REG - Haydale Graphene Ind - Trading Update

Haydale Graphene IndustriesAnnouncement

21/06/2023 07:00

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RNS Number : 3502D  Haydale Graphene Industries PLC  21 June 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW
BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS
DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF
MAR.

 

 For immediate release  21 June 2023

 

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 ended 30 June 2023 (the "Year") as it has become aware
that a number of projects expected to start during June have slipped into the
first quarter of the next financial year.

The Company anticipates announcing revenue for the Year ahead of market
expectations(( 1  (#_ftn1) )) with a strong performance from the Group's US
operation offsetting slower than anticipated revenue build from the Group's UK
operation.  Gross Profit is expected to be in line with market expectations,
with the sales mix leading to only minimal gross margin dilution in the Year.
 However, last year's reported investment in capability and the continuing
requirement to enhance operational capacity set alongside a lower than
anticipated absorption of overheads will lead to higher Adjusted
Administrative costs.  This increase in overheads will partly offset the
revenue uplift at the LBITDA level, which we anticipate will be similar to or
just outside prior year. 2  (#_ftn2) .  The Company has instituted a number
of cost reduction measures during the financial year which, together with
additional cost savings currently being targeted, it anticipates will reduce
adjusted overheads in the next financial year.

Year-end net cash is expected to be broadly neutral compared to last year.
The Board continues to pursue the possibility of additional capital facilities
based on the performance of the Company's US operations.

The Directors expect the commercial momentum from this Year to continue during
the Year Ending 30 June 2024 although anticipates a slower than anticipated
revenue build than previously signalled.

Keith Broadbent, Haydale CEO, said: "Our transition from a research and
development focussed organisation to a commercial operation continues and the
prognosis for the business remains very positive".

For further information:

 Haydale Graphene Industries plc
 Keith Broadbent, Chief Executive Officer       Tel: +44 (0) 1269 842 946

                                                www.haydale.com (http://www.haydale.com)
 finnCap (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 is able to deliver
improvements in electrical, thermal and mechanical properties, as well as
toughness.  Haydale has granted patents for its technologies in Europe, USA,
Australia, Japan and China and operates from six sites in the UK, USA and the
Far East.

 

For more information please visit: www.haydale.com (http://www.haydale.com)

Twitter: @haydalegraphene

 

 

 

 1  (#_ftnref1) For the purpose of this announcement, the Group believes
market consensus for FY23 to be revenue of £4.1m, Gross Profit of £2.4
million and adjusted LBITDA of £2.9 million.

 2  (#_ftnref2) LBITDA is calculated as the loss from operations before
depreciation and amortisation, foreign exchange movements and share based
payment charges. Prior Year LBITDA was £3.3 million.

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