Graphene specialist Directa Plus Plc (LON:DCTA) expects a “much stronger” second half following on from the commercial progress made in the opening six months of the year.
Revenues in the six months to June 30 fell to €0.3mln (H1 2016: €0.4mln) due to a reduction in volume of sales in the bicycle tyre market, but Directa expects to double that figure in the second half.
WATCH: Directa Plus inks high performance textiles deal with Alfredo Grassi
However, the AIM-listed company said it was taking a “prudent approach” in concluding certain sales in the textile and environmental segments which will likely impact on full-year expectations.
Partnering up with some big names; new Grassi supply deal
Directa signed joint development agreements with several big companies in the period, including protective-clothing giant Alfredo Grassi and oil behemoth Eni, with which it is working to develop its Grafysorber oil decontaminator.
Speaking of Grassi, Directa announced in a separate statement this morning that the workwear maker has signed a supply contract for G+ that is expected to net the company €0.6mln over the next 18 months.
Grassi is making a line of work clothes for "a national company" that will incorporate Directa’s technology.
READ: Directa Plus expecting strong second half; announces supply deal with clothes maker Alfredo Grassi
Elsewhere, sunglasses group Luxottica also launched its first Ray-Ban collection enhanced by G+, while more customers are preparing to launch products containing its G+ material which bodes well for 2018 and beyond, Directa said.
The firm also expects to receive another order from Vittoria for G+ in November which will be fulfilled next year.
Directa recorded an adjusted loss after tax of €2.0mln (H1 2016: €2.3mln) and ended the period with €8.2mln in the bank (31 Dec 2016: €10.6mln).
Momentum growing
“During the first six months of 2017, we have built strongly on the foundations we established last year,” said chief executive Giulio Cesareo.
“We have continued to deepen our engagement with existing and potential customers particularly through the launch of our Advanced Development Area and our proven ability to produce consistent G+ materials at scale.
READ: Directa Plus hires heavy-hitting new head of sales
“Our greater market knowledge is serving us well and more customers have launched further end-products incorporating G+."
He added: “We have entered into strategic JDAs with some of the world's largest companies and are particularly pleased with the growing momentum within the business. This is a strong vindication of the strength of our offer and the disruptive benefits of G+.”
News of the Grassi supply deal and upbeat outlook sent shares 2.8% higher to 55.5p.
--Updates for share price and Grassi deal--