How is it doing?
The year to 30 June 2019 was a difficult one for the company, admitted non-executive chairman, David Banks, but the company has streamlined its operations, installed a new leadership team and taken around £1.6mln of annual costs out of the business.
The year saw commercial revenues climb to £3.47mln from £3.4mln the year before. Grant income eased to £790,000 from £830,000 the previous year.
Encouragingly, revenue in the second half of the fiscal year was 12% higher than in the first half and up 35% year-on-year.
The adjusted operating loss before non-cash items – such as impairments and one-off restructuring costs – narrowed to £4.18mln from £4.88mln in the previous year.
Talking of impairments, the carrying value of intangible assets relating to Haydale’s UK (RPC) composites business was marked down by £1.78mln; this was a non-cash item but it did contribute to the loss before tax widening to £7.76mln from £6.12mln.
At the end of the financial year, Haydale had cash of £4.69mln and borrowings of £1.25mln; a year earlier, cash and borrowings were £5.09mln and £896,000 respectively.
October saw the company receive a fillip in the form of an order for ceramic blanks worth US$700,000.
The order is from a large US cutting tool manufacturer and follows a trial order of 33,000 ceramic blank units previously delivered by Haydale’s South Carolina-based unit, Haydale Ceramic Technologies (HCT) and follows investment by Haydale in the blanks production facilities.
Additionally, HCT has received a commitment in principle from a Japanese cutting tool manufacturer set to launch in April 2020. This commitment is for 145,000 blanks units with a value of around US$600,000.
On 22 October, the firm also announced the launch of a new range of materials to protect against lightning strikes which it had developed in partnership with Airbus UK, BAE Systems and GE Aviation.
The new composites are reinforced with carbon fibre and have improved electrical conductivity that can be used to protect structures as well as for enclosures housing electronic avionics systems. The material has potential applications for unmanned drones, commercial aircraft, space travel and offshore wind turbines which are susceptible to lightning strikes.
In November, the company raised £450,000 in a share subscription from two existing shareholders to boost its working capital reserves.
What the boss says
Keith Broadbent, Haydale’s chief executive, said: “As Haydale takes a more commercial focus, it is great to see the reward from these two customers. We are looking forward to seeing significant growth in this area and receiving more blanks orders in the near term.”
- More commercial orders
- Graphene use picks up as number of applications rises
- Company raised £5.8mln through placing and open offer in February/March
- Keith Broadbent and other directors invested £200,000 in placing