TIDMHAYD
RNS Number : 1015Q
Haydale Graphene Industries PLC
24 February 2021
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
.
For immediate release 24(th) February 2021
Haydale Graphene Industries plc
('Haydale', the 'Company', or the 'Group')
Interim Results
Haydale (AIM: HAYD), the global advanced materials group ,
announces its unaudited interim results for the six months ended 31
December 2020 (the 'Period' or 'H1 FY2021').
Financial Highlights
-- Group Revenues of GBP1.28 million for the Period, 5% down on H1 FY2020;
-- Sales of functionalised inks and graphene enhanced composites
increased by 35% to GBP0.34 million on a like-for-like basis;
-- Adjusted administrative expenses fell by 22% with a saving of
GBP0.72 million on the prior half year;
-- Adjusted operating loss for the Period reduced by 34% (H1
FY2021 GBP1.39 million vs H1 FY2020 GBP2.1 million);
-- A reduction in Cash Used in Operations of GBP1.26 million or
50% on a LFL basis (H1 FY2021 GBP(1.26) million vs H1 FY2020
GBP(2.52) million); and
-- Cash at Period end of GBP1.88 million (30 June 2019: GBP2.70 million)
Operational Highlights
-- Agreement with Qinhuangdao ENO High-Tech Material Development Co., Ltd., to act as a sales representative for Haydale's ceramic and silicon carbide products in China;
-- Ahead of schedule on the three-year exclusive agreement with
iCraft announced in September 2020 with 0.4 tonnes being shipped by
the Period end and further orders pending of 1.6 tonnes for H2
FY2021;
-- Completed a successful trial of CeramycShield(TM), a ceramic
surface treatment that utilises SIC to enhance and protect concrete
assets, at a Central American water treatment facility;
-- Commercial progress with elastomers now evident following
first sale to Bolflex of our functionalised nano-enhanced rubber
masterbatch for use in its premium shoe range. Follow up orders are
scheduled for H2 FY2021; and
-- In collaboration with a leading biosensor technology company, developed a next generation functionalised biomedical ink with improved analyte detection which enhances detection and the accuracy of diagnosis.
Commenting on the interim results, Keith Broadbent, Chief
Executive Officer of Haydale, said:
"Whilst these results reflect a challenging Period, the
operational changes and strategic progress made since 2019 and
accelerated through the last nine months have put the Group in a
stronger position to manage the impact of Covid-19. As we project
forward to a time beyond the pandemic, we believe our patented
HDPlas(R) plasma process puts Haydale in a strong position to
deliver functionalised graphene and other nano materials cost
effectively, at a consistent quality and at industrial
volumes".
For further information:
Haydale Graphene Industries plc
Keith Broadbent, CEO Tel: +44 (0) 1269 842 946
Gemma Smith, Head of Marketing www.haydale.com
Arden Partners plc (Nominated Adviser
& Broker)
Ruari McGirr / Paul Shackleton / Tel: +44 (0) 20 7614 5900
Ben Cryer
Notes to Editors
Haydale is a global technologies group and service provider that
facilitates the integration of graphene and other nanomaterials
into the next generation of industrial materials and commercial
technologies. With expertise in graphene, other nanomaterials and
Silicon Carbide, Haydale is able to deliver improvements in
electrical, thermal and mechanical properties. Haydale has been
granted patents for its technologies in Europe, USA, Australia,
Japan and China and operates from five sites in the UK, USA and the
Far East. For more information please visit: www.haydale.com or
Twitter: @haydalegraphene
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.
Chief Executive's Report
Overview
Despite the economic uncertainty caused by the pandemic and the
impact of enhanced restrictions in several key markets the Company
has seen a gradual improvement in the general trading environment
in some areas as customers adapt to operating under the changing
constraints. During the Period we have observed greater interest
from existing and new customers in exploring the technical,
environmental, and cost advantages that our products offer. The
HDPlas(R) plasma process which tailors graphene and other nano
materials to enhance the host material remains central to
delivering these benefits and the ability to meet customer
expectations augurs well for the medium and longer term prospects
of the Group.
