Haydale Graphene Industries plc
("Haydale", the "Group" or the "Company")
Audited Preliminary Results For The Year Ended 30 June 2014
Haydale Graphene Industries plc (AIM:HAYD), the Company focused on enabling
technology for the commercialisation of graphene, is pleased to announce its
preliminary audited results for the year ended 30 June 2014.
Operational Highlights (pre and post year-end):
* Haydale's functionalised materials independently proven to double epoxy
composite stiffness and strength - opening up the global composite market;
* Ink and coatings collaboration partner secured offering fast prototyping
and accelerated product development in barrier coatings, transparent
conductive films and 3D printing;
* Global sales reach achieved with marketing and distribution agreements;
* Scale up of plasma functionalisation process on track with successful
commissioning of second generation reactor with 2 similar reactors and one
larger unit on order; and
* Positive third party verification of plasma functionalisation process
through The National Physical Laboratory.
Financial Highlights:
* Raised £6.6 million of new equity funds on admission to AIM in April 2014
which, together with £1.8 million of pre-IPO funds, delivered £8.4 million
to the Group;
* £425,000 of grant funded projects secured since IPO;
* Loss after tax for the year £2.1 million (2013: £1.0 million);
* Loss per share £0.28 (2013: £0.18); and
* Net Cash £5.7 million (2013: £0.05 million) at year end.
Ray Gibbs, CEO at Haydale, commented:
"The last year has been extremely busy both internally on operational
capability and in our global marketing effort. Critically we have sourced and
positively evaluated a number of graphene suppliers as having access to the
right material is crucial to being able to offer the ultimate customer focussed
solution.
With the funding now in place we look forward with optimism as we are already
seeing benefits from the sales, marketing and distribution agreements recently
signed. We are experiencing strong interest, in particular from the composite
market, arising from the exceptional results reported in June 2014 by the US
based independent research organisation Aerospace Corporation. We see this
sector as being one of the earliest adopters of graphene enhanced products. Our
technical credibility and unique functionalisation process has been further
endorsed by the UK National Physical Laboratory.
The steps we've taken to overcome the industry challenge of taking graphene
from the laboratory into commercial reality, are set out in my strategic
report. We believe that the significant progress made over the last year:
technically, financially and commercially has created the building blocks to
enable us to deliver on our planned growth."
- ends -
For further information please contact:
Haydale Graphene Industries plc 01269 842 946
John Knowles, Chairman
Ray Gibbs, Chief Executive Officer
Cairn Financial Advisers LLP (Nomad) 020 7148 7900
Tony Rawlinson
Paul Trendell
Cantor Fitzgerald Europe (Broker) 020 7894 7000
David Foreman
Paul Jewell
Hermes Financial PR
Trevor Phillips 07889 153 628
Chris Steele 07979 604 687
About Haydale
Haydale has developed a patent-pending proprietary scalable plasma process to
functionalise graphene and other nanomaterials. This enabling technology can
provide Haydale with a rapid and highly cost-efficient method of supplying
tailored solutions to enhance applications for both raw material suppliers and
product manufacturers.
Functionalisation is carried out through a low-pressure plasma process that
treats both mined, organic fine powder and other synthetically produced
nanomaterial powders, producing high-quality few layered graphenes and graphene
nanoplatelets. The process can functionalise with a range of chemical groups,
with the level of functionalisation tailored to the customer's needs. Good
dispersion improves the properties and performance of the host material and
ensures the final product performs as specified.
The Haydale plasma process does not use wet chemistry, nor does it damage the
material being processed; rather, it can clean up any impurities inherent in
the raw material. The technology is a low energy user and most importantly
environmentally friendly. The Haydale method is an enabling technology,
allowing the Company to work with a raw material producer who seeks to add
value to the base product and tailor the outputs to meet the target
applications of the end user.
Haydale, based in South Wales and housed in a purpose-built facility for
processing and handling nanomaterials, is facilitating the application of
graphenes and other nanomaterials in fields such as inks, sensors, energy
storage, photovoltaics, composites, paints and coatings.
www.haydale.com
CHAIRMAN'S STATEMENT
John Knowles, Chairman
I am very pleased to present the Company's first results as a public company
following our IPO on the AIM market of the London Stock Exchange on 14 April
2014 ("Admission"). I am further pleased to report that we are successfully
implementing our strategy of using partnerships and collaborations with world
renowned companies to obtain early sales of our graphene products. This will
allow us to establish a leading position in the emerging graphene market and
will also lead to licensing opportunities for our plasma technology. As part of
our strategy we will also consider suitable acquisitions where these provide
access to sales in our target markets.
