Haydale Graphene Industries PLC (LON:HAYD), the global advanced materials group, has today provided the following update on trading for the six months ended 31 December 2017 (the ‘Period’) as well as the prospects for the Group.
Highlights for the Period:
· Group is on track with its strategy and trading is in line with market expectations for the full year to 30 June 2018
· Created two Strategic Business Units (‘SBU’) with respective senior management teams to drive sales and realise geographic potential, which has led to an uptake in sales and commercial opportunities
· 67% increase in unaudited Group income for the six months ended 31 December 2017 to approximately £2.49 million (six months ended 31 December 2016: £1.49 million) delivered via:
o Advanced Materials SBU income of £1.3 million generated (six months ended 31 December 2016: £0.8 million); and
o Resins, Polymers and Composites SBU income of £1.2 million generated (six months ended 31 December 2016: £0.7 million)
· Group order book of £4.75 million at 31 December 2017 (30 June 2017: £5.4 million)*
· Completion of a successful fundraise in October 2017, raising £8.6 million (net of expenses) providing Haydale with the necessary cash resource to drive the Group’s sales and growth initiatives
Advanced Materials SBU (‘AMAT’)
Haydale is pleased to report a 45 per cent. increase in sales of its proprietary Silicon Carbide micro-fibres (‘SiC’) in the Period to £1.14 million, as compared to the same period in 2016. This significant uplift was aided by targeted investment in sales and marketing activities in the US. Haydale Ceramic Technologies (‘HCT’), formerly trading as Advanced Composites Materials, has doubled its number of customer engagements (i.e. customers who have sampled HCT’s products right through to long term contracted customers) for the Period compared to the same period in 2016.
HCT has had an encouraging start to sales of its newly developed SiC products, such as hard-edged cutting blanks, used for fashioning products including aircraft and land-based fan blades from super alloys, generating maiden revenues of US$0.1 million. The Group sees this market as having considerable growth potential and is well placed to capitalise on these first sales.
Penetration into the newly identified anti-corrosion powder coating market of HCT’s SiC is also progressing well, with a potential new customer currently undergoing trials at two sites in the US. Follow on orders in this high growth market for further evaluations have continued in January 2018.
Inks and Coatings
Haydale’s existing facilities in Taiwan were successfully audited during the Period by two leading ink screen-printing corporations, one of which operates in biomedical sensors for the growing global diabetes market. Following the Group’s successful fundraise in October 2017, investment in infrastructure and scale-up has started to deliver increased capacity and capabilities ahead of the expected demand. During the Period the Group sold and supplied bespoke samples of its graphene enhanced and speciality inks for product evaluation and testing to more than 30 companies in the APAC region.
Following a successful first trial, a second safety trial is underway by a leading Korean cookware manufacturer who have incorporated Haydale’s functionalised graphene nano-platelets within the inner coating for their pots and pans. Through Haydale’s operations in Thailand, the Group has now opened collaboration discussions with major Thai cookware manufacturers seeking improvements in the thermal performance of their next generation cookware products.
Resins, Polymers and Composites SBU (‘RPC’)
Haydale’s RPC SBU has delivered strong sales growth in the Period. A second trial for Haydale’s graphene-enhanced resin system for Flowtite A/S’s GRP pipes is now set for the end of February 2018, following encouraging initial evaluation results in September 2017.
In the Period, Haydale has achieved new grant wins of £0.5 million for delivery in this and into the next financial year. Each grant project secured is intended to lead to the development and ultimately sale of a next generation product and allows Haydale to work alongside some significant international corporations.
Finally, following the recent delivery to National Grid of the first batch of Haydale’s proprietary composite gas transition inspection covers, a repeat order has been secured for delivery in the current financial year.
Ray Gibbs, Chief Executive Officer of Haydale, commented: “We have seen a strong start to this financial year and I am particularly pleased with the increased traction and commercial sales that the Group has seen over the Period Haydale’s decision to operate through SBUs with dedicated, experienced management teams is bearing fruit with revenues being generated in our key markets and geographies. Overall the Group is on track with its strategy and trading is in line with market expectations for the full year.
Our recent successful fundraise has enabled the Company to build on ongoing improvements in the first half of the year and continue the strategic investment in people, technology and our significant value add processes globally. We continue to focus on market ready, next generation products to our expanding international customer base, in areas that will deliver sustainable growth in order to deliver shareholder value.”
Notice of Results
Haydale will publish its unaudited interim results for the six months ended 31 December 2017 on Thursday, 1 March 2018 and an analyst presentation will be given at 0930hrs at the offices of Buchanan, 107 Cheapside, London EC2V 6DN.