Business
Trading Statement
Trading Statement.
About this update from Haydale Plc
[{"type":"text","content":"\n \nRNS Number : 4096B Haydale Graphene Industries PLC 30 January 2020 \n\nFor immediate release 30th January 2020\n Haydale Graphene Industries plc\n('Haydale' or the 'Group')\nTrading update and Notice of results\nHaydale (AIM: HAYD), the global advanced materials group, announces the following update on trading for the six months ended 31 December 2019 (\"H1-2020\") as well as the prospects of the Group for the remainder of the current financial year ending 30 June 2020 (\"FY-2020\"). The Board also announces the anticipated date of announcement of the Company's unaudited interim results for H1-2020 will be 27 February 2020.\nKey Highlights\nDuring H1-2020 the Company has:\n· launched a graphene-enhanced prepreg material for lightning-strike protection, utilising functionalised nanomaterials to improve electrical conductivity. The material was developed in collaboration with Airbus UK, BAE Systems, GE Aviation and Element Materials Technology Warwick Ltd, within the NATEP-supported GraCELs 2 project;\n· resolved teething issues to commission US blanks line; sufficient early strong demand supports a 7 day double shift pattern from early 2020;\n· taken the decision to close its Taiwan facility and relocate manufacturing and R&D capacities within the Group;\n· raised a further £450,000 via a subscription from two of our larger shareholders;\n· reduced operating costs by circa £900,000/22% over the comparable six months to December 2019.\nAsia Pacific Region\nAs previously announced, the Board has been reviewing the Group's footprint in the APAC region, and has now decided to close the Group's loss-making manufacturing facility in Taiwan and move capacity to its APAC Knowledge Centre in Bangkok, Thailand and Ammanford, UK.\nThe relocation of the Group's Taiwan operations will lead to a revenue shortfall of approximately £410,000 for H2-2020 but will have a positive effect on Group EBITDA and reduce the Group's cash burn through H2-2020 and into FY-2021.\n \nUS Operation\nThe Group's US business unit, HCT, experienced a softer start to the financial year than anticipated. Sales of SiC whiskers and blends in H1-2020 were disappointing. The business also experienced some initial teething issues with ...