How it's doing
In May, Haydale said it was taking prudent steps to preserve the company’s cash position as it is seeing a slowdown in a number of its markets, particularly in the US where demand for Haydale’s Silicon Carbide blanks has been indirectly affected by the huge reduction in air travel.
This has been compounded the ongoing impact of the slowdown at one of the major US manufacturers in the aviation industry.
The aerospace sector has already responded to this sharp decline with the temporary suspension of production or reduced time working in many manufacturing facilities in the US, the group noted.
Recently, the indefinite extension of some of these temporary closures has increased the level of business uncertainty in the US and has now made it likely, in the current environment, that the overall group will fall markedly short of its trading expectations, Haydale told investors.
What the boss says: Keith Broadbent
“We are making significant progress, in collaboration with a number of international partners, towards converting state of art science into everyday applications that will positively impact our customers' businesses.
“Our proprietary technology and our exceptional ability to functionalise nanomaterials continues to give us confidence in the longer-term prospects of the group.”
- Haydale's graphene nano-platelets have been incorporated into a cosmetic face mask recently launched by South Korean firm iCraft
- The company has won a deal with the English Institute for Sport (EIS) to produce high-performance kit coated with graphene
- More commercial orders
What the broker says - Hardman & Co
In a note on 9 March, analysts at Hardman & Co said the "long-term risk/reward balance [for the compnay] remains favourable" and that Haydal was "well positioned competitively, with a proprietary nanomaterial functionalisation plasma process".
"Commercial traction has now recovered, and the group has been financially de-risked", they added.