Inevitably there is a lack of understanding at this stage of development over
the performance of and use of graphene. Our aim is to use our unique technology
to create understanding and acceptance of graphene by commercialising it and
other related nanomaterials as quickly and effectively as possible. Industry is
looking for a means to capitalise on the outstanding properties of graphene and
our patent applied for graphene functionalisation technology using plasma
reactors provides the material which delivers the advantages required for
commercialisation. Graphene in its pure form is not necessarily immediately
useful and needs various forms of chemical functionalisation to be effective.
This is the Haydale speciality.
As is normal with a new technology, there are many challenges we have already
faced and overcome during the year under review, and we have made substantial
operational progress with our new technical team, production capability, and a
new improved plasma reactor which will significantly improve our sales
potential. This progress is further outlined in the Strategic Report.
This year has been focussed on putting the essential elements in place for the
future growth we expect from a fast moving and exciting sector. This growth
does of course require substantial further work and I am pleased to say we have
already announced positive developments since our Admission, in particular the
significant results achieved by Aerospace Corporation in doubling the strength
of epoxy composites using our functionalised graphene nanoplatelets. In the
period, we have also generated significant new leads from major companies,
which will allow us to broaden our commercial pipeline and customer base, in
order to deliver significant financial growth over the coming years.
Fundraising
The financial year ended 30 June 2014 was a busy and exciting one for the
Group, culminating in our AIM IPO in April 2014 which raised gross proceeds of
£6.6 million. In addition, the Group raised £1.9 million pre-IPO also in the
financial year under review. This delivered total funds of approximately £7.9
million to the Group.
The Group is utilising these proceeds to, inter alia, expand the Group's
operational, sales and marketing capabilities, increase the graphene
functionalisation capacity, develop intellectual property and know-how with
external partners and they will be sufficient to enable us to deliver our
strategic objective of commercialising graphene.
Financial results
Income for the year ended 30 June 2014 amounted to £129,000 (2013: £146,000)
and the retained loss was £2.1 million (2013: £1.0 million). Our cash outflow
from operating activities was £2.1 million (2013: £0.8 million) and we ended
the year with net cash of £5.7 million (2013: £0.05 million). The cash outflow
comprised the loss before taxation of £2.2 million (2013: £1.1 million),
adjusted for non-cash items and working capital changes.
Operational highlights
During the year under review, the operational highlights for the Group can be
summarised as follows:
* On 6 November 2013 Haydale signed a distribution and collaboration
agreement with AMG Mining AG for the Haydale HDPlas® functionalised
nanomaterials;
* On 2 December 2013 Haydale listed its HDPlas® range of materials for trade
on INSCX™ exchange. INSCX™ is the world marketplace for organisations
seeking nanomaterials;
* Haydale were awarded grant funded research work worth up to £165,000 over 3
years on bio-medical sensors:
* In January 2014 Haydale were awarded ISO 9001:2008 Quality Management
Systems Certification accreditation together with a recently announced
award of ISO 14001: 2004 Environmental Management Systems Certification;
* The National Physical Laboratory produced a favourable report in February
2014 in respect of Haydale's unique patent applied for plasma
functionalisation process; and
* In June 2014 Haydale announced a significant breakthrough in results from
US based research institute, Aerospace Corporation endorsing the use of
Haydale's GNPs in achieving more than a 100% increase in structural
strength and stiffness for epoxy composites.
In addition, the Group has welcomed five new directors to the Board
strengthening its non-executive function and corporate governance capabilities.
The Group has recruited key senior management to enhance our technical
capabilities, the sales and marketing function and in operational management.
