REG - Haydale Graphene Ind - Trading Update

Haydale Graphene IndustriesAnnouncement

20/05/2024 07:00

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RNS Number : 9902O  Haydale Graphene Industries PLC  20 May 2024

 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 (http://www.haydale.com)

 Cavendish Capital Markets Limited (Nominated Adviser & Broker)
 Julian Blunt/Edward Whiley, Corporate Finance                       Tel: +44 (0) 20 7220 0500

Andrew Burdis, ECM

 

 

 

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 (http://www.haydale.com/)
 

 

LinkedIn: Haydale-ltd

X: @haydalegraphene

 

 

 

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