Accsys sees adjusted EBITDA at €21-23 million after 6% revenue fall

Accsys Technologies Plc (LSE:AXS, AEX:AXS, OTC:ACSYF) said it expects full-year adjusted EBITDA of between €21 million and €23 million, ahead of the prior year, despite weaker trading in the first five months as distributor destocking and softer economic conditions weighed on sales. The sustainable wood products specialist said group revenue for the five months to August 31 fell 6% to €56.9 million from €60.4 million a year earlier, while sales volumes declined 11% to 22,186 cubic metres. Including its 60%-owned Accoya USA joint venture, aggregated revenue fell 6% to €67.5 million and total sales volumes were 8% lower at 28,953 cubic metres. Accsys said trading had been slower than expected as inflation, higher interest rates and the Middle East conflict encouraged more cautious purchasing and delayed project activity. Distributor destocking was particularly pronounced in North America, though the company believes the process is now largely complete and customer inventory levels are stabilising. Trading improved through the five-month period and Accsys said activity had strengthened further in September. As a result, performance for the first half is expected to show a smaller year-on-year decline than that recorded in the first five months, although revenue and volumes are still expected to remain slightly below the prior-year period. Accsys said it remains on track to deliver the first phase targets of its FOCUS strategy, with priorities including higher capacity utilisation, tighter cost management, innovation and further market share gains. Interim results are due on November 24.