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ARNHEM, NL - Accsys Technologies PLC (AS:ACCS) (AIM:AXS, Euronext (EPA:ENX) Amsterdam: AXS), a global leader in sustainable wood building materials, presented its strategic plan for growth during its Investor Strategy Day held today at the company’s Arnhem site.
The company’s Senior Leadership Team, including CEO Dr. Jelena Arsic van Os and CFO Sameet Vohra, introduced the "FOCUS" strategy, which aims to enhance financial and operational performance while maximizing shareholder value. The strategy is segmented into three distinct phases, each with specific operational and financial targets.
In Phase One, titled "Transform and improve," which extends up to the end of FY27, Accsys plans to drive sustainable, profitable growth using existing assets, streamline costs, and reduce debt. The company is aiming for a run rate sales volume of 100,000m³ by the end of this phase and anticipates profitability for the Kingsport production facility in FY26.
Phase Two, "Optimise," scheduled for FY28-FY30, will concentrate on maximizing the capacity of the two plants through operational efficiencies, coupled with continued debt reduction supported by robust free cash flow. The target for this phase is a run rate sales volume of 120,000m³ by the end of FY30, along with optimizing the Accoya Color production footprint.
Looking beyond FY30, Phase Three, "Grow," will focus on capital investment to pursue further growth opportunities, building on the expansion model established in the United States.
Throughout the first two phases, Accsys aims to maintain a gross margin of 30% and has set an ambitious target for an Adjusted Group EBITDA Margin of 12% by the end of Phase One, increasing to 15% by the end of Phase Two. The company also intends to achieve at least a 75% operating cash flow conversion rate.
Dr. Jelena Arsic van Os expressed enthusiasm for the FOCUS strategy, emphasizing its potential to create a fundamentally strong, cash-generative, and profitable business. "This is a pivotal time for the Company, and we are looking forward to sharing our vision for the future," she said, highlighting the importance of customer focus and product innovation in the company’s plans.
Following the event, a recording of the presentation will be available on Accsys’s website. This news article is based on a press release statement from Accsys Technologies PLC.
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