in adjusted EBITDA from FY24. \n In FY25 we de livered Group revenues of €136.6m, in line with FY24 (€136.2m). This reflects strong growth in European sales that fully replaced the sales volumes transferred to the Accoya USA JV, which represented 16% of our Group volumes in FY24.    \n Aggregated revenues, inclusive of 60% share of the JV revenue, were €147.4m, an 8% increase on FY24, driven by strong sales growth in Europe and North America. Demand for Accoya continued to be resilient despite a difficult building materials market backdrop impacted by macroeconomic challenges. \n Adjusted EBITDA was €10.8m for the year, reflecting an increase of €6.0m on the prior year. This came from efficiencies delivered by the business transformation programme, a favourable sales mix and lower costs associated with Tricoya UK, offset by higher costs arising from the ramp-up of the JV. Accordingly, the adjusted EBITDA margin improved from 3.5% to 7.3%. The underlying EBITDA from Group operations excluding Tricoya UK and the JV, increased by €5.1m to €18.9m, highlighting the strength of, and cost discipline within, our core operations. \n Group gross margin was 30.3% (FY24: 30.0%), resulting from a favourable sales mix and operational efficiencies. \n Free cash flow (net cash flow from operating activities less CapEx) increased by €5.1m to €8.8m (FY24: €3.7m) driven by higher underlying profitability. \n Net debt of €42.6m at 31 March 2025, an increase of €5.5m from 31 March 2024 (€37.1m), reflects planned investment in the JV and increased inventory levels to support strong demand and high levels of customer service. Despite an increase in net debt, the leverage ratio improved, in line with our strategic focus to deleverage the balance sheet, from 4.4x as of 31 March 2024 to 2.5x as of 31 March 2025 \n \n \n \n The Company has signed an 18-month extension to its primary debt facilities with ABN Amro extending the maturity to 30 September 2027. \n   \n FOCUS strategy \n   \n Since joining Accsys, I have focused on deeply immersing myself in the business - engaging with our customers and suppliers, and meeting with colleagues and investors across our global network. The insights gained through these interactions have been instrumental in shaping our FOCUS strategy, developed collaboratively by the Executive Committee in close partnership with the Board. \n   \n At our Investor Strategy Day in January 2025 - an event that was well received by both the market and our colleagues - we outlined our FOCUS strategy in detail, ensuring all stakeholders had a clear understanding of our roadmap to delivering sustainable long-term value. \n   \n The strategy is to be delivered in stages: \n   \n Phase 1 - 'Transform and Improve' (FY24-FY27): Focus on driving sustainable, profitable growth from existing assets, improving and maintaining cost efficiencies, and reducing debt.  \n   \n Phase 2 - 'Optimise' (FY28-30): Implementing operational efficiencies to achieve full capacity utilisation, and continued debt reduction driven by strong cash flow generation. \n   \n Phase 3 - 'Grow' (FY30+): Pursue further growth opportunities supported by a strong balance sheet. \n   \n Accsys is committed to continued innovation and to maintain its position as the preferred choice in the fast growing and sizeable global premium wood products market. Our market share has huge growth potential. Accsys' current US market share being less than 1% of the addressable US decking, flooring, windows, doors and cladding market at 8.6m m 3 ; and in Europe with our 4% market share, the same commercial market is 1.5m m 3 .* \n   \n We are confident that our FOCUS strategy will enable us to capitalise on this significant market potential, delivering growth progression, targeting an adjusted EBITDA margin of 12% by the end of Phase 1. \n   \n * Source: Principia report US and Poyry report Europe \n   \n FY25 strategic progress \n   \n During the year we were delighted to complete the launch of our successful international expansion, Accoya USA, Accsys' joint venture with Eastman Chemical Company at Kingsport, Tennessee. The joint venture, in which Accsys holds a 60% share has been commercially operational since September 2024, and the plant will serve the North American markets. Accoya USA replicates the technology from our Arnhem facility in the Netherlands and has sufficient capacity to support the growth planned for the coming years, without having to incur any further substantial investment. \n   \n With increased capacity from our new USA facility as well as our recent expansion in Arnhem, we are well positioned to drive Accoya demand and sales acceleration, targeting a run rate of 100,000m 3 sales volumes by the end of FY27. \n   \n In the USA, the team has been focused on driving sales volume through our new production facility. To support the ramp-up phase, we have expanded our commercial team and are adding further distribution partners to expand Accoya availability across the country, with a strategic focus on high-growth markets in Florida, Texas, and California. \n   \n To promote awareness of Accoya products, the US team is providing training to architects across America, delivering over 50 CEUs (Continuing Education Units) in FY25 and replicating the strong architect education programme that has driven success in the UK market; the team is also promoting Accoya at key architectural events, including the America Institute of Architecture conference in Boston. \n   \n   \n   \n   \n Sales volumes: Double digit sales growth \n \n \n \n \n Sales volume by end market \n \n \n FY25 m 3 \n \n \n FY24 m 3 \n \n \n Change % \n \n \n \n \n UK & Ireland \n \n \n 14,980  \n \n \n 11,837  \n \n \n 27% \n \n \n \n \n Rest of Europe \n \n \n 15,359  \n \n \n 13,233  \n \n \n 16% \n \n \n \n \n North America \n \n \n 10,562  \n \n \n 9,068  \n \n \n 16% \n \n \n \n \n Rest of World \n \n \n 5,619  \n \n \n 5,083  \n \n \n 11% \n \n \n \n \n Accoya for Tricoya \n \n \n 17,344  \n \n \n 17,347  \n \n \n - \n \n \n \n \n Total \n \n \n 63,864 \n \n \n 56,568 \n \n \n 13% \n \n \n \n \n \nTotal sales volumes increased by 13%, demonstrating strong product demand and investment in our commercial team. In the UK and Ireland we achieved particularly strong volume growth of 27% year-on-year as our additional capacity gave customers confidence in supply and availability. In the Rest of Europe, volumes were up 16% year-on-year, with growth seen