Strong performance delivers revenue ahead of market expectations
and solid growth across the Group
Directa Plus (AIM: DCTA), a leading producer and supplier of graphene nanoplatelets based products for use in consumer and industrial markets, announces its full year results for the year ended 31 December 2022.
· Product sales and service revenue increased by 26% to €10.86m (2021: €8.62m), slightly above consensus market expectations
· Total income (including grants) increased by 19.4% to €11.28m (2021: €9.45m)
· Adjusted LBITDA * increased to €3.15m (2021: €2.49m)
· Loss before tax increased to €5.33m (2021: €3.38m)
· Reported (basic) Loss per share was €0.07 (2021: €0.06)
· Cash and cash equivalents at year end of €5.73m (2021: €11.13m)
· Total patents granted at year end of 80 (2021: 72)
* Adjusted LBITDA represents loss from operating activities before tax, interest, depreciation and amortization, adjusted by one-off income, inventory write-offs, non-recurring legal expenses and onerous contract provision (please refer to the CFO statement for further details).
Target market progress
Environmental Remediation (75% of revenue (2021: 76%))
· Installed two production units to increase production capacity and benefits derived from lower unit production costs.
· Commercial Agreement with UK based REDA Energy to distribute Grafysorber® oil response products in agreed territories in Northern Europe.
· Authorisation from the US Federal Environment Protection Agency (EPA) for Grafysorber® technology to be used on any oil contamination on US territory.
· Established pipeline of active tenders and high value opportunities.
Textiles (23% of revenue (2021: 21%))
· First exclusive supply agreement in Latin America with CIA Miguel Caballero SAS in Colombia.
· Contract extension with Alfredo Grassi S.p.A. to broaden the collaboration for the workwear markets in Italy and France.
· Supply agreement with Officine di Cartigliano in Italy to improve equipment performance and address antistatic issues.
· Continued to partner with a global chemicals and materials group on an exclusive basis to develop specific products for the global air filtration markets.
· Post period end granted an Italian patent for G+ graphene technology for air filtration applications.
· New major contract in the composites vertical covering the resurface of a total of 250 km section of the A4 Torino-Milano motorway section with Gipave, a sustainable asphalt solution containing G+ graphene.
· New exclusive agreement with Pigmentsolution GmbH to support the development and distribution of Directa Plus's new patented Graphene Plus (G+) paints product, Grafyshield G+, initially in Germany, Austria, Switzerland, and Poland.
· Continued investment in next generation manufacturing equipment to materially reduce direct production costs and to mitigate inflationary cost pressures.
Commenting on the results, Giulio Cesareo, Founder & CEO, said:
"I am incredibly proud of the successes achieved by our dedicated team this year against a challenging economic backdrop. We have secured several contract wins and invested in our technology to position the business to serve a range of customers globally as the awareness of the capabilities of graphene continues to grow.
"In the current climate, businesses across all sectors are turning to more sustainable methods and our G+ technology has the ability to sit right at the heart of many of these sectors globally. The prospects for Directa Plus are increasingly positive and we have entered FY23 in a robust position. Our focus now is on developing our core verticals which are able to generate significant product demand and higher recurring revenue from customers. With an expanding network of customers and partners, a record order book alongside a strong balance sheet, I am confident in the Group's ability to deliver on its growth ambitions for the year ahead."