TIDMHAYD
RNS Number : 0430B
Haydale Graphene Industries PLC
18 September 2018
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
For immediate release 18 September 2018
Haydale Graphene Industries plc
('Haydale' or the 'Group' or the 'Company')
Full Year Results
Haydale (AIM: HAYD), the global advanced materials group, is
pleased to announce its full year results for the year ended 30
June 2018.
Operational Highlights
-- Sales to more than 50 customers for the Group's graphene
related products and services in the year, almost double that of
the prior year;
-- Signifcant advances in functionalisation capabilities
achieved, increasing customer base; and
-- Two SBUs established that have increased sales across the
Group leading to a united approach to grow sales.
Financial Highlights
-- Commercial revenues increased to GBP3.4 million (2017: GBP3.0 million);
-- Income of more than GBP1.0 million from graphene related
products and services (2017: GBP1.0 million)
-- Revenues from Far East region starting to grow significantly,
up to GBP0.3 million (2007: GBP0.1 million); and
-- New market in paints and coatings for the Group's SiC opened
with sales to major US-based customer of GBP0.2 million in the year
(2017: nil).
Post Period End Highlights:
-- New $3.3 million, 5 year contract extension signed to supply the Group's SiC;
-- Contract with the English Institute of Sport secured to
develop advanced wearables incorporating Haydale's technologies for
the 2020 Olympic and Paralympic Games, and
-- Board strengthened with the appointment of David Banks as
Interim Executive Chairman and Keith Broadbent as Chief Operating
Officer.
Commenting on the results David Banks, Interim Executive
Chairman of Haydale, said:
"Overall progress for the Group this year has been solid, albeit
we are disappointed that we did not achieve the revenue growth we
had anticipated and we now believe that we have made the necessary
changes to address those issues.
There are significant growth opportunities with our new and
adapted approach of using our global footprint as one team, with
cross-selling and cross R&D focus combined with a
re-orientation to organic growth and cost monitoring. Business
development surrounding the major advances we have seen in our core
skills on inks, functionalisation and dispersion of graphene, in
conjunction with the new market segment for SiC, sets Haydale up
for the next phase of evolution and scale up."
- Ends -
For further information:
Haydale Graphene Industries plc
David Banks, Interim Executive Chairman Tel: +44 (0) 1269 842 946
Gemma Smith, Head of Marketing www.haydale.com
Arden Partners plc (Nominated Adviser
& Broker)
Ruari McGirr / Paul Shackleton / Tel: +44 (0) 20 7614 5900
Ben Cryer
Media enquiries:
Buchanan
Henry Harrison-Topham / Jamie Hooper / Tel: +44 (0) 20 7466
Gemma Mostyn-Owen 5000
haydale@buchanan.uk.com www.buchanan.uk.com
Notes to Editors
Haydale is a global technologies and materials group that
facilitates the integration of graphene and other nanomaterials
into the next generation of commercial technologies and industrial
materials. With expertise in graphene, silicon carbide and other
nanomaterials, Haydale is able to deliver improvements in
electrical, thermal and mechanical properties, as well as
toughness. Haydale has granted patents for its technologies in
Europe, USA, Australia, Japan and China and operates from six sites
in the UK, USA and the Far East.
For more information please visit: www.haydale.com
Twitter: @haydalegraphene
A copy of this preliminary statement will be available to
download on the Group's website www.haydale.com. Copies of the
Annual Report and Accounts, together with the notice convening the
annual general meeting, will be posted to shareholders in due
course at which time the Annual Report and Accounts will be made
available to download on the Group's website, www.haydale.com, in
accordance with AIM Rule 26.
CHAIRMAN'S STATEMENT
Introduction
I am pleased to present the Haydale Graphene Industries Plc's
("Haydale", the "Group" or the "Company") full year audited results
to 30 June 2018 ("FY18").
The year under review has been a busy one for Haydale, building
on the foundations of the previous year, integrating, investing in
and growing the revenues of the two acquisitions made in the prior
year, launching a specialist graphene ink operation facility in
Taiwan and opening new markets for our advanced graphene and
nanomaterials products. At the beginning of the year we split the
Group's customer facing operations into two sales generating
strategic business units (SBU) which has proved to be a beneficial
stepping stone in our operational development, increasing our
revenues across both SBUs from those generated in the prior year
ended 30 June 2017 ("FY17").
