Accsys Technologies PLC

Welcome, everyone, to Access Technologies PLC Preliminary Results presentation for year-ended 31st of March, 2026. Today's speakers are Dr. Jelena Arsikdanos, Chief Executive Officer of Access Technologies, and Samit Bora, the Company's Chief Financial Officer. Jelena and Sam will take you through an overview of the business and financial performance for the year before we open the floor for questions. Please note that we will be prioritizing questions from analysts. We will be showing some videos during the presentation. You have the option to click on the enlarge button to make the video larger. With this, I would like to pass over to our speakers.

Good morning, everyone, and thank you for joining us. Before we begin, I would like to draw your attention to this image. It shows soon to open Google headquarters in London Futuring and Akoya Facade. This is one of our largest projects to date, and we are incredibly proud to have been specified for such a landmark development. Financial year 26 was an excellent year in which Axis delivered strong strategic and financial progress, marked with robust growth and a significant improvement in profitability. Against the challenging macroeconomic backdrop, We delivered record global Acquia sales volumes that increased by 21% with growth across all our key regions and a particularly strong performance in North America. We significantly increased group revenue by 20% on like-for-like basis, reflecting resilient demand for our premium products, continuous pricing discipline, and the increasing strength of our commercial platform. We are expanding our reach. During the year, we broadened our distribution network and expanded our product offering. In its first full financial year of trading, the joint venture achieved EBITDA profitability and volume increase of 60%. This performance reinforces the strategic importance of local manufacturing in North America, our key growth market. The most encouraging aspect of FY26 is the quality of the growth we delivered. Adjusted EBITDA increased by 96% to 21.2 million euros, and adjusted EBITDA margin improved to 11.6%, bringing us very close to our Phase 1 focus target of 12%. Gross profit margin also remained strong at 30.9%, above our 30% target. Underlying basic earnings per share were 2.1 cents, a material improvement compared to a loss per share of 5 cents in the prior year, all driven by the significant improvement in profitability. Financial year 26 was a year of disciplined capital and balance sheet management with improved leverage ratio and operating cash flow at target level. In October 2025, we completed refinancing on improved terms, strengthening our capital structure and enhancing our financial flexibility to support the future growth. All in all, financial year 26 was a year of strong operational execution, market share gains, and a step-changing profitability, while de-risking the balance sheet and building momentum in North America. The first phase of the focus strategy concludes in March 2027 and was designed to be transformational for the business, with ambitious targets established at the time in the response to the trading environment of FY24. These lines highlight significant progress made against our key strategic metrics over the past three years. During this period, our sales run rate increased from 65,000 to 97,000 cubic meters, adjusted EBITDA margin improved from 3.5% to 11.6%, and gross profit was sustained consistently above 30%. Net debt leverage ratio reduced from 4.4 to below two times and cash flow conversion is on 75% target. Most importantly, FY26 demonstrated that Axis has evolved into a fundamentally stronger business. The company has a clear and achievable strategy and the de-risked profile vis-à-vis unfinished large capital projects. Today, Acoria is produced at three production sites localized in the key markets for woods building materials. Finally, our customers are at the center of everything we do. We continue to elevate our sales, marketing, and customer support. Our teams are standing behind this fantastic progress and I'm taking this opportunity to thank all our colleagues across the globe for their efforts and dedication. As we look ahead, our priorities remain clear. Innovation, higher capacity utilization, further improvement in profitability and returns, and continuing the leveraging. With this, I will pass now over to Sam to provide a detailed overview of our financial performance.

