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Accsys Technologies PLC (GB:AXS)
LSE:AXS

Accsys Technologies (AXS) AI Stock Analysis

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Accsys Technologies

(LSE:AXS)

Rating:54Neutral
Price Target:
Accsys Technologies' overall stock score reflects a company with challenges in financial performance, particularly in revenue growth and profitability. While technical indicators show some potential for upward movement, the valuation remains unattractive due to negative earnings. However, recent corporate events signal positive strategic moves that may improve future prospects, providing a potential catalyst for long-term growth.

Accsys Technologies (AXS) vs. iShares MSCI United Kingdom ETF (EWC)

Accsys Technologies Business Overview & Revenue Model

Company DescriptionAccsys Technologies PLC, together with its subsidiaries, produces and sells solid wood and wood elements in the United Kingdom, Ireland, rest of Europe, the Americas, and internationally. It offers solid wood for use in windows, doors, decking, and cladding under the Accoya brand; and wood chips to manufacture panel products under the Tricoya brand. The company also provides technical and engineering services to licensees, as well as sales and marketing services; sells acetic acid; manufactures colored acetylated wood. Accsys Technologies PLC was incorporated in 2005 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyAccsys Technologies generates revenue primarily through the sale of its modified wood products, Accoya and Tricoya. The company earns money by producing and distributing these products to customers in the construction and manufacturing industries. A significant portion of their revenue stems from licensing agreements and partnerships, allowing other companies to utilize Accsys' patented acetylation technology. This business model facilitates a stable income stream through direct product sales and royalties from technology licensing. Additionally, Accsys invests in strategic partnerships to expand its production capacity and market reach, contributing to increased sales and revenue growth.

Accsys Technologies Earnings Call Summary

Earnings Call Date:Jun 24, 2025
(Q4-2025)
|
% Change Since: 5.17%|
Next Earnings Date:Nov 26, 2025
Earnings Call Sentiment Positive
The earnings call presented a predominantly positive outlook with significant improvements in EBITDA, strong volume growth, successful expansion in the U.S., and effective cost savings. However, challenges such as flat revenue, increased net debt, and joint venture losses were acknowledged. Overall, the positive aspects significantly outweighed the lowlights.
Q4-2025 Updates
Positive Updates
Significant EBITDA Improvement
EBITDA improved by 125% year-on-year, with underlying EBITDA from core operations increasing by EUR 8.3 million to EUR 16.8 million, representing a 12.3% margin.
Accoya Volume Growth
Accoya demand was strong with global volumes growing 13%, including a 16% growth in North America.
Successful U.S. Expansion
Commissioning of Accoya USA was a major milestone, allowing the company to reduce exposure to large-scale CapEx commitments and positioning it well in the North American market.
Operational Cost Savings
Delivered operational cost savings of EUR 4.6 million, exceeding the target of EUR 3 million.
Improved Leverage Ratio
Leverage ratio improved from 4.4x to 2.5x, highlighting good progression in deleveraging the business.
Accoya Color Sales Growth
Accoya Color product sales volumes grew by an impressive 34% year-on-year.
Negative Updates
Flat Group Revenue
Group revenues were EUR 136.6 million, in line with the previous year, indicating a flat performance despite volume growth.
Increased Net Debt
Net debt increased by EUR 5.5 million to EUR 42.6 million, reflecting higher investments in joint ventures and inventories.
Joint Venture Losses
The share of EBITDA loss for the Accoya USA joint venture for the year was EUR 6 million, due to the pre-revenue phase and ramp-up costs.
Company Guidance
During the call, Accsys Technologies PLC reported strong financial results for the fiscal year ending March 31, 2025, driven by strategic initiatives and operational efficiency. Key metrics included a 125% year-on-year improvement in EBITDA due to robust volume growth across all regions and cost discipline, with underlying EBITDA from core operations rising by EUR 8.3 million to EUR 16.8 million, achieving a 12.3% margin. Global Accoya demand grew by 13%, with North America experiencing a 16% increase. Group revenues were EUR 136.6 million, consistent with the previous year, despite transferring sales volume to the Accoya USA joint venture, which contributed EUR 147.4 million in aggregated revenues, marking an 8% increase. Gross margin improved slightly to 30.3%, supported by a favorable sales mix and operational efficiencies. Operational cost savings totaled EUR 4.6 million, exceeding the target of EUR 3 million, while cash flow improved to EUR 8.8 million from EUR 3.7 million the previous year. The company's leverage ratio improved significantly from 4.4x to 2.5x, and funding was secured with an 18-month extension of primary debt facilities with ABN AMRO. Looking forward, Accsys is confident in continuing its growth trajectory and delivering sustainable value.

