For
immediate release
|
12 March
2024
|
Haydale Graphene Industries
plc
('Haydale', the 'Company', or the 'Group')
Interim
Results
Haydale (AIM: HAYD), the global
technology solutions group,
announces its unaudited interim results for the
six months ended 31 December 2023 (the 'Period' or 'H1
FY24').
Financial Highlights
·
Group Revenues increased by 38% to £2.47 million (H1 FY23 £1.78
million);
·
Adjusted Administrative expenses of
£3.26 million (H1
FY23: £3.02 million) primarily reflecting inflationary rises and
the strengthening of capability to support forecast
growth;
·
Adjusted operating loss for the Period of
£1.61 million (H1
FY23 £1.89 million);
·
Cash at Period end of £3.3 million (31 December 2022: £2.97
million);
·
Successful fund raise of £5.1 million (Gross) in October 2023;
and
·
Cost savings plan in progress to further hone
operations.
Operational Highlights
· Welsh
Government support for partnership with Hydratech secured in
December 2023 to further develop energy efficient graphene based
thermal transfer fluid;
· Progress being made on projects with Petronas under a 2.5 year
collaboration agreement, with site visit to Haydale's Ammanford
site made in November 2023;
· In
discussion with other multi-national companies for plasma
functionalisation services;
· Cadent: Delivery of working prototype of water heater / shower
for use by their vulnerable customers and next phase being
discussed. A second project to develop an over the radiator
assembly commenced in the Period; and
· US
Silicon Carbide operations progressing with 51% revenue increase on
prior year; lower than anticipated tooling sales offset by strong
powder sales. Additional sales resource secured and additional
manufacturer representative agreements are under negotiation to
reinforce and accelerate tooling sales in H2. Collaboration
agreement with a leading European tooling manufacturer agreed and
first UK sales achieved. New US website now live and discussions
with Far East partner progressing.
Commenting on the interim results, Keith Broadbent, Chief
Executive Officer of Haydale, said:
"We continue to make strides in
boosting our key customer commercial progress on the
functionalisation powder element of our business. We are also
pleased with the continuing development of the prototypes with
Cadent and the opportunities that these will bring both
commercially and to their vulnerable customers. Our focus on
underfloor heating and thermal fluid is a direct support to the
wider push for Net Zero, and we continue our progress there with
discussion with potential end users underway. Our US business
related revenues continue to grow, albeit tooling sales are not
responding as quickly as we had planned; we have therefore taken
action to reinforce sales resource to drive the planned increase in
tooling sales in H2 which we expect to deliver as
we move through the rest of FY24".
For further information:
|
Haydale Graphene Industries plc
|
|
|
|
Keith Broadbent, CEO
Patrick Carter, CFO
|
|
Tel: +44
(0) 1269 842 946
|
|
|
|
www.haydale.com
|
Cavendish
(Nominated Adviser & Broker)
|
|
|
|
Julian Blunt/Edward
Whiley, Corporate Finance
Andrew Burdis, ECM
|
|
Tel: +44 (0) 20 7220
0500
|
|
|
|
|
|
|
| |
Notes to Editors
Haydale is a global technologies
group and service provider that facilitates the integration of
graphene and other nanomaterials into the next generation of
industrial materials and commercial technologies. With
expertise in graphene, other nanomaterials and Silicon Carbide,
Haydale is able to deliver improvements in electrical, thermal and
mechanical properties. Haydale has been granted patents for
its technologies in Europe, USA, Australia, Japan and China and
operates from five sites in the UK, USA and the Far East. For
more information please visit: www.haydale.com
or X: @haydalegraphene
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as ''believe'',
''could'', "should" ''envisage'', ''estimate'', ''intend'',
''may'', ''plan'', ''potentially'', ''will'' or the negative of
those, variations or comparable expressions, including references
to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current
expectations and assumptions regarding the Company's future growth,
results of operations, performance, future capital and other
expenditures (including the amount, nature and sources of funding
thereof), competitive advantages, business prospects and
opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on
information currently available to the Directors.
