For
immediate release
|
20 May 2024
|
Haydale Graphene Industries
plc
('Haydale', the 'Company', or the 'Group')
Trading
Update
Haydale, (AIM: HAYD), the global
advanced materials group, announces a trading update for the year
ending 30 June 2024 (the "Year").
The Group anticipates announcing
revenues for the Year of £4.7m, behind current market expectations
of £5.8m, but still showing growth on the prior year performance of
£4.3m. Notwithstanding the reduction in
turnover, Adjusted EBITDA is expected to
only be marginally behind market
expectations, at a £3.15m loss (currently a loss of
£3.0m).
As reported in the half year
interims, the building blocks to take the US silicon carbide
business up the value chain and into tooling manufacture and sales
have largely been completed, however orders at volume are taking
longer than anticipated to crystallise. In addition,
certain sales for Q4 have been impacted by a very
short term US supply chain issue that will impact on the Company's
SiC whisker production in June, reducing available
stock.
As high value specialist commodity products, the sales cycle for
tooling is relatively straightforward based on product performance
and cost compared with the incumbent product with no obstacles to
switching. Whilst Haydale is starting to see good progress with
both late stage pipeline and client accounts increasing, the
testing cycle is proving to be longer than anticipated. The Company
is currently in testing with a number of major potential tooling
customers that it anticipates will make a major difference to the
business' performance in a relatively short timeframe with
progressive improvement expected as they move forwards.
Arrangements with our potential Asia based manufacturing and
distribution partner, as referred to in the interims statement,
have continued to progress positively and the Directors expect
these to now close in H1 FY25. These significant opportunities
support the anticipated major growth forecast for FY25, after
taking account of the latent start. The Directors therefore
anticipate forecast expectations for FY25 to still show major
growth on FY24, albeit from the lower starting position.
Conversely, the nanomaterial
operations centred in the UK have continued to strengthen with
continuing growth in the demand for Haydale's functionalisation
processes as the industry matures. The Company has seen a
continuing stream of projects arising from its existing customer
base with major new customers continuing to be added. The Company
anticipates these paid for development projects will result in
longer term repeat revenues.
The Directors expect the general
commercial momentum from this Year to continue and accelerate next
financial year reflecting building confidence in the medium and
long-term prospects and the overall significant potential for the
Group.
For further information:
Haydale Graphene Industries plc
|
|
Keith Broadbent, CEO
|
Tel: +44
(0) 1269 842 946
|
Patrick Carter, CFO
|
www.haydale.com
|
|
|
Cavendish Capital Markets Limited (Nominated Adviser &
Broker)
|
|
Julian Blunt/Edward Whiley,
Corporate Finance
Andrew Burdis, ECM
|
Tel: +44
(0) 20 7220 0500
|
Notes to Editors
Haydale is a global technologies and materials group that
facilitates the integration of graphene and other nanomaterials
into the next generation of commercial technologies and industrial
materials. With expertise in graphene, silicon carbide and other
nanomaterials, Haydale can deliver improvements in electrical,
thermal, and mechanical properties, as well as toughness through
its state-of-the-art functionalisation. Haydale has granted patents
for its technologies in Europe, USA, Australia, Japan, and China
and operates from five sites in the UK, USA and the Far
East.
For more information please
visit: www.haydale.com
LinkedIn: Haydale-ltd
X: @haydalegraphene