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Directa Plus takes revenue hit in 2022 due to supply chain issues but enters 2023 with record order book

Published: 02:28 02 Dec 2022 EST

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Directa Plus PLC (AIM:DCTA, OTC:DTPKF) has cautioned that €2mln of orders will be deferred into the next financial year reflecting supply chain issues across Europe and the impact of general macro and geopolitical factors.

The AIM-listed producer and supplier of graphene nanoplatelet-based products highlighted specific issues in its Textiles division, where the company has experienced delays in receiving materials, and in the Environmental division, where environmental permissions have been delayed by local authorities impacting the timing of expected tender awards.

As a result, the company forecast revenues for the year to 31 December 2022 of at least €10mln, which would still represent growth of 16% with continued, strong growth underpinned by a significant and growing proportion of repeat customer business.

“The company has also secured a number of notable new customers and contracts during the period across all key verticals and markets, including MC Armor (South America) and Alfredo Grassi SPA (Italy) in Textiles, Reda Energy (UK) in Environmental and a major Gipave asphalt contract,” it said.

This means Directa Plus will enter 2023 with a record order book of c.€8.5mln, providing confidence in the strong future performance of the business and in continuing its growth trend.

“The board expects the company's underlying revenue growth in 2023 to return to at least 25% year-on-year, in line with previous periods,” it forecast.

This growth excludes the positive and potentially material impact of a number of significant tenders within its Environmental division, which have been delayed with decisions on these likely to be made in early 2023.

Investment during the second half of the current financial year in manufacturing equipment will materially reduce direct production costs going forward, the company said.

Alongside other commercial actions, Directa continues to work to mitigate on-going inflationary cost pressures in order to regain margin.

Commenting, founder and CEO Giulio Cesareo said: "The macro background remains challenging and, whilst it is frustrating that we have seen the fulfilment of a number of orders fall back into 2023, the company remains strongly positioned with building momentum in each of its verticals and will enter the new financial year with a record order book.”

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