REG - Directa Plus PLC - Half Year Report
24/09/2025 07:00
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RNS Number : 5221A Directa Plus PLC 24 September 2025
24 September 2025
Directa Plus plc
("Directa Plus" or the "Company" or, together with its subsidiaries, the
"Group")
Half Year Report for the Period Ended 30 June 2025
Directa Plus (AIM: DCTA), a leading producer and supplier of graphene-based
products for use in consumer and industrial markets, announces its half year
results for the six months ended 30 June 2025.
Financial performance
· Revenue increased 15% to €3.90m (H1 2024: €3.39m).
· Total income €3.92m (H1 2024: €3.45m).
· Contribution margin* improved to 54% (H1 2024 52%), reflecting prioritisation
of higher-margin contracts and initial benefits from production efficiency
measures.
· EBITDA loss** improved by 38% to €1.13m (H1 2024: €1.81m), confirming the
trajectory towards breakeven.
· Loss before tax €1.66m (H1 2024: €2.48m).
· Cash at period end €2.97m (December 2024: €4.98m). Cash discipline remains
a key priority, with management carefully balancing investment in growth with
financial sustainability.
* Contribution margin is a managerial metric calculated as (Revenue - Direct
variable costs) / Revenue.
**EBITDA loss represents results from operating activities before tax,
interest, depreciation and amortisation.
Operational performance
· Production system upgrade nearing completion: the revamping of the Group's
production line, due to be fully commissioned in Q4 2025, will deliver a fully
automated and scalable facility capable of processing multiple precursors. It
will also enable the production of nanographite-based materials, significantly
reducing direct production costs, while enhanced automation and the switch
from argon to nitrogen gas for the plasma process are expected to further
lower production costs, improve sustainability and complete the process
certification that will allow us to program licencing actions.
· Talent and innovation: new hires in production and R&D are improving
operational flexibility and accelerating innovation. This includes the
development of new applications in elastomers, plastics, coatings and
batteries, reinforcing the Group's ability to deliver scalable and
customer-oriented solutions.
Environmental remediation: 82% of period revenue (H1 2024: 81%)
· Setcar restructuring has already translated into solid results in H1 2025,
confirming the success of the turnaround plan launched in 2024.
· New project wins include a contract with Midia International SA (up to $1.5m)
for offshore tank cleaning in the Black Sea and a €1.59m contract extension
with OMV Petrom until 2026, albeit with the MIDIA project timetable revised to
commence in Q1 2026, rather than Q4 2025, reflecting logistical complexities
in relocating the offshore platform.
· Several strategic contract renewals were secured, including Ford Otosan,
Cummins and Metchem.
· Renewal of the key Ford Otosan contract for Q4 2025 and 2026 remains pending,
following an unexpectedly competitive process likely to lead to a lower
contract value. Cost-optimisation measures are being implemented to mitigate
the impact on margin in the event the contract is renewed.
Textiles: 18% of period revenue (H1 2024: 19%)
· European textile market shows early signs of stabilisation, with further
improvement expected in H2.
· Directa Plus continues to strengthen its position through collaborations in
workwear, defence and luxury applications.
· Significant contract renewals were secured, including with Grassi and MC
Armor. Post period, secured the first sole source contract by a primary
governmental defence department.
· The distinctive properties of G+® - such as thermal conductivity, antistatic
properties and antimicrobial effectiveness- remain highly valued by customers,
with additional R&D work underway in niche applications such as electronic
devices and air filtration.
Outlook
· Trading in H2 started well, with commercial momentum built in H1 continuing
into the second half.
· The upgraded production line will allow Directa Plus to target both high-value
applications and cost-sensitive industrial sectors, opening entirely new
market scenarios.
· While Environmental Remediation and Textiles remain the pillars of the
business today, the Board sees significant future value in the new verticals
under development, supported by the Group's broad IP portfolio and accumulated
graphene know-how.
· The Board remains confident that FY25 EBITDA will show a material year-on-year
improvement, supported by the restructuring and efficiency measures already
implemented and by solid commercial momentum. However, the scale of the 2025
progress is expected to be moderated by the revised timing of the MIDIA
International project and by the pricing dynamics of the Ford renewal -
subject to contract award - which will have an impact on the Group's FY25
forecasts.
