Full Year Results
30 October 2020
Haydale (AIM: HAYD), the global advanced materials group, is pleased to announce its full year results for the year ended 30 June 2020.
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Operational Highlights
Good progress made on delivering the Group’s commercial strategy and, despite the challenges, have used the Covid-19 pandemic as a catalyst to broaden the scope of our portfolio;
Multi-year contracts for the sale of functionalised graphene agreed with customers in Korea and China and collaborating with IRPC (Thailand) on the production of anti-bacterial face masks;
Focused development of our patented HDPlas® process with key achievements including;
increase in surface oxygen levels to 28 per cent which allows Haydale potential access to the Graphene Oxide market; and
development of next generation functionalised graphene ink with resistivity reduced to <10 ohms;
Global sales team starting to deliver commercial revenues through cross border sales and technical collaboration with, amongst other successes, recent announcements for Dowty Propellers, IRPC and sales of CeramycShield™ to a UK water company post year end;
Awarded new UK and EU grants for projects that demonstrate a clear commercial pathway or add significantly to our knowledge base on potential future applications;
Scaled up production of Silicon Carbide blanks at the US facility to industrial levels, although subsequent demand was severely impacted by the Covid-19 pandemic;
Concluded a distribution agreement with U-Win for Taiwan and memorandum of understanding with a Sino-UK facilitator for China – the Group is encouraged by the early results of these collaborations which resulted in the sale of SiC microfibres to China post year end; and
Closure of Taiwan facility and relocation of the production to our other sites with little disruption and minimal incremental cost
Summary of Results:
| Jun-20 | Jun-19 | ||
| £'m | £'m | ||
| Revenue | 2.95 | 3.47 | -15% |
| Gross Profit | 2.06 | 1.90 | +8% |
| Gross Profit Margin | 70% | 55% | +15% |
| Other Operating Income | 0.76 | 0.79 | -4% |
| Adjusted Admin Expenses1 | - 5.36 | - 6.87 | +22% |
| Adjusted operating loss1 | - 2.54 | - 4.18 | +39% |
| Statutory Loss from Trading | - 4.23 | - 5.85 | +28% |
| Impairment | - | - 1.78 | - |
| Statutory Loss from Operations | - 4.23 | - 7.63 | +45% |
| Statutory Loss Before Taxation | - 4.41 | - 7.76 | +43% |
| Statutory Loss After Taxation | - 4.02 | - 7.19 | +44% |
| Cash Outflow from Operations | -3.32 | -4.78 | +31% |
| Cash at Year End | 0.82 | 4.69 | -83% |
1 £0.63 million relating to lease costs has been included in FY20 in depreciation to comply with IFRS 16. No adjustment has been made to the comparative figures. Adjusted administrative expenses would be £5.99 million prior to the adjustment for IFRS 16 and Adjusted Operating Loss £3.17 million on the same basis. The percentage change in the year would be 13% and 24% respectively.
Financial Highlights
Despite the 15% fall in revenue, the Group increased its gross profit margin by 15% and increased its gross profit by 8% to £2.06 million (FY19: £1.90 million);
Other operating income in line with prior year and includes £0.2 million from the US Cares Act;
A further £0.88 million of cost savings achieved and adjusted administrative costs reduced on a like for like basis to £5.99 million1 (FY19: £6.87 million) and reduced by over £1.72 million in the last two years;
Reduction in Adjusted operating loss of £1.01 million on a like for like basis to £3.17 million1 (FY19: £4.18 million); and
Cash outflow from operations reduced by £1.46 million (31%) to £3.32 million (FY19: £4.78 million)
Post Period End Highlights:
On 9 September 2020, the Company raised £2.98 million (gross) through the placing and subscription of 85,055,950 new Ordinary Shares at 3.5 pence per share.
Commenting on the results David Banks, Non-executive Chairman of Haydale, said:
“The Group has continued to make positive progress on delivering on the strategic objectives that it set in early 2019 and has made significant advances in its drive to commercialise its portfolio. R&D has made some excellent progress in inks and graphene oxide and the global sales team is beginning to reap the commercial rewards of our One Team approach. We have further streamlined our reporting structures and enhanced our operational and technical capacity. Whilst Covid-19 has provided a testing backdrop to these changes and has impacted revenue in the latter part of the year it has by no means defined or diminished the Group’s development in the year”
For further information:
| Haydale Graphene Industries plc | |
| Keith Broadbent, CEO Gemma Smith, Global Head of Marketing | Tel: +44 (0) 1269 842 946 www.haydale.com |
| Arden Partners plc (Nominated Adviser & Broker) Paul Shackleton / Ben Cryer | Tel: +44 (0) 20 7614 5900 |
Notes to Editors
Haydale is a global technologies and materials group that facilitates the integration of graphene and other nanomaterials into the next generation of commercial technologies and industrial materials. With expertise in graphene, silicon carbide and other nanomaterials, Haydale is able to deliver improvements in electrical, thermal and mechanical properties, as well as toughness. Haydale has granted patents for its technologies in Europe, USA, Australia, Japan and China and operates from five sites in the UK, USA and the Far East.
For more information please visit: www.haydale.com
