Accsys intrinsic value?

Update October 2019:
Sales have increased to €75m, but still making a loss. The Van Piuijenbroek family bought 6,2m shares @92 cents providing funding.

Book value €73,6m/116m shares = 64 cents per share.

Share price = €1,13

Book value per share and share price have both increased since last June 2018. Too difficult pile..
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Accsys Technologies PLC (LSE:AXS and AS:AXS) is an intellectual property and chemical technology group focused on the transformation of wood through acetylation. This is done by reacting the wood with acetic anhydride, which comes from acetic acid (known as vinegar when in its dilute form).

Bron: FD

When the free hydroxyl group is transformed to an acetyl group, the ability of the wood to absorb water is greatly reduced, rendering the wood more dimensionally stable and, because it is no longer digestible, extremely durable.

Year ending March 31st 2018, sales have gone up 6%, but gross profit euros has decreased. The company is losing 8 cents per share, but will open new production in 2018 and 2019.

You could argue that financing new projects like this (and in the past shipping companies like the VOC, railroads, etc) is what public equity is meant for.

The company has sold 20 million shares in the past year to bring in more funding.

Book value is roughly Equity 43m Euros / 111m shares = 40 cents per share book value.

A price of 20 cents per share might be interesting? The price is... 92 cents per share.

Conclusion: Not an investment for the Graham Defensive Investor. 

Comments, questions or E-mails welcome: ajb@valuemachinesfund.nl