Outlook
The year's results are consistent with our predictions and with market
expectations albeit that at this stage of the development of the Company,
income was at a low level. We expect a significant increase in income for the
current financial year and our market is global. To this extent, we have made
several announcements regarding initiatives since the year end seeking to
address key markets including the USA and Far East. These initiatives, together
with other development opportunities under consideration, lead the Board to
believe that the Group is in a strong position to grow its operations, both at
home and overseas, and to deliver its business plan for the benefit of all
shareholders. In support of these strategic aims we have, since the year end:
* Boosted our sales efforts and have started making good progress with our
marketing and distribution partners, InVentures (USA), planarTECH (Far
East), and for R&D materials through INSCX™ and the specialist web based
supplier, Goodfellow;
* Started to capitalise on the reputation and support from our ink and
coating partner, the Welsh Centre for Printing and Coating, with a
development program of specialist products;
* Commenced a program of capacity expansion in our production facility to
accommodate increases in technical staff and analytical and processing
equipment; and
* Reached an advanced discussion stage with specialist plasma equipment
manufacturer Tantec A/S over a long term supply arrangement and in the
meantime have already placed an order with two units for delivery in
December 2014 and a larger technology demonstrator in early 2015 for future
licensees.
I would like to thank the staff, the Board and the Group's external advisers
for their hard work over the last year. I would also like to thank Richard
Newton-Jones and David Cheyne, who stepped down from the Board earlier this
year, for their support and contributions over a number of years.
This will be an important year for Haydale. With the financial strength
provided by our IPO, coupled with the support of a strong Board providing a
wealth of experience across a wide skill spectrum, the Group is confident of
having a successful year. I look forward to reporting on the future
developments of the Group.
John Knowles
Chairman
29 September 2014
STRATEGIC REPORT
The directors present their Strategic Report for the year ended 30 June 2014.
PRINCIPAL ACTIVITIES
Haydale Graphene Industries Plc is the AIM listed company with a number of
subsidiaries, the principal one being Haydale Limited ("Haydale"). Haydale was
incorporated in 2003 and sources, handles and processes nanomaterials with a
suite of prototyping and analytical equipment, to facilitate the commercial
application of, initially, graphenes for customers worldwide. Our process is,
however, equally applicable to other nanomaterials.
Haydale is strategically well positioned in that it can source the most
appropriate graphene and other nanomaterials feedstock from suppliers that, in
conjunction with its unique proprietary plasma treatment (known as
functionalisation), produces a tailored customer focussed solution. This is one
that enables the nanoparticles (e.g. graphene) to disperse uniformly in the
target material. Proper dispersions are essential in enabling the potential of
graphene and other nanomaterials to be realised.
What is Graphene?
Carbon is an amazing material and is the basis of all organic living materials.
It is also found naturally in different forms or allotropes, including diamond,
graphite and coal. In 2004, scientists Professors Andre Geim and Konstantin
Novoselov at the University of Manchester first isolated and characterised
graphene. In 2010, they received the Nobel Prize in Physics for their ground
breaking research which elevated this material to the world stage, sending
ripples of excitement through the academic, investment and corporate world.
The term `graphene' which originally described a single 2-D sheet of carbon
atoms, has gradually been widened to encompass both sheet and flake carbon
materials produced by a variety of methods. Engineering applications tend to
focus on the use of graphene nanoplatelets (GNPs). These materials can be
produced by a `top down' production method, involving the exfoliation of mined
graphite to produce flakes, or by a `bottom up' production method, such as
chemical vapour deposition from a carbon source. Experimental characterisation
has revealed that graphene is mechanically 200 times stronger than steel, has
in-plane electrical and thermal conductivity higher than copper, and has an
incredible surface area of over 2,500m2 per gram. The particulate graphene form
can be produced in large quantities in various thicknesses. Few layer graphene
(FLG) comprises several atomic layers of carbon, and so-called many-layer
graphene, or graphene nanoplatelets (GNPs) typically comprise 5-100 layers.
Thereafter the material can be described as graphite.
The challenge is how to translate these properties measured in the laboratory
into commercial applications, especially as graphene is effectively inert? This
is where Haydale comes in.
Commercialisation of Graphene
Realising the full benefits of nanomaterials and especially graphene is rarely
easy. They need to be optimised for incorporation into the intermediate
material or end use application. When you get it right, the results can be
spectacular. In June 2014, Haydale announced the outstanding results achieved
by the USA based Aerospace Corporation in incorporating our suitably
functionalised GNPs in reinforcing epoxy resins and composites.