Subdued global aerospace demand has impacted the sales of
Silicon Carbide ("SiC") whiskers and Ceramic cutting tools
("blanks") in the Period and expectations notably around the
medium-term recovery of air traffic indicate that the pandemic will
continue to act as a brake on sales during H2 FY2021. The Company
has sought to extend its geographical footprint and expand its
product offering to counteract the slowdown in its core market. The
recent ag reement with Qinhuangdao ENO High-Tech Material
Development Co., Ltd., ("ENO") and strategic recruitment in Europe
are the latest steps in this direction.
Group trading has remained resilient despite the challenging
environment. Revenues of GBP1.28 million for the Period are
marginally down on the prior year period (H1 FY2020 GBP1.35
million) but positive gross margin variance and a focus on
operating costs has significantly reduced the Group's adjusted
operating loss by GBP0.72 million or 34% to GBP1.39 million (H1
2019 GBP2.11 million). The Directors anticipate the full year
revenue to be in line with the prior year and lower operating costs
will lead to a reduced Adjusted Operating Loss at the year end.
Commercial Operations
Asia Pacific "APAC"
Our APAC hub in Thailand and sales office in South Korea
continued to make good progress in the Period towards
commercialising Haydale's proprietary technology. The three-year
exclusive agreement with iCraft [1] , to supply functionalised
graphene for cosmetic face mask sheets announced in September 2020
is ahead of schedule and we are also working closely with iCraft to
supply functionalised graphene powder for the manufacture of their
GNP [2] enhanced, anti-bacterial, neoprene PPE face masks. Haydale
shipped 0.4 tonnes during the Period and further orders of 1.6
tonnes had been received by the Period end for delivery in H2
FY2021 for both the face mask sheets and PPE face masks. As part of
the on-going collaboration between the parties a sole distributor
agreement covering the UK and Europe was concluded in December 2020
and the first d irect-to-consumer sales of iCraft's PPE face masks
were secured in January 2021 from Haydale's web portal.
Haydale has continued to collaborate with IRPC [3] and the
parties are making positive progress on several projects including
the Phase II agreement for the development of transparent graphene
and functionalized acetylene black conductive inks for RFID, NFC
and related applications. The Company has also cooperated
successfully on the development of IRPC's new washable
functionalised graphene-enhanced fabric PPE face mask. IRPC has now
placed a follow-on order for 200Kg of Haydale's bespoke
functionalised ink as it expands production, and further orders are
anticipated.
UK
The UK division has made meaningful progress towards
commercialising its proprietary technology and to delivering on
some of the previously announced collaborations. The four-year
agreement with DLYB [4] , which commenced in April 2020, allows
them to market Haydale's electrically conductive graphene-enhanced
masterbatch in China and Taiwan. The first year of the contract was
reserved for product validation and, whilst these tests are
on-going, results so far have been positive and we look forward to
moving to the commercial phase of the contract during 2021.
Haydale signed an agreement with Dowty Propellers ("Dowty") in
September 2020 for the provision of services for the collaborative
development of graphene and nano material enhanced products for use
in Dowty products. Haydale is assisting Dowty in examining the
feasibility and development of various material technologies,
pertinent to Dowty's future product development, involving the
incorporation of graphene and other nano scale materials and this
work is on-going with the first phase of work now completed.
In December 2020 we secured our first sale to Bolflex [5] of our
functionalised nano-enhanced rubber masterbatch for use in its
premium shoe range. The masterbatch is incorporated into the
styrene-butadiene rubber compound used in its soles and the initial
order of 80 kg enabled Bolflex to prepare 6,000 nano-enhanced
rubber soles. Bolflex are currently evaluating the performance of
these soles against competitor products and initial results show
improvements against its footwear test standards with increased
tear strength and enhanced abrasion, flex and slip resistance.