Summary financials
Total income for FY18 of GBP4.23 million (FY17: GBP3.91
million), comprised commercial revenues of GBP3.40 million (FY17:
GBP3.00 million) and grant income of GBP0.83 million (FY17: GBP0.90
million). We continued to invest in increasing our know-how,
knowledge and understanding of mixing and dispersion techniques
alongside our industry-leading collaboration partners; being the
bedrock for successful commercial sales.
As a leader in the graphene industry, an important KPI for
Haydale is the amount of income that we generate from the sale of
our graphene-related products and services. In FY18, I'm pleased
that this figure remained in excess of GBP1.0 million for the
second successive year, but more importantly it was made up from
sales to more than 50 different customers across our countries of
operation, almost double that of the prior year. We expect to be
able to build further on this figure in the coming years.
Operations
During the year under review we set up a graphene and specialty
ink manufacturing facility in Taiwan, targeting the $15 billion
biomedical screen-printed sensors for the self-monitoring blood
glucose market. This now takes our international operating sites to
six, with two in the UK and one in each of the USA, Thailand, South
Korea and Taiwan. Our Thailand operation is going from strength to
strength and expects to build further on its improving sales in the
current financial year ending 30 June 2019 ("FY19"). In particular,
following successful functionalisation trials, we are delighted to
have secured the sale of one of our HT60 plasma reactors to one of
Thailand's leading Petro-chemical processors (final commissioning
is due in Q1 of FY19), as well as long-term consulting contracts.
The customer intends to add value to certain bi-products arising
from their manufacturing process using our functionalisation
capabilities.
Our USA facility, which was successfully rebranded to Haydale
Ceramic Technologies ("HCT") during the year, manufactures a range
of our proprietary silicon carbide micro-fibres ("SiC") which add
strength, toughness and anti-scratch properties to existing
materials. Despite taking longer than we had expected, HCT has now
signed a number of long-term supply contracts with world-wide
businesses that incorporate HCT's SiC in the manufacture of their
hard-edged cutting tools and, as of 10 September 2018, had a
long-term order book of approximately GBP4.15 million ($5.46
million) for delivery over the coming years, providing excellent
revenue visibility. HCT has been developing new markets for its
products and has successfully integrated its SiC into a major
US-based paint and coatings customer where sales commenced in
October 2017 and were approximately GBP0.22 million in FY18.
Pleasingly, sales volumes in current financial year to this
customer are continuing at higher monthly rates than in FY18.
Our South Korean sales office has secured SiC orders of
approximately GBP0.09 million from industrial giant, Taegu Tec Ltd,
based in South Korea. that we expect to increase in FY19. We have
received positive feedback from a major oil conglomerate on the
benefits of our SiC as a structural enhancer of their catalysts, a
crucial part in the petrochemical refining process. We have high
hopes of developing this new market opportunity in FY19 as our
product offers a real benefit to an industry-wide problem.
Rather than just sell SiC "powder", we took the decision in FY18
to add value to our SiC micro fibres by investing in our own
in-house US manufacturing capabilities to address a growing market
in selling our proprietary SiC cutting tools ("blanks"). We
generated maiden sales of approximately GBP0.1 million in FY18,
initially through selling third-party contract manufactured SiC
blanks, but encountered supply chain issues from our European
contractors which led to us deciding to accelerate our investment
in our own capabilities. Our in-house manufacturing equipment is
expected to be commissioned by the end of this calendar year with
sales of product coming through in H2 of FY19.
During the year, we delivered phase 1 of a project to build a
novel Automotive panel production line for Everpower in China. The
sales value for phase 1 was approximately GBP0.28 million and phase
2 is expected to commence in Q3 of FY19, where the target
application is initially focussed on internal car panels for the
burgeoning Chinese auto industry.
The graphene teams in Loughborough and Ammanford have been
working tirelessly during the year to enhance a number of
customers' products through the appropriate functionalisation,
mixing and dispersion of the correct commercially available
graphene into their existing products. An excellent example of this
was the strong commercial progress made over the last year with a
global composite materials group to enhance mechanical properties
for selected lines within their product range. The global customer
paid approximately GBP0.11 million to Haydale in FY18 as we
delivered various formulations of graphene enhanced masterbatches
for trials.
