Haydale (AIM: HAYD), the global advanced materials group, is pleased to announce its full year results for the year ended 30 June 2019.
· Board members reduced and new leadership team installed;
· Formation of a global cross site / cross commodity sales team each with specific product/market expertise.
· Recruitment of a UK Sales Director with significant industry, product and market knowledge of composites.
· Review of the Group’s business unit structure to ensure streamlining and efficiencies largely complete in the US and UK, with the APAC region review ongoing;
· The redirection of the Ammanford (UK Inks) business from a cost centre to a profit centre in progress
· Focus shifted to commercial revenue and grant income or free of charge R&D only if the commercial
opportunity is apparent;
· Significant in year investment in the US blanks tooling business ($1.2 million) to capture more of the value chain;
· Functionalisation capabilities enhanced with several new treatments creating a variety of offerings to meet customer requirements;
· Incorporation of nano materials into bespoke solutions has become a core competence;
· Development of tooling and component enhanced pre-preg for niche automotive; anticipated to the reach wider automotive industry in due course.
· Commercial revenues £3.47 million (2018: £3.4 million);
· Initial growth of £0.5m in the US business following a total of $1.5m investment in capital equipment, offset by a reduction in the refocused UK (RPC) business now targeting repeatable product related commercial sales;
· c£1.6 million of annualised cost savings achieved to date;
· Adjusted operating loss before non-cash items (depreciation, amortization, share based payment charges, impairments and one-off restructuring costs of £0.35 million was £4.18 million (FY18: £4.88 million)
· The Board, following extensive discussions with its advisors and auditors, impaired intangible assets relating to the UK (RPC) composites business by £1.78 million not withstanding the impairment, the Board considers the composite business to have a good pipeline of opportunities. This was driven by the Group’s current market cap despite a good pipeline of opportunities.
Post Period End Highlights:
· Launch of advanced nano-materials additives for eleastomers at IRC, September 2019
Commenting on the results David Banks, Non-exective Chairman of Haydale, said:
“The year under review has been a challenging one for Haydale. At management level, we have recruited a new Executive team lead by Keith Broadbent, who was promoted from COO to CEO in March 2019, and Laura Redman-Thomas, who joined as our CFO in December 2018. At an operational level, we have streamlined the business and rationalised our cost base, created a rigorous product and commodity analysis with subsequent clear focus, both inwardly and outwardly, introducing best manufacturing procedures and processes, created a Group sales force and refinanced the business with the fundraising announced in March.“