Giulio Cesareo, Founder & CEO of Directa Plus, said: "The Group delivered
solid progress in the first half of the year, underpinned by operational
upgrades, the successful ongoing restructuring of Setcar, and continued
commercial momentum. With the commissioning of our new production line in H2,
enabling the launch of nanographite-based products alongside our premium G+®
materials, we are well positioned to broaden our market reach and capture new
growth opportunities. Supported by a strong pipeline in Environmental
Remediation, a stabilising Textile division, and targeted R&D initiatives,
the Board remains confident that FY25 will deliver a material year-on-year
EBITDA improvement, laying the foundations for sustainable long-term growth."
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
Singer Capital Markets (Nominated Adviser and Broker) +44 20 7496 3069
Rick Thompson
Phil Davies
Alma Strategic Communications (Financial PR and Adviser) +44 20 3405 0205
Justine James directaplus@almastrategic.com (mailto:directaplus@almastrategic.com)
Hannah Campbell
Rose Docherty
About Directa Plus
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+®) have
multiple applications due to its properties. These G+® 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. The Company holds the Green Economy Mark from London Stock Exchange
which recognises companies that contribute to the global green economy.
Chief Executive Officer's Statement
Overview
The Group has delivered a solid performance in the first half, in line with
management expectations, reflecting a focus on high-value contracts, strong
cost control and operational efficiencies. This is largely due to the
successful ongoing restructuring of the Group's Italian team and operations,
and its environmental subsidiary, Setcar, which is progressing to plan.
We are laying the foundations for scalable growth through our investment in a
next-generation production platform and the expansion of our intellectual
property portfolio, which now includes 116 granted patents and 39 applications
pending across 22 patent families. These advances reinforce our competitive
positioning and ensure the Group is well placed to capture emerging market
opportunities. In particular, the new production line will enable the
introduction of nanographite-based materials and other product grades designed
for both high-value and cost-sensitive applications, broadening our market
reach and opening entirely new commercial scenarios for the Group.
Financial performance
The stronger H1 FY25 performance, marked by 15% revenue growth to €3.90m (H1
FY24: €3.39m) and a significant LBITDA improvement of 38% to €1.13m (H1
FY24: €1.81m), demonstrates the effectiveness of our strategic focus and
disciplined cost management.
Management is actively prioritising higher-margin contracts, driving
reductions in direct production costs, and maintaining close oversight of
overheads while safeguarding the investments required to support long-term
business growth. Cash monitoring remains critical, with management continually
balancing the trade-off between funding growth initiatives and ensuring the
overall sustainability of the business.
Review of operations
Important upgrades to the Group's production system and capabilities are
nearing completion, with full commissioning expected in Q4 2025. The revamped
facility is now fully automated, capable of handling multiple precursors, and
designed for scalability and replicability. These upgrades will enhance the
Group's ability to deliver highly tailored materials at competitive cost,
including for the first time nano-graphite and additives, to meet the evolving
needs of our customers. Entering the high-volume nano-graphite market will
enable the Group to expand our addressable market volume by at least 10x and
reinforce our service offering across strategic sectors that include
elastomers, batteries, composites, paints, and cement, alongside strengthening
established key customer relationships in the Environmental and Textile
verticals. This flexibility will enable the Group to capture demand across a
broader range of customer segments and market contexts.
Enhanced levels of process automation and control, associated with the
investment programme, will also improve operational reliability, consistency
and production capacity. As previously announced, the new system includes the
replacement of argon gas with nitrogen gas as the main production energy
source, delivering greater energy efficiency and cost savings, expected to cut
direct production costs while improving sustainability.
The major reorganisation of Setcar's operations is progressing to plan. The
restructuring has strengthened governance, streamlined operations, and created
a more resilient and financially disciplined business. These improvements are
reflected in a half-year performance that highlights a notable advance over
the prior year with Setcar now better aligned with the Group's strategy and
culture. Key steps included a governance restructuring with a new General
Manager, workforce optimisation to eliminate inefficiencies, and the
termination of low-margin contracts - allowing Setcar to focus on high-value
projects and the commercial rollout of Grafysorber®. This alignment also
ensures that Setcar can support the Group's broader objectives, including
innovation, market expansion, and the delivery of high-value contracts across
key strategic sectors.