Follow up orders are scheduled for H2 FY2021.
US
Revenue at our US SiC and blanks manufacturing facility has been
adversely affected by the impact of Covid-19 on the US aerospace
and petrochemical sectors. The impact has been temporarily
ameliorated by the support it has received from a long-standing
customer who maintained its short-term order pattern during H1
FY2021, although this is partly offset by another customer that is
failing to meet its contractual obligations. We expect this support
to continue in H2 FY2021 but, as previously announced, this will
result in reduced orders in the following year.
The Directors expected that the $1.5 million investment in
blanks production capability in the year ended June 2019 would
contribute to increase utilisation of the manufacturing capacity at
the US facility and to higher value sales as we moved up the value
chain. Whilst the Directors believe that this strategy is still
sound, due to the pandemic, demand has been subdued and is forecast
to remain so in the medium term. The Company has therefore sought
to widen its product offering and expand its geographical
footprint.
Haydale has completed a successful trial of CeramycShield(TM), a
ceramic surface treatment that utilises SIC to enhance and protect
concrete assets at risk from decay, at a Central American water
treatment facility. Post Period end, Yorkshire Water announced that
it has partnered with Haydale to trial CeramycShield(TM), on a
number of its chemical bunds and have stated that 'the results will
be immediately apparent and will pave the way for a larger
programme of works protecting our assets'. These trials have been
delayed by the UK's third lockdown but are scheduled to commence
shortly after this ends. The Company is also in discussions with
several other UK utilities and overseas companies who are
interested in CeramycShield(TM).
To reduce its reliance on US aerospace, Haydale started actively
exploring the European blanks market in H2 2020 with a technical
market specialist based in Germany. The Company has been pleased
with the opportunities identified and the progress that has been
made in securing certification trials for blanks during H1 FY2021.
Our current expectation is that in the medium to long term the
European market for blanks can make a significant contribution to
revenue growth at our US facility. Post Period end, we appointed
Uwe Kemper as European Head of Business Development to spearhead
our entry into the EME cutting tool market. Uwe has significant
industry experience gained at Greenleaf Corporation and latterly
with CeramTec GMBH and is a valuable addition to our team.
The Company signed a Memorandum of Understanding with a Sino-UK
facilitator in H1 FY2020 and the early promise shown by this
relationship is now being fulfilled. In January 2021 Haydale
announced an Agreement which allows ENO to act as a sales
representative for Haydale's ceramic and silicon carbide products
in China (including Hong Kong) and Taiwan for an initial period of
two years. Under the Agreement, ENO expects to buy a minimum of
$300,000 of product from Haydale within the first year of the
agreement increasing to $500,000 in the second year. The first
order under the Agreement for $23,000 has been shipped by Haydale
in January 2021. Haydale is also working on several other potential
projects in China and is encouraged by the strong interest in its
SIC offering and functionalised conductive inks as well as other
products in this market.
Grant Funded Projects
Grant funded projects have continued in H1 FY2021 and the
Company was successful as part of the Carbo4power consortium whose
main objective is to develop a new generation of lightweight, high
strength, multifunctional, digitalized multi-materials for offshore
turbine rotor blades that will increase their operational
performance and durability while reducing the cost of energy
production, maintenance, and their environmental impact. This grant
has a clear commercial pathway and complements previous development
work on the NATEP funded GraCELS projects. As noted previously we
anticipated 'Other Operating Income' would decline marginally as
commercial projects take priority but grant funded research that
complements our commercial offering remains important to the
Group.
Technical and Patent Update
Haydale has been working with a biosensor technology company
that manufactures rapid diagnosis testing products, to provide a
cost effective and environmentally friendly alternative to
traditional silver based printed biomedical sensor electrodes,
which are also susceptible to tarnishing. The next generation
functionalised biomedical inks developed at our Ammanford facility
have improved analyte detection through the incorporation of
compatible functional groups, which enhances detection and the
accuracy of diagnosis. The Directors are hopeful that this
collaboration will develop into a commercial relationship in H2
FY2021.
