REG - Directa Plus PLC - Trading Update

Directa PlusAnnouncement

02/12/2022 07:00

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RNS Number : 4076I  Directa Plus PLC  02 December 2022

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 as retained as part of UK law by virtue of the European
Union (Withdrawal) Act 2018 (as amended). Upon the publication of this
announcement, this inside information is now considered to be in the public
domain

 

2  December 2022

 

Directa Plus plc

 

("Directa Plus" or the "Company")

 

Trading Update

 

Directa Plus (AIM: DCTA), a leading producer and supplier of graphene
nanoplatelets based products for use in consumer and industrial markets,
provides an update on current trading and outlook.

 

The Company has recently seen the fulfilment of a number of signed orders and
contract award decisions postponed until 2023 owing to various supply chain
issues across Europe and the impact of general macro and geopolitical factors.
Specifically, in the Textiles division, the Company has experienced delays in
receiving customer-supplied materials for treatment with its G+®️ product
and, in the Environmental division, environmental permissions   have been
delayed by local authorities and have impacted the timing of expected tender
awards.

 

As a result, the Company expects recognition of orders totalling c.€2
million to be deferred into the new financial year ("FY23"), with revenues in
the year to 31 December 2022 ("FY22") now expected to be at least €10
million. This would represent a 16% increase on revenues in the previous year
(FY21: €8.6 million), with continued, strong growth underpinned by a
significant and growing proportion of repeat customer business. The Company
has also secured a number of notable new customers and contracts during the
period across all key verticals and markets, including MC Armor (South
America) and Alfredo Grassi SPA (Italy) in Textiles, Reda Energy (UK) in
Environmental and a major Gipave asphalt contract.

 

Consequently, Directa Plus will enter FY23 with a record order book of
c.€8.5 million, providing confidence in the strong future performance of the
business and in continuing its growth trend. The Board expects the Company's
underlying revenue growth in FY23 to return to at least 25 per cent
year-on-year, in line with previous periods. This growth excludes the positive
and potentially material impact of a number of significant tenders within its
Environmental division which have been delayed, as flagged above. The
Directors expect that decisions on these will be made early in 2023 and
believe that the Company is well positioned to win these tenders.

 

During the second half of the current financial year the Company has continued
its investment in next generation manufacturing equipment that will materially
reduce direct production costs. Alongside other commercial actions, Directa
continues to work to mitigate on-going inflationary cost pressures in order to
regain margin.

 

Commenting, Giulio Cesareo, Founder and CEO of Directa Plus, said:

 

"The macro background remains challenging and, whilst it is frustrating that
we have seen the fulfilment of a number of orders fall back into 2023, the
Company remains strongly positioned with building momentum in each of its
verticals and will enter the new financial year with a record order book. We
have made significant progress during FY22 - in particular with exciting
projects in development in paints, filters, batteries and G+® embedded
asphalts - and the Board continues to be confident about the strength of
Directa Plus's prospects in 2023 and beyond."

 

This announcement has been approved by Giulio Cesareo, Chief Executive, on
behalf of the Company.

For further information please visit http://www.directa-plus.com/
(http://www.directa-plus.com/) or contact:

 

 Directa Plus plc                                            +39 02 36714458
 Giulio Cesareo, CEO
 Giorgio Bonfanti, CFO

 Cenkos Securities plc (Nominated Adviser and Joint Broker)  +44 131 220 6939
 Neil McDonald
 Adam Rae

 Singer Capital Markets Securities Limited (Joint Broker)    +44 20 7496 3069
 Rick Thompson
 Phil Davies

 Alma PR (Financial PR Adviser)                              +44 20 3405 0205
 Justine James
 Hannah Campbell

 

Notes to Editors

 

Directa Plus (www.directa-plus.com) is one of the largest producers and
suppliers of graphene-based products for use in consumer and industrial
markets. The Company's graphene manufacturing capability uses proprietary
patented technology based on a plasma super expansion process. Starting from
natural graphite, each step of Directa Plus' production process - expansion,
exfoliation and drying - creates graphene-based materials and hybrid graphene
materials ready for a variety of uses and available in various forms such as
powder, liquid and paste.

 

This proprietary production process uses a physical process, rather than a
chemical process, to process graphite into pristine graphene nanoplatelets,
which enables Directa Plus to offer a sustainable, non-toxic product, without
unwanted by-products.

 

Directa Plus' products are made of hybrid graphene materials and graphene
nano-platelets. The products (marketed as G+(R)) have multiple applications
due to its properties. These G+(R) products can be categorised into various
families, with different products being suitable for specific practical
applications.

 

Directa Plus was established in 2005 and is based in Lomazzo (Como, Italy) and
has been listed on the AIM market of the London Stock Exchange since May 2016.
Directa Plus holds the Green Economy Mark from London Stock Exchange which
recognises companies that contribute to the global green economy.

 

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