A
number of factors could cause actual results to differ materially
from the results discussed in the forward-looking statements
including risks associated with vulnerability to general economic
and business conditions, competition, environmental and other
regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward
looking statements contained in this announcement are based upon
what the Directors believe to be reasonable assumptions, the
Company cannot assure investors that actual results will be
consistent with such forward looking statements. Accordingly,
readers are cautioned not to place undue reliance on forward
looking statements. Subject to any continuing obligations
under applicable law or any relevant AIM Rule requirements, in
providing this information the Company does not undertake any
obligation to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions or
circumstances on which any such statement is
based.
Chief Executive's
Report
Overview
The Group revenues have grown 38% to
£2.47 million compared with H1 of last financial year, reflecting
continued growth in both Haydale's nanomaterial based operations in
the UK and its US based silicon carbide powder and tooling
business.
Within the nanomaterial operations,
we have continued to concentrate on plasma functionalisation for
third party clients. This is initially undertaken through a
proven iterative development process to achieve specific
performance criteria with successful trials expected to lead to
longer term commercial supply arrangements. We have made solid
progress in the Period on projects being undertaken for Petronas,
who visited our site at Ammanford in November 2023. We are in
discussions with two other large multinational companies to provide
similar services.
We are also progressing positively on
the commercialisation of our own strategic products based on our
plasma functionalised core products. Of particular note is our
energy efficient, graphene based thermal transfer fluid being
developed with Hydratech and our underfloor heating application,
both of which are supported by the Welsh Government. Likewise our
collaboration with Cadent is going well with working prototypes of
portable, battery powered shower and water heater units delivered
and another initiative under way for an over-the-radiator heating
application.
Our US business has seen lower than
anticipated tooling sales offset by strong sales to its established
SiC whisker and particulate customers. We have taken action to
reinforce sales channels and resource to support its tooling
products which we expect to start coming through in H2.
The potential for the business as a
whole has been recognised by its acceptance onto the UK Government
supported Innovate Edge programme to support the Company with its
innovation led scale-up growth journey.
The Group's Adjusted Administrative
Expenses have increased by 7.6% to £3.26m (H1 FY23 £3.02m)
reflecting inflationary rises, reduction in US production
expenditure recovery and a planned reinforcement of the team to
deliver the forecast growth.
The Group's adjusted operating loss
for the Period was £1.61
million (H1 FY23 £1.89 million).
Commercial Operations
Nanomaterials
UK
The UK has made a good start to the
financial year with continued growth in the sales of materials and
products produced through its proprietary HDPlas plasma
functionalisation technology, concentrating on its established
product range of inks (heating and sensor), composites and
elastomers.
Plasma functionalised powder sales
The value of the Group's HDPlas
proprietary and patented technology to plasma functionalise
nanomaterials avoiding alternative, more pollutive wet
chemistry methods, is starting to be understood as a driver to help
companies reduce their environmental footprint as well as achieve
performance benefits, especially in the waste recycling
space. We are seeing continued interest in plasma
functionalisation from raw material manufacturers who are looking
to extend the effectiveness and range of the applications that
their particular material can address.
Following a period of positive
iterative development working with our core clients in this area,
Petronas (Graphene) and Saint Gobain (Boron Nitride), and their end
customers, we have successfully demonstrated that we can
functionalise their nano-materials to improve performance, which
has led to further work being secured. New opportunities are being
explored for similar services with two other multinational
companies. Of particular note, following the signing of a 2.5 year
collaboration agreement with Petronas in August 2023, we hosted a
technical team delegation over a three-week period to demonstrate
our processes and explore a number of initiatives where plasma
functionalisation could have a material impact on the effectiveness
of their material in application.
