Haydale Graphene Industries Plc (LON:HAYD) shares rose on Thursday as it told investors that it is making significant progress in its collaborations with international partners, though today’s interim financial results confirm adverse trends in short-term revenues.
Group revenue for the six months ended 31 December amounted to £1.35mln, down 17%, though it also reduced costs and reported that its adjusted operation loss narrowed by 22% to £2.1mln. It ended December with £2.7mln of cash.
“Whilst both internal and external factors have adversely impacted our short-term revenues, the directors remain committed to delivering on the commercial potential of our stable of world leading technologies,” said Keith Broadbent, Haydale chief executive.
“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.”
In terms of operational highlights, the company noted that US blanks production now at commercial levels after earlier teething issues, and, it has decided to close a loss-making Taiwan manufacturing facility.
That production will transfer to operations in UK and Thailand. The company noted that this will result in lower turnover, but improved EBITDA in the second half of 2020.
It also said that the ‘rightsizing’ of group’s costs has continued, reducing expenses by £680,000.
In early trading, Haydale shares were 1.9% higher at 1.376p.
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