Haydale Graphene Industries PLC (LON:HAYD) said it has sufficient reserves to adequately manage the anticipated impact of the coronavirus (COVID-19) outbreak.
In a statement, Haydale said its directors are taking prudent steps to preserve the company’s cash position as it is seeing a slowdown in a number of its markets, particularly in the US where demand for Haydale’s Silicon Carbide blanks has been indirectly affected by the huge reduction in air travel, which has compounded the ongoing impact of the slowdown at one of the major US manufacturers in the aviation industry.
The aerospace sector has already responded to this sharp decline with the temporary suspension of production or reduced time working in many manufacturing facilities in the US, the group noted.
Recently, the indefinite extension of some of these temporary closures has increased the level of business uncertainty in the US and has now made it likely, in the current environment, that the overall group will fall markedly short of its trading expectations, Haydale told investors.
“The board considers that the long-term outlook remains very much unchanged and believe that Haydale's proprietary technology and its capacity to functionalise nano materials continues to deliver confidence in the prospects of the group,” Haydale assured its shareholders.