Haydale Graphene revenues fall in first half

Advanced materials company Haydale Graphene reported a 5% fall in group revenues in its interim results on Wednesday, to £1.28m.

The AIM-traded firm said sales of functionalised inks and graphene-enhanced composites increased by 35% for the six months ended 31 December, however, to £0.34m on a like-for-like basis.

Adjusted administrative expenses fell by 22%, with a saving of £0.72m on the prior half year, leading to a 34% narrowing in the firm’s adjusted operating loss to £1.39m.

A reduction in cash used in operations of £1.26m was reported, or 50% on a like-for-like basis, with cash at period end standing at £1.88m, down from £2.7m.

On the operational front, Haydale noted its agreement with Qinhuangdao ENO High-Tech Material Development Company during the period, to act as a sales representative for its ceramic and silicon carbide products in China.

It said it was ahead of schedule on the three-year exclusive agreement with iCraft, announced in September, with 0.4 tonnes being shipped by the end of the first half, and further orders of 1.6 tonnes pending for the second half of the 2021 financial year.

The firm completed a successful trial of ‘CeramycShield’, which it described as a ceramic surface treatment that uses SIC to enhance and protect concrete assets, at a central American water treatment facility.

Commercial progress was also made with elastomers, following the first sale of its functionalised nano-enhanced rubber masterbatch to Bolflex for use in its premium shoe range, with follow-up orders scheduled for the second half.

The company was also in collaboration with a leading biosensor technology company, developing a “next-generation” functionalised biomedical ink with improved analyte detection, which enhanced detection and the accuracy of diagnosis.

“Whilst these results reflect a challenging period, the operational changes and strategic progress made since 2019 and accelerated through the last nine months have put the group in a stronger position to manage the impact of Covid-19,” said chief executive officer Keith Broadbent.

“As we project forward to a time beyond the pandemic, we believe our patented HDPlas plasma process puts Haydale in a strong position to deliver functionalised graphene and other nanomaterials cost effectively, at a consistent quality and at industrial volumes.”

At 1225 GMT, shares in Haydale Graphene Industries were down 1.49% at 6.6p.