across both Northern and Southern regions demonstrating the attractiveness of Accoya's resilience in hot and cold climates. \n   \n Our performance in Europe means we are seeing good returns from our assets in Arnhem and Barry, which are operating at gross margins of circa 30%. Arnhem has already fully replaced the sales transferred to the JV, with the demand coming from Europe and other regions. \n   \n Our investment in a new planing facility at Barry supports strong sales growth of 34% year-on-year for Accoya Color, our unique coloured-to-the-core product, popular for decking and cladding. The equipment will enable us to produce more higher margin finished decking product for our customers going forward. \n Demand for Accoya for Tricoya was in line with last year and remains one of our core product ranges with 27% of total sales. We remain fully committed to developing the Tricoya proposition with our partners. \n   \n We continue to focus on maintaining premium pricing. Whilst there was a decrease of 1.7% in Group average selling price (ASP), due to the transfer of higher priced North America sales volumes to the JV, looking at total sales of Accoya worldwide, the ASP increased by 1.2%. \n   \n In FY25, Accoya made its mark on standout global projects - from the roofing of the NEMO museum in Amsterdam, restoration of New York's iconic Bow Bridge, where Accoya was chosen for its durability and stability under heavy foot traffic, to elevating the façade of the upscale Mollie Hotel in Aspen with a finish that blends beauty and durability in alpine conditions. Buildings for major brands like Marks & Spencer and Mountain Warehouse also featured Accoya for its low-maintenance, natural appeal. \n   \n Accoya continues to be recognised by high-profile industry awards: Accoya fenders used for flood protection in the River Thames won the \"Excellence in Sustainability- Product award\" at the London Construction Awards (LCA). \n   \n Alongside our focus on sales and marketing, we have continued to maintain operational cost discipline and drive efficiencies. \n   \n In FY25 we reaped the benefits from our leaner and simplified operational model, achieved through our business transformation programme. In total we delivered operational cost savings of €4.6m, arising from this programme and the Solid Roots operational efficiency initiative in Arnhem, exceeding our target. \n   \n   \n   \n   \n   \n   \n Health & Safety (HSE)  \n Health & Safety is a top priority for the Board. Accsys has set 'Zero Harm' as a key target for our operations and is committed to developing best practice HSE across the Company. In FY25, we began the roll out of our Life Saving Rules programme: nine rules for high-risk activities to ensure the safety and wellbeing of our colleagues. \n   \n Innovation and supply chain \n   \n Investment in developing our product is a core component of our FOCUS strategy and vital to our customers. This year we invested €1.2m in R&D with a focus on looking at alternative wood species, expanding Accoya Color and looking at fire protection. Earlier this year we were pleased to announce Accoya's compliance with the Wildland Urban Interface (WUI) in the United States. This means Accoya cladding can now be used on buildings in designated WUI areas, which are expanding rapidly across the United States. \n   \n Sustainability: At the heart of our business \n   \n Developing our business in a responsible and sustainable way is core to our vision, values and strategy. We are very proud to have achieved a 11 point increase in our S&P Corporate Sustainability Assessment this year, scoring 56/100 (FY24: 45/100). Our achievement reflects our significant efforts on ensuring that we have transparent reporting and a high standard of corporate governance policies and procedures. This score positions Accsys within the top 20% of companies in our industry sector. \n   \n During FY25 we captured 51,244 tonnes of CO ₂ in our products, equivalent to 6,882 homes' energy use in a year; we are committed to responsible sourcing and zero deforestation and sourced 100% of our raw wood from certified sources (through FSC®, PEFC, or equivalent) for all our sites \n   \n Employee career development and engagement \n   \n Our success is driven by the determination and hard work of our team. I am pleased to work with talented and motivated colleagues. Their dedication to our business is reflected in the results of our latest Employee Engagement Survey. An impressive 72% of colleagues said they feel proud to work for Accsys, 73% are satisfied with their job and 75% feel happy about their work. \n   \n We are deeply committed to employee development and have launched several initiatives in FY25. This includes a new Learning Management platform and a Technical Training Academy to upskill our operators, opening up career development opportunities. In FY25, we are proud to have provided an average of 32.8 training hours per employee, underscoring our commitment to continuous development. \n   \n To enhance our employer value proposition, we have also launched initiatives including a wellness initiative at our Arnhem site and employee award and recognition programmes. \n   \n I am taking this opportunity to thank all our colleagues for their dedication and commitment, which continues to make a meaningful difference for the Company. \n   \n Outlook \n   \n We are encouraged by the positive start to the year. Whilst noting continuing macroeconomic challenges, Accsys is confident it will continue to deliver sales growth and execute on its strategic priorities for the year ahead, consistent with the Board's expectations. \n   \n The Company's resilient premium pricing and operational leverage continues to support sustainable margin progression. The FY25 results have demonstrated the benefits of Accsys strategic plans, and the Company is focusing on driving sales and capacity utilisation. \n   \n Having invested well and expanded our geographic footprint, Accsys can double volumes at our plants without further significant CapEx, delivering materially higher returns over the next few years. \n Accsys has a well-defined growth strategy and an exciting future ahead. \n   \n Jelena Arsic van Os \n Chief Executive Officer \n 23 June 2025 \n \n \n \n Finance Review \n \nStatement of comprehensive   income \n Total Accoya sales volumes increased by 13% to 63,864m 3 (FY24: 56,568m 3 ). Group sales volumes increased by 