Shares in graphene specialist Directa Plus PLC (LON:DCTA) rose 7.5% after it said second-half revenues were double those recorded in the first six months of 2017 and added it was in a “robust” financial position.
Chief executive Giulio Cesareo gave an upbeat assessment of prospects, telling investors: “Our commercial engagement with customers has grown and deepened significantly, and we expect to announce further material orders, additional collaborations and partnerships over the coming year.
“We have entered 2018 with a much-improved order book compared with last year and, accordingly, the board looks forward to 2018 with growing confidence.”
Graphene at the core
The company, whose graphene-based products are used by a leading cycle manufacturer and in textiles, said it expects turnover for the year ended December 31 to be €900,000, while it is currently sitting on cash of €7mln.
Directa reported “increased commercial traction” for its products and now has 35 active customers.
In September it landed a €600,000 contract with a firm called Alfredo Grassi to assess the use of materials such as Directa’s Graphene Plus (G+) materials in its workwear range.
It also inked four joint development agreements with “some of the world's largest companies operating in the [our] target markets”.
Directa also reported “encouraging progress” in its bid to commercialise its Grafysorber innovation. This material has unique oil absorption capability and is currently being trialled by one of the largest oil and gas groups in southern Europe.
Increase in capacity and efficiency
Looking ahead, the firm said it is positioning itself to boost sales with a “substantial increase” in capacity and efficiency.
CEO Cesareo added: "We continue to operate at the forefront of the rapidly developing graphene market that has seen Directa Plus consolidate its position as one of the leading companies in the textile and environmental segments.
“Our unique and proven technology, combined with commercial effectiveness and our ability to produce graphene-based products at high tonnage, continues to place us at a significant advantage over emerging competitors, many of whom have yet to scale their operations.”
At 12.50pm, the shares were up 3.5p at 50.50p, valuing the business at £20.15mln.