Plasma functionalised product sales
Heating
Capitalising on the superior thermal
properties of graphene and supported by grant funding from the
Welsh Government, Haydale is working in collaboration with
Liquitherm Technologies Group (trading as Hydratech), a
leading specialist company with expertise in the
formulation and manufacture of performance thermal transfer
fluids. The target is to develop a graphene based thermal
fluid with enhanced heat transfer properties that can be used in
domestic and commercial heating and cooling
systems and thereby reduce energy bills.
The development of our low power,
underfloor heating product is advancing following specialist
electrical engineering advice that has now led to an operational
prototype system in a demonstration room. We are in
discussions with a number of potential partners who could
potentially act as sales channels to help us take the product to
market.
Cadent
Our collaborations with Cadent have
led to the production of working prototypes of low power, portable
shower and water heater units utilising our heater ink, which are
now being taken to the next phase of commercial development.
We are also working on the development of a low powered
over-the-radiator room heater and discussing a number of other
initiatives that can be rolled out to meet Cadent's statutory
obligations to its 4 million "at risk" customers in off-gas
situations. Once
developed, certain of these products will also be made available to
the other gas and energy distribution companies who could also
adopt our technology to support their vulnerable customers. These
products may also have a resonance in the outdoor leisure
market.
.
Sensors
Our biomedical sensor ink is
continuing to perform well in longer term
tests with a leading manufacturer of glucose and
diabetes testing devices and we are exploring other medical
applications with other partners. However, the process to secure
regulatory approval will take an extended period. The
non-medical device testing, initially for chlorine
in water, is likewise proceeding with our industry partner
and we understand will not require regulatory
clearance.
Elastomers
The Group has continued to deliver
commercial volumes of plasma functionalised materials to Vittoria
for use in their performance bicycle tyres
and next stage developments are under discussion.
Composites
Our work with Viritech on using
plasma functionalised graphene as a barrier material to potentially
use in light weight, hydrogen storage tanks is ongoing
with further stages under discussion.
We are also in discussions with a major defence
company for a potential project that combines our composite
expertise and heating ink capability to create de-icing solutions
for a number of end applications.
Asia Pacific
Our presence in the Asia Pacific
region has acted as a gateway to a number of key clients including
Petronas and Vittoria, serviced out of the UK. We continue to
operate those locations as front-end sales offices and are looking
for further routes to market in these areas.
Silicon Carbide ("SiC") Powders and Tooling
Revenue at our US SiC and tool
manufacturing facility has remained solid with 51% growth recorded
against comparable sales in H1 FY23, with sales of powder proving
particularly strong over the past six months.
We previously reported our
investment in the infrastructure to move up the value chain into
the manufacture and sale of SiC and ceramic tooling, and a plan has
also been put in place to reinforce our sales capability by
strengthening the in-house US sales team in strategic areas.
As previously reported, we have put together a US manufacturer's
representative and distributor network with four manufacturer
representatives signed in the Period, in addition to the two signed
previously and more under negotiation. This has now been
supplemented by a cutting tool catalogue detailing geometries of
the parts we can supply and a US operation specific website
(www.haydalecuttingtools.com)
which went live in January 2024.
We have recently entered into an
agreement with a distributor to sell our tooling products on a
white labelled basis in the UK and Europe and testing with
potential clients is now underway. Initial heads of terms have also
been agreed with a potential Asia based partner who can sell our
products within China to their existing client base as well as
supply us with non-SiC tooling to expand the range of products we
are able to offer and provide manufacturing capacity if
required.
These initiatives are starting to
deliver tooling sales, albeit at a slower pace than we had hoped.
However, on the back of these actions, we remain optimistic of the
US growth potential and believe the longer-term growth
opportunities could be substantial.
The Company continues to offer
CeramycGuard™, a penetrative concrete application containing the
Company's silicon carbide, to protect concrete and extend its
service life by repelling water. External testing to date has
helped refine the parameters under which the treatment needs to be
applied in order to achieve the proven benefits and we are working
with other potential clients to prove the product which we
anticipate could lead to its adoption for use in certain
deregulated markets.