Environmental remediation (82% of revenue)
The positive impact of Setcar's restructuring is already visible, with the
Romanian subsidiary delivering solid results in the first six months of 2025,
both in terms of revenues and margins.
The Group secured several important contract renewals across its Environmental
division, including those with Ford Otosan, Cummins and Metchem. Further
contracts renewals are currently being discussed.
At the end of August 2025, Setcar was invited by Ford Otosan to submit an
offer for services covering Q4 2025 and the whole of 2026. The renewal process
has evolved into a highly competitive auction, requiring Setcar to revise its
pricing downward to remain competitive. Setcar has submitted its offer and, as
of the date of this announcement, no final decision has been communicated by
Ford. The Company is closely monitoring developments and has prepared
contingency plans for all potential outcomes, while already implementing
measures identified to partially recover margins should the contract be
renewed under the revised terms.
In the period, Setcar secured initial agreements with Midia International SA,
worth up to $1.5 million, to provide tank cleaning and waste disposal services
as part of an offshore drilling campaign in the Black Sea, specifically the
Trident EX30 block. The project will involve the use of Directa Plus's
proprietary Grafysorber® technology to treat the contaminated water. The
operations are most likely now expected to commence in Q1 2026, compared with
the original plan to start and complete in Q4 2025. The delay is due to
logistical complexities related to relocating the offshore platform in the
Black Sea from the Middle East. The contract remains fully valid and unchanged
in scope and value, but the revised timetable will shift the related revenue
and profit contribution to next year.
The Group also secured a €1.59 million contract extension with OMV Petrom to
treat oil sludges, emulsions, and contaminated water, starting in H2 FY25.
This contract extends the original framework agreement, which commenced in
2021 and has generated over €1.0 million in revenues to date, to 31 December
2026, ensuring the continuity of services without interruption.
During H1, a distribution agreement was also signed with a US based agent to
enter the substantial environmental decontamination market in the United
States. In Italy, commercial traction is also accelerating, with the main port
authority for oil-based operations in the Port of Genoa endorsing
Grafysorber® through increasing orders.
Through Setcar's restructuring, we are actively positioning ourselves to
unlock additional opportunities, leveraging our proprietary environmental
remediation technology and tapping into the substantial market potential
ahead.
Textiles (18% of revenue)
The European textiles market has faced challenges in recent years with weaker
consumer spending causing a slow-down in the Group's revenues. We have
gradually seen signs of improvement, with further stabilisation expected in
H2. Additionally, the growing focus on sustainability and circular economy
regulations presents opportunities for companies investing in innovation and
responsible production. Against this backdrop, we remain committed to
optimising our operations and leveraging market trends to strengthen our
commercial position.
Within the textiles vertical, the Group's strategic positioning has
strengthened, with advanced collaborations to take advantage of the growing
pipeline in workwear, defence, and luxury applications. In H2, the Company
secured significant contract renewals, including those with Grassi and MC
Armor.
Post period, Directa Plus has been awarded a contract by a sole source
contract from a primary governmental defence department. The contract follows
over two years of technical engagement and development activities in the
defence sector, during which Directa Plus introduced and demonstrated as proof
of concept the potential of several of its newly developed technologies. This
award represents an initial phase of work, designed to validate the
application of Directa Plus's graphene-based solutions. This milestone
contract marks the first formal success of Directa Plus in this vertical and
supports the Company's long-term strategy to expand its presence in the
defence sector. The Company expects that, subject to the outcome of this
initial phase, this project could lead to further commercial opportunities and
revenue generation from its growing defence-focused technology platform.
The textile segment continues to show strong potential in applications where
the distinctive properties of G+, such as thermal conductivity, antistatic and
antimicrobial effectiveness, are highly valued by the market, particularly in
workwear and defence. We are continuing to grow organically with both
long-standing and new customers in these areas. At the same time, we are
deepening our collaborations with leading luxury brands that recognise G+ as
an innovative material for membranes across multiple uses, from outerwear to
footwear. In parallel, R&D efforts are progressing on niche applications,
including electronic devices and advanced air filtration.