Accsys Technologies Financial Statement Overview

Summary
Accsys Technologies faces challenges in revenue growth and profitability, with a fluctuating income statement. The balance sheet shows moderate leverage but negative returns on equity. Cash flows have improved but are still under pressure due to negative earnings. The company needs to focus on stabilizing revenue and enhancing profitability to improve its financial health.
Income Statement
45
Neutral
Accsys Technologies has shown a volatile revenue trajectory with a recent decline to $136.17 million from $162.02 million. The gross profit margin is moderate at 30.02%, but the company is struggling with profitability, evident in negative EBIT and net profit margins of -6.79% and -13.12% respectively. The overall income statement reflects challenges in maintaining consistent revenue growth and improving profitability.
Balance Sheet
50
Neutral
The company's debt-to-equity ratio stands at 0.54, indicating moderate leverage. It has maintained a stable equity base with an equity ratio of 56.57%. However, the return on equity is negative at -15.03%, reflecting a need for improving efficiency in generating returns on shareholders' equity. The balance sheet demonstrates moderate leverage but highlights issues in profitability sustainability.
Cash Flow
58
Neutral
Operating cash flow remains positive at $7.20 million, with a free cash flow of $3.72 million indicating improved cash generation capability from the previous year's negative free cash flow. The operating cash flow to net income ratio of -0.40 indicates reliance on external financing or other sources to cover negative net income. Overall, cash flow is improving but still indicates potential risk from negative earnings.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue137.18M136.17M162.02M120.85M99.80M94.11M
Gross Profit42.69M40.88M55.17M36.00M33.09M30.71M
EBITDA12.94M-3.69M-55.99M9.19M8.93M8.75M
Net Income-31.86M-17.86M-69.86M698.00K-911.00K877.00K
Balance Sheet
Total Assets188.30M209.97M226.52M275.14M228.10M207.41M
Cash, Cash Equivalents and Short-Term Investments26.00M27.43M26.59M42.05M47.60M37.24M
Total Debt66.18M64.54M70.66M69.21M59.82M62.43M
Total Liabilities97.57M91.16M104.02M102.27M91.50M80.27M
Stockholders Equity90.73M118.81M122.50M137.34M99.44M92.69M
Cash Flow
Free Cash Flow13.62M3.72M-13.04M-42.34M8.53M-19.66M
Operating Cash Flow15.28M7.20M16.73M2.27M20.20M2.38M
Investing Cash Flow-13.98M-8.40M-59.27M-48.89M-13.68M-22.57M
Financing Cash Flow4.11M1.74M25.55M38.74M3.77M48.61M

Accsys Technologies Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price61.00
Price Trends
50DMA
55.83
Positive
100DMA
49.83
Positive
200DMA
48.22
Positive
Market Momentum
MACD
1.93
Positive
RSI
50.38
Neutral
STOCH
25.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AXS, the sentiment is Neutral. The current price of 61 is below the 20-day moving average (MA) of 62.09, above the 50-day MA of 55.83, and above the 200-day MA of 48.22, indicating a neutral trend. The MACD of 1.93 indicates Positive momentum. The RSI at 50.38 is Neutral, neither overbought nor oversold. The STOCH value of 25.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:AXS.

Accsys Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
£226.75M12.658.33%139.47%-6.27%-30.09%
GBTET
69
Neutral
£149.74M13.778.02%2.05%1.12%-0.70%
GBZTF
64
Neutral
£151.24M14.46-2.45%164.52%16.39%-129.71%
62
Neutral
$10.18B9.76-0.16%2.86%2.22%-32.49%
60
Neutral
£5.23B28.574.17%672.50%-1.55%-65.03%
GBAXS
54
Neutral
£150.99M-31.82%-22.80%-9.85%
51
Neutral
£20.54M-21.46%-22.64%-294.72%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AXS
Accsys Technologies
61.00
6.00
10.91%
GB:CRPR
James Cropper
215.00
-85.00
-28.33%
GB:LTHM
James Latham
1,145.00
-109.14
-8.70%
GB:MNDI
Mondi plc
1,186.50
-293.63
-19.84%
GB:TET
Treatt plc
246.50
-173.28
-41.28%
GB:ZTF
Zotefoams
306.00
-167.40
-35.36%

Accsys Technologies Corporate Events

Business Operations and Strategy
Accsys Technologies Appoints New Nominated Advisor and Broker
Positive
Apr 2, 2025

Accsys Technologies PLC has appointed Panmure Liberum as its Nominated Advisor and Broker, while ABN Amro will continue as the broker for its Euronext Amsterdam listing. This strategic move is expected to enhance Accsys’s market positioning and potentially strengthen its investor relations and market presence.

Other
Hoogh Blarick B.V. Increases Stake in Accsys Technologies
Positive
Feb 27, 2025

Accsys Technologies PLC has announced that Hoogh Blarick B.V. has increased its stake in the company by acquiring additional shares, raising its voting rights to 15.557%. This acquisition reflects a growing confidence in Accsys Technologies’ market position and could potentially strengthen its influence in the sustainable wood products industry.

Business Operations and Strategy
Accsys Technologies Updates on Major Shareholding Changes
Neutral
Feb 24, 2025

Accsys Technologies PLC has announced that Hoogh Blarick BV and Teslin Participaties Coöperatief UA have ended their shared relationship agreement with the company, although Teslin will continue its individual agreement with Accsys. This change has resulted in a significant reduction of the voting rights held by Hoogh Blarick from 29.28% to 14.29%, which may impact the company’s governance dynamics and stakeholder influence.

Business Operations and Strategy
Accsys Announces Changes in Shareholding Agreements
Neutral
Feb 24, 2025

Accsys Technologies PLC announced that Teslin Participaties Coöperatief U.A. and Hoogh Blarick BV have terminated their shared relationship agreement with the company, although Teslin continues to hold shares and maintains a relationship agreement with Accsys. This change in shareholding and voting rights structure might impact the company’s governance dynamics, potentially influencing its strategic decisions and stakeholder relationships.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 29, 2025