(Alliance News) - Haydale Graphene Industries PLC on Thursday said its loss narrowed in the first half of its financial year as it confirmed the shut-down of its loss-making manufacturing facility in Taiwan.
The stock was trading flat at 1.35 pence each on Thursday morning in London.
For the six months to the end of December, the Ammanford-based graphene and nanomaterial manufacturer recorded a narrowed pretax loss of GBP2.7 million compared to GBP3.5 million a year prior. This was on a 17% fall in revenue to GBP1.4 million from GBP1.6 million in the comparative period.
The lower revenue was attributed to a "softer start to the financial year" due to disappointing sales of silicon carbide whiskers and blends. Sales in the company's other regions were also below expectations.
During the period, Haydale said it closed its loss-making Taiwan manufacturing facility and moved production to its centres in Bangkok and Ammanford. The decision was made as the company did not see any "realistic prospect" of the facility moving into profitability in the medium term.
"We look ahead to the second half of financial 2020 showing a more robust turnaround in sales and a reduced operating loss compared to the second half of financial 2019, and on a full year-on-year basis," Chief Executive Keith Broadbent said.
"Cost control remains a focus, but we recognise that investment in further resource will be required to drive sales of the new product lines. Therefore, the level of overall cost reduction will reduce within the wider rebalancing towards a structure geared to achieving commercial success."
By Ife Taiwo; ifetaiwo@alliancenews.com
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Haydale (HAYD)