Business Investment
We are still finding new ways to
optimise the HT1400 industrial scale plasma reactor to increase
efficiency, annual capacity and range of surface chemistry
treatments available. As part of this wider process and
to improve efficiency, Haydale has invested in a Scanning Electron
Microscope to bolster its capability to analyse the outcome of its
functionalisation processes without being dependent on third party
support.
In the US, to support the growth in
SiC cutting tools, we have also commenced implementation of an MRP
system which will streamline processes, enhance information flow,
improve decision making and ease the administrative burden on the
team.
In addition to the actions taken in
the US to bolster the sales team, as noted above, in the UK we have
strengthened our technical teams, specifically in quality control
and the sales team in terms of marketing and functional inks.
A significant proportion of the costs associated with these hires
have been offset against savings from a planned restructuring of
the team.
Unaudited Financial Results
The Group's recognised commercial
income in the Period was £2.47
million (H1 FY23 £1.78 million).
Adjusted Administrative Expenses
increased to £3.26 million (H1 FY23 £3.02 million), as a result of inflationary
rises, reduction in US production expenditure recovery and a
planned reinforcement of the team to deliver the forecast
growth.
The Group's adjusted operating loss
was £1.61 million
(H1 FY23 £1.89 million) and the Loss before taxation was
£2.53 million (H1
FY23 £3.01 million). Capital expenditure in H1 FY2024 was
£0.03 million (H1 FY23: £0.16 million).
The Group's net assets at 31
December 2023 were £9.14
million (30 June 2023: £6.97 million). The
Group's borrowings marginally increased by £0.02 million during the Period to
£1.39 million at
the Period end (30 June 2023: £1.37 million). Cash at the Period
end was £3.30 million (30 June 2023: £1.38 million). Negative operating cash
flow before working capital changes was £1.76 million (H1 FY23 £1.84 million).
A negative working capital movement of £0.33 million (H1 FY23 £1.28 million)
meant that Cash Used in Operations was £(2.08) million (H1 FY23 £(2.70)
million).
On 14 September 2023, 138,757,816
warrants issued as part of the prior year fund raise
expired.
The Company raised
£5.1 million
(gross) via the issue of 1,012,609,000 new ordinary shares in
October 2023 at an issue price of 0.5 pence each (the "Fund
Raise"). As at 31 December 2023, and at the date of this
announcement, the Company had 1,798,462,051
ordinary shares in issue.
Outlook
We believe our proprietary plasma
functionalisation process, which offers a highly tunable and more
environmentally friendly solution to the main issue affecting wider
graphene adoption, is gaining traction in the wider nanomaterial
market. As next stage adopters start to look for partners, our
strategic relationships with the Graphene Engineering Innovation
Centre and similar institutions having access to our reactors give
third party reassurance as to the efficacy of our technology.
Our track record of solving clients' problem statements to
achieve specific performance goals, and our ability to deliver
commercial volumes of plasma functionalised powders, inks and
masterbatches, are all proving invaluable in securing new
opportunities.
We are pleased to see revenues
increase by 38% in the Period. Whilst US tooling sales for H2
have started slower than planned the actions taken to reinforce sales channels and resource are
expected to deliver as we move through the rest of FY24.
The Board remains confident in the significant
potential for the Group at this time and, whilst the path to
commercial success depends on timing of a number of initiatives
being realised, the foundations are in
place to achieve success.
