Accsys Technologies Reports Strong Full-Year Results with Record Sales and Profitability Growth

Accoya USA joint venture performance is the standout part of the Accsys results

If there is one section of this RNS that really jumps off the page, it is the US joint venture. Accsys owns 60% of Accoya USA LLC, which is why the reporting is a bit fiddly. The JV is equity accounted in the accounts, but management also shows an “aggregated” view that includes 60% of JV revenue and EBITDA to help investors see the bigger commercial picture.

That bigger picture looks good. The JV delivered revenue of €30.3 million on a 60% basis, up 178% from €10.9 million. More importantly, it reached EBITDA profitability at €0.1 million for Accsys’ share, versus a €6.0 million EBITDA loss last year.

That is a big swing, and it matters because North America has been central to the growth story for years. Local manufacturing appears to be doing what it was supposed to do – improving supply confidence, supporting customer adoption and driving market share gains.

There is, however, one nuance worth keeping your eye on. The JV was EBITDA profitable, but Accsys still reported a €7.7 million share of net loss after tax from the JV. EBITDA means earnings before interest, tax, depreciation and amortisation, so it is useful for tracking trading progress, but it is not the same as full profit. In other words, the US business has clearly improved, but it is not fully mature yet.

Accsys cash flow, net debt and refinancing show a business getting fitter financially

This is where the update gets more reassuring. Operating cash flow rose to €15.8 million from €10.7 million, and operating cash flow conversion improved to 75% from 64%. That hits the lower edge of management’s FY27 target.

Free cash flow came in at €10.2 million, after €5.6 million of expansionary growth and maintenance capital expenditure. That is the kind of number equity holders like to see because it shows the business can fund growth without constantly running back to the market for cash.

Net debt edged down to €41.4 million from €42.6 million. That is not a dramatic reduction, but the leverage ratio improved to 1.96x from 2.52x, and to 0.74x excluding convertible loan notes. That is a meaningful step in the right direction.

The October 2025 refinancing also looks sensible. Accsys secured new debt facilities of €55 million, made up of a €20 million term loan and a €35 million revolving credit facility, maturing in October 2028. Management says the revised terms are expected to improve annual cash flow by €2 million, which is helpful.

Statutory profit needs a footnote because tax helped the final number

One thing retail investors should not miss: the group reported a statutory profit after tax of €6.5 million, compared with a loss after tax of €22.9 million last year. That sounds fantastic, and it is a clear improvement, but it was helped by a €7.0 million tax credit.

Before tax, Accsys still made a statutory loss of €0.6 million. Underlying loss before tax was €1.9 million, improved from €9.9 million. So the business is much healthier, but not yet fully through to clean, consistent pre-tax profitability.

That is not a criticism so much as a reality check. The direction of travel is very good. Investors just need to separate genuine operating improvement from the boost provided by tax and last year’s exceptional Hull costs.

What looks good, what still needs watching, and why the FY27 outlook matters

The positives are pretty clear: record volumes, better margins, much stronger EBITDA, solid cash generation and a US JV that is finally contributing at EBITDA level. Management also says trading in FY27 is in line with expectations and the business is on track to hit its Phase I FOCUS targets.

The weaker points are also clear enough. Net debt is still €41.4 million, the JV is still loss-making after interest and depreciation, working capital absorbed cash, and no final dividend is proposed. There is also a likely dilution angle to watch, with €2.5 million of accrued convertible loan note interest converted into additional loan notes on 15 June 2026, with the intention that these will convert into ordinary shares within 60 business days.

My read is that this is a genuinely encouraging set of results. Accsys looks leaner, more commercial and more financially disciplined than it did a year ago. It is not a flawless story yet, but it is a much more credible one.

For shareholders, the big question now is whether FY27 can turn “close to target” into “target achieved”. If Accsys keeps volumes growing, holds margins above 30%, and gets further improvement from Accoya USA, the investment case should continue to strengthen.