(Alliance News) - Haydale Graphene Industries PLC on Monday warned sales and earnings would miss City forecasts as an upturn in orders in the US was taking longer than hoped to materialise.
Shares in the Carmarthenshire, Wales-based technology solutions company fell 15% to 0.38 pence in London on Monday.
In a trading update for the year ending June, Haydale said it expects full-year sales of GBP4.7 million behind current market forecasts of GBP5.8 million. This would still be above last year's GBP4.3 million, Haydale said.
Adjusted earnings before interest, tax, depreciation and amortisation is expected to only be "marginally behind" market expectations, at a GBP3.2 million compared to forecasts for a GBP3.0 million loss.
Haydale said the building blocks to take the US silicon carbide business up the value chain and into tooling manufacture and sales have largely been completed. However, orders are taking longer than anticipated to crystallise.
In addition, certain sales for the fourth quarter have been impacted by a very short term US supply chain issue that will reduce available stock, the company added.
"Whilst Haydale is starting to see good progress with both late stage pipeline and client accounts increasing, the testing cycle is proving to be longer than anticipated," it stated.
Looking ahead, Haydale said it expects the "general commercial momentum" from this financial year to continue and "accelerate" next financial year reflecting building confidence in the medium and long-term prospects and the overall significant potential for the group.
By Jeremy Cutler, Alliance News reporter
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Haydale (HAYD)