Keith
Broadbent
Chief
Executive Officer
12
March 2024
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME (UNAUDITED)
For
the six months ended 31 December 2023
|
|
Unaudited
Six months
ended
31 Dec 2023
£'000
|
Unaudited
Six months
ended
31 Dec 2022
£'000
|
Audited
Year
ended
30 Jun 2023
£'000
|
|
|
|
|
|
REVENUE
|
|
2,466
|
1,782
|
4,301
|
Cost of sales
|
|
(1,060)
|
(841)
|
(1,911)
|
|
|
|
|
|
Gross Profit
|
|
1,406
|
941
|
2,390
|
Other operating income
|
|
237
|
195
|
377
|
|
|
|
|
|
Adjusted Administrative
expenses
|
|
(3,257)
|
(3,023)
|
(6,260)
|
|
|
|
|
|
Adjusted operating loss
|
|
(1,614)
|
(1,887)
|
(3,493)
|
Adjusting administrative
items:
|
|
|
|
|
Share based payments
income/(expenses)
|
|
42
|
(257)
|
(589)
|
Depreciation and
amortisation
|
|
(757)
|
(727)
|
(1,552)
|
Impairment
|
|
-
|
-
|
(531)
|
Restructuring costs
|
|
(35)
|
-
|
-
|
|
|
|
|
|
|
|
(750)
|
(984)
|
(2,672)
|
|
|
|
|
|
|
|
|
|
|
Total administrative
expenses
|
|
(4,007)
|
(4,007)
|
(8,932)
|
|
|
|
|
|
LOSS FROM OPERATIONS
|
|
(2,364)
|
(2,871)
|
(6,165)
|
Finance costs
|
|
(164)
|
(138)
|
(407)
|
|
|
|
|
|
LOSS BEFORE
TAXATION
|
|
(2,528)
|
(3,009)
|
(6,572)
|
|
|
|
|
|
Taxation
|
|
136
|
182
|
407
|
|
|
|
|
|
LOSS FOR THE YEAR FROM
CONTINUING OPERATIONS
|
|
(2,392)
|
(2,827)
|
(6,165)
|
Other comprehensive income:
|
|
|
|
|
Items that may be reclassified to profit or
loss:
|
|
|
|
|
Exchange differences on translation
of foreign operations
|
|
(21)
|
(22)
|
(341)
|
Remeasurements of defined benefit
pension scheme
|
|
147
|
260
|
702
|
|
|
|
|
|
TOTAL COMPREHENSIVE LOSS FOR THE YEAR FROM CONTINUING
OPERATIONS
|
|
(2,266)
|
(2,589)
|
(5,804)
|
|
|
|
|
|
|
|
|
|
|
Loss per share attributable to
owners of the Parent
|
|
|
|
|
|
|
|
|
|
Basic (£) and Diluted (£)
|
2
|
(0.01)
|
(0.01)
|
(0.01)
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(UNAUDITED)
As
at 31 December 2023
|
|
Unaudited
31 Dec 2023
£'000
|
Unaudited
31 Dec 2022
£'000
|
Audited
30 Jun 2023
£'000
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Non-current assets
|
|
|
|
|
Goodwill
|
|
1,059
|
1,131
|
1,059
|
Intangible assets
|
|
1,350
|
1,300
|
1,386
|
Property, plant and
equipment
|
|
5,260
|
7,265
|
5,915
|
|
|
|
|
|
|
|
7,669
|
9,696
|
8,360
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
|
1,603
|
1,996
|
1,733
|
Trade receivables
|
|
1,019
|
904
|
564
|
Other receivables
|
|
332
|
595
|
446
|
Corporation tax
|
|
542
|
187
|
406
|
Cash and bank balances
|
|
3,300
|
2,971
|
1,378
|
|
|
|
|
|
|
|
6,796
|
6,653
|
4,527
|
|
|
|
|
|
TOTAL ASSETS
|
|
14,465
|
16,349
|
12,887
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
Bank loans
|
|
(1,106)
|
(1,357)
|
(1,363)
|
Pension obligation
|
|
(422)
|
(1,030)
|
(577)
|
Other payable
|
|
(1,649)
|
(2,283)
|
(1,962)
|
|
|
|
|
|
|
|
(3,177)
|
(4,670)
|
(3,902)
|
Current liabilities
|
|
|
|
|
Bank loans
|
|
(283)
|
(11)
|
(11)
|
Trade and other payables
|
|
(1,598)
