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(Alliance News) - Directa Plus PLC on Monday posted a broadly unchanged interim loss, despite a 56% year-on-year rise in revenue, and said that it will acquire a majority stake in a Romanian waste management and decontamination services business for EUR4.1 million.
The company, which produces and supplies graphene-based products like golf balls, sportswear jackets and footwear, also said it will raise up to GBP8.2 million to fund the Romanian stake acquisition.
Directa Plus shares were trading 5.8% lower at 73.45 pence each in London on Monday afternoon.
The company has entered into a conditional agreement to acquire a 51% stake in Setcar SA, which has been a commercial partner of Directa Plus and has contributed to the industrial development of the company's Grafysorber mobile decontamination units.
For 2018, Setcar reported revenue of EUR3.9 million and earnings before interest, taxes, depreciation and amorotisation of EUR250,000.
To fund the Setcar stake, Directa Plus has raised GBP7.2 million via placing 9.6 million shares at 75p per share. It is also making an open offer for up to 1.3 million new shares to raise up to GBP1 million.
Directa Plus also intends to use the share issue proceeds to expand presence in environmental sector, improve G+ production facility, fund research and development activities and for general working capital purposes.
"This is a transformational transaction for Directa Plus. Just as we are seeking to do in textiles, we are now proposing to take more control of the environmental supply chain to capture maximum value from the commercial offering made possible by our Grafysorber technology," Directa Plus Chief Executive Officer Giulio Cesareo said.
For the six months to June 30, Directa Plus recorded revenue of EUR894,693, up from EUR573,822 in the year ago period. Pretax loss was broadly similar at EUR1.8 million for the period.
"As we look forward to the reminder of 2019 and beyond, we expect to make further progress in all of our key vertical markets and continue to grow our business," said Cesareo.
By Tapan Panchal; tapanpanchal@alliancenews.com
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