That is below what Haydale had been guiding for, though, and means the loss before tax for the 12 months ended June 30 2018 will be wider than expected and broadly in line with last year’s loss of £5.64mln. Haydale’s cash position at the end of May “remained robust” at £5.6mln.
In a trading update, the AIM-quoted firm said it has made “significant progress” this year but has suffered in the second half from a combination of timing differences of recognising revenue before the financial year end, longer than anticipated lead times by customers to reach commercial volumes and unfavourable currency movements.
‘Just an issue of timing’
“Whilst the group has made strong operational progress in H2-2018, it has been disappointing in terms of the Group's sales, especially the longer than expected lead times for adoption by our customers of our graphene and SiC products,” said chairman David Banks.
“We remain confident, however, that this is primarily a timing issue and that many of these expected forecast sales should now be recognised in FY-2019.”
Haydale was due to receive £0.3mln from a shipment of its SiC fibres – used to toughen coatings and increase their wear resistance – this month, but that is now expected in the first quarter of the next financial year.
Similarly, the sale and commissioning of a HT60 functionalisation reactor to a petrochemical customer in Thailand will not be fully completed by the end of June as planned and so only a small chunk of the revenues associated with that deal can be booked in this year’s accounts.
Haydale also expected to have secured a “major contract” to supply its graphene-based inks to a firm in Taiwan. This has not happened yet, but talks are ongoing.
CEO moving aside
In the same update, the company confirmed that chief executive Ray Gibbs will be moving into a business development role once his successor has been found.
“We are splitting the roles of business development and chief executive in order to allow Ray to focus on the time-consuming role of winning mandates in a range of industries and geographies for which he is well connected,” said Banks.
“The business has reached the point in its growth where the management team needs to be expanded, and I look forward to welcoming new high calibre candidates to the board during the summer.”