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Directa Plus says ‘significant’ revenue growth to continue as interim sales jump 39%

Published: 02:55 29 Sep 2022 EDT

Directa Plus PLC -

Directa Plus PLC (AIM:DCTA, OTC:DTPKF) reported a 39% surge in revenues for the first six months following progress in its key markets and forecast “significant” continued revenue growth despite the challenging macro-economic climate. 

Revenue in the half-year to 30 June 2022 amounted to €5.51mln, up from €3.95mln in the same period last year, driven by a strong performance by all its main verticals, the producer of graphene-based products for the consumer and industrial markets said in its earnings release. 

The company said it has seen an increased interest in graphene and its applications and has received “a materially higher level” of enquiries from potential partners and customers, which has translated into continued growth. 

The Environmental Remediation business saw revenue jump 43% in the first half, while Textiles rose 26%. In other verticals, revenue soared 86% thanks to the asphalts applications, which the company said are providing “encouraging signals”. 

Directa Plus said the difficult and uncertain macro-economic environment impacted on profitability in the period, as input cost inflation, mainly driven by energy price increases, supply chain issues and recessionary destocking by suppliers meant that the group had to deal with unexpected and significant cost increases. 

As a result, first-half adjusted EBITDA losses widened to €1.29mln from €0.94mln. 

The company said it has taken action to mitigate the cost increases by raising prices for its products and investing in new equipment that is expected to cut production costs. As a result, it expects the gross margin to recover in the second half of the year. 

"We maintain a positive outlook for the full year. However, this optimism must be tempered by the increasingly difficult macro-economic and geopolitical situation as inflation trends and supply chain issues could well worsen in the short term as we approach the northern hemisphere winter,” commented Directa Plus founder and CEO Giulio Cesareo. 

“Despite these pressures, the directors believe that Directa Plus has positioned itself well to withstand headwinds and take full advantage of the technology platform we have developed which continues to gain further commercial traction." 

During the period, the company’s Grafysorber technology received authorisation from the United States Environment Protection Agency to be used on any oil contamination in the US. 

It also signed its first order of Grafysorber-based absorbing products from UK oilfield chemical supplier REDA Energy to initially target northern European markets.  

In addition, Oxfordshire County Council began its second trial of GiPave, a patented asphalt concrete modifier enhanced by G+ graphene. 

Directa Plus said it still awaits the final decision on the award of a significant contract in Romania for its Environmental Remediation services, saying it continues to believe that it is “well positioned” to win the tender. 

The company had cash of €7.78mln at end-June, in line with management expectations, down from €11.13mln at end-2021.

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