Directa Plus narrows FY underlying losses

Directa Plus expects to report full-year revenues of roughly €11.0m, with adjusted LBITDA narrowing by at least 20% year-on-year, slightly ahead of consensus market expectations. Year-end cash was expected to be €2.4m, approximately 14% ahead of expectations, reflecting the board's continued focus on improving gross margins.

The AIM-listed group highlighted that with "momentum and increased engagement" across all verticals, and a "strengthening pipeline of opportunities", it was "optimistic" of delivering potential new material contracts in the short-term. Directa added that its current order book for delivery in 2024 stood at roughly €7.8m, mostly made of recurring clients, further reinforcing its confidence for increased traction in the year ahead.

Chief executive Giulio Cesareo said: "The group achieved a strong financial performance in FY23, with improved margins as a consequence of an increasing value appreciation of our technology, successful investment in innovation and direct cost reduction. We have entered FY24 with good momentum and are seeing increasing traction in graphene technology and its applications. As the market grows globally, we are confident in our ability to capitalise on the opportunity ahead with Directa Plus well positioned to scale its activities."

As of 0935 GMT, Directa Plus shares were up 10% at 18.70p.

Reporting by Iain Gilbert at Sharecast.com