In collaboration with GKN, Cobham and BAE Systems, we have
successfully increased the electrical conductivity of an aircraft
aileron by 600% to defeat lighting strike and potentially reduce
the need for heavy "parasitic copper" in a composite built
aircraft. Whilst we acknowledge that material revenues from the
commercial aircraft market will be longer term, its application in
the fast-growing drone market is potentially considerable. We were
delighted to be involved with the University of Central Lancaster,
to develop the world's first graphene skinned plane which was
unveiled at the Farnborough Airshow in July 2018.
Management
As recently announced, Keith Broadbent, who has been with
Haydale for just over a year as Managing Director of the Resins,
Polymers and Composites business unit, has now stepped up and
joined the Board of Directors as Chief Operating Officer. Keith
brings extensive operational experience in driving sales and will
have overall responsibility for delivery of the Group's budgets.
This allows Ray Gibbs, formerly CEO and now President, Business
Development, to concentrate on global sales opportunities and focus
on our key markets of ceramics, composites, conductive inks and
elastomers.
I have also taken on the role of Interim Executive Chairman
during this important phase of the Group's development. All
businesses face challenges as they grow and develop and we have not
been immune to a number of these challenges, specifically around
sales order delays caused by the actions outside of our control by
multi-national corporates. However, we now believe that we have in
place an improved management structure capable of minimising these
types of issues in the future.
Outlook
We enter FY19 with cautious optimism. The recently announced
five-year SiC contract extension with an existing cutting tool
customer has provided even more sales visibility for our US
operation and our steadily increasing graphene ink sales to several
print houses for the bio-medical sensor market is an encouraging
start to the financial year.
We are delighted to be a Tier-1 partner to the new Graphene
Engineering Innovation Centre (GEIC) at the University of
Manchester, where we will install and showcase one of our HT60
plasma reactors. The enhanced functionalisation now being generated
from upgrades we have made to the reactor makes for exciting
product improvement opportunities for the myriad of companies now
looking at collaborating with the GEIC and its Tier-1 Graphene
partners. The facility officially opens in December 2018.
Overall progress for the Group this year has been solid, albeit
we are disappointed that we did not achieve the revenue growth we
had anticipated and we have previously updated the market on the
reasons for this. We now believe that we have made the necessary
changes to address those issues.
There are significant growth opportunities with the new and
adapted approach of using our global footprint as one team, with
cross-selling and cross R&D focus, and a re-orientation to
organic growth and cost monitoring. Business development
surrounding the major advances we have seen in the core skills on
inks, functionalisation and dispersion of graphene, in conjunction
with the new market segment of SiC, sets Haydale up for the next
phase of evolution and scale up.
I would like to thank the staff, our advisors and my fellow
Board members for their hard work and dedication in positioning the
Group for the next stage of its growth. I would also like to thank
our shareholders for their continued support.
David Banks
Interim Executive Chairman
17 September 2018
STRATEGIC REPORT
The directors present their Strategic Report for the year ended
30 June 2018.
PRINCIPAL ACTIVITIES
Haydale Graphene Industries Plc ("Haydale" or the "Group") is
the AIM listed group that uses tailored advanced materials,
including graphene and silicon carbide micro-fibre (SiC). The
Group's vision is to use its knowledge of advanced materials and
dispersion to become one of the World's foremost creators of
material change, enabling its customers to improve the performance
of their products.
The Group has developed regulatory approved proprietary
graphene-based and other speciality inks and coatings for the print
and biomedical sensor markets, as well as enhanced resins for the
pre-preg carbon fibre market. In the USA, Haydale manufactures
proprietary SiC micro-fibres and whiskers that strengthen ceramics
and enable highly scratch and wear resistant coatings. Applications
for SiC include corrosion barriers for oil and gas pipelines and
hard-edged cutting tools for fashioning jet engine turbine blades
from solid super alloy billets.
The Group has operational activities in its six chosen
geographies worldwide. In summary, these are:
Haydale subsidiary Location Principal activities
----------------------------- ----------------------- -----------------------------------
Haydale Limited Ammanford, Wales R&D operation, supporting
the resins, polymers and
composites strategic business
unit, developing ink production
capability
Haydale Composite Solutions Loughborough, England Principally consulting
Limited ("HCS") on advanced composites
and elastomers design,
R&D and testing specialist,
covering the full product
development lifecycle
Haydale Technologies Seoul, South Korea Dedicated sales servicing
(Korea) Limited ("HTK") the fast-moving Korean,
Chinese and Japanese markets
Haydale Technologies Bangkok, Thailand Provides low-cost, high-value
(Thailand) Company R&D and plasma functionalisation
Limited ("HTT") facilities, servicing
the APAC region and supporting
the Far East sales teams.