|
(1,709)
|
(1,899)
|
Deferred income
|
|
(268)
|
(104)
|
(103)
|
|
|
|
|
|
|
|
(2,149)
|
(1,824)
|
(2,013)
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
(5,326)
|
(6,494)
|
(5,915)
|
|
|
|
|
|
TOTAL NET ASSETS
|
|
9,139
|
9,855
|
6,972
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Capital and reserves
attributable to equity holders of the parent
|
|
|
|
|
Share capital
|
|
16,730
|
15,717
|
15,717
|
Share premium account
|
|
35,374
|
31,912
|
31,912
|
Share-based payment
reserve
|
|
342
|
501
|
833
|
Retained (deficits)
|
|
(42,933)
|
(38,241)
|
(41,137)
|
Foreign exchange reserve
|
|
(374)
|
(34)
|
(353)
|
|
|
|
|
|
TOTAL EQUITY
|
|
9,139
|
9,855
|
6,972
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
For
the six months ended 31 December 2023
|
|
Unaudited
|
|
Unaudited
|
|
Audited
|
|
|
Six months
|
|
Six months
|
|
Year
|
|
|
ended
|
|
ended
|
|
ended
|
|
|
31 Dec 2023
|
|
31 Dec 2022
|
|
30 Jun 2023
|
|
|
£'000
|
|
£'000
|
|
£'000
|
Cash flow from operating
activities
|
|
|
|
|
|
|
Loss after
taxation
|
|
(2,392)
|
|
(2,827)
|
|
(6,165)
|
Adjustments
for:-
|
|
|
|
|
|
|
Amortisation of intangible assets
|
|
186
|
|
145
|
|
335
|
Depreciation of property, plant and equipment
|
|
571
|
|
584
|
|
1,747
|
Share-based
payment (income)/charge
|
|
(42)
|
|
257
|
|
589
|
Profit on
disposal of plant and equipment
|
|
7
|
|
-
|
|
-
|
Finance
costs
|
|
164
|
|
137
|
|
407
|
Pension
plan contributions
|
|
(86)
|
|
39
|
|
(180)
|
Pension -
net interest expense
|
|
(30)
|
|
3
|
|
-
|
Taxation
|
|
(136)
|
|
(182)
|
|
(407)
|
|
|
|
|
|
|
|
Operating cash flow before
working capital changes
|
|
(1,758)
|
|
(1,844)
|
|
(3,674)
|
(Increase)
in inventories
|
|
130
|
|
(481)
|
|
(218)
|
(Increase)/decrease in trade and other receivables
|
|
(341)
|
|
(185)
|
|
304
|
(Decrease)/increase in payables and deferred income
|
|
(115)
|
|
(610)
|
|
(503)
|
Cash used in
operations
|
|
(2,084)
|
|
(3,120)
|
|
(4,091)
|
|
|
|
|
|
|
|
Income tax
received
|
|
-
|
|
423
|
|
427
|
|
|
|
|
|
|
|
Net cash used in operating
activities
|
|
(2,084)
|
|
(2,697)
|
|
(3,664)
|
|
|
|
|
|
|
|
Cash flow used in investing
activities
|
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
|
(28)
|
|
(159)
|
|
(203)
|
Capitalisation of intangible assets
|
|
(150)
|
|
(132)
|
|
(421)
|
|
|
|
|
|
|
|
Net cash used in investing
activities
|
|
(178)
|
|
(291)
|
|
(624)
|
|
|
|
|
|
|
|
Cash flow used in financing
activities
|
|
|
|
|
|
|
Finance
costs
|
|
(115)
|
|
(77)
|
|
(209)
|
Finance
cost - right of use asset
|
|
(49)
|
|
(60)
|
|
(116)
|
Payment of
lease liability
|
|
(141)
|
|
(296)
|
|
(261)
|
Proceeds
from issue of share capital
|
|
5,063
|
|
5,511
|
|
5,510
|
Share issue
costs
|
|
(588)
|
|
(371)
|
|
(371)
|
New bank
loans raised
|
|
21
|
|
40
|
|
-
|
Repayments
of borrowings
|
|
(6)
|
|
(26)
|
|
(53)
|
|
|
|
|
|
|
|
Net cash flow from financing
activities
|
|
4,185
|
|
4,721
|
|
4,500
|
