LONDON (ShareCast) - Wood-hardening company Accsys cut losses by almost a quarter in the year to March as revenues stiffened markedly thanks to growing traction in its end markets.

Revenue grew 78% to €33.5m, with increases recorded across all geographic territories, helping gross profit more than double to €7.8m as gross operating margin improved from 18% to 23% driven by higher sales volumes, price increases and improved operating efficiency.

The AIM-listed group agreed 19 new distribution and agency agreements for its core Accoya technology, bringing the total to 61 by the period end. Partnerships now provide coverage across Europe, the Americas and Asia-Pacific.

Chief Executive Paul Clegg pointed to significant licensing progress, with the licence with Belgian chemicals giant Solvay now formally approved. As the company awaits a final Solvay decision on the plant and its location, Clegg said the licence represented "a strong validation of our products and processes".

Post-period-end a licence option extension was agreed, covering the majority of Latin America, between Accsys's 50%-owned joint venture, TTL, and regional construction panel specialist Masisa, and the two parties launched a Super MDF wood product using Accsys's Tricoya-treated wood chips.

Accsys, whose Arnhem manufacturing facility reported inaugural annual profit with improved margins, also said on its terminated licence agreement with Diamond Wood that the subsequent arbitration process was still in progress.

"Our rate of revenue growth demonstrates the traction our products are gaining in the global marketplace," said Clegg. "This growth has enabled us to more than double gross profits, helping to reduce our rate of cash burn and maintain a healthy balance sheet with more than adequate financial strength to see us through to profitability in the medium-term."

Shares in Accsys were up initially but slipped later, to stand at €0.237 by 14:45, down 1.04%.

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