To date, many tens of millions of dollars has been invested by governments and
corporations seeking ways and means to capitalise on the significant benefits
offered by graphene. Haydale is not a manufacturer of the raw graphene, rather
we are a solutions provider focussed on the early adoption and
commercialisation of graphene. We have an enabling technology utilising a
unique functionalisation process on nanomaterials, specifically graphene, as a
means of delivering improved product performance. We have the capability now to
source and use, both organic and synthetically produced flake graphene, and to
modify the surface of the graphene with specific chemical functional groups
tailored to the requirements of the end user's application. This process is
known as functionalisation. Applying the correct functionalisation has two
immediate benefits, namely, the promotion of:
* homogeneous dispersion in a solution (ie avoiding agglomeration); and
* chemical interaction or bonding with a substrate or matrix.
Functionalisation is carried out through a low pressure plasma process that
treats both organic mined fine powder and other synthetically produced
nanomaterial powders producing high quality few layered graphenes and graphene
nanoplatelets. The process can functionalise with a wide range of chemical
groups, where the concentration of chemicals can be tailored to the customer
needs. Good dispersion improves the properties and performance of the host
material and ensures it delivers to the desired specification.
There continues to be significant government and institutional funding aimed at
applications for graphene. We are working with and are in discussions with
several large multi-national corporations and universities to create
"intermediate products" such as conductive inks, epoxy composites and coatings.
The general use of nanoparticles is well accepted in the pharmaceutical,
cosmetic and chemical industries. Adopting a new material such as graphene
however takes time, requiring sampling, testing and evaluation. Often this is
done in conjunction with collaboration partners, primarily end users who are
willing to consider new innovative materials in seeking a competitive
advantage. Our approach has been to work with the material suppliers and/or the
end user to develop intermediate products that the manufacturer can use to
improve a product offering. Our market focus is targeted on sectors where we
consider early adoption of new innovative materials is commonplace. Often, take
up of a new material is hampered by the need to invest significant sums in new
plant and equipment and discard the existing machinery. We consider that the
markets that we have focussed on, namely, energy harvesting, inks/coatings and
specifically composites have less inbuilt inertia to change and are early
adopters of such new materials.
OPERATING REVIEW
In the year under review, and in the three months post year-end, the Company
has made significant progress in building its human resources, production and
sales capability. The objective has been to underpin the strategic markets we
are focussed on to deliver the growth required to move to an operating profit
and, as highlighted above, within the past year, Haydale has signed a series of
distribution and partnership agreements to help achieve this goal.
R&D Materials
Access to the right nanomaterials is crucial to being able to offer the
ultimate customer focussed solution. In November 2013, we agreed an exclusive
distribution arrangement and a supply contract with AMG Mining AG. Since then
we have seen, evaluated and qualified many different suppliers to provide us
with a broad range of materials to choose from which will best suit the end
users' application. All have to be able to demonstrate continuity of supply and
consistency of product which are critical components in the supply chain.
In addition we have distribution outlets now for some of our functionalised
graphene based materials through Graphene Supermarket, INSCX™ and most recently
with leading global materials supplier, Goodfellow. These collaborations are
principally to focus on distributing Haydale's line of functionalised graphene
nanoplatelets (GNPs) which are sold under the trade name, HDPlas®.
Inks and Coatings
Having tested the market for some time with a conductive "Graphene" based ink,
the agreement with the Welsh Centre for Printing and Coating (WCPC), signed in
July 2014, has enabled us to now launch a commercially available conductive
ink. WCPC are investigating the exploitation of functionalised graphene, and
other carbon nano-materials developed by Haydale, in areas such as transparent
conductive films, barrier coatings and 3D printing.
Composites
We announced in June 2014 the results of independent research by the Aerospace
Corporation in the USA, which demonstrated substantial improvements in epoxy
composite strength and stiffness. For the composites market, Haydale's plasma
process has the potential to offer the tailored functionalisation of graphene
nanomaterials whilst maintaining structural integrity thus eliminating a key
barrier to the commercialisation of graphene in this sector.
We are focussed on developing our composite offerings and seeking industrial
partners who can design, develop and commercialise advanced polymer composite
materials on a global basis. In a number of instances we have commenced
commercial discussions. With the right partners, we believe that the Haydale
nanomaterials will show demonstrable clear technical, economic and
environmental benefits over existing structures currently manufactured in
traditional materials such as steel, aluminium, wood or concrete.
Energy Harvesting
We are working on several potential strategic alliances in this complex market.