Thank you, Yelena. Over the next few slides, I'm going to talk you through the financial results of the year in more detail. This slide summarizes the strong financial performance for the financial year. I'll go into more detail on the financial performance in the next couple of slides, but highlighting some of them now. Starting with sales volumes, group sales volumes were up 6% to 60,384 cubic meters compared to the prior year. However, when you exclude the 3,802 cubic meters, sales made by the group to North America in the prior year before the Accoya USA JV commenced operations, the group's sales volumes were up by 13% on a like-for-like basis, with strong demand in all regions. Postal sales volumes, which includes all of the sales volumes from the JV and more clearly shows global demand for Accoya, increased by 21% to 77,237 cubic metres. Petolia USA saw 60% life-for-life sales volume growth to 16,853 cubic meters, a standout result. Group revenue increased by 12% to 153 million euros on a reported basis and 20% on a life-for-life basis. Aggregated revenue, which includes 50% of the revenue of the JV, was up 24% to 183 million euros. Gross profit was €6 million higher than the prior year at €47.4 million and the gross profit margin increased by 130 basis points on a life-to-life basis to 30.9% and remained above our target level of 30%. Underlying EBITDA which excludes the results of the joint venture increased by 26% to €21.1 million compared to €16.8 million in the prior year. margin to 16.1%. This reflects a strong sales volume and revenue growth, maintaining a gross margin above 30% and a cost control system we have over operating costs. It was really pleasing to see that the ECOI USA joint venture was EBITDA profitable in its first full financial year of trading, compared to a loss of €6 million in the prior year. Adjusted EBITDA, our main profitability performance venture, was up by 96% to €21.2 million, with an impressive 430 basis points increase in the margin to 11.6%, which is just below the 12% target that we have set for the end of Phase 1 of our strategy. Statutory profit after the tax was €6.5 million, after the recognition of a tax credit of €7 million in the year, following approval from the tax authorities of the advance pricing agreement that was in place 517 to 25. Accordingly, underlying earnings per share was 2.1 cents compared to a loss per share of 5 cents in the prior year. Turning to cash flow, operating cash flow was 15.8 million euros, up 5.1 million on the prior year with a cash conversion of 75% in line with our strategic target level and up 11 percentage points compared to the prior year. After capex of 5.5 million, free cash flow was 10.3 million, up 17% year on year. Net debt at 31st March 2026 stood at 41.4 million, 1.2 million lower than the prior year, with the leverage ratio improving significantly to below two times. I'll discuss the changes in revenue, profitability and net debt in more detail in the coming slides. Going into more detail on our revenue performance for the year. As I previously mentioned, group revenue increased by 12% on a reported basis to 153 million euros. Excluding the 10.3 million of revenue from sales made to North America from Arnhem before the JV started operations, which equated to 7% of the volume for the prior year, like-for-like revenue growth was 20%. The sales growth that we've seen during the year across all regions volumes transferred to the JV. Despite the challenging macroeconomic environment, we have maintained strong pricing discipline with a 1.7% increase in average Akoya sales price for the year. We saw a sustainable sales mix benefit to revenue in the year across our product range. We experienced substantial growth for our premium Akoya colour product with global sales volumes of 51% supported by capacity expansion and operational improvements at our Barry colouring facility. Colour now makes up a higher proportion of group sales volumes than the prior year. Sales to the JV increased by €7.4 million during the year and this is primarily made up of colour tolling that the Barry facility undertakes for the JV. Licency and royalty income from the JV was €2.6 million higher than the prior year as the group receives a royalty based on sales made by the JV. The final licensee payment was also received during the year, following successful completion of the performance test of the Kingsport plant, thereby granting exclusivity for the North American market to the joint venture. Other revenue represents tricoid panel sales and sales of acetic acid, which were broadly in line with the prior year. Aggregated revenue, which includes 50% of the joint venture's revenue, increased by 24% to $183 million. On a constant currency basis, aggregated revenue grew by 26% given the weakness of the dollar against the euro, with the dollar weakening by 7% over the course of the year. On the face of it, the reported gross profit margin increased by 60 basis points to 30.9% for the year. However, the prior year includes sales that were made to North America from Arnhem prior to the joint venture commencing commercial operations. These sales amounted to 3,802 cubic metres, which represented 7% of group sales volumes. They contributed €4 million of gross margin in the prior year and €2.9 million to EBITDA, as the average sales price in North America is higher than all other regions. Therefore, a more representative way to look at gross margin progression in the prior year is to exclude the €4 million from the comparator, resulting in the like-for-like gross margin improving by €10 million to €47.4 million, This £4 million gross margin reduction from transfer volumes has been more than offset