REG - Haydale Graphene Ind - Trading Update

Haydale Graphene IndustriesAnnouncement

12/06/2025 14:15

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RNS Number : 6433M  Haydale Graphene Industries PLC  12 June 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION (EU) 596/2014 (AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018).

 

Haydale Graphene Industries plc

("Haydale" or the "Company")

Trading Update

JustHeat Commercial Progress and Strategic Distribution Agreements

Haydale (AIM: HAYD), the global advanced materials group, is pleased to
provide a trading update highlighting the recent commercial progress of its
JustHeat product line: a low-power, graphene-based heating system underpinned
by Haydale's proprietary HDPlas® plasma functionalisation process
("JustHeat").

Following the launch of JustHeat in April 2025, Haydale is pleased to report
that the product has now received UL certification, a critical regulatory
milestone that enables the commercial sale of the JustHeat system in the
United States and Canada. UL (Underwriters Laboratories) is a globally
recognised safety certification for consumer and industrial electrical
products and provides assurance to regulatory authorities, landlords and
insurers. This follows JustHeat's CE marking achieved earlier this year,
supporting market access across Europe. In parallel, the Company has worked
closely with its supply chain to ensure that the product can be produced
consistently and economically at scale.

The Company has begun to see strong demand for JustHeat from social landlords
in the UK, particularly in relation to long-term void replacement programmes
where heating systems are installed across vacant properties within large
housing portfolios. To date, Haydale has secured commitments for over 40 pilot
installations across Welsh housing providers, with deployment scheduled over
the coming months. Discussions are also ongoing with Wales' largest social
housing provider to incorporate JustHeat in certain of their new build
affordable home developments.

Haydale has signed binding heads of terms for a strategic UK wide
non-exclusive distribution agreement with Quidos Protect Limited ("Quidos
Protect"), a national installer network comprised of more than 250 qualified
heating engineers. This agreement will provide Haydale with full UK-wide
delivery coverage, ensuring the capacity to deliver site surveys and
installations at scale. Quidos Protect will operate as Haydale's preferred UK
partner, pursuant to a delivery model under which Haydale manufactures and
licenses the JustHeat technology whilst accredited partners carry out
installation and servicing. This model provides strong margins, operational
scalability and customer proximity, without the capital intensity or
complexity of needing to build an in-house installation capability. The
agreement is for an initial term of 24 months and will renew for additional
12-month terms subject to certain targets being met.

In parallel, Haydale has signed another binding heads of terms agreement for a
five-year exclusive distribution contract with Jersey Energy Technologies
("JET") covering the Channel Islands. Based on the terms of the agreement,
including a schedule of minimum order quantities covering years one to five,
Haydale anticipates it could generate revenues for Haydale of £6.0 million
over the contract term based on JET's pipeline of opportunities in the Channel
Islands, including with Andium Homes, a leading social housing provider.

These initiatives have already triggered additional inbound interest from
potential commercial partners in Canada, Ireland, France, South Africa,
Australia and the United States and Haydale are in early-stage discussions for
non-exclusive distribution agreements in a number of these additional
territories.

To further enhance customer confidence and reduce barriers to adoption,
Haydale is in advanced discussions to offer an underwritten warranty for
JustHeat installations. This product would provide long-term cover for
performance and servicing, significantly enhancing appeal among customers
including institutional landlords and housing developers.

The Company has also signed a commercialisation agreement with Noel &
Marquet ("NMC"), a leading European manufacturer of coving and skirting
solutions, to develop and distribute a version of the JustHeat solution
incorporated into NMC's products. These coving and skirting products have been
specifically targeed in response to demand from social landlords seeking to
address damp and mould issues in hard-to-heat properties and recently
introduced legislation imposing additional obligations on landlords.
Distribution of a finalised coving product through NMC's existing customer
base is expected to enable rapid uptake across both retrofit and new-build
portfolios.

Haydale also continues to submit JustHeat to external testing for
verification. Through its links with the University of Wales Trinity Saint
David ("UWTSD"), Haydale has entered into a strategic collaboration with the
Construction Wales Innovation Centre ("CWIC") which will explore opportunities
for the JustHeat system to be used across UWTSD's property portfolio to
demonstrate performance and reliability across diverse building types. In
parallel, Haydale is also working with Bodlondeb Estate, the former
headquarters of Conwy County Borough Council and a Grade II listed building,
to demonstrate the application of JustHeat as a means to decarbonise buildings
of historic significance and architectural value.

The Company is encouraged that JustHeat is already generating revenues as all
pilot programmes are paid for by the respective partners. In line with the
cost restructuring programme outlined in March 2025 in the Company's interim
results, Haydale remains on track to reduce monthly run-rate costs to
approximately £200,000 by the end of FY25. This represents a further 25%
reduction in monthly costs versus the target reported as part of the interim
results, and a 70% reduction from FY24 overhead run rates. The Company's
unaudited cash balance as at the end of May 2025 was £0.7m.  The Company has
a number of options which would result in the receipt of additional capital to
support its commercialisation efforts and is currently in the process of
reviewing the best alternative.

The Board believes that the JustHeat platform is now well positioned for
scaled commercial roll-out across multiple geographies and end markets with an
established supply chain supported by strong delivery partners and validated
through UL and CE regulatory approvals.

Related Party Transaction

The entering into of the non-exclusive distribution agreement with Quidos
Protect constitutes a related party transaction pursuant to Rule 13 of the AIM
Rules by virtue of their status as an associate of Quidos Technologies
Limited, the Company's 18% shareholder. The independent directors for the
purposes of this opinion, having consulted with the Company's nominated
adviser, Cavendish, consider that the entering into of the non-exclusive
distribution agreement with Quidos Protect is fair and reasonable insofar as
the Company's shareholders are concerned.

Simon Turek, CEO of Haydale, commented:

"Today's update demonstrates that JustHeat is rapidly moving from pilot to
commercial scale. Our strategy of enabling a trusted installer network to
deliver installations across the UK and internationally ensures we can scale
effectively without sacrificing customer experience or capital efficiency.
Across social housing, care homes, commercial offices and university campuses,
JustHeat is solving real problems today. With certification now in place, an
expanding pipeline, a credible delivery model and a significantly reduced cost
base, we are increasingly confident in our outlook."

Michael Ruane, Chief of Property and Asset Management, Andium Homes,
commented:

"At Andium Homes, we're committed to enhancing client comfort while supporting
Jersey's net zero goals. Introduced by Digital Jersey, we've partnered with
JET to deliver the world's first 'JustHeat' installation at a local children's
respite facility. Jersey is ideally placed to pioneer innovative, sustainable
solutions. Integrating 'JustHeat' into our refurbishment programme offers a
promising path to low-cost, efficient, and low-carbon heating for our
clients."

 

For further information:

 Haydale Graphene Industries plc
  Gareth Kaminski-Cook, Non-Exec Chairman                         Tel: +44 (0) 1269 842 946
  Simon Turek, CEO                                                www.haydale.com (http://www.haydale.com/)

 Patrick Carter, CFO

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

Andrew Burdis, Corporate Broking

Note to Editors:

JustHeat is a proprietary heating system based on Haydale's HDPlas®
functionalised graphene-based heater mats. Designed for low-power,
energy-efficient performance, the system offers a dry underfloor heating
solution that is easy to install, cost-effective to operate, and ideal for
both retrofit and new build environments. Haydale's technology platform is
uniquely suited to addressing decarbonisation in the built environment through
materials innovation. For further details see
www.linkedin.com/company/just-heat/
(https://www.linkedin.com/company/just-heat/) and www.haydale.com
(http://www.haydale.com) .

 

 

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