R&D and new applications
In parallel with the continued growth of our two core verticals -
Environmental Remediation and Textiles - the Group is advancing several
targeted R&D projects aimed at expanding the addressable market for our
G+® technologies. These include, among the others:
- PFAS remediation, where laboratory tests have shown up to 90% removal
efficiency, with pilot-scale trials under discussion with industrial partners;
- Elastomers and plastics, with new G+® masterbatches and compounds developed
for applications in tires, outsoles and advanced 3D printing;
- Optical lenses, through collaborations to enhance infrared absorption and
mechanical resistance;
- Air filtration, with R&D work underway on advanced membranes capable of
improving particle capture efficiency for industrial and consumer
applications;
- Coatings and cements, where the Group continues to monitor market developments
and explore opportunities to apply G+®'s functional properties.
- Energy, where we have an ongoing collaboration with Nant G+ Power focused on
graphene-enhanced dispersions for next-generation battery electrodes.
Directa Plus is also adopting a consultancy-driven approach for valuable
requests in verticals where the Company does not hold IP or has chosen not to
invest. This strategy enables Directa Plus to capitalise on development
opportunities by offering services and building customer loyalty for future
production orders.
Together, these initiatives represent a strong pipeline of opportunities
which, alongside our established verticals, are expected to create new revenue
streams from 2026 onwards and reinforce the Group's long-term growth
trajectory.
People
Directa Plus continues to invest in talent, with new hires in production
initiating a remodelling of the production line to increase productivity and
ensure greater operational flexibility at lower direct production cost. In
R&D, the Group has expanded its team and strengthened its capabilities to
better align with evolving market needs and to drive innovation. These
initiatives are designed to enhance the benefits of Directa Plus' technology
and production process to deliver more effective, scalable and
customer-oriented solutions.
The Board continues to monitor longer-term succession planning at Group level
to ensure continuity of leadership and strategic direction.
IP portfolio
The Group's broad intellectual property portfolio represents a significant
hidden asset of the business, acting as a barrier to entry for potential
competitors and providing strategic protection for our technologies. Together
with the extensive know-how accumulated over years of research and industrial
development in graphene, our IP portfolio is a cornerstone of future growth.
We are currently prioritising patents with the highest commercial potential,
recognising that the breadth of our portfolio offers opportunities in multiple
applications. Looking ahead, the Group expects to unlock further value from
its IP base, including through potential licensing opportunities.
Outlook
The Group delivered good commercial momentum in the first half of the year,
with this positive trajectory continuing in H2. The international development
in Environmental Remediation is progressing well, supported by a strong and
growing pipeline of opportunities in Europe, the Middle East, and the US.
The upcoming production system upgrade will broaden the Group's product
portfolio with advanced materials, opening access to new, high-value markets,
drive efficiency and enable Directa Pls to launch a new generation of
nanographite-based materials.
At the same time, R&D projects are progressing at pace beyond our two
established verticals, targeting commercialisation in new markets.
While Environmental Remediation and Textiles remain the pillars of our
business today, the Board sees significant future value in the new verticals
being developed through our R&D pipeline, which are expected to begin
contributing meaningfully from 2026.
Notwithstanding the temporary delays and uncertainties described above, the
Board remains confident that the Group will close 2025 with a material
improvement in EBITDA compared with 2024, reflecting the benefits of the
restructuring and efficiency measures already implemented and the solid
commercial momentum achieved during the year.