Haydale has been granted a European Patent for PATit(TM), its
anti-counterfeit system which uses functionalised graphene elements
incorporated into printing inks to create unique security and
identity code patterns that are machine readable using capacitive
touchscreen technologies. The code can be verified by using local
or hosted software systems. We are currently in early stage
discussions to commercialise this technology both in the UK and the
Far East.
Unaudited Financial Results
The Group's recognised commercial income in the Period was
GBP1.28 million (H1 2019 GBP1.35 million). Of this, GBP0.86 million
(H1 FY2020: GBP0.94 million) derived from the US with the sales of
SiC nanomaterials and blanks with the balance of GBP0.42 million
(H1 FY2020: GBP0.41 million) being from the UK and APAC regions.
The Company is pleased that the sales of functionalised inks and
graphene enhanced composites have increased by 35% to GBP0.34
million on a like-for-like ("LFL") basis and anticipate that this
growth will accelerate in H2 FY2021.
During the past year, the Directors have continued to realign
the cost base to ensure that the Group focuses resources on
achieving its strategic objectives. Total Adjusted Administrative
Expenses in the Period of GBP2.55 million have reduced by GBP0.72
million, equivalent to 22% (H1 FY2020 GBP3.27 million). Whilst
there is further scope to streamline operating costs it is
anticipated that any savings will have a diminishing impact on the
total cost base.
The Group's adjusted operating loss at GBP1.39 million for H1
FY2021 reduced by 34% (H1 FY2020 GBP2.11 million) and the Loss
before taxation was GBP1.93 million (GBP2.72 million in H1 FY2020).
Capital expenditure in H1 FY2021 was GBP0.02 million (H1 FY2020:
GBP0.03 million) and whilst this is forecast to remain restrained
through H2 FY2021 the Company is assessing options for increasing
capacity at its Ammanford facility, but at this stage it is
anticipated that any significant investment would be post Year
End.
The Group's net assets at 31 December 2020 were GBP8.25 million
(31 December 2019: GBP9.06 million). The Group's borrowings reduced
by GBP0.18 million during the Period to GBP1.07 million at the
Period end (30 June 2020: GBP1.25 million). Cash at the Period end
was GBP1.88 million (30 June 2019: GBP2.70 million), including the
GBP2.80 million of net equity funds received in September 2020.
Negative operating cash flow before working capital changes of
GBP1.37 [6] million reduced by 34% (H1 FY2020 GBP2.09 million). A
positive working capital movement of GBP0.1 million (H1 FY2020
GBP(0.43) million) contributed to a fall in Cash Used in Operations
of GBP1.26 million to GBP(1.26) million (H1 FY2020 GBP(2.52)
million) on a similar LFL basis. We anticipate reduced operating
losses and lower levels of inventory, principally in the US, should
support a reducing level of operating cash burn through H2
FY2021.
There were no restructuring costs for H1 FY2021 (GBP0.12 million
in H1 FY2020). Restructuring costs in the prior period principally
related to the closure of the Taiwan facility. In H2 2020
Restructuring cost for the full year were reduced by GBP0.06
million as the expected costs of closure were less than originally
anticipated.
The Company raised GBP2.98 million (gross) via the issue of
85,055,950 new ordinary shares in September 2020 at an issue price
of GBP0.035 each (the "Fund Raise"), representing a discount of
approximately 31% to the closing mid-market price of the Company's
shares immediately before the Fund Raise. As at 31 December 2020,
and at the date of this announcement, the Company had 425,279,798
ordinary shares in issue.