Our team of energy experts have identified a number of specialist sectors for
exploitation, where our novel materials and functionalisation can make a
difference. We would expect to make good progress in this sector over the
coming year which is likely to include the work done by target partners in the
energy market including key University knowledge and testing facilities.
Sales strategy
We continue to invest in personnel to capitalise on the increasing momentum
achieved over the last year. Aiming to vigorously pursue our commercialisation
strategy, we have recruited a Haydale business development director and 2
support managers with polymer coatings and ink expertise to exploit our growing
technical reputation. As part of our global sales strategy, we engaged with two
organisations in July 2014 who can explore and bring significant sales and
collaboration opportunities in the Far East (planarTECH) and USA (InVentures).
We believe that the use of agents who are already well established and
recognised in their specific areas of expertise will significantly reduce the
time required for Haydale to become well known in these territories. We are now
able to cost effectively engage customers across the globe to develop
application specific, graphene enhanced materials. There are encouraging signs
of early interest from both markets in our materials, process and products.
Grant funding
Sampling of the functionalised materials continues as a means to engage with
industrial corporations and manufacturers and to enter collaborations and
consortia on dedicated projects. Since April 2014, we have secured focussed and
important grant funded work from which our future income will be over £425,000.
This includes one current and one future project partly funded by Innovate UK
(previously known as the Technology Strategy Board). In October 2014, we also
start on a European project in conjunction with the German based Fraunhofer
Group (and others) to develop a high resolution roll to roll printing of
bio-compatible graphene/protein multilayers for bio medical applications. This
project is expected to be worth over £175,000 in income to the Group over the
next 3 years.
In addition, although relatively small, we have been included in a successful
UK defence contract feasibility study to develop a prototype coating for a
novel hydrophone under water system. A positive outcome in this project, which
is scheduled for completion in the current financial year, could lead to
significant additional work. The defence sector is an area that we consider has
significant potential for the range of products we are starting to develop.
Operations and technical
In the year under review, headcount more than doubled to 10 and post year-end
we have added a further 2 technical staff with a further 3 budgeted joiners for
the remainder of the current financial year. The appointment of Dr Chris
Spacie, as Group Chief Technical Officer from Morgan Advanced Materials in
September 2013, has been crucial in ensuring the production and processing
capability was controlled and reproducible. Our functionalisation process was
positively commented on by the National Physical Laboratory in February 2014.
We now have an established processing and treatment facility capable of
supplying tonnes of graphene per year exactly to the customers' specification.
Haydale has developed a patent pending proprietary scalable plasma process to
functionalise graphene and other nanomaterials. Switching plasma reactor
suppliers to Tantec A/S has enabled the business to increase capacity and
improve the functionalisation process incorporating state of the art latest
technology. We are in advanced discussion with Tantec A/S over a long term
supply agreement and have already ordered two new reactors with delivery
expected in late 2014. These units are expected to remain in the UK as
additional capacity for our immediate future although certain customers have
commenced enquiries on licensing a reactor. Consequently we have also ordered a
reactor capable of annually functionalising multiple tonnes of material. This
will act as further capacity but also promoted as the technology demonstrator
which is seen as the reactor that larger-scale licensees will require.
As part of our expansion plans we have commenced work on creating additional
dedicated laboratory space in a smaller unit of 2,500 sq ft adjacent to our
5,000 sq ft main factory in Ammanford. This facility will enable us to rapidly
develop and test the intermediate products for the defined market sectors above
as a means of assisting the sales team with their marketing and promotion
efforts. Furthermore, as part of our commercialisation strategy, we have opened
a small sales and marketing office within Reading University.
Licensing
Licensing is a key part of our sales strategy and we are pleased with the
initial discussions held with a number of blue-chip organisations to date on
the possibility of licensing our technology and our reactors to the customers
own locations. Whilst there can be no guarantee at this stage that agreements
will be completed, we anticipate that the terms of licensing agreements will be
in line with the Board's expectations.
FINANCIAL REVIEW
The Financial Review should be read in conjunction with the consolidated
financial information of the Group and the notes thereto. The consolidated
financial statements are presented under International Financial Reporting
Standards as adopted by the European Union.