Giulio Cesareo
Chief Executive Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2025
Unaudited Unaudited Audited
In Euro 30-Jun-25 30-Jun-24 31-Dec-24
Continuing operations
Revenue 3,902,933 3,390,904 6,661,117
Other income 17,170 56,077 165,062
Changes in inventories of finished goods and WIP (16,894) 112,803 (41,531)
Inventory write-off - - (343,946)
Raw materials and consumables used (1,517,567) (1,450,358) (2,727,179)
Employee benefits expenses (2,254,195) (2,329,530) (4,464,507)
Depreciation and amortisation (413,718) (590,390) (1,186,301)
Impairment of intangible assets - - (69,444)
Other expenses (1,257,459) (1,594,718) (3,409,765)
Results from operating activities (1,539,730) (2,405,212) (5,416,494)
Finance income 63,628 24,843 204,767
Finance expenses (183,773) (94,704) (162,391)
Net finance costs (120,145) (69,861) 42,376
Loss before tax (1,659,875) (2,475,073) (5,374,118)
Tax (expense)/income - - -
Loss after tax from continuing operations (1,659,875) (2,475,073) (5,374,118)
Loss of the period (1,659,875) (2,475,073) (5,374,118)
Other Comprehensive income items that will not be reclassified to profit or
loss
Defined Benefit Plan re-measurement gains and losses (12,552) 16,700 18,154
Other comprehensive expense for the period (no tax impact) (12,552) 16,700 18,154
Total comprehensive expense for the period (1,672,427) (2,458,373) (5,355,964)
Loss attributable to
Owner of the Parent (1,651,981) (2,473,897) (5,140,237)
Non-controlling interests (7,894) (1,176) (233,881)
(1,659,875) (2,475,073) (5,374,118)
Total comprehensive expense attributable to:
Owners of the Company (1,664,533) (2,457,197) (5,122,083)
Non-controlling interests (7,894) (1,176) (233,881)
(1,672,427) (2,458,373) (5,355,964)
Loss per share
Basic loss per share 2 (0.02) (0.04) (0.06)
Diluted loss per share 2 (0.02) (0.04) (0.06)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2025
Unaudited Unaudited Audited
In Euro 30-Jun-25 30-Jun-24 31-Dec-24
Assets
Intangible assets 1,127,988 1,343,561 1,169,681
Property, plant and equipment 2,730,564 2,971,801 2,962,133
Other receivables 2,749 161,303 3,998
Non-current assets 3,861,301 4,476,665 4,135,812
Inventories 424,588 1,033,496 686,023
Trade and other receivables 1,996,215 5,767,883 1,936,194
Cash and cash equivalent 2,970,782 927,417 4,981,138
Current assets 5,391,585 7,728,796 7,603,355
Total assets 9,252,886 12,205,461 11,739,167
Equity
Share capital 318,617 249,613 318,617
Share premium 46,569,021 42,083,313 45,569,021
Foreign Currency Translation Reserve (97,273) (39,911) (80,356)
Accumulated losses (41,394,737) (36,879,266) (39,730,204)
Equity attributable to owners of Group 5,395,628 5,413,749 7,077,078
Non-controlling interests 61,667 83,162 73,531
Total equity 5,457,295 5,496,911 7,150,609
Liabilities
Loans and borrowings 513,477 1,145,067 853,165
Lease liabilities 411,639 127,877 448,195
Employee benefits provision 233,337 236,137 207,633
Other payables - 63,982 -
Non-current liabilities 1,158,453 1,573,063 1,508,993
Loans and borrowings 849,001 1,764,111 852,253
Lease liabilities 152,601 137,322 175,941
Trade and other payables 1,615,645 3,218,801 2,031,066
Provision 19,891 15,253 20,305
Current liabilities 2,637,138 5,135,487 3,079,565
Total liabilities 3,795,591 6,708,550 4,588,558
Total equity and liabilities 9,252,886 12,205,461 11,739,167
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2025
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
In Euro Share Capital Share Premium Foreign currency translation reserve Accumulated deficit Total Non-controlling interests Total Equity
Balance at 31 December 2023 205,469 39,181,789 (44,902) (33,882,143) 5,460,213 1,121,911 6,582,124
Total comprehensive expense for the period
Loss of the Period - - - (2,473,897) (2,473,897) (1,176) (2,475,073)
Total other comprehensive expense - - - 16,700 16,700 - 16,700
Total comprehensive expense for the period - - - (2,457,197) (2,457,197) (1,176) (2,458,373)
Capital raised 44,144 3,134,249 - - 3,178,393 - 3,178,393
Expenses related to the issuance of shares (232,725) - - (232,725) - (232,725)
Acquisition of 48,95% in Setcar - - - (463,185) (463,185) (1,037,573) (1,500,758)
Translation reserve - - 4,991 - 4,991 - 4,991
Share-based payment - - - (76,741) (76,741) - (76,741)
Balance at 30 June 2024 249,613 42,083,313 (39,911) (36,879,266) 5,413,749 83,162 5,496,911
Total comprehensive expense for the period
