The newly-published results show sales grew 10% to €15m (2011: €13.7m) for the year ended March 31, 2012, with revenue in the second half up by 41% compared to the first half because of increased demand for Accoya.

Operating losses were €14.8m, up from a €13.8m loss a year ago.

Accsys CEO Paul Clegg said the recent signing of a licensing deal with Solvay-Rhodia to produce and sell Accoya in several European countries, together with a licence option agreement with a Latin American panels producer for the production of Tricoya modified wood panels, were milestones for the product.

Accoya, made from modifying timber through an acetylation process, is currently made at Accsys’s Arnhem plant in Holland, though it ultimately hopes to license producers around the world.

"I expect that the increasing demand for our Accoya wood product will result in the plant breaking even and the company ultimately generating profit, even without taking account of any licence income," said Mr Clegg.

UK sales of Accoya/Tricoya totalled €2.1m during the period, representing the third largest market after Ireland (€2.4m) and the Netherlands (€5.2m). Irish sales rocketed from just €221,000 the previous year, largely due to Medite Tricoya sales.

The significant growth in sales during the second half was largely a result of sales of Medite Tricoya modified MDF.

Accsys intends to widen the raw material species base its uses from the current radiata pine and alder. European hardwood has been tested and is expected to be introduced, while other species are scheduled to be added over the next two years.

"These will benefit us and our potential licensees by increasing the number of end-product offerings as well as introducing more raw material sourcing options," it said.

An Accoya structural design guide will also be published later this summer.

Accsys was recently granted a product patent for Accoya in the UK, securing monopoly rights for the product in the UK for 20 years.