Accsys falls as Panmure Liberum cuts profit forecast, keeps 'buy'

Accsys Technologies Plc shares dropped 11% to 63.60p after a trading update revealed distributor destocking, prompting broker Panmure Liberum to reduce its profit outlook. Despite the downward revision, Panmure Liberum maintained its 'buy' rating and 100p target price for the modified wood supplier.

The broker lowered its pre-tax profit forecast, including the joint venture contribution, to €2.4 million from €7.7 million. Group revenue estimates were cut to €153.9 million from €180.4 million, while EBITDA excluding the joint venture was reduced to €22.7 million from €23.3 million.

Accsys management reported a 10.6% decline in volumes excluding the joint venture for the five months to August. The company attributed this drop to distributors reducing stocks amid difficult trading conditions, noting that cost controls and price increases helped cushion the impact on profitability.

Although the trading environment remains challenging, management indicated that destocking has begun to ease and that underlying demand remains intact. The company anticipates that group EBITDA, excluding the joint venture, will remain close to prior expectations for the financial year ending March 2027.

Slower growth in North America has delayed profitability for the joint venture. Panmure Liberum now forecasts just $0.1 million in EBITDA for the joint venture for the financial year, a significant decrease from its previous estimate of $9.2 million.