Loss of the Period - - - (2,666,340) (2,666,340) (232,705) (2,899,045)
Total other comprehensive expense - - - 1,454 1,454 - 1,454
Total comprehensive expense for the period - - - (2,664,886) (2,664,886) (232,705) (2,897,591)
Capital raised 69,004 4,899,285 - - 4,968,289 - 4,968,289
Expenses related to the issuance of shares (413,577) - (413,577) (413,577) - (413,577)
Acquisition of 48,95% in Setcar - - - (186,052) (186,052) 223,074 37,022
Translation reserve - - (40,445) - (40,445) - (40,445)
Share-based payment - - - - - - -
Balance at 31 December 2024 318,617 46,569,021 (80,356) (39,730,204) 7,077,078 73,531 7,150,609
Total comprehensive expense for the period
Loss for the Period - - - (1,651,981) (1,651,981) (7,894) (1,659,875)
Total other comprehensive expense - - - (12,552) (12,552) - (12,552)
Total comprehensive expense for the period - - - (1,664,533) (1,664,533) (7,894) (1,672,427)
Translation reserve - - (16,917) - (16,917) - (16,917)
Acquisition of 1,23% in DTS - - - - - (3,970) (3,970)
Balance at 30 June 2025 318,617 46,569,021 (97,273) (41,394,737) 5,395,628 61,667 5,457,295
CONSOLIDATED STATEMENT OF CASH FLOW
For the six months ended 30 June 2025
(Unaudited) (Unaudited) Audited
In Euro 30 Jun 2025 30 Jun 2024 31 Dec 2024
Cash flows from operating activities
Loss for the period before tax (1,659,875) (2,475,073) (5,374,118)
Adjustments for:
Depreciation 277,507 374,796 741,264
Amortisation of intangible assets 136,211 215,594 445,037
Impairment on intangible assets - - 69,444
Impairment on assets under construction - - 134,121
Disposal loss on tangible and intangible assets - - 4,326
Share-based payment expense - (76,741) (76,741)
Finance income (63,628) (24,843) (204,767)
Finance expense 175,783 90,425 156,322
Interest of lease liabilities 7,990 4,279 6,069
Impairment of inventory - - 343,946
(1,126,012) (1,891,563) (3,755,097)
(Increase)/decrease in:
- inventories 261,434 (152,046) (148,518)
- trade and other receivables, prepayments (58,773) 1,808,878 2,619,479
- trade and other payables (415,424) 124,963 (832,069)
- provisions and employee benefits (414) (110,955) (208,610)
- Other provision 8,993 (25,594) (20,542)
Net cash used in operating activities (1,330,196) (246,317) (2,345,357)
Cash flows from investing activities
Interest received 63,628 5,712 87,732
Acquisition/investment in subsidiary (3,970) (1,500,759) (1,500,326)
Investment in intangible assets (94,518) (122,470) (247,451)
Acquisition of property, plant and equipment (45,938) (55,789) (100,547)
Net cash used in investing activities (80,798) (1,673,306) (1,760,592)
Cash flows from financing activities
Proceeds from capital raise net of issuance cost - - 7,500,380
Interest on loan and other financial cost (45,741) (84,186) (143,459)
New borrowings - 1,000,000 1,172,896
Repayment of borrowings (342,933) (361,834) (1,738,490)
Repayment of lease liabilities (59,896) (124,366) (215,714)
Net cash (used in)/ from financing activities (448,570) 429,614 6,575,613
Net increase/(decrease) in cash and cash equivalent (1,859,564) (1,490,009) 2,469,664
Exchange (losses)/gains on cash and cash equivalent (150,792) 24,122 118,171
Cash and cash equivalents at beginning of the period 4,981,138 2,393,303 2,393,303
Cash and cash equivalents at end of the period 2,970,782 927,416 4,981,138
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the 6 months ended 30 June 2025
1. Basis of preparation
(a) Statement of compliance
The financial information contained in this announcement does not constitute
statutory financial statements within the meaning of Section 435 of the
Companies Act 2006.
The financial information for the six months ended 30 June 2025 is
unaudited. In the opinion of the Directors, the financial information for
the period fairly represents the financial position of the Group. Results of
operations and cash flows for the period are in accordance with international
accounting standards in conformity with the requirements of the Companies Act
2006. The accounting policies, estimates and judgements applied are consistent
with those disclosed in the Group's statutory financial statements for the
year ended 31 December 2024. The interim condensed consolidated financial
statements do not include all the information and disclosures required in the
annual financial statements and should be read in conjunction with the full
annual report for the year ended 31 December 2024.
