Haydale Graphene’s Pretax Loss Widens Despite Tripling Revenue

Haydale Graphene Industries PLC (LON:HAYD) has increased first half revenues by 90% due to its recent expansion program, but the it’s come at a heavy cost. 

According to PractiveInvestors.co.uk, “The and nanotechnology specialist has acquired businesses in Thailand and the US and these helped sales rise to £1.5mln (£0.8mln) in the half year to December, though integration and start-up costs meant losses rose to £2.4mln.”

The company said on wednesday that its pretax loss widened in its first half despite revenue almost tripling on a year-on-year basis, with the company posting revenue of £1.1 million for the six month period ending December 31, ahead of the £325,000 posted the same period a year earlier.

However, the pretax loss widened to £2.6 million from £2.0 million, with administrative expenses coming in much higher at £4.1 million from £2.9 million, of which only around £700,000 was in regard to the two businesses it recently acquired, along with even further costs from an increase in employees.

Haydale has been striking deals with multiple in an effort to expand their reach, including the adhesive company Huntsman, who’s developing a new graphene-enhanced range of Araldite resins. They also recently picked up a U.S. contract with Advanced Composite Materials (ACM,) one of the top manufacturers of silicon carbide whiskers in the world.

Haydale currently expects to launch an adhesive and a thermally enhanced graphene option sometime within the next year. 

Ray Gibbs, chief executive, said:  “This half year has seen the successful acquisition and integration of two businesses that substantially increases our international reach and broadens our speciality nanomaterials offering.”

Gibbs added, “These businesses have widened our offering of advanced material and expertise to include silicon carbide from our US operations, and a range of graphene and other functional from the Far East.”

Source: Proactive Investors