Haydale Graphene's income rises as company transitions

Haydale Graphene Industries, which develops technology to commercialise nanomaterials, reported a rise in income as it converts its research and product development into sales.

For the year ended 30 June, income rose 30% year-on-year to £1.92m.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) losses widened by 41% to £3.36m.

The AIM listed company increased investment in research and development by nearly 68% to £940,000 and investment in the company’s reactor and processing capacity fell 60% to £470,000.

Cash balance at year end was £2.86m, a 39.5% increase from last year.

In November 2015, the company raised £6m through a share placing and open offer.

The company, which moved from being research and development focused to a sales and marketing organisation, launched a branded graphene enhanced 3D PLA printing filament in September.

During the year, the company signed an agreement to collaborate with resin company, Huntsman Advanced Materials, to develop graphene enhanced resins with its Araldite product epoxy resin, to target thermal conductivity in the industrial composites, automotive and aerospace market.

The company also agreed to work with Graphit Kropfmühl, which is part of AMG Advanced Metallurgical Group, to focus on the development of value added nanomaterial products using Haydale's functionalisation process and Graphit Kropfmühl’s graphitic material from its Sri Lankan mine.

Haydale established a European Centre of Excellence under the Graphit Kropfmühl agreement which included the sale and delivery of one research and development product and one larger capacity reactor.

A joint development agreement was signed with glass fibre reinforced plastic company, Flowtite Technology, to develop the next generation of pipe systems for water and sewerage applications.

The company strengthened its ink capability through a commercial agreement with Taiwan manufacturer Dowton Electronic Materials for the development, production, sales and marketing of a Haydale-branded graphene enhanced screen printable ink, which will be aimed at the biomedical market, with a patent granted by the European Patent Office and extended to China and Australia.

Chief executive Ray Gibbs, said: “The current financial year is entirely focused on accelerating conversion of our extensive research and product development into a sales pipeline with commercial revenues of graphene enhanced products. Our routes to market are established in key markets with best in class partners.”

He said the company has income visibility from long term grant awards, the ongoing traditional composite consulting services at Haydale Composite Solutions, advanced leads for the sale of additional reactors into strategic locations and following completion of the acquisition of Advanced Composites Materials, it expects to have high recurring revenues from sales of advanced silicon carbide whiskers and fibres.

Shares in Haydale Graphene Industries were down 4.7% to 175.35p at 0848 BST.