Corporate News

Haydale (AIM: HAYD), the advanced materials group, announces its unaudited interim results for the six months ended 31 December 2024 (the 'Period' or 'H1 FY25').

Post-Reporting Period Highlights 

Following the conclusion of the Business Review, announced in December 2024, and the securing of an additional £3.1m (gross) of funding in November 2024, the new Board and management team have taken decisive steps to refocus the Group and reduce cash burn aligned to the revised strategy. Specifically:

• Divestment of the Group's loss-making operations in South Korea;
• Discontinuation of the Group's loss-making operations in Thailand;
• Exiting from the Group's loss-making operations in the US in a way most likely to realise value back to the Group;
• Consolidation of the Group's activities onto a single site in Ammanford and closure of its Loughborough premises;
• Actions to deliver over 55% reductions in both headcount and overheads on a full year equivalent basis compared with FY24;
• Reorganising the business to focus primarily on its heating system products as the opportunity closest to commercialisation. Initial trials have been successfully completed, and internal testing has shown the Group's system to be a highly efficient and cost-effective solution; 
• The Group's heating system has been accepted for testing by Centrica and certification for each of UKCA (UK), CE (Europe) and UL (North America) are also underway.  The Group has secured the first commercial orders and has a growing pipeline of demand; and
• New commercial contracts have been secured with a leading funder of new heating systems to vulnerable households, Affordable Warmth Solutions, to develop a further graphene heater ink product, and with the national gas grid, National Gas Transmission, for the use of the Group's technology in upgrading the gas network.

Financial Highlights for the six months ended 31 December 2024:

• Revenues decreased by 50% to £1.25 million (H1 FY24 £2.47 million) reflecting persistent US under performance;
• Gross profit margin increased to 57.8% (H1 FY24 57%) reflecting changes in the product mix;
• Adjusted administrative expenses decreased by 8% to £3.00 million (H1 FY24: £3.26 million) stemming from pre-Review cost reductions;
• Adjusted operating loss increased by 32% to £2.13 million (H1 FY24 £1.61 million) reflecting reduced turnover; and
• Cash at Period end of £1.99 million (31 December 2023: £3.30 million).

These results underscore the rationale for the change in business strategy and the decisive actions taken to focus the business on near-term revenue opportunities, aggressively reduce costs and stem cash outflows in FY25, and in particular the divestment of the heavily loss making North-American business, all of which will contribute to the Group's goal of achieving improved profitability and cash flow in FY25, in order to protect the Group's core UK nanomaterials business.  The monthly run-rate operating expenses for the remaining UK business is approximately £0.275m.

Commenting on the interim results, Simon Turek, Chief Executive Officer of Haydale, said:  

"The interim results reflect the period before implementation of the new business strategy, highlighting the challenging financial position inherited by the new management team on January 1, 2025. With declining revenue and an unsustainable cost structure, immediate and decisive action was required.

Since then, we have restructured the business, divested non-core operations, and significantly reduced costs, aligning overheads with revenue. Our heater ink-based technology is now the focus, having delivered successful real-world trials of our heating system and secured the first commercial orders.

The strategic transformation is well underway, and while challenges remain, these actions provide a clear path to profitability. We remain committed to delivering value and look forward to further progress."

For further information:

Notes to Editors

Haydale is a UK based advanced materials group focused on commercialising its proprietary heating ink-based technology and integrating graphene and other nanomaterials into next-generation industrial applications.  With expertise in nanomaterials, Haydale enhances the electrical, thermal and mechanical properties of materials, delivering innovative solutions across multiple industries.  For more information please visit: www.haydale.com or X: @haydalegraphene

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', ''will'' or the negative of those, variations or comparable expressions, including references to assumptions.  These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities.  Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company.  Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.  Accordingly, readers are cautioned not to place undue reliance on forward looking statements.  Subject to any continuing obligations under applicable law or any relevant AIM Rule requirements, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.