Haydale Technologies, South Carolina, USA Haydale Ceramic Technologies
Inc. ("HTI") (formerly ACM) is HTI's
wholly owned operating
subsidiary which produces
and sells novel SiC micro
fibres and whiskers
Haydale Technologies Kaohsiung, Taiwan Established in July 2017
Taiwan Ltd ("HTW") as the production facility
and technical centre for
sales of speciality inks
initially into the biomedical
sensor market
Evolution of Strategic Business Units
From 1 July 2017, we created two strategic business units
(SBU's) within the Group, each with their own dedicated management
teams to focus on and deliver our anticipated sales growth:
1. Resins, Polymers and Composites ("RPC"); and
2. Advanced Materials (including SiC and inks) ("AMAT")
The RPC SBU increased its commercial revenues in the year to
GBP1.02 million from GBP0.87 million in FY17, whilst AMAT's revenue
increased to GBP2.39 million from GBP2.13 million in the prior
year. RPC's revenues include those generated by the three UK
entities, whereas the revenue from AMAT is derived from the Group's
operations in the US and the Far East.
The setting up of two business units, as detailed in last year's
strategic report, has delivered some success and ensured growth in
all areas of the global business, albeit it did not deliver on our
expected sales targets for the year. Accordingly, the dynamic
nature of the growth requirement has necessitated an evolution in
this approach, and consequently performance reporting for FY19 will
see the three regional areas of: (1) USA; (2) UK (and Europe); and
(3) Far East being brought together as a team under the newly
created position of Group's Chief Operating Officer, with Keith
Broadbent, the UK's MD for Resins, Polymers & Composites,
having recently been promoted into the role, and becoming an
executive director of Haydale Graphene Industries Plc.
This change is designed to facilitate greater cross-selling and
accountability across the Group, and success has already been seen
with commercial activities on coatings with SiC now in progress in
the UK, and graphene initiatives being targeted with major players
in the US. The combination of our ink expertise in the UK with that
in our Taiwan facility is also bearing fruit, not just on the
technology side, but also sharing best operational practice on
Health and Safety, Quality (ISO9001) and Production techniques. The
Group's US MD, Trevor Rudderham, has very recently decided to step
away from the business for family reasons and, whilst his
contribution to Group's growth has been appreciated, his decision
will allow the Group's transition from SBU focus to global focus.
This position will not be replaced.
Plasma functionalisation and enhanced performance
During the year we have successfully completed several key
research and development projects to enhance Haydale's capabilities
and product offerings through the HDPlas(TM) process. We have made
significant investments into capital equipment and our team's
knowledge base to enhance our HT60 plasma reactors' performance and
yield increased functionalisation levels to improve the
concentration of bonded functional groups. Improving our product
offering to compete in the advanced materials markets has been
critical. Our ability to now offer enhanced functionalisation,
including amines, means we can tailor functionalisation levels to
further improve the dispersion characteristics of nanomaterials in
wide ranging matrices. This has resulted in some significant
graphene-related sales contracts being secured and delivered in the
year under review.
The UK
In the UK, where RPC is principally situated, we have two
operational facilities: Ammanford, South Wales; and Loughborough,
East Midlands. We also opened a Group Head Office in Harwell
Business Park, Oxfordshire in June 2018, to provide a central
location for business development alongside significant potential
customers operating in the aerospace and advanced materials
sectors.
Ammanford is primarily a R&D operation which also sources,
handles, functionalises and processes nanomaterials using a suite
of prototyping and analytical equipment, as well as its own
patented plasma reactors (HT60s and HT200s). Ammanford is
responsible for installing, commissioning and maintaining the
plasma reactors used internally and by third parties. The aim is to
provide the Group with sustainable commercially available graphene
and other nanomaterials for both internal product development and
third-party customers. In addition, we have recently recruited a
dedicated technical sales person with a track record in growing
conductive inks.
In Loughborough, we are focussed on producing applications
engineering solutions in composite and elastomer materials to
enhance their mechanical properties (strength and stiffness),
electrically conductive properties, and their thermally conductive
properties.
