Directa Plus PLC (AIM:DCTA, OTC:DTPKF) shares tanked almost 33% to 10.8p after the graphene specialist issued a profit warning alongside first-half results.
Founder and CEO Giulio Cesareo said revenues for the full year are expected to be "materially below" market expectations, which are believed to be for revenue of around €17 million and an underlying EBITDA loss of circa €1 million.
"We are experiencing shorter term headwinds, together with an extended timeline for the award of a substantial tender for Setcar," Cesareo said, with Setcar being its environmental services subsidiary where its stake was increased to almost 100% earlier this year.
"Nevertheless, we believe we are in a strong position to convert new material contracts from our growing pipeline of opportunities, including for Setcar, and benefit from a robust financial platform.
"In line with our strategic aim of strengthening our commercial capabilities to drive growth, we are also focused on further reducing direct production costs and restructuring Setcar to achieve short term returns, with the aim of exiting FY2025 at a breakeven EBITDA run rate."
Half-year results showed revenue of €3.39 million down from €4.59 million a year earlier, mainly due to the delayed start of some large contracts and strategic refocusing on higher value contracts.
An EBITDA loss of €1.8 million was reported, up from €1.25 million last time, with a loss before tax €2.5 million versus €1.9 million last time.
Cash at period end was €0.93 million, with a capital raise in early July taking the bank balance to €6.06 million at the end of August.