|
|
|
|
|
|
|
Effects of
exchange rate changes
|
|
(1)
|
|
52
|
|
(20)
|
|
|
|
|
|
|
|
Net increase in cash and cash
equivalents
|
|
1,922
|
|
1,785
|
|
192
|
Cash and
cash equivalents at beginning of the financial period
|
|
1,378
|
|
1,186
|
|
1,186
|
|
|
|
|
|
|
|
Cash and cash equivalents at
end of the financial period
|
|
3,300
|
|
2,971
|
|
1,378
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(UNAUDITED)
|
Share
Capital
|
|
Share
premium
|
|
Share-based payment
reserve
|
|
Foreign exchange
reserve
|
|
Retained
profits
|
|
Total
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
|
At 1 July
2022
|
10,207
|
|
31,912
|
|
244
|
|
(12)
|
|
(35,303)
|
|
7,048
|
Total
comprehensive loss for the Period
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,827)
|
|
(2,827)
|
Other
comprehensive income / (loss)
|
-
|
|
-
|
|
-
|
|
(22)
|
|
260
|
|
238
|
Recognition
of share-based payments
|
-
|
|
-
|
|
257
|
|
-
|
|
-
|
|
257
|
Issue of
ordinary share capital
|
5,510
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5,510
|
Share issue
costs
|
-
|
|
-
|
|
-
|
|
-
|
|
(371)
|
|
(371)
|
At 31 December
2022
|
15,717
|
|
31,912
|
|
501
|
|
(34)
|
|
(38,241)
|
|
9,855
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive loss for the Period
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,338)
|
|
(3,338)
|
Other
comprehensive profit
|
-
|
|
-
|
|
-
|
|
(319)
|
|
442
|
|
123
|
Recognition
of share-based payments
|
-
|
|
-
|
|
332
|
|
-
|
|
-
|
|
332
|
|
|
|
|
|
|
|
|
|
|
|
|
At 30 June
2023
|
15,717
|
|
31,912
|
|
833
|
|
(353)
|
|
(41,137)
|
|
6,972
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive loss for the Period
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,392)
|
|
(2,392)
|
Other
comprehensive loss
|
-
|
|
-
|
|
-
|
|
(21)
|
|
147
|
|
126
|
Recognition
of share-based payments
|
-
|
|
-
|
|
(42)
|
|
-
|
|
-
|
|
(42)
|
Share based
payment charges - Lapsed options
|
-
|
|
-
|
|
(449)
|
|
-
|
|
449
|
|
-
|
Issue of
ordinary share capital
|
1,013
|
|
4,050
|
|
-
|
|
-
|
|
-
|
|
5,063
|
Transaction
cost in respect of share issue
|
-
|
|
(588)
|
|
-
|
|
-
|
|
-
|
|
(588)
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December
2023
|
16,730
|
|
35,374
|
|
342
|
|
(374)
|
|
(42,933)
|
|
9,139
|
Equity share capital and share premium
The balance classified as share
capital and share premium includes the total net proceeds on issue
of the Company's equity share capital, comprising £0.02 ordinary
shares. The share premium account can only be used for bonus
issues, to provide for the premium payable on redemption of
debentures or to write off preliminary expenses, or expenses of, or
commissions paid on, or discounts allowed on, any issues of shares
or debentures of the company.
Share premium account
The share premium account represents
the amount received on the issue of ordinary shares in excess of
their nominal value and is non-distributable.
