LONDON (Alliance News) - Haydale Graphene Industries PLC on Wednesday said its financial year results will be below expectations with annual loss broadly flat year-on-year.
Shares in Haydale were trading 19% lower following the news at 78.02 pence each on Wednesday midday.
The graphene and nano materials producer expects revenue for the year to the end of June to come 15% to 20% higher than GBP3.0 million recorded in 2017 financial year, but below estimates.
Haydale said, as a result, pretax loss would be broadly in line with the year before at GBP5.6 million, but below expectations.
During the second half, the company suffered from unfavourable currency movements and delays in customer orders.
In particular, Haydale said it expected GBP300,000 revenue related to shipment of contracted sales at the end of June. This income is now forecasted to be received in the first quarter of financial 2019.
Meanwhile, in the Far East, the company said it is confident for long-term sales growth as it continues to supply "ever-increasing" quantities of graphene and other speciality inks for sampling, testing and evaluation.
Haydale said it remains in talks with an undisclosed Taiwanese partner to secure a supply contract. However, the company said the agreement is not expected to be reached in financial 2018.
In addition, the company announced that Chief Executive Ray Gibbs will step down from the board in order to concentrate on Haydale's business development in the UK and abroad. The company has started search for a replacement.
"Whilst the group has made strong operational progress in the second half of 2018, it has been disappointing in terms of the group's sales," said Chairman David Banks. "We remain confident, however, that this is primarily a timing issue and that many of these expected forecast sales should now be recognised in financial 2019."
Haydale (HAYD)