Outlook
Whilst the Covid-19 pandemic has acted as a disruptive backdrop
to the Period it has by no means defined our performance. The
Directors are pleased to report an increase in the commercial sales
of functionalised inks and graphene enhanced composites in the
Period and expect sales will continue to gain momentum in this
area. The Directors also anticipate that new products such as
CeramycShield(TM) will positively impact revenue in the short term.
Whilst uncertainty over the medium terms prospects for the
aerospace sector remains, the actions taken over the last nine
months to extend the Company' geographical footprint will provide a
robust platform for the Company to take advantage of the revival in
this sector as it materialises
Keith Broadbent
Chief Executive Officer
24(th) February 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
For the six months ended 31 December 2020
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 2020 31 Dec 2019 30 Jun 2020
Note GBP'000 GBP'000 GBP'000
REVENUE 1,277 1,347 2,947
Cost of sales (338) (509) (885)
Gross Profit 939 838 2,062
Other operating income 212 320 756
Adjusted Administrative expenses (2,545) (3,268) (5,988)
Adjusted operating loss (1,394) (2,110) (3,170)
Adjusting administrative items:
Share based payments income/(expenses) (75) 142 11
Lease rental charges (IFRS 16) 310 315 631
Restructuring costs - (123) (63)
Depreciation and amortisation (627) (854) (1,640)
(392) (520) (1,061)
Total trading administrative expenses (2,937) (3,788) (7,049)
LOSS FROM TRADING (1,786) (2,630) (4,231)
Total administrative expenses (2,937) (3,788) (7,049)
LOSS FROM OPERATIONS (1,786) (2,630) (4,231)
Finance costs (147) (94) (176)
LOSS BEFORE TAXATION (1,933) (2,724) (4,407)
Taxation 182 159 391
LOSS FOR THE YEAR FROM CONTINUING
OPERATIONS (1,751) (2,565) (4,016)
Other comprehensive income:
Items that may be reclassified to
profit or loss:
Exchange differences on translation
of foreign operations (301) (99) 82
Remeasurements of defined benefit
pension scheme 14 174 (291)
TOTAL COMPREHENSIVE LOSS FOR THE
YEAR FROM CONTINUING OPERATIONS (2,038) (2,490) (4,225)
Loss per share attributable to owners
of the Parent
Basic (GBP) and Diluted (GBP) 2 (0.01) (0.01) (0.01)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
As at 31 December 2020
Unaudited Unaudited Audited
31 Dec 2020 31 Dec 2019 30 Jun 2020
GBP'000 GBP'000 GBP'000
ASSETS
Non-current assets
Goodwill 1,454 1,454 1,454
Intangible assets 1,184 1,078 1,145
Property, plant and equipment 6,979 4,815 6,407
9,617 7,347 9,006
Current assets
Inventories 1,562 1,618 1,712
Trade receivables 580 512 886
Other receivables 483 352 334
Corporation tax 567 149 384
Cash and bank balances 1,875 2,700 823
5,067 5,331 4,139
TOTAL ASSETS 14,684 12,678 13,145
LIABILITIES
Non-current liabilities
Bank loans 44 234 304
Pension obligation 1,280 894 1,435
Other payable 2,564 - 1,031
3,888 1,128 2,770
Current liabilities
Bank loans 1,024 1,148 944
Trade and other payables 1,391 1,174 1,906
Deferred income 136 173 74
2,551 2,495 2,924
TOTAL LIABILITIES 6,439 3,623 5,694
TOTAL NET ASSETS 8,245 9,055 7,451
EQUITY
Capital and reserves attributable to
equity holders of the parent
Share capital 8,506 6,804 6,804
Share premium account 28,819 27,764 27,764
Share-based payment reserve 206 686 131
Retained (deficits) (28,967) (26,000) (27,230)
Foreign exchange reserve (319) (199) (18)
TOTAL EQUITY 8,245 9,055 7,451
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
For the six months ended 31 December 2020
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 31 Dec 30 Jun
2020 2019 2020
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Loss before taxation (1,751) (2,565) (4,016)
Adjustments for:-
Amortisation of intangible assets 88 68 129
Depreciation of property, plant
