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] 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]. 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 |
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| finnCap (Nominated Adviser & Broker) |
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| Julian Blunt/Edward Whiley, Corporate Finance Andrew Burdis, ECM | Tel: +44 (0) 20 7220 0500
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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
Twitter: @haydalegraphene
[1] 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] 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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