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September 19, 2013 4:58 pm
Accsys Technologies, the Aim-quoted company that has pioneered the technology to harden wood for use by the construction industry, reported that revenues nearly doubled to €13.6m in the five months to the end of August.
This included sales to Medite, the European maker of MDF, which is finalising a licensing contract to manufacture hardened wood. This deal is expected to be completed next year. Accsys is also finalising a similar contract signed last year with Solvay, the Franco-Belgian chemicals company, to manufacture Accoya, Accsys’s main brand of “acetylated” or toughened timber.
A month ago, Accsys, which is based in Windsor, announced it was terminating a manufacturing licence granted to Diamond Wood China in 2007. Accsys acknowledged yesterday at its annual shareholder meeting that Diamond Wood had called for independent arbitrators to resolve the issue. Hong Kong-based Diamond Wood disputes Accsys’ right to terminate the licence agreement and is seeking damages that it says could exceed €140m.
Accsys said it had received “robust” legal advice and remained “extremely confident” that the arbitration would be resolved in its favour.
“In the meantime, Accsys is now working directly to meet customer needs in China and parts of south east Asia and is exploring new licensing opportunities in the region,” it added.
The shares were flat yesterday at 0.135p, having fallen 15 per cent to date this year. That values the company, which made a loss of €11m in the year to March, at £59m.
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