and equipment 537 471 1,511
Share-based payment (income)/charge 75 (142) (11)
Loss on disposal of property,
plant and equipment 3 123 [7] -
Finance costs 147 94 176
Pension - net interest expense 22 22 24
Taxation (182) (159) (391)
Operating cash flow before working
capital changes (1,061) (2,088) (2,578)
Decrease/(increase) in inventories 150 (435) (531)
Decrease / (increase) in trade
and other receivables 157 245 (111)
(Decrease)/increase in payables
and deferred income (201) (240) (104)
Cash used in operations (955) (2,518) (3,324)
------------ ------------ ---------
Income tax received - 846 847
Net cash used in operating activities - (1,672) (2,477)
------------ ------------ ---------
Cash flow used in investing
activities
Purchase of property, plant
and equipment (21) (28) (44)
Capitalisation of intangible
assets (129) (121) (251)
Net cash used in investing activities (150) (149) (295)
------------ ------------ ---------
Cash flow used in financing
activities
Finance costs (91) (94) (94)
Finance cost - right of use
asset (56) - (82)
Payment of lease liability (310) - (631)
Proceeds from issue of share
capital (net of share issue
costs) 2,757 436 450
New bank loans raised - - 50
Repayments of borrowings (77) (545) (835)
Net cash flow from financing
activities 2,223 (203) (1,142)
------------ ------------ ---------
Effects of exchange rate changes (66) 36 49
Net (decrease) in cash and cash
equivalents 1,052 (1,988) (3,865)
Cash and cash equivalents at
beginning of the financial period 823 4,688 4,688
Cash and cash equivalents at
end of the financial period 1,875 2,700 823
============ ============ =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Share-based Foreign
Share Share payment exchange Retained
Capital premium reserve reserve profits Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 July 2019 6,354 27,764 828 (100) (23,595) 11,251
Total comprehensive
loss for the period - - - (2,391) (2,391)
Other comprehensive
loss (99) - (99)
Recognition of
share-based
payments - - (142) - - (142)
Issue of ordinary share
capital 450 - - - - 450
Transaction costs in
respect of share issue - - - - (14) (14)
At 31 December 2019 6,804 27,764 686 (199) (26,000) 9,055
Total comprehensive
loss for the period - - - - (1,625) (1,625)
Other comprehensive
profit 181 (291) (110)
Recognition of
share-based
payments - - 131 - - 131
Share based payment
charges - lapsed options - - (686) - 686 -
At 30 June 2020 6,804 27,764 131 (18) (27,230) 7,451
Total comprehensive
loss for the period - - - - (1,737) (1,737)
Other comprehensive
loss - - - (301) - (301)
Recognition of
share-based
payments - - 75 - - 75
Issue of ordinary share
capital 1,702 1,055 - - - 2,757
At 31 December 2019 8,506 28,819 206 (319) (28,967) 8,245
========== ================ ============= =========== ========== =========
Equity share capital and share premium
The balance classified as share capital and share premium
includes the total net proceeds on issue of the Company's equity
share capital, comprising GBP0.02 ordinary shares. The share
premium account can only be used for bonus issues, to provide for
the premium payable on redemption of debentures or to write off
preliminary expenses, or expenses of, or commissions paid on, or
discounts allowed on, any issues of shares or debentures of the
company.
Share premium account
The share premium account represents the amount received on the
issue of ordinary shares in excess of their nominal value and is
non-distributable.
Share-based payment reserve
The share-based payment reserve comprises the cumulative expense
representing the extent to which the vesting period of share
options has expired and management's best estimate of the
achievement or otherwise of non-market conditions and the number of
equity instruments that will ultimately vest.