Statement of Comprehensive Income
In the year under review, the Group primarily focussed on continuing to improve
its proprietary plasma functionalisation process, with a view to commencing a
sales and marketing push following the Group's admission to AIM. Accordingly,
income for the year was £129,000 (2013: £146,000) with a loss from operations
of £2.2 million (2013: £1.1 million). Support from grant funded projects
totalled £110,000 in the period under review (2013: £55,000).
R&D expenditure for the year amounted to £0.4 million (2013: £0.5 million),
with salaries for technicians, lab assistants and scientific personnel, as in
2013, accounting for the majority of the spend. Other administrative costs for
the year totalled £1.9 million (2013: £0.7 million), a significant proportion
of which were incurred as professional fees in connection with the Company's
admission to trading on AIM.
The loss after tax for the year was £2.1 million (2013: £1.0 million) and the
loss per share was £0.28 (2013: £0.18).
Statement of Financial Position and Cashflows
As at 30 June 2014, net assets amounted to £6.8 million (2013: £1.0 million),
including net cash balances of £5.7 million (2013: £0.05 million). At the year
end and as at today, the Group does not have any bank or other debt (save for
trade payables in the ordinary course). Net cash outflow from operating
activities for the year was £2.1 million (2013: £0.8 million), the main
contributing factor being the operating loss of £2.2 million.
The Group was principally funded during the period by new equity share issues
proceeds (net of costs) amounting to £7.8 million (2013: £0.8 million),
together with grant funding income of £0.1 million (2013: £0.06 million).
Capital Structure and Funding
As at 30 June 2014, the Company had 11,247,823 Ordinary Shares in issue, which
number is unchanged at the date of this report. On 20 March 2014, the Company
conducted a bonus issue of shares on the basis of 80 new Ordinary Shares for
each existing ordinary share by capitalising £158,320 of the Company's share
premium account. In addition, the remaining balance standing to the credit of
the Company's share premium account was reduced by £4,742,000 with the amount
so reduced being credited to a reserve.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2014
Note Year Year
ended ended
30 June 30 June
2014 2013
£'000 £'000
REVENUE 19 91
Other income 110 55
129 146
Administrative expenses
Costs of admission to AIM (424) -
Research and development expenditure (416) (478)
Share based payment expense (67) (4)
Other administrative expenses (1,424) (720)
(2,331) (1,202)
LOSS FROM OPERATIONS (2,202) (1,056)
Finance costs (14) (5)
LOSS BEFORE TAXATION 4 (2,216) (1,061)
Taxation 71 69
LOSS FOR THE YEAR / TOTAL COMPREHENSIVE LOSS (2,145) (992)
ATTRIBUTABLE TO OWNERS OF THE PARENT
Loss per share attributable to owners of the
Parent
Basic (£) 5 (0.28) (0.18)
Diluted (£) 5 (0.28) (0.18)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2014
Share Share Share-based Retained Total
capital premium payment profits
reserve
£'000 £'000 £'000 £'000 £'000
At 1 July 2012 1 2,420 - (1,235) 1,186
Total comprehensive loss for - - - (992) (992)
the year
Recognition of share-based - - 4 - 4
payments
Issue of ordinary share - 826 - - 826
capital
Transaction costs in respect - (32) - - (32)
of share issues
At 30 June 2013 1 3,214 4 (2,227) 992
Total comprehensive loss for - - - (2,145) (2,145)
the year
Recognition of share-based - - 67 - 67
payments
Issue of ordinary share 66 8,443 - - 8,509
capital
Transaction costs in respect - (623) - - (623)
of share issues
Bonus issue of £0.02 158 (158) - - -
ordinary shares
Reduction in share premium - (4,742) - 4,742 -
At 30 June 2014 225 6,134 71 370 6,800
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2014
30 June 30 June 1 July
2014 2013 2012
£'000 £'000 £'000
ASSETS
Non-current assets
Goodwill 51 51 51
Intangible assets 554 590 625
Property, plant and equipment 527 519 426
1,132 1,160 1,102
Current assets
Inventories 22 24 25
Trade receivables 8 2 36
Other receivables 244 85 74
Corporation tax 63 64 49
Cash and bank balances 5,677 54 149
6,014 229 333
TOTAL ASSETS 7,146 1,389 1,435
LIABILITIES
Current liabilities
Trade and other payables 300 290 244
Deferred income 46 107 5
TOTAL LIABILITIES 346 397 249
TOTAL NET ASSETS 6,800 992 1,186
EQUITY
Capital and reserves attributable to
equity holders of the parent
Share capital 225 1 1
Share premium account 6,134 3,214 2,420
Share-based payment reserve 71 4 -
Retained profits 370 (2,227) (1,235)