by group sales volume growth, favourable sales length and higher average sales prices, together with the receipt of royalties and licensees from the JV. Our main production costs relate to raw material spend on raw wood and netter seed tiles, which when combined represent approximately 61% of the bill of materials cost. Raw wood costs are slightly raw wood costs were partly offset by lower wood grade chip costs. We saw an improvement in gross margin arising from net acetyls from improved utilisation of the CTKN hydride in the production process, a change in the supply mix and favourable FX as the US dollar weakened against the Euro. The gross margin at 30.9% continues to remain above our strategic target level of 30%. This slide shows the adjusted EBITDA progression during the year, reflecting the strong financial performance. We saw a 96% increase in adjusted EBITDA from €10.8 million to €21.2 million and a 430 basis points increase in the adjusted EBITDA margin to 11.6%, which is closer to the 12% target we set for the end of Phase 1 of our focus strategy and is very encouraging to see. Operating costs increased by 3.7 million euros during the year, which is primarily driven by strategic headcount additions in our commercial and operational organisation to support growth. And we have also strengthened local management teams in key areas. Following on from the business transformation programme that was undertaken in FY24, The average number of staff in the group FY26 is at the same level as in FY24, but we have re-balanced the mix, adding commercial revenue generating FTEs and strengthening operations, while at the same time reducing corporate headcounts. Accordingly, we have still retained €0.8 million of savings from the FY24 Business Transformation Programme, with operating costs revenue in FY26 compared to 20% in FY24 and we continue to maintain our disciplined approach to cost control. During FY26 there were no further costs associated with Hull after the business was placed into liquidation in December 2024. The joint venture was EBITDA profitable for the year with our 50% share of the EBITDA profits amounted to €0.1 million in its first full financial year of trading. despite the imposition of tariffs on wood imports into the USA, which commenced in October 2025. This evades substantial improvements in EBITDA profitability of €6.1 million year-on-year, compared to the €6 million loss recorded in the prior year. From a segmental perspective, EBITDA from our Akoya segment increased from €20.5 million to €24.7 million, with a healthy margin of 16.1%. up from 15% in the prior year. This growth is primarily due to the strong sales growth, the improvements in gross margin and cost control discipline. Corporate costs amounted to €3.6 million and were €0.1 million lower than the prior year, but importantly €1 million lower than in FY24. Corporate costs now amount to 2.3% of revenue compared to 2.7% in FY25 Therefore, underlying EBITDA, excluding the JV, increased by 26% from €16.8 million to €21.1 million. The margin improved by 150 basis points to 13.8%, reflecting the strong underlying profitability of the group. As I mentioned before, adjusted EBITDA increased by 96% from €16.8 million to €21.1 million. This slide shows the evolution of net debt during the year. Net debt at the end of March 2026 stood at €41.4 million, a decrease of €1.2 million compared to the start of the financial year. Debt reduction and deleveraging the balance sheet remained our key priority from a capital allocation perspective and the net leverage ratio reduced from 2.52 times to 1.96 times at the end of March 2026. Excluding the €26 million of convertible loan notes and associated accrued interest within the net debt total, then the leverage ratio is 0.74 times. Subsequent to year end, in June 2026, following the end of the peak interest period for the convertible loan note, €2.5 million of accrued CLN interest was in the year, which is primarily related to higher inventory levels within the group, and amounts owed by the JV. The increase in inventory was planned to ensure product availability to support strong demand, particularly in Akoya Colour, following the expansion of capacity at Barry. Accordingly, operating cash flow conversion was 75% in line with our Phase 1 target. CapEx was €5.5 million during the year, and this included in Arnhem and making health, safety and environmental improvements in the Arnhem Stacker Hall of €0.6 million. Free cash flow increased by 17% to €10.3 million and the free cash flow margin improved by 20 basis points to 6.7%. We also invested €3 million into the shopping venture to support this rampart given the substantial growth seen during the year. Net interest paid and accrued amounted to €5 million of which 2.2 million rose to interest accrued on the convertible loan note. During the year, we also finalised the APA agreements with the Dutch and UK tax authorities covering the years FY17 to 25. This resulted in tax received of €0.7 million in respect of previous tax years. In October 2025, we completed the refinancing of our debt facility with a new €55 million facility with APN AMRO and HSBC. through financial terms, which will save the group approximately €2 million in cash annually. The refinancing strengthens our capital structure, enhances financial flexibility and further de-risks our profile, positioning us to execute our strategy and growth plans with greater confidence and resilience. So in summary, we are very pleased with the FY26 financial performance. and are well positioned as we enter the final year of phase one of the focus strategy. I'll now hand you back to Jelena, who will take you through the business review.