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Haydale Graphene to tap market to capitalise on its burgeoning sales opportunities

The group's total income for the year more than doubled to £3.91mln from £1.92mln in the previous year
Blood sample
Haydale sees a great sales opportunity for its technology in the self-monitoring blood glucose market

Haydale Graphene Industries PLC (LON:HAYD) is proposing to raise up to £9mln through the issue of shares at not less than 120p each.

A book-building process is under way to place 5mln new shares, while qualifying shareholders will be able to subscribe shares at the same price.

READ: Haydale Graphene makes first sales in China through Everpower partnership

Qualifying shareholders may subscribe for as many shares as they wish, up to the offer maximum of £3mln, but may find their allocations scaled down depending on the overall response to the offer.

Haydale shares currently trade at 170p.

"This equity funding provides Haydale with the funds to capitalise on its sales opportunities and enhance its already growing product portfolio and sales order book,” said Ray Gibbs, Haydale’s chief executive.

“We are at the inflexion point in our evolution, and are massively excited by the opportunities we have developed both internally and from our new operations in the largest and fastest growing markets of the Far East and the USA. The confidence and support shown by our shareholders in funding our growth plans allows us to focus on delivering the future sales in substantial, sustainable global markets,” he added.

The advanced materials group also released its results for the year to the end of June on Tuesday.

Revenue shot up to £3.00mln from £1.17mln the year before, but is not yet at the level needed to cover research & development (R&D) expenditure and administrative expenses.

That being said, September saw it make sales breakthroughs in Asia with its first sales in China through its partnership with shareholder Everpower, and a hefty US$4.58mln three-year deal with a Japanese customer.

READ: Haydale Graphene Industries inks US$4.58mln, three-year deal with Japanese customer

The order book, which stood at £5.4mln at the end of June, has subsequently risen to around £6mln.

It will take a while for the increased sales to filter through to the bottom line, and at present the company is making a loss. Loss before tax widened to £5.64mln to £4.02mln.

The group said it has income visibility from its long-term grant awards, the ongoing advanced composite consulting services from its team at Loughborough, and SiC (silicon carbide micro fibres) sales orders from the US.

Haydale sees the rapidly growing self-diagnostic biomedical sensor market for diabetes monitoring as a major market for its inks products this year through its newly opened Taiwan operation, and a prime source of recurring revenue. 

“We expect to enter into long-term supply agreements with the print houses with which we have had our conductive graphene-based ink product accepted and designed into the future sale of test strips for the SMBG [self-monitoring of blood glucose] market,” Haydale CEO Ray Gibbs said.

"This has been a year of considerable developments at Haydale as the group has moved from being R&D focused to a commercial entity with focus on repeatable revenues of our advanced materials in both Graphenes and our specialist Silicon Carbide micro fibre product,” Gibbs declared. 

“We have grown total income by 100% and with the recent overseas investments and emphasis on increasing sales, we look at the current financial year with much optimism having built the foundations for the group to achieve its long term strategic objectives," he added.

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