TOTAL EQUITY 6,800 992 1,186
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2014
Year Year
ended ended
30 June 30 June
2014 2013
£'000 £'000
Cash flow from operating activities
Loss before taxation (2,216) (1,061)
Adjustments for:-
Amortisation of intangible assets 36 35
Depreciation of property, plant and equipment 137 120
Share-based payment charge 67 4
Finance costs 14 5
Operating cash flow before working capital (1,962) (897)
changes
(Increase) / decrease in inventories (2) -
(Increase) / decrease in trade and other (165) 23
receivables
(Decrease) / increase in payables and (51) 34
deferred income
Cash used in operations (218) 57
Income tax received 72 53
Net cash flow from operating activities (2,108) (787)
Cash flow used in investing activities
Purchase of property, plant and equipment (147) (226)
Proceeds from disposal of property, plant and 2 12
equipment
Finance costs (5) (4)
Net cash flow in investing activities (150) (218)
Cash flow used in financing activities
Proceeds from issue of share capital 8,425 826
Share issue costs (623) (31)
Grants received - 115
Issue of convertible debt 79 -
Net cash flow from financing activities 7,881 910
Net increase / (decrease) in cash and cash 5,623 (95)
equivalents
Cash and cash equivalents at beginning of the 54 149
financial year
Cash and cash equivalents at end of the 5,677 54
financial year
1. General information
Haydale Graphene Industries Plc (the "Company") and its subsidiaries (together
the "Group") are focussed on enabling technology for the commercialisation of
graphene.
The Company is a public limited company which is listed on AIM on the London
Stock Exchange and is incorporated and registered in England and Wales. The
Company's registered office is Clos Fferws, Parc Hendre, Capel Hendre,
Ammanford, Carmarthenshire, SA18 3BL.
2. Group Annual Report and Statutory Accounts
The financial information of the Group set out above does not constitute
"statutory accounts" for the purposes of Section 435 of the Companies Act 2006.
The financial information for the year ended 30 June 2014 has been extracted
from the Group's audited financial statements which were approved by the Board
of directors on 29 September 2014 and will be delivered to the Registrar of
Companies for England and Wales in due course. The report of the auditor on
these financial statements is unqualified, did not include any references to
any matters to which the auditors drew attention by way of emphasis without
qualifying their report and did not contain a statement under Section 498(2) or
Section 498(3) of the Companies Act 2006.
3. Basis of preparation
Whilst the financial information included in this preliminary announcement has
been prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards ('IFRSs') as adopted by the
European Union, this announcement does not itself contain sufficient
information to comply with those IFRSs. This financial information has been
prepared in accordance with the accounting policies set out in the June 2014
report and financial statements.
4. Loss before taxation
Loss before taxation is arrived at after charging:
2014 2013
£'000 £'000
Research and development:
- current period's expenditure 380 443
- amortisation of capitalised 36 35
expenditure
Depreciation of property, plant and 137 120
equipment
Operating lease rentals:
- land and buildings 34 28
- plant and machinery 1 -
5. Loss per share
The calculations of loss per share are based on the following losses and number
of shares:
2014 2013
£'000 £'000
Loss after tax attributable to (2,145) (992)
owners of the Haydale Graphene
Industries Group
Weighted average number of shares:
* Basic and Diluted 7,755,175 5,661,495
Loss per share:
* Basic (£) and Diluted (£) (0.28) (0.18)
The loss attributable to ordinary shareholders and weighted average number of
ordinary shares for the purpose of calculating the diluted earnings per
ordinary share are identical to those used for basic earnings per share. This
is because the exercise of share options would have the effect of reducing the
loss per ordinary share and is therefore not dilutive under the terms of IAS
33.
6. Further information
A copy of this preliminary statement will be available to download on the
Group's website www.haydale.com. Copies of the Annual Report and Accounts,
together with the notice convening the annual general meeting, will be posted
to shareholders in due course at which time the Annual Report and Accounts will
be made available to download on the Group's website, www.haydale.com, in
accordance with AIM Rule 26.