07:31 Thu 30 Jan 2020
Haydale Graphene Ind - Trading Statement
For immediate release
('Haydale' or the 'Group')
Trading update and Notice of results
Haydale (AIM: HAYD), the global advanced materials group, announces the following update on trading for the six months ended
Key Highlights
During H1-2020 the Company has:
· launched a graphene-enhanced prepreg material for lightning-strike protection, utilising functionalised nanomaterials to improve electrical conductivity. The material was developed in collaboration with
· resolved teething issues to commission US blanks line; sufficient early strong demand supports a 7 day double shift pattern from early 2020;
· taken the decision to close its
· raised a further
· reduced operating costs by circa
As previously announced, the Board has been reviewing the Group's footprint in the APAC region, and has now decided to close the Group's loss-making manufacturing facility in
The relocation of the Group's
US Operation
The Group's US business unit, HCT, experienced a softer start to the financial year than anticipated. Sales of SiC whiskers and blends in H1-2020 were disappointing. The business also experienced some initial teething issues with the new blanks production which delayed commissioning until
As a result, HCT's sales for H1-2020 are materially lower than H1-2019. While the Directors are now encouraged by the demand for HCT's blanks, the on-going slowdown in the aerospace industry means that business in H2-2020 will not recover sufficiently in H2-2020 to make up H1-2020's shortfall.
The
Excluding grant income, the
Financial Outlook
Overall, the Directors are disappointed that the Group's sales for FY-2020 are now expected to be below the market's expectation for the full year, as a result of the weak first half. However, the Board remains confident that the annualised revenue position at the year-end will demonstrate the significant progress being made by the Group.
Cost control remains a focus for the Directors and the Group has reduced costs by
The Group cash position was
Summary
Keith Broadbent, CEO of Haydale, said: "Whilst the decision to close Haydale Taiwan, the later than expected commissioning of the blanks line and the slowdown in the aerospace sector in the US has affected our short-term revenues, the Directors remain committed to delivering the commercial priorities that we have set the Group. The new global sales team is already delivering positive results with a strong pipeline of profitable opportunities being actively pursued. This progress, together with the significant opportunities and levels of international interest that we have received for our proprietary technology, gives us confidence in the longer-term prospects of the Group."
For further information:
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Keith Broadbent, CEO |
Tel: +44 (0) 1269 842 946 |
Gemma Smith, Head of Marketing |
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Ruari McGirr / Paul Shackleton / Ben Cryer |
Tel: +44 (0) 20 7614 5900 |
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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
For more information please visit: www.haydale.com
Twitter: @haydalegraphene
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