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Haydale Graphene hit by aerospace sector turbulence

Haydale has reduced overheads by £900,000 and closed its Taiwan operation

Haydale Graphene Inds PLC -
Aerospace is an important market for Haydale

Haydale Graphene Industries PLC (LON:HAYD) has lowered its expectations for this year after slow sales in the US and UK.

US unit HCT has seen disappointing demand for silicon carbide (SiC) whiskers and blends, while the new blanks production line was hit by teething problems as it ramped up after being commissioned.

Interest has been very strong subsequently but problems for key customers in the aerospace industry mean the shortfall will not be made good in the second half.

UK orders have also been slower to come through than anticipated and while sales are up, they, too, have undershot expectations, said the Ammanford-based business.

Haydale has reduced overheads by £900,000 and closed its Taiwan operation though there will be a £410,000 revenue hit from this action in the second half.

Keith Broadbent, chief executive, remains upbeat about the longer-term potential.

"Whilst the decision to close Haydale Taiwan, the later than expected commissioning of the blanks line and the slowdown in the aerospace sector in the US has affected our short-term revenues, the directors remain committed to delivering the commercial priorities that we have set the group. 

"The new global sales team is already delivering positive results with a strong pipeline of profitable opportunities being actively pursued," he said. 

The group's cash position was £2.7mln at the end of the half-year.

Haydale will publish its interim numbers to end-December on 27 February.

Quick facts: Haydale Graphene Inds PLC

Price: 3.9 GBX

LSE:HAYD
Market: LSE
Market Cap: £16.59 m
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