1% to 57,104m 3 (FY24: 56,568m 3 ) which reflects that, following the commercial-start-up of Accoya USA, North American sales previously sold by the Group, are now being sold by the JV, which is equity accounted for in the financial statements. \n Group revenue for the year increased to €136.6m (FY24: €136.2m), in line with the increase in Group sales volumes. Tricoya panel revenue decreased by €0.4m during the year to €3.7m (FY24: €4.1m), representing Accsys purchasing and selling of Tricoya panels produced by our Accoya for Tricoya customers. \n Other revenue, which predominantly relates to the sale of our acetic acid by-product into the acetyls market, decreased by 3.4% to €8.5m (2024: €8.8m) primarily due to lower acetic acid sales prices and lower sales volumes arising from acetic anhydride production usage efficiencies. These sales act as a partial hedge to acetic anhydride costs which also decreased during the year. \n Cost of sales remained in line with last year, with the 1% higher sales volumes being offset by lower acetic anhydride costs and favourable raw wood pricing. Net acetyls costs (proportional combination of acetic anhydride cost and acetic acid sales price) decreased on the prior year. Gross profit of €41.4m was 1% higher than the prior year (FY24: €40.9m) and gross profit margin was 30bps higher at 30.3%, which is above our strategy target of maintaining the gross margin at above 30%. \n Underlying other operating costs (excluding depreciation and amortisation) decreased from €32.3m to €24.6m. This is due to a decrease in Tricoya UK's operating costs following the decision to discontinue the Hull plant (€2.1m of non-exceptional Hull related costs in FY25 compared to €5.3m in FY24), and lower operating costs in the Group arising from the business transformation programme and Solid Roots initiative. Accordingly, underlying other operating costs, excluding Hull, were €4.6m lower than the prior year. \n The depreciation and amortisation expense for the year was €9.2m compared to €9.6m in the prior year. \n Underlying net finance expenses increased by €1.4m to €5.7m due to the annualised effect of higher interest rates on the convertible loan notes which were taken out as part of the November 2023 equity raise.  \n Following the Board's decision in September 2024 to discontinue the Hull plant, and subsequent placement of Tricoya UK Ltd into voluntary liquidation on 17 December 2024, the following items have been recognised as exceptional items in the year: \n ·      An impairment loss (exceptional non-cash item) of €18.3m was recognised reflecting the full impairment of the remaining Tricoya segment assets related to the Hull plant (FY24: €7.0m) \n ·      Hull closure costs (exceptional cash item) of €4.1m \n ·      A €10.4m gain from the deconsolidation of Tricoya UK Ltd, at the point of loss of control when the Company was handed to the liquidators \n ·      The release of the financial liability of €1.1m raised for the Value Recovery Instrument \n The Group's share of the Accoya USA joint venture's (Accoya USA LLC) net loss, which is accounted for using the equity method, increased by €7.8m to €11.9m (FY24: net loss - €4.1m) as the JV increased its pre-operating activity and commenced commercial operations. The Group's share of the JV's EBITDA was a loss of €6.0m compared to a loss of €3.7m in the prior year. \n Underlying EBITDA, excluding the share of the loss from the JV and exceptional costs, increased by 98% from €8.5m to €16.8m, a margin of 12.3% showing the strong underlying profitability of the Group. Adjusted EBITDA increased significantly to €10.8m compared to €4.8m in the prior year. Accordingly, the Adjusted EBITDA margin increased by 380bps from 3.5% to 7.3%. \n The underlying loss before tax increased slightly by €0.5m to €9.9m (FY24: loss of €9.4m). After considering exceptional items (including the impairment loss and restructuring cost), the loss before tax amounted to €20.8m (FY24: €17.1m). \n The tax charge of €2.0m was higher than the prior year (€1.2m) in line with the improved underlying profitability of the Group during the year \n \n \n \n The underlying loss per share increased to €0.05 per share (FY24: loss of €0.04 per share). A statutory loss per share was recognised of €0.10 per share (FY24: €0.08 per share). \n Cash flow \n Net cash flow from operating activities increased by €3.5m to €10.7m (FY24: €7.2m), resulting from the higher underlying EBITDA during the year, representing an operating cash flow conversion rate of 64% (FY24: 84%). The net working capital cash outflow amounted to €7.0m compared to a cash out flow of €1.8m in FY24. Inventory levels increased by €5.0m to ensure product availability to support strong demand and high levels of customer service. \n Plant and machinery additions of €1.8m (FY24: €3.1m) consisted primarily of maintenance capex for the Arnhem plant. \n Free cash flow (net cash flow from operating activities less CapEx) increased to €8.8m compared to €3.7m in FY24. \n Financial position \n At 31 March 2025, the Group held cash of €17.4m, a €10.0m decrease in the year, due to planned investment in the US joint venture and higher inventory levels, offset by the increased cash generated from operating activities. \n Net debt increased by €5.5m in the year to €42.6m (FY24: €37.1m) primarily due to the planned cash investment into the US joint venture (€14.5m), higher inventory levels (€5.0m), CapEx (€1.9m) and interest paid/capitalised interest on borrowings (€4.3m), offset by the positive operating cash flow generated during the year and elimination of non-recourse debt in Tricoya UK Ltd (€7.1m). \n Gross borrowings decreased by €4.5m to €55.7m during the year (2024: €60.2m) following the elimination of the non-recourse Tricoya UK Ltd NatWest debt as the company is no longer consolidated with the Group (€7.1m) following it being placed into voluntary liquidation, offset by accrued interest on the convertible loan notes of €1.9m. \n The leverage ratio (net debt to underlying EBITDA) improved to 2.5x compared to 4.4x in the prior year. \n Going concern \n 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 severe but plausible downside scenario. \n 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. \n 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. \n The Group is also dependent on the Group's financial resources including its existing cash position and banking facilities. \n The Directors considered a severe but plausible downside scenario against the base case with reduced Accoya sales volumes and increased funding into Accoya USA LLC. Furthermore, a reverse stress test was performed to determine the decrease in Group sales volumes required to breach banking covenants. The Directors do not expect the assumptions in the severe but plausible downside scenario or 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 maintain a sufficient level of liquidity and covenant headroom during the going concern period. The combined impact of the above downside scenarios and mitigations does not trigger a minimum liquidity or covenant breach at any point in the going concern period. In the reverse stress test, a decrease of approximately 14% on Group sales volumes compared to the prior year or a decrease of approximately 24% compared to the equivalent base scenario period was required to reach the banking covenant breach point.   \n 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. \n Sameet Vohra \nChief Financial Officer 23 June 2025 \n   \n   \n \n \n \n Consolidated statement of comprehensive income for the year ended 31 March 2025 \n   \n   \n \n \n \n \n \n \n \n \n \n \n 2025 \n \n \n 2025 \n \n \n 2025 \n \n \n 2024 \n \n \n 2024 \n \n \n 2024 \n \n \n \n \n \n \n \n   \n \n \n €'000 \n \n \n €'000 \n \n \n €'000 \n \n \n €'000 \n \n \n €'000 \n \n \n €'000 \n \n \n \n \n \n \n \n Note \n \n \n Underlying \n \n \n Exceptional items* \n \n \n Total \n \n \n Underlying \n \n \n Exceptional items* \n \n \n Total \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Accoya wood revenue \n \n \n \n \n \n 124,047 \n \n \n - \n \n \n 124,047 \n \n \n 123,139 \n \n \n - \n \n \n 123,139 \n \n \n \n \n Tricoya panel revenue \n \n \n \n \n \n 3,698 \n \n \n - \n \n \n 3,698 \n \n \n 4,134 \n \n \n - \n \n \n 4,134 \n \n \n \n \n Licence revenue \n \n \n \n \n \n 375 \n \n \n - \n \n \n 375 \n \n \n 77 \n \n \n - \n \n \n 77 \n \n \n \n \n Other revenue \n \n \n \n \n \n 8,512 \n \n \n - \n \n \n 8,512 \n \n \n 8,820 \n \n \n - \n \n \n 8,820 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total revenue \n \n \n 3 \n \n \n 136,632 \n \n \n - \n \n \n 136,632 \n \n \n 136,170 \n \n \n - \n \n \n 136,170 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cost of sales \n \n \n \n \n \n (95,205) \n \n \n - \n \n \n (95,205) \n \n \n (95,287) \n \n \n - \n \n \n (95,287) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Gross profit \n \n \n \n \n \n 41,427 \n \n \n - \n \n \n 41,427 \n \n \n 40,883 \n \n \n - \n \n \n 40,883 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other operating costs \n \n \n 4 \n \n \n (33,778) \n \n \n (12,030) \n \n \n (45,808) \n \n \n (41,927) \n \n \n (8,200) \n \n \n (50,127) \n \n \n \n \n Operating profit/(loss) \n \n \n 8 \n \n \n 7,649 \n \n \n (12,030) \n \n \n (4,381) \n \n \n (1,044) \n \n \n (8,200) \n \n \n (9,244) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Finance income \n \n \n 9 \n \n \n 304 \n \n \n - \n \n \n 304 \n \n \n 138 \n \n \n - \n \n \n 138 \n \n \n \n \n Finance expense \n \n \n 10 \n \n \n (5,960) \n \n \n 1,102 \n \n \n (4,858) \n \n \n (4,418) \n \n \n 530 \n \n \n (3,888) \n \n \n \n \n Share of net loss from joint venture \n \n \n 27 \n \n \n (11,871) \n \n \n - \n \n \n (11,871) \n \n \n (4,100) \n \n \n - \n \n \n (4,100) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss before taxation \n \n \n \n \n \n (9,878) \n \n \n (10,928) \n \n \n (20,806) \n \n \n (9,424) \n \n \n (7,670) \n \n \n (17,094) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Tax expense \n \n \n 11 \n \n \n (2,044) \n \n \n - \n \n \n (2,044) \n \n \n (765) \n \n \n - \n \n \n (765) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss from continuing operations \n \n \n \n \n \n (11,922) \n \n \n (10,928) \n \n \n (22,850) \n \n \n (10,189) \n \n \n (7,670) \n \n \n (17,859) \n \n \n \n \n Items that may be reclassified to profit or loss \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (Loss)/ gain arising on translation of foreign operations \n \n \n \n \n \n (62) \n \n \n - \n \n \n (62) \n \n \n 2 \n \n \n - \n \n \n 2 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total other comprehensive (loss)/gain \n \n \n \n \n \n (62) \n \n \n - \n \n \n (62) \n \n \n 2 \n \n \n - \n \n \n 2 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive loss for the year \n \n \n   \n \n \n (11,984) \n \n \n (10,928) \n \n \n (22,912) \n \n \n (10,187) \n \n \n (7,670) \n \n \n (17,857) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive loss for the year \nis attributable to: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Owners of Accsys Technologies PLC \n \n \n \n \n \n (11,984) \n \n \n (10,928) \n \n \n (22,912) \n \n \n (10,187) \n \n \n (7,670) \n \n \n (17,857) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive loss for the year \n \n \n \n \n \n (11,984) \n \n \n (10,928) \n \n \n (22,912) \n \n \n (10,187) \n \n \n (7,670) \n \n \n (17,857) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic loss per ordinary share \n \n \n 12 \n \n \n €(0.05) \n \n \n - \n \n \n €(0.10) \n \n \n €(0.04) \n \n \n - \n \n \n €(0.08) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Diluted loss per ordinary share \n \n \n 12 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n   \n   \n The notes form an integral part of these financial statements. \n   \n * See note 5 for details of exceptional items . \n \n \n \n Consolidated statement of financial position as at 31 March 2025 \n   \n \n \n \n \n \n \n \n Note \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n \n \n \n   \n \n \n €'000 \n \n \n €'000 \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Intangible assets \n \n \n 14 \n \n \n 6,158 \n \n \n 10,048 \n \n \n \n \n Investment in joint venture \n \n \n 27 \n \n \n 33,854 \n \n \n 31,685 \n \n \n \n \n Property, plant and equipment \n \n \n 15 \n \n \n 73,593 \n \n \n 93,474 \n \n \n \n \n Right of use assets \n \n \n 16 \n \n \n 3,561 \n \n \n 3,736 \n \n \n \n \n Financial asset at fair value through profit or loss \n \n \n 17 \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 117,166 \n \n \n 138,943 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Inventories \n \n \n 20 \n \n \n 30,763 \n \n \n 25,743 \n \n \n \n \n Trade and other receivables \n \n \n 21 \n \n \n 15,601 \n \n \n 17,612 \n \n \n \n \n Cash and cash equivalents \n \n \n 28 \n \n \n 17,423 \n \n \n 27,427 \n \n \n \n \n Corporation tax receivable \n \n \n \n \n \n - \n \n \n 250 \n \n \n \n \n \n \n \n \n \n \n 63,787 \n \n \n 71,032 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 23 \n \n \n (16,590) \n \n \n (18,797) \n \n \n \n \n Obligation under lease liabilities \n \n \n 16 \n \n \n (961) \n \n \n (690) \n \n \n \n \n Short term borrowings \n \n \n 28 \n \n \n (5,625) \n \n \n - \n \n \n \n \n Corporation tax payable \n \n \n \n \n \n (7,058) \n \n \n (6,719) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (30,234) \n \n \n (26,206) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net current assets \n \n \n \n \n \n 33,553 \n \n \n 44,826 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Obligation under lease liabilities \n \n \n 16 \n \n \n (3,322) \n \n \n (3,648) \n \n \n \n \n Other long term borrowings \n \n \n 28 \n \n \n (50,075) \n \n \n (60,204) \n \n \n \n \n Financial guarantee \n \n \n 30 \n \n \n - \n \n \n - \n \n \n \n \n Financial liability at amortised cost \n \n \n 22 \n \n \n - \n \n \n (1,102) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (53,397) \n \n \n (64,954) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net assets \n \n \n \n \n \n 97,322 \n \n \n 118,815 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n Share capital \n \n \n 24 \n \n \n 12,022 \n \n \n 11,976 \n \n \n \n \n Share premium account \n \n \n \n \n \n 262,938 \n \n \n 262,394 \n \n \n \n \n Other reserves \n \n \n 25 \n \n \n 114,406 \n \n \n 114,743 \n \n \n \n \n Accumulated loss \n \n \n \n \n \n (292,105) \n \n \n (270,421) \n \n \n \n \n Own shares \n \n \n \n \n \n (8) \n \n \n (8) \n \n \n \n \n Foreign currency translation reserve \n \n \n \n \n \n 69 \n \n \n 131 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity attributable to owners of Accsys Technologies PLC \n \n \n \n \n \n 97,322 \n \n \n 118,815 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-controlling interest in subsidiaries \n \n \n 26 \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total equity \n \n \n \n \n \n 97,322 \n \n \n 118,815 \n \n \n \n \n   \n   \n The financial statements were approved by the Board of Directors on 23 June 2025 and signed on its behalf by \n   \n   \n Sameet Vohra                                                                       \n Chief Financial Officer \n                                                                                                \n   \n   \n The notes form an integral part of these financial statements. \n   \n \n \n \n Consolidated statement of changes in equity for the year ended 31 March 2025 \n   \n   \n \n \n \n \n   \n \n \n Share capital Ordinary \n \n \n Share premium \n \n \n Other reserves \n \n \n Own Shares \n \n \n Foreign currency trans- \nlation reserve \n \n \n Accumulated Loss \n \n \n Total equity attributable to equity shareholders of the Company \n \n \n Non-Controlling interests \n \n \n Total Equity \n \n \n \n \n \n \n \n €000 \n \n \n €000 \n \n \n €000 \n \n \n €000 \n \n \n €000 \n \n \n €000 \n \n \n  €000 \n \n \n  €000 \n \n \n  €000 \n \n \n \n \n Balance at \n1 April 2023 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 10,963 \n \n \n 250,717 \n \n \n 114,743 \n \n \n (8) \n \n \n 129 \n \n \n (254,042) \n \n \n 122,502 \n \n \n - \n \n \n 122,502 \n \n \n \n \n Loss for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (17,859) \n \n \n (17,859) \n \n \n - \n \n \n (17,859) \n \n \n \n \n Other comprehensive gain for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 2 \n \n \n - \n \n \n 2 \n \n \n - \n \n \n 2 \n \n \n \n \n Share based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1,480 \n \n \n 1,480 \n \n \n - \n \n \n 1,480 \n \n \n \n \n Shares issued \n \n \n 1,013 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1,013 \n \n \n - \n \n \n 1,013 \n \n \n \n \n Premium on shares issued \n \n \n - \n \n \n 12,319 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 12,319 \n \n \n - \n \n \n 12,319 \n \n \n \n \n Share issue costs \n \n \n - \n \n \n (642) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (642) \n \n \n - \n \n \n (642) \n \n \n \n \n Balance at \n31 March 2024 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 11,976 \n \n \n 262,394 \n \n \n 114,743 \n \n \n (8) \n \n \n 131 \n \n \n (270,421) \n \n \n 118,815 \n \n \n - \n \n \n 118,815 \n \n \n \n \n Loss for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (22,850) \n \n \n (22,850) \n \n \n - \n \n \n (22,850) \n \n \n \n \n Other comprehensive loss for the year \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (62) \n \n \n - \n \n \n (62) \n \n \n - \n \n \n (62) \n \n \n \n \n Share based payments \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 1,747 \n \n \n 1,747 \n \n \n - \n \n \n 1,747 \n \n \n \n \n Shares issued \n \n \n 46 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (46) \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Premium on shares issued \n \n \n - \n \n \n 535 \n \n \n - \n \n \n - \n \n \n - \n \n \n (535) \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Share issue costs \n \n \n - \n \n \n 9 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 9 \n \n \n - \n \n \n 9 \n \n \n \n \n Foreign exchange hedge movement \n \n \n - \n \n \n - \n \n \n (337) \n \n \n - \n \n \n - \n \n \n - \n \n \n (337) \n \n \n - \n \n \n (337) \n \n \n \n \n Balance at \n31 March 2025 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 12,022 \n \n \n 262,938 \n \n \n 114,406 \n \n \n (8) \n \n \n 69 \n \n \n (292,105) \n \n \n 97,322 \n \n \n - \n \n \n 97,322 \n \n \n \n \n   \n   \n Share capital is the amount subscribed for shares at nominal value (note 24). \n   \n 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. \n   \n See note 25 for details concerning Other reserves. \n   \n Non-controlling interests relate to the previous investment of various parties into Tricoya Technologies Limited and Tricoya UK Limited (see note 26). \n   \n 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. \n   \n Accumulated losses represent the cumulative loss of the Group attributable to the owners of the parent. \n   \n The notes form an integral part of these financial statements. \n   \n   \n   \n   \n \n \n \n Consolidated statement of cash flows for the year ended 31 March 2025 \n   \n   \n \n \n \n \n \n \n \n Note \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n \n \n \n   \n \n \n €'000 \n \n \n €'000 