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Accsys Technologies (LSE:AXS) reported a strong start to the year, with "good demand and revenue growth" in the first quarter as it began commercial operations in the United States. The company, which specializes in wood building materials, saw Q1 revenues rise by 3% year-on-year to €35.9 million, despite challenging global market conditions in the construction and building materials sectors. The North American market, identified as the group’s largest growth area, demonstrated "solid growth" during the period.
The AIM-listed firm also highlighted the positive effects of its business transformation programme, which has resulted in €3.0 million in annualized cost savings. Accsys noted that this cost discipline, combined with a strong start to Q2, reflects its return to a growth trajectory. The company’s healthy order book across various regions further reinforces this optimistic outlook.
A significant milestone for Accsys was the commencement of commercial operations at Accoya USA, its newly constructed plant in Kingsport, Tennessee. This facility, owned 60:40 by Accsys and Eastman Chemical, is a key element in the company’s strategy to deliver a production volume of 100,000m³ within the next three years from its plants in Arnhem and Kingsport. The Kingsport plant represents a crucial step in Accsys’s efforts to establish a strong presence in the North American market, considered the largest and most attractive wood market globally.
Dr. Jelena Arsic van Os, Accsys's Chief Executive, emphasized the importance of establishing a local presence for North American customers. She described the expansion as a major milestone for both Accsys and Accoya USA, allowing the company to efficiently serve the market with Accoya, a product recognized for its durability and stability. She also noted that Q1 trading performance was solid, continuing the momentum from Q4 of the previous financial year, and this positive trend has persisted into Q2. The company’s healthy order book across its markets supports confidence in sustained growth.
By 1055 BST, shares in Accsys had risen by 3.52%, reflecting the market’s positive reception to the company’s recent progress and expansion efforts.