The USA
Our US operation delivered the bulk of AMAT's revenues for FY18,
with sales of SiC at GBP2.11 million (FY17: GBP2.05 million). We
rebranded the operation from Advanced Composite Materials ("ACM")
to Haydale Ceramic Technologies ("HCT") during the year, having
acquired ACM in the autumn of 2016. The SiC comparative sales
figure for FY17 represents the sales generated in the period from
acquisition to 30 June 2017, which is the same as that generated in
the full 12 months to 30 June 2017. During the year, we began an
investment programme to instal a new product line in HCT to add
value to its proprietary SiC micro fibres by incorporating them
with aluminium oxide to enable us to manufacture our own cutting
tool blanks. Revenues from this new product line are expected to
start in the second half of FY19.
We also successfully opened up new markets for our SiC in the
powder-coating anti-corrosion market where we generated maiden
sales of approximately GBP0.22 million in FY18 and which have
continued into the current year. Although sales in this market are
at a lower gross profit margin than sales into the cutting tools
market, the market size is potentially significantly larger. We
also received encouraging feedback from a major oil conglomerate
that has tested our SiC as a structural enhancer of catalysts which
are a crucial part in the petrochemical refining process.
HCT has a long-term sales order book for delivery of SiC which
was added to post year end with a new five-year supply contract
extension and, as at 10 September 2018, stood at approximately
GBP4.15 million ($5.46 million).
The Far East
We now have three operational sites in the Far East: a sales
office in Seoul, South Korea (HTK); an R&D and consulting
facility in Bangkok, Thailand (HTT); and an ink formulation and
manufacturing facility in Kaohsiung, Taiwan (HTW).
HTT has quickly established itself as a technical and sales
support service for our Korean and Taiwan activities. In FY18, HTT
generated revenues of GBP0.23 million, up from GBP0.07 million in
the prior year from a mixture of commercially funded contract
research projects and the sale of an HT60 reactor to leading Thai
petrochemical processor, IRPC, for functionalisation of some of its
bi-products. Our high-class facility in the prestigious Thailand
Science Park in Bangkok houses two of our patented plasma HT60
graphene functionalisation reactors, with one being owned by IRPC.
The commissioning of IRPC's reactor straddled the end of the
financial year so some revenues associated with its sale will fall
into FY19.
Other developing graphene-related opportunities include PATit,
Haydale's software driven anti-counterfeiting device that "reads"
our unique conductive transparent and opaque inks when printed onto
a product label, proving the authenticity (or otherwise) of the
goods. The specialist ink uses graphite block from our
collaboration partner, Talga Resources. To date, we have signed a
LOI with one of Thailand's leading security printers.
HTW was established in July 2017 and commenced providing
graphene and other speciality inks samples principally to leading
biomedical sensor printers in the diabetes testing market. The time
that customers take to evaluate our graphene inks has proven to
take longer than we originally anticipated yet, pleasingly, we are
now receiving regular repeat orders from customers, albeit still in
relatively small quantities. Once our existing facility is
operating at maximum capacity and our commercial revenues are fully
established, our intention is to relocate production to a larger
10,000sq ft unit.
OPERATING REVIEW
The Group's key objective now is to accelerate the transition of
the business from an R&D focussed operation into a sales and
marketing organisation.
The improvements in our analysis, testing and characterisation
expertise, both in-house and in collaboration with external
partners in academia and industry, have increased the pace at which
customer solutions can be obtained as well as giving potential for
additional IP owned products. We have invested heavily in our UK
teams' understanding of dispersion technologies, developing our
knowledge of dispersibility of Nano materials into a wide range of
polymer systems. This has included equipment and personnel, and the
sharing of best practice throughout our company turning Haydale
into a learning organisation.
Haydale has been working with its key OEM, to plan and design
the next generation of HDPlas(TM) reactors , which will provide the
ability to meet commercial volumes in anticipation of the
breakthrough driven by the increasing scope of the core and
patented technology.
Following the sale of a HT60 reactor to the Centre for Process
Innovation (CPI) in 2015, CPI continues to assist Haydale to be at
the forefront of graphene enhanced development in a range of
applications. Working closely with Haydale's technical team through
grant funded projects, Haydale and CPI, have developed filter
technology for oil/water separation, desalination and industrial
waste water, evaluation of which will continue during the current
financial year.