Share-based payment reserve
The share-based payment reserve
comprises the cumulative expense representing the extent to which
the vesting period of share options has expired and management's
best estimate of the achievement or otherwise of non-market
conditions and the number of equity instruments that will
ultimately vest.
Retained profits
The retained profits reserve
comprises the cumulative effect of all other net gains, losses and
transactions with owners (e.g. dividends) not recognised
elsewhere.
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
For
the six months ended 31 December 2023
1.
Accounting
policies
Basis of preparation
The interim financial statements,
which are unaudited, have been prepared on the basis of the
accounting policies expected to apply for the financial year to 30
June 2024 and in accordance with recognition and measurement
principles of UK adopted International Financial Reporting
Standards (IFRSs). The accounting policies applied in the
preparation of these interim financial statements are consistent
with those used in the financial statements for the year ended 30
June 2023.
The interim financial statements do
not include all of the information required for full annual
financial statements and do not comply with all of the disclosures
in IAS34 'Interim Financial Reporting'. Accordingly, while
the interim financial statements have been prepared in accordance
with IFRS they cannot be construed as being in full compliance with
IFRS.
The financial information for the
year ended 30 June 2023 does not constitute the full statutory
accounts for that period. The Annual Report and Accounts for
30 June 2023 have been filed with the Registrar of Companies.
The Independent Auditors' Report on the Annual Report and Accounts
for 2023 was unqualified and did not include references to any
matters which the auditors drew attention to by way of emphasis
without qualifying their report and did not contain statements
under Section 498(2) or 498(3) of the Companies Act
2006.
Going concern
The Directors have prepared and
reviewed detailed financial forecasts of the Group and, in
particular, considered the cash flow requirements for the Period
from the date of approval of these interim financial statements to
the end of June 2024. These forecasts sit within the Group's
latest estimate and within the longer-term financial plan, both of
which are updated on a regular basis. The Directors remain
mindful of the impact that the risks and uncertainties set out on
page 9 of the Annual Report and Accounts for the year ended 30 June
2023 may have on these estimates.
After due consideration of the
forecasts prepared, the Group's current cash resources, the
repayment profile of its debt facilities, and its ability to
potentially access additional debt and equity funds to further
develop the business, the Directors consider that the Company and
the Group have adequate financial resources to continue in
operational existence for the foreseeable future (being a period of
at least 12 months from the date of this report), and for this
reason the financial statements have been prepared on the going
concern basis.
2.
Loss per
share
The calculations of loss per share
are based on the following losses and number of shares:
|
|
Unaudited Six months
ended
31 Dec 2023
£'000
|
Unaudited Six months
ended
31 Dec 2022
£'000
|
Audited
Year
ended
30 Jun 2023
£'000
|
|
|
|
|
|
Loss after
tax attributable to owners of the Haydale Graphene Industries
Group
|
|
(2,392)
|
(2,827)
|
(6,165)
|
|
|
|
|
|
Weighted
average number of shares:
|
|
|
|
|
-
Basic and Diluted
|
|
1,275,647,324
|
673,549,438
|
729,239,439
|
|
|
|
|
|
Loss per
share:
|
|
|
|
|
-
Basic (£) and Diluted (£)
|
|
(0.01)
|
(0.01)
|
(0.01)
|
|
|
|
|
|
The loss attributable to ordinary
shareholders and weighted average number of ordinary shares for the
purpose of calculating the diluted earnings per ordinary share are
identical to those used for basic earnings per share. This is
because the exercise of share options would have the effect of
reducing the loss per ordinary share and is therefore not dilutive
under the terms of IAS 33.
As part of the fund raise on 3
October 2023, the Company's share capital was restructured to in
effect reduce the nominal value of each ordinary share from 2.0
pence to 0.1 pence.
3.
Approval
The 31 December 2023 interim
financial statements were approved by a duly appointed and
authorised committee of the Board of Directors on 11 March 2024.
A copy of this report is available on the Company's website
(www.haydale.com).