All financial information is presented in Euro, unless otherwise disclosed.
The Directors of the Company approved the financial information included in
these Interim condensed consolidated financial statements on 23 September
2025.
(b) Basis of measurement
The financial statements have been prepared on the historical cost basis
unless otherwise stated.
(c) Functional and presentation currency
These financial statements are presented in Euro ('€') and is considered by
the Directors to be the most appropriate presentation currency to assist the
users of the financial statements. The functional currency of the Company and
Italian operating subsidiary is Euro ('€'). The functional currency of the
Romanian subsidiary is RON.
(d) Going concern
The Group meets its working capital requirements through the receipt of
revenues from the provision of its services and sale of products mainly in
Europe, the management of capital and operating expenditure, the working
capital and other borrowing facilities available to it and from the issue of
equity capital.
The conflict in Ukraine and Middle East, high inflation, increased tariffs in
international trades and increased interest rates by the Central Banks have
been an additional cause of uncertainty over the macro-economic outlook,
affecting both the political and business environments. These events have had
a significant impact on global economies and markets, and on the operations
and operational funding of companies experiencing widespread inflationary cost
pressures and supply chain disruption. In particular, certain sectors such as
textiles and environmental services have been directly affected - the former
by increased raw material and energy costs, and the latter by rising
operational expenses and delays in public and private sector contracting -
adding further pressure on businesses operating in these industries.
The Directors believe that the Group has the systems and protocols in place to
address the challenges, however at the date of release of these interim
results it is not clear how long the current circumstances are likely to last
and what the long-term impact will be.
As of 30 June 2025, the Group had net assets of €5.46m (31 December 2024:
€7.15m) and cash and cash equivalent of €2.97m (31 December 2024:
€4.98m).
The Directors prepared a cash flow forecast for the Group and the Parent
Company for the period to December 2026 to assess if there is sufficient
liquidity in place to support the plan and strategy for the future development
of the Group. This forecast showed that the Group and the Parent Company will
have sufficient financial headroom for the next twelve months provided that
certain growth objectives - which the Directors believe to be achievable - are
delivered.
In addition, the Directors, in formulating the plan and strategy for the
future development of the business, considered reasonably plausible downside
scenarios including reductions in forecast revenues and gross margin. Under
those stressed scenarios, the Group could exhaust its cash resources before
December 2026 and therefore be required to raise additional funding which is
not guaranteed.
These events or conditions indicate that a material uncertainty exists that
may cast significant doubt on the Group and Parent Company's ability to
continue as going concern and therefore, the Group and the Parent Company may
be unable to realise their assets or discharge their liabilities in the normal
course of business. The Directors review regularly updates to the scenario
planning such that it can put in place mitigating actions and maintain the
viability of the company and will keep stakeholders informed as necessary.
The Directors have concluded that it is appropriate to adopt the going concern
basis of accounting in the preparation of the financial statements. The
financial statements have therefore been prepared on the going concern basis.
The financial statements do not include any adjustments that would result from
the basis of preparation being inappropriate.
2. Earnings Per Share
The earnings per share have been calculated using the weighted average of
ordinary shares. The Company was loss making for all periods presented.
Therefore, the dilutive effect of share options has not been taken account of
in the calculation of diluted earnings per share, since this would decrease
the loss per share for each of the period reported.
Change in number of ordinary shares Total number of ordinary shares Days Weighted number of ordinary shares
-At 31 December 2021 4,857,539 66,032,126 365 61,380,599
-At 31 December 2022 25,523 66,057,649 365 66,053,593
-At 31 December 2023 - 66,057,648 365 66,057,649
-At 31 December 2024 38,361,106 104,418,755 365 85,465,587
At 30 June 2025 - 104,418,755 181 104,418,755
30 Jun 2025 30 Jun 2024 31 Dec 2024
Loss for the period (1,651,981) (2,473,897) (3,140,237)
Weighted average number of shares:
- Basic 104,418,755 66,304,144 85,465,588
- Diluted 105,446,938 67,332,327 86,493,771
Loss per share:
- Basic (0.02) (0.04) (0.06)
- Diluted (0.02) (0.04) (0.06)
-ends-
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