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss before taxation \n \n \n \n \n \n (20,806) \n \n \n (17,094) \n \n \n \n \n Adjustments for: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Amortisation of intangible assets \n \n \n 8 \n \n \n 1,048 \n \n \n 828 \n \n \n \n \n Depreciation of property, plant and equipment, and right of use assets \n \n \n 8 \n \n \n 8,171 \n \n \n 8,751 \n \n \n \n \n Loss from liquidation of Tricoya UK Ltd \n \n \n 5 \n \n \n 12,030 \n \n \n 7,000 \n \n \n \n \n Net finance expense \n \n \n 10 \n \n \n 4,554 \n \n \n 3,750 \n \n \n \n \n Equity-settled share-based payment expenses \n \n \n 13 \n \n \n 1,747 \n \n \n 1,480 \n \n \n \n \n Accsys portion of Licence fee received from joint venture \n \n \n 27 \n \n \n 450 \n \n \n - \n \n \n \n \n Share of net loss of joint venture \n \n \n 27 \n \n \n 11,871 \n \n \n 4,100 \n \n \n \n \n Currency translation losses \n \n \n \n \n \n 129 \n \n \n 108 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash inflows from operating activities before changes in working capital \n \n \n \n \n \n 19,194 \n \n \n 8,923 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (Increase) / decrease in trade and other receivables \n \n \n 21 \n \n \n (903) \n \n \n 393 \n \n \n \n \n (Increase) / decrease in inventories \n \n \n 20 \n \n \n (5,020) \n \n \n 4,203 \n \n \n \n \n Decrease in trade and other payables \n \n \n 23 \n \n \n (1,108) \n \n \n (6,403) \n \n \n \n \n Net cash generated from operating activities before tax \n \n \n \n \n \n 12,163 \n \n \n 7,116 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Tax (paid)/received \n \n \n 11 \n \n \n (1,443) \n \n \n 81 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net cash generated from operating activities \n \n \n \n \n \n 10,720 \n \n \n 7,197 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash flows from investing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Proceeds from disposal of property, plant and equipment \n \n \n \n \n \n 14 \n \n \n - \n \n \n \n \n Investment in property, plant and equipment \n \n \n 15 \n \n \n (1,755) \n \n \n (3,090) \n \n \n \n \n Cash disposed of from liquidation of Tricoya UK Ltd \n \n \n \n \n \n (268) \n \n \n - \n \n \n \n \n Investment in intangible assets \n \n \n 14 \n \n \n (134) \n \n \n (385) \n \n \n \n \n Investment in joint venture \n \n \n 27 \n \n \n (14,490) \n \n \n (4,926) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net cash used in investing activities \n \n \n \n \n \n (16,633) \n \n \n (8,401) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash flows from financing activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Proceeds from loans \n \n \n \n \n \n - \n \n \n 9,901 \n \n \n \n \n Other finance costs \n \n \n \n \n \n (964) \n \n \n (36) \n \n \n \n \n Interest paid \n \n \n \n \n \n (1,976) \n \n \n (2,774) \n \n \n \n \n Interest received \n \n \n \n \n \n 304 \n \n \n - \n \n \n \n \n Repayment of lease liabilities \n \n \n 16 \n \n \n (864) \n \n \n (1,044) \n \n \n \n \n Repayment of loans/rolled up interest \n \n \n \n \n \n - \n \n \n (17,000) \n \n \n \n \n Proceeds from issue of share capital \n \n \n \n \n \n - \n \n \n 13,332 \n \n \n \n \n Share issue costs \n \n \n \n \n \n (467) \n \n \n (642) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net cash (used in)/generated from financing activities \n \n \n \n \n \n (3,967) \n \n \n 1,737 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net (decrease)/increase in cash and cash equivalents \n \n \n \n \n \n (9,880) \n \n \n 533 \n \n \n \n \n Effect of exchange rate changes on cash and cash equivalents \n \n \n \n \n \n (124) \n \n \n 301 \n \n \n \n \n Opening cash and cash equivalents \n \n \n   \n \n \n 27,427 \n \n \n 26,593 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Closing cash and cash equivalents \n \n \n \n \n \n 17,423 \n \n \n 27,427 \n \n \n \n \n   \n The notes form an integral part of these financial statements. \n   \n \n \n \n Notes to the financial statements for the year ended 31 March 2025 \n   \n 1.         Accounting Policies \n   \n General Information \n   \n The financial information set out in these preliminary results does not constitute the Company's statutory financial statements for the years ended 31 March 2025 or 31 March 2024. Statutory financial statements for the year ended 31 March 2024 have been filed with the Registrar of Companies and those for the year ended 31 March 2025 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 2025 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. \n   \n Basis of accounting \n   \n 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. \n Going Concern \n   \n 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 severe but plausible downside scenario. \n   \n 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. \n   \n 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. \n   \n The Group is also dependent on the Group's financial resources including its existing cash position, banking and finance facilities (see note 28 for details). \n   \n The Directors considered a severe but plausible downside scenario against the base case with reduced Accoya sales volumes and increased funding into Accoya USA LLC and a reverse stress test was performed to determine the decrease in Accoya sales volume from the Arnhem plant required to breach banking covenants, or reduce liquidity below minimum operating level. The Directors do not expect the assumptions in the severe but plausible downside scenario or 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 maintain a sufficient level of liquidity and covenant headroom during the going concern period. The combined impact of the above downside scenarios and mitigations does not trigger a minimum liquidity breach or covenant breach at any point in the going concern period. In the reverse stress test, a decrease of approximately 14% on Accoya sales volume from the Arnhem plant compared to an equivalent prior year period or a decrease of approximately 24% compared to the equivalent base scenario period was required to reach the minimum liquidity breach point. \n   \n 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.  \n   \n Exceptional Items \n   \n 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 following the disposal of an investment, significant gains following the disposal of an investment and other one-off events or transactions, such as re-financing of Group borrowings. See note 5 for details of exceptional items. \n   \n Business combinations \n   \n 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. \n 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. \n   \n 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. \n   \n 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. \n   \n 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. \n   \n 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. \n   \n After Tricoya UK Limited was placed into voluntary liquidation on 17 December 2024, the Group lost control over the entity. The subsidiary was de-consolidated as at this date. The impact as a result of this loss in control has been disclosed in exceptional costs. See note 5. \n   \n Revenue from contracts with customers \n   \n 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. \n   \n Manufacturing revenue \n 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. Manufacturing revenue includes the sale of Accoya wood and Tricoya panels. \n   \n Licensing fees \n 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. \n   \n Other revenue \n 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. \n   \n Finance income \n   \n 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. \n   \n Finance expenses and borrowing costs \n   \n 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. \n   \n Foreign exchange gains or losses on the loan notes and borrowings are included within finance expenses. \n   \n 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. \n   \n 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. \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n Share based payments \n   \n 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. \n   \n 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. \n   \n 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. \n   \n 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. \n   \n 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. \n   \n Dividends \n   \n 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. \n   \n Pensions \n   \n 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. \n   \n Taxation \n   \n 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. \n   \n 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. \n   \n 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: \n   \n ·      the initial recognition of goodwill; \n ·      the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination; and \n ·      differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. \n   \n 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. \n Foreign currencies \n   \n 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. \n   \n 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. \n   \n Exchange differences are recognised in profit or loss in the period in which they arise. \n   \n 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. \n   \n   \n   \n   \n   \n Foreign exchange hedging \n   \n 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. \n   \n 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 committed investment in plant and equipment. 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. \n   \n At the end of each reporting period the Group measures the effectiveness of its cash flow hedging and recognises the effective cash flow hedge results in Other Comprehensive Income and the Hedging Effectiveness Reserve within Equity, together with its ineffective hedge results in Profit and Loss. Amounts are reclassified from the Hedging Effectiveness Reserve to property, plant and equipment once construction has been completed or Profit and Loss when the associated hedged transaction affects Profit and Loss. Further details are included in note 5. \n   \n Government grants \n   \n 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. \n   \n Goodwill \n   \n 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. \n   \n Joint venture \n   \n 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. \n   \n Further details concerning the Accoya USA LLC joint venture with Eastman Chemical Company are included in note 27. \n   \n Other intangible assets \n   \n 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. At present, 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.   \n   \n 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. \n   \n Property, plant and equipment \n   \n 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: \n   \n Plant and machinery                           These assets comprise pilot plants and production facilities.  These facilities are depreciated from the date they become available for use over their useful lives of between five and 20 years \n Office equipment                                Useful life of between three and five years \n Leased land and buildings                Land held under a finance lease is depreciated over the life of the lease \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n Impairment of non-financial assets \n   \n 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.  \n   \n Leases \n   \n 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. \n   \n 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. \n   \n 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. \n   \n 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. \n   \n The Group has used the following practical expedients permitted by the standard: \n -      The use of a single discount rate to a portfolio of leases with reasonably similar characteristics \n -      Reliance on previous assessments on whether leases are onerous \n -      The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease. \n   \n Inventories \n   \n 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. \n   \n 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/depletion 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. \n   \n Fair value measurement \n Assets and liabilities that are measured at fair value, or where the fair value of financial instruments has been disclosed in notes to the \n financial statements, are based on the following fair value measurement hierarchy: \n - level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; \n - 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 \n - level 3 - inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). \n   \n 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. \n   \n Financial