07 June 2022
Haydale, (AIM: HAYD), the global advanced materials group, announces a trading update for the year ended 30 June 2022 (the "Year").
The Group anticipates announcing revenues for the Year ahead of market expectations. Revenues have been supported by the strong launch of Hi-Therm, with sales of functionalised boron nitride conductive fluids expected to be markedly ahead of contractual volumes, and the positive settlement that has been reached over a previously announced contractual dispute with a US group selling silicon carbide cutting tooling and wear-resistant solutions. Counteracting this have been the slower than anticipated sales of silicon carbide to East Asian customers, who have been adversely impacted by the lock downs in China. During the year, Haydale has continued to strengthen its teams across all Group sites and this investment in sales, marketing, quality and production resource will partly offset the uplift in revenue at the EBITDA level.
Haydale's HDPlas™ functionalisation process is the cornerstone of the Group's graphene and other nano particle offering. The Group successfully commissioned its new HT1400 plasma reactor in April 2022, and this has increased our functionalisation capacity eight-fold and we can now functionalise up to 8 tonnes of graphene or other nano particles per month. In the final quarter of the Year, the Directors have accelerated the capital expenditure programme at the Ammanford facility to expand the Group's capacity to process Hi-Therm, to increase production and dispersion capacity for the proprietary bio-medical sensor inks and to enhance the quality control systems at the site. The increased capital investment and working capital demand has impacted cash which stood at £1.62 million at the end of May.
The Directors expect the commercial momentum from this Year to continue during the year ended 30 June 2023 and this reinforces confidence in the medium and long term prospects and the overall significant potential for the Group.
Keith Broadbent, Haydale CEO, said: "Our transition from a research and development focussed organisation to a commercial operation has accelerated during the 2nd half of the Year and we look forward to driving our business forward in the coming year and thereafter."
For further information:
|Haydale Graphene Industries plc
|Keith Broadbent, CEO
Mark Chapman, CFO
|Tel: +44 (0) 1269 842 946
|finnCap (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 group and service provider that facilitates the integration of graphene and other nanomaterials into the next generation of industrial materials and commercial technologies. With expertise in graphene, other nanomaterials and Silicon Carbide, Haydale is able to deliver improvements in electrical, thermal and mechanical properties, Haydale has been granted patents for its technologies in Europe, USA, Australia, Japan and China and operates from five sites in the UK, USA and East Asia. For more information please visit: www.haydale.com or Twitter: @haydalegraphene
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identiﬁed by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reﬂect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.
A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Subject to any continuing obligations under applicable law or any relevant AIM Rule requirements, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.