Retained profits
The retained profits reserve comprises the cumulative effect of
all other net gains, losses and transactions with owners (e.g.
dividends) not recognised elsewhere.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 31 December 2020
1. Accounting policies
Basis of preparation
The interim financial statements, which are unaudited, have been
prepared on the basis of the accounting policies expected to apply
for the financial year to 30 June 2021 and in accordance with
recognition and measurement principles of International Financial
Reporting Standards (IFRSs) as endorsed by the European Union. The
accounting policies applied in the preparation of these interim
financial statements are consistent with those used in the
financial statements for the year ended 30 June 2020.
The interim financial statements do not include all of the
information required for full annual financial statements and do
not comply with all of the disclosures in IAS34 'Interim Financial
Reporting'. Accordingly, while the interim financial statements
have been prepared in accordance with IFRS they cannot be construed
as being in full compliance with IFRS.
The financial information for the year ended 30 June 2020 does
not constitute the full statutory accounts for that period. The
Annual Report and Accounts for 30 June 2020 have been filed with
the Registrar of Companies. The Independent Auditors' Report on the
Annual Report and Accounts for 2020 was unqualified and did not
include references to any matters which the auditors drew attention
to by way of emphasis without qualifying their report and did not
contain statements under Section 498(2) or 498(3) of the Companies
Act 2006.
Going concern
The Directors have prepared and reviewed detailed financial
forecasts of the Group and, in particular, considered the cash flow
requirements for the period from the date of approval of these
financial statements to the end of February 2022. These forecasts
sit within the Group's latest estimate and within the longer term
financial plan, both of which have been updated on a regular basis
as our understanding of the potential impact of the Covid-19
pandemic has developed. The Directors are also mindful of the
impact that the other risks and uncertainties set out on pages 9 to
11 of the Annual Report and Accounts for the year ended 30 June
2020 may have on these estimates.
After due consideration of the forecasts prepared, the Group's
current cash resources, its borrowing facilities and ability to
potentially access additional capital funds to further develop the
business, the directors consider that the Company and the Group
have adequate financial resources to continue in operational
existence for the foreseeable future (being a period of at least 12
months from the date of this report), and for this reason the
financial statements have been prepared on the going concern
basis.
Other
The working capital bank facility in the US has been
reclassified from Other Creditors to Bank Loans.
2. Loss per share
The calculations of loss per share are based on the following
losses and number of shares:
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 Dec 2020 31 Dec 2019 30 Jun 2020
GBP'000 GBP'000 GBP'000
Loss after tax attributable
to owners of the Haydale
Graphene Industries Group (1,751) (2,565) (4,016)
Weighted average number
of shares:
- Basic and Diluted 392,921,556 322,615,153 331,162,204
Loss per share:
- Basic (GBP) and Diluted
(GBP) (0.01) (0.01) (0.01)
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.
3. Approval
The 31 December 2020 interim financial statements were approved
by a duly appointed and authorised committee of the Board of
Directors on 23 February 2021.
[1] iCraft, based in South Korea, is a global technology company
with interests in security and network solutions as well as the
health and beauty sector.
[2] Graphene nano-platelets (GNP-02-STD)
[3] IRPC Public Company Limited ("IRPC") is a Thai Public
SET-listed Petroleum and Petrochemical company. It is a subsidiary
of PTT Group,
[4] Dalian YiBang Technology Company Limited ('DLYB') has been
at the forefront of introducing and servicing high-end imported
products for 15 years in China, which included the introduction of
copper mesh for the purpose of lightning strike protection in both
aerospace and wind energy sectors.
[5] BOLFLEX is a market leader company, expert in the footwear
components sector, with consolidated skills and credit in the
production and supply of soles for the European footwear
industry.
[6] On a LFL basis including Payment of Lease Liability within
Operating Costs
[7] The treatment for the Losses on disposal of fixed assets in
H1 FY2020 of GBP0.12 million was changed in H2 FY2020
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END
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