TIDMHAYD
RNS Number : 9344V
Haydale Graphene Industries PLC
03 February 2017
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
For immediate release 3 February 2017
Haydale Graphene Industries plc
('Haydale' or the 'Group')
Trading update
Notice of results
Haydale (AIM:HAYD), the global nanomaterials group, announces
the following update on trading for the six months ended 31
December 2016 as well as the prospects of the Group. The Board also
announces the anticipated date of announcement of the Company's
results for the 6 months ending 31 December 2016.
Trading update
As previously announced in the AGM Statement issued on 15
December 2016, the customer sampling process with Huntsman
Corporation ("Huntsman") for graphene infused Araldite(R) epoxy
resin has taken longer than the Group originally anticipated and,
as a result of this, commercial revenues from this agreement are
now expected to commence in the first half of the next financial
year. In addition, Haydale made a strategic decision to focus on
sourcing and securing key collaboration partners at the expense of
short term revenue from the sale of reactors to third parties,
leading the Board to believe that Group revenue for the current
financial year will be below market expectations.
Since the beginning of the current financial year, the Group has
secured contracts to develop a number of next generation commercial
products worth in excess of GBP0.6 million over the next 12-18
months. These include: hydrogen storage vessels for Arcola Energy,
a leading UK fuel cell system integrator; a novel water filter for
the nuclear industry with Sellafield Limited as the commercial
partner; a research and development agreement with the Malaysian
Government developing a series of enhanced natural rubber products
into graphene composite, which are aimed at next stage industrial
products; an initial contract secured by Haydale Composite
Solutions to design, manufacture and test certain pipes for a
leading composite pipes manufacturer (utilising Haydale's unique
pipe testing facilities recently commissioned in Loughborough). The
work is the first phase of a significant development contract to
certify composite pipes for the oil and gas industry; the UK Space
Agency has contracted Haydale to develop advanced composite gas
propellant storage tanks for spacecraft and satellites: and Wave
Energy Scotland has contracted Haydale to develop a new rotational
moulding, graphene enhanced thermoplastic material to be used in
renewable wave energy devices.
In addition, the Group has appointed a sales manager to market
and sell Haydale's graphene enhanced 3D PLA filament, which was
launched in Q4 2016. Repeat orders, albeit at a relatively small
amount at this early stage, have been received from international
distributers and the Group is in the process of agreeing multiple
distribution agreements. The feedback from distributers and end
users has been encouraging with reference to enhancements in flow
speed and post production processing. Other 3D printing
developments are under evaluation for future product launches.
As previously announced, the Group's ongoing project with
Flowtite on developing a graphene enhanced glass fibre reinforced
pipe ("GRP") remains on track with the first production trials set
for Q1 2017. A period of testing and certification of up to twelve
months will then follow the production trials such that, if
successful, Flowtite expects to launch their new graphene enhanced
GRP in the second half of the next financial year.
The Group has now commissioned the two plasma reactors sold to
Graphit Kropfmühl GmbH, as part of its strategic collaboration and
industrial scale-up plans to accommodate masterbatch products
required initially for Huntsman and Flowtite. The Group remains on
course to install an HT60 plasma reactor into the Thailand Science
Park and expects this unit to be fully operational by the end of
March 2017. Once operational, it will service Thai customers and
projects plus other Far East countries such as Korea and
Taiwan.
Haydale's USA operation has integrated well into the Group and
its trading is in line with management's expectations. It has
commenced researching the market ahead of establishing a graphene
capability at its South Carolina facility. Early indications are
that the addition of graphene to Silicon Carbide whiskers and
fibres as a hybrid material offers improvements in structural
properties and thermal conductivity. As mentioned above, the Group
plans to target new applications in the automotive industry.
Ray Gibbs, CEO of Haydale, said: "Whilst the slower than
originally anticipated development towards commercial sales affects
our short-term revenues, continued development of the next
generation commercial products provides us with significant
confidence for the longer-term success of the Group. Haydale is
working with some leading businesses around the world, and we are
setting the foundations in place for the Group to realise its
potential as a global commercial entity.
We have learnt much from the collaboration with Huntsman,
including novel unique dispersion know how that can be used in many
other applications. What has become clear is that Huntsman have a
desire to make sure that a product launch, especially of one of
their major brands is done right first time. The positivity flowing
from the technical evaluations, exhaustive testing and compliance
rigour will stand us in great stead when dealing with other world
class organisations. The markets that Haydale's next generation
enhanced products are aimed at are significant, world-wide markets
and therefore a degree of patience needs to be taken to ensure
consistency of supply of the highest quality in meeting customer
expectations."
Notice of results
The Group will announce its interim results for the six months
ended 31 December 2016 on Wednesday, 22 March 2017. An analyst
briefing will be held at 09:30 a.m. at the offices of Buchanan, 107
Cheapside, London EC2V 6DN.
For further information:
Haydale Graphene Industries
plc
Ray Gibbs, Chief Executive Tel: +44 (0) 1269 842
Officer 946
Matt Wood, Finance Director www.haydale.com
Trevor Phillips, Head
of Communications
Cairn Financial Advisers LLP (Nominated
Adviser)
Tony Rawlinson / Emma Earl Tel: +44 (0) 20 7213
0880
Cantor Fitzgerald Europe (Broker)
David Foreman / Will Goode (Corporate Finance) Tel: +44 (0) 20 7894
7000
David Banks / Mark Westcott (Sales)
Media enquiries:
Buchanan
Henry Harrison-Topham / Jamie Tel: +44 (0) 20 7466 5000
Hooper
haydale@buchanan.uk.com www.buchanan.uk.com
Notes to Editors
Haydale has developed a patented 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.
Crucially, the Haydale plasma process does not damage the
material being processed. Instead it will clean up any impurities
inherent in the raw material. The technology is a low energy user
and is therefore environmentally friendly. The Haydale process is a
patented enabling technology, allowing the Group to work with a raw
material producer who seeks to add value to the base product and
tailor the outputs to best service the target applications of the
end user.
Haydale has moved from being a R&D focused business towards
becoming a commercial entity and having made some transformational
acquisitions and partnerships in 2016, the Company has a robust
supply chain, with geographic presence not only in European but in
Asian and American markets.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "will" or the negative of those, variations or
comparable expressions, including references to assumptions. These
forward looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements re ect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors.
A number of factors could cause actual results to differ
materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements. Accordingly, readers are cautioned not
to place undue reliance on forward looking statements. Subject to
any continuing obligations under applicable law or any relevant AIM
Rule requirements, in providing this information the Company does
not undertake any obligation to publicly update or revise any of
the forward looking statements or to advise of any change in
events, conditions or circumstances on which any such statement is
based.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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