Accsys falls as Panmure Liberum cuts profit forecast, keeps ‘buy’

Accsys Technologies Plc (LSE:AXS, AEX:AXS, OTC:ACSYF, FRA:1D8) fell 11% to 63.60p after a trading update showed distributor destocking. At the same time, Panmure Liberum cut profit forecasts but retained its 'buy' rating and 100p target.

Management still expects group EBITDA excluding the joint venture to be broadly in line with expectations for the financial year ending March 2027.

However, its corporate broker cut its pre-tax profit forecast, including the joint venture contribution, to €2.4 million from €7.7 million.

Panmure Liberum also lowered group revenue estimates to €153.9 million from €180.4 million and EBITDA excluding the joint venture to €22.7 million from €23.3 million.

Underlying those cuts, the modified wood supplier reported a 10.6% decline in volumes excluding the joint venture during the five months to August.

Distributors reduced stocks amid difficult trading conditions, although cost controls and price increases cushioned the impact on profitability.

Management indicated that destocking had begun to ease and underlying demand remained intact.

Slower North American growth has delayed joint venture EBITDA profitability, with Panmure Liberum now forecasting just $0.1 million for the financial year, down from $9.2 million.