Shares of sustainable wood company Accsys Technologies (LON: AXS) are down after the company said its lead contractor at the Tricoya plant at Hull will terminate the engineering, procurement and construction agreement for the project by reason of force majeure.
The London-listed company previously warned that the plant was at risk of being delayed due to COVID-19 related challenges, recent engineering changes, and the final stages of construction taking longer than anticipated.
The lead contractor has terminated the agreement due to the COVID-19 pandemic. They stated that they plan to demobilise over the next two weeks.
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The plant construction is in its final stages. However, Accsys said it is committed to completing the plant and has been looking forward to obtaining more significant control over the site and finishing the commissioning as soon as possible.
“We will update the market on any possible implications for the timeline and costs for the project as soon as possible,” said Accsys.
The company’s shares are down 4.97% at 161.5p following the announcement.
Should you invest in Accsys Technologies shares?
Accsys Technologies shares are traded on the London stock exchange’s AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Accsys shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
