Directa Plus PLC – Final Results

Directa Plus (AIM: DCTA), a producer and supplier of graphene-based products for use in consumer and industrial markets, announces its final results for the 12 months ended 31 December 2019.

Directa Plus’s focus is principally on the two sectors where it has established strong commercial advantage through developing and launching products with a technological lead: Environmental, based on our Grafysorber® product for treating oil contaminated water; and, Textiles (based on our G+ products and technology).

Financial highlights

• Product and service sales revenue more than doubled to €2.25m (2017: €0.95m), total income (including grants) also more than doubled to €2.50m (2017: €1.23m)
• Loss after tax €3.96m (2017: €3.95m)
• Successful placing to raise £3.45m in December, with £1.32m received post period end
• Cash and cash equivalents at year end of €5.50m (2017: €6.93m), increased by placing proceeds of €1.47m received in January 2019

Proven, successful strategy maintained

• Target existing products and markets that can be significantly improved with the addition of Directa Plus products
• Focus on those vertical markets in which the Company can gain strong traction – textiles, environmental, elastomers and composites
• Seek further agreements with companies that have international footprints to use as springboards to wider global markets
• Maximise revenue opportunities by supplying expertise, know-how and services as well as materials
• Sharing in the proceeds of customers’ growth from new products alongside supplying an essential ingredient

Target market progress

Textiles

• Workwear: new orders received from Alfredo Grassi
• Denim: new products launched with Arvind
• Ski wear: third collection launched with Colmar
• Cycling: launch of Aero Jersey with Oakley
• Luxury: new products to be developed with Loro Piana

Environmental

• Grafysorber® water treatment technology – moved into sales generation with integrated oil and gas services provider GSP
• Successful conclusion of field trials with OMV Petrom with commercial negotiations underway
• Successful participation in PDO (Oman’s national oil company) Tier 2 Oil Spill Response Exercise
• Collaboration with Ambienthesis to investigate applications in remediation and reclamation markets

Elastomers

• Strategic agreement signed with Marangoni to enter automotive markets with the cold re-treading of bus and truck tyres

Composites

• Partnership with Iterchimica to use G+ products as an additive to extend the life and resilience of asphalts on roads and exclusivity agreement with global luxury accessories producer

Corporate

• Significant new patents filed or granted covering flame retardant properties and elastomeric formulae for tyres bringing the total number of patents to 18 granted and 23 pending
• CEO and Founder Giulio Cesareo joins the prestigious industry council of the US National Graphene Association
• New 19% shareholder, California based Nant Capital, controlled by well-known medical, science and media entrepreneur Patrick Soon-Shiong

Giulio Cesareo, Founder & CEO, said: “2018 has seen accelerating commercial traction with agreements and collaborations signed, and orders received, for products to be delivered over the next twelve months. We are gaining real, measurable commercial traction and maintaining our technological and commercial lead over our competitors, demonstrated by the number of products launched in our customers’ markets and by the number of agreements already signed which are generating revenue. There is every reason to look forward with great excitement to the coming year’s activity at Directa Plus as we move forward on a number of extremely promising fronts.”

Key Performance Indicators and Financial Summary

	2018	2017
Revenue from product and service sales (€’m)	2.25	0.95
Total Income* (€’m)	2.50	1.23
EBITDA** (€’m)	(3.24)	(3.16)
Loss after tax(€’m)	(3.96)	(3.95)
Cash and cash equivalents (€’m)***	5.50	6.93
Total number of patents granted	18	15

* Total Income comprises revenue from product and service sales (€2.25m), and other income including government grants (€ 0.13m) and RDEC – Research and Development Expenditure Credit (€0.10)

** EBITDA represents results from operating activities before depreciation and amortisation of €0.67m (2017: €0.63m). This is a non-GAAP measure. Management decided to use EBITDA to provide a clearer reflection of operations by stripping out interests, tax, depreciation and amortization.

*** Before receipt of £1.32m (€1.47m) following completion in January 2019 of the Conditional Placing and  Open Offer announced in December 2018

 

For further information please visit http://www.directa-plus.com/