Haydale Graphene Industries plc (LON:HAYD), the global technologies and materials group that facilitates the integration of nanomaterials into the next generation of commercial technologies and industrial materials, announced today its unaudited interim results for the six months ended 31 December 2016 (the “period”).
Operational Highlights
· Successful integration of specialist materials business Advanced Composite Materials (“ACM”), now Haydale Technologies, Inc. (“HTI”) acquired in October 2016, with initial sales at expected levels;
· Acquisition in September 2016 of Thai based specialist inks and pastes business, Innophene, now Haydale Technologies Thailand (“HTT”), providing the Group with dedicated service capabilities to Far East customers, with production facilities expected to be operational shortly;
· Continuation of collaboration agreement with Huntsman Advanced Materials (“Huntsman”) to enhance their market leader epoxy resin, ARALDITE®, with Haydale’s graphene, in key composite markets. Huntsman are now focussed on the significant increased thermal conductivity our graphene has achieved;
· Delivery, installation and commissioning of an HT60 and an HT200 R&D reactor to our collaboration partner AMG in their new nanomaterials facility in Hauzenburg, Bavaria;
· Successful launch of graphene enhanced PLA 3D Printing product with repeat orders and widening distribution;
· Secured contract extension worth £0.3 million with National Grid (of which £0.1 million has been recognised during the period) for provision of 14 lightweight variants of composite Gas Transition Pieces used to provide a support and seal around steel gas transmission pipelines passing through supporting concrete walls;
· Grant funded development projects totalling over £0.6 million secured, including UV visible bruisable composites and hydrogen pressure vessels for hydrogen powered fuel cell vehicles; and
· Patents applied for a graphene ink based pressure sensor and wearable heated apparel aimed at high performance material for elite sports.
Financial Highlights
· Total income up 90% year-on-year to £1.5 million (H1-2015: £0.8 million);
· Continued significant investment in R&D in the period of £0.7 million (H1-2015: £0.5 million), including graphene enhanced resins for the composite markets;
· Total loss after tax for the period of £2.4 million (H1-2015: £1.9 million);
· Completion of placing, subscription and three times oversubscribed open offer raising a total of £2.6 million (before costs) to fund the acquisition of ACM;
· Investment in capex to expand processing capacity in the period of £0.2 million (2015: £0.5 million); and
· Cash at period end of £1.1 million (30 June 2016: £2.9 million).
Post Period End Highlights
· Huntsman announced strong initial test results in early March 2017 from Haydale graphene enhanced Araldite® resins in thermal management;
· HTI (formerly ACM) secured a new four year supply contract from a large industrial corporation expected to generate sales of at least US$2.6 million over the contract term for Silicon Carbine (“SiC”) whiskers for production of hard edged cutting tools with initial sales expected this financial year of approximately US$0.4 million;
· Agreement for strategic investment by Everpower International Holdings Co Ltd, (“Everpower”) for up to 9.9% of the enlarged share capital of the Group for a cash sum of £3.26 million in aggregate, of which the final tranche of £2.9 million is due on or before 31 March 2017;
· Subject to completion of the Everpower subscription, Haydale expects to enter into an exclusive binding collaboration agreement with Everpower to manufacture, supply and market existing Haydale products and develop nanomaterials and new graphene products for the Chinese market;
· Displayed an Airbus aileron using Haydale nanomaterials with enhanced electrical conductivity to aid protection against lightning strike under the NATAP project at the JEC Composite show in Paris; and
· HTT awarded two new contracts for approximately £0.1 million, in aggregate, the largest of which is from leading Thai petrochemical chemical processor, IRPC, and a smaller award from the Thai Ministry of Energy for a printed hybrid functionalized graphene electrode in a supercapacitor.
Commenting on the interim results, Ray Gibbs, CEO of Haydale Graphene Industries plc, said: “This half year has seen the successful acquisition and integration of two businesses that substantially increases our international reach and broadens our speciality nanomaterials offering. These businesses have widened our offering of advanced material products and expertise to include silicon carbide from our US operations, and a range of graphene and other functional inks from the Far East. We still see the composites market as fertile ground for our materials and dispersion know-how to deliver real, enhanced product solutions to the market. Although the Huntsman work has taken more time, they remain committed to launching a graphene adhesive and a thermally enhanced graphene pre preg in the next financial year. In addition, by combining nanomaterials we can create unique property enhancing hybrids that offer high performance electrical conductivity, improved thermal heat management and light-weighting opportunities.
Our market presence is such that we are attracting significant global “best in class” organisations wishing to engage with us to provide engineering solutions for defined commercial needs. The next 12 to 18 months should be an exciting time for the Group, which we believe now has the customer engagement, geographic reach and product know how to create material change in the Group’s future revenues.”