assets \n   \n 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. \n 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. \n   \n 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. \n   \n   \n 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. \n   \n Trade and other receivables \n 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. \n   \n Cash and cash equivalents \n 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. In the prior year, Cash and cash equivalents included cash pledged to ABN Amro as collateral for the $20 million Letter of credit provided to FHB. See note 30. \n   \n Financial liabilities \n   \n Other financial liabilities \n Trade payables and other financial liabilities are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method. \n   \n 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. \n   \n 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. \n   \n Financial guarantee contracts \n Financial guarantee contracts are recognised as a financial liability at the time the guarantee is issued. \n 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. \n 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. \n   \n Share capital \n   \n 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. \n   \n Segmental Reporting \n   \n 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. \n   \n Alternative Performance Measures \n   \n 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. \n   \n The most significant APMs are: \n   \n Net debt \n A measure comprising short term and long-term borrowings (including lease obligations) less cash and cash equivalents. Net debt provides a measure of the Group's net indebtedness or overall leverage. \n   \n Underlying EBITDA \n 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. \n   \n Underlying EBIT \n Operating profit/(loss) before Exceptional items. Underlying EBIT provides a measure of the operating performance that is comparable from year to year. \n   \n   \n Adjusted EBITDA \n 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. \n   \n   \n Adjusted EBIT \n 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. \n   \n Free cash flow \n Net cash from operating activities less investment in property, plant and equipment. See note 28. \n   \n 2.         Accounting judgements and estimates \n   \n 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. \n   \n Accounting estimates \n   \n Goodwill \n 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 & 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 or consortium agreements will be generated, demonstrating the recoverability of these balances. \n   \n Intellectual property rights (IPR) and property, plant and equipment \n 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 & 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 & 15). The price of Accoya wood and the 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. \n   \n Fair value of financial derivative \n 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 28 for further details. \n   \n Accounting judgements \n   \n 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: \n   \n Financial asset at fair value through profit or loss \n 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). \n   \n Recovery of investment in joint venture \n 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. \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n New standards and interpretations in issue at the date of authorisation of these financial statements: \n \n   \n New standards, amendments and interpretations \n The following amendments to Standards and a new Interpretation have been adopted for the financial year beginning on 1 April 2024: \n   \n •              Amendments to IAS 1; \n •              Amendments to IFRS 16; and \n ·              Amendments to IAS 7 and IFRS 7. \n   \n 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. \n   \n New standards, amendments and interpretations not yet adopted \n Certain new accounting standards and interpretations have been published that are not mandatory for 31 March 2025 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n   \n 3.         Segmental reporting \n   \n 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 (prior year, Accoya, Tricoya, Corporate and R&D). The Group has changed its basis of segmental reporting following the decision to close the Tricoya Hull plant. \n   \n Following the change in way the business is viewed, the prior year comparatives have been restated to reflect this change. \n   \n Accoya \n   \n \n \n \n \n \n \n \n Accoya Segment \n \n \n \n \n \n \n \n Year ended 31 March 2025 \n \n \n \nUnderlying \n \n \n Year ended 31 March 2025 \n \n \nExceptional items \n \n \n Year ended 31 March 2025 \n \n \n \nTOTAL \n \n \n Year ended 31 March 2024 \n \n \n \nUnderlying \n \n \n Year ended 31 March 2024 \n \n \nExceptional items \n \n \n Year ended 31 March 2024 \n \n \n \nTOTAL \n \n \n \n \n \n \n \n €'000 \n \n \n €'000 \n \n \n €'000 \n \n \n €'000 \n \n \n €'000 \n \n \n €'000 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Accoya wood revenue \n \n \n 124,047 \n \n \n - \n \n \n 124,047 \n \n \n 123,139 \n \n \n - \n \n \n 123,139 \n \n \n \n \n Tricoya panel revenue \n \n \n 3,698 \n \n \n - \n \n \n 3,698 \n \n \n 4,134 \n \n \n - \n \n \n 4,134 \n \n \n \n \n Licence revenue \n \n \n 375 \n \n \n - \n \n \n 375 \n \n \n 77 \n \n \n - \n \n \n 77 \n \n \n \n \n Other revenue \n \n \n 8,512 \n \n \n - \n \n \n 8,512 \n \n \n 8,820 \n \n \n - \n \n \n 8,820 \n \n \n \n \n Total Revenue \n \n \n 136,632 \n \n \n - \n \n \n 136,632 \n \n \n 136,170 \n \n \n - \n \n \n 136,170 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Cost of sales \n \n \n (95,205) \n \n \n - \n \n \n (95,205) \n \n \n (95,287) \n \n \n - \n \n \n (95,287) \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Gross profit \n \n \n 41,427 \n \n \n - \n \n \n 41,427 \n \n \n 40,883 \n \n \n - \n \n \n 40,883 \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other operating costs \n \n \n (30,084) \n \n \n (12,030) \n \n \n (42,114) \n \n \n (37,310) \n \n \n (8,200) \n \n \n (45,510) \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Operating profit/(loss) \n \n \n 11,343 \n \n \n (12,030) \n \n \n (687) \n \n \n 3,573 \n \n \n (8,200) \n \n \n (4,627) \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Operating profit/(loss) \n...

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