At the end of June 2018, we were pleased to have been selected
as one of the core Tier-1 partners of the University of
Manchester's recently completed GBP60 million Graphene Engineering
Innovation Centre (GEIC) where one of our patented HT60 plasma
reactors is to be housed. This will help further functionalisation
and applications knowledge across a range of graphene and other 2D
materials where correct chemical bonding is a key part ensuring
graphene disperses uniformly within its host material.
In the UK, our work on inks over the past year has been focused
on the commercialisation of our patented pressure sensor and screen
printable inks. Over the next 12 months, Haydale will continue to
focus on bringing innovative and novel printed solutions to the
market and has invested in it sales team to realise this potential.
Other ink applications include wearables, focussed around a
contract with The English Institute of Sport, as announced
today.
Non-regulated markets, such as sporting goods, provide
potentially significant short-term revenue opportunities for
Haydale. An example of which has been supply during the year of
graphene-enhanced carbon fibre pre-preg to a high specification
bespoke UK bicycle manufacturer, which has met with some
success.
Progress on two other longer-term projects continues, albeit
slower than originally anticipated. Testing by Flowtite A/S of
graphene-enhanced resins for their glass reinforced pipe systems
took longer than anticipated and, whilst it showed certain
improvements, there remains the need for further testing.
Importantly, progress has been made but the incorporation of
lab-based improvements into a full-blown production process is the
key challenge, with functionalisation and dispersion in harmony
with the manufacturing process still requiring further work. The
Haydale and Flowtite teams are regrouping next month to determine
next steps.
Results from the work carried out with Huntsman has subsequently
significantly benefited other trials carried out with specific
applications for component pre-preg in less regulated markets such
as sports goods (cycles) and low volume automotive components. We
continue to work on improvements in incorporating Haydale's
graphene dispersions into Huntsman specific high value, specialist
applications.
Grant Funded Projects
During the year under review, the Group has been busy
progressing R&D programmes with important commercial partners
where development of commercially viable end products is a
pre-requisite of securing each projects' funding. Income from such
projects totalled GBP0.83 million for the year under review (FY17:
GBP0.91 million) and, as at 10 September 2018, the Group had
secured grant funded projects worth approximately GBP0.86 million
for delivery over the coming years.
Management and Personnel
We have continued to invest in our people across the Group
during the year, which now employs 79 people across five countries
(FY17: 70).
In July 2017, David Banks replaced John Knowles as non-executive
Chairman and, since the year end, has become the Group's Interim
Executive Chairman. We further strengthened other key management
with the recruitment in July 2017 of Keith Broadbent as MD of the
RPC SBU. Keith has successfully demonstrated his operational and
commercial capabilities during the past year such that, post year
end, Keith has been promoted to the newly created role of the
Group's Chief Operating Officer and as a director of the
Company.
In June 2018, Ray Gibbs, who has served as the Company's Chief
Executive Officer since 2013, informed the Board of his intention
to step down as CEO in order to concentrate on the Group's business
development activities. Ray was appointed to his new role as
President, Business Development in early September 2018.
Patents, IP and Licensing
Our patents are process patents in key selected strategic
territories where their use is as a blocking prior art tool. We are
aware of one patent application by a third party where the examiner
threw out their claims citing Haydale's patents as prior art. Our
critical IP however, is our processing, mixing and dispersion
knowledge and know-how derived from the work we have carried out in
conjunction with Huntsman, together with the FDA approved ink
formulations that have been developed in the Far East. We are in
the process of documenting our knowledge and know-how IP, including
ink recipes and masterbatching techniques.
The Group currently holds patents in the US, UK, Europe, China,
Japan and Australia.
Key Performance Indicators ("KPIs")
The Group's KPIs are its financial metrics are its revenues,
graphene related income, gross profit margin, grant income,
adjusted EBITDA, cash position, total borrowings and long-term
sales order book as follows:
FY18 (GBP'000) FY17 (GBP'000)
---------------- ----------------
Revenue 3,403 3,004
Gross profit margin 59% 70%
Income from graphene related products
and services 1,070 1,020
Adjusted EBITDA (4,892) (4,193)
Cash position 5,092 2,091
Borrowings 896 1,270
Long-term sales order book* 4,674 5,400
* The figure increased to GBP5.19 million as at 10 September
2018
FINANCIAL REVIEW
Statement of Comprehensive Income
In the year under review, the Group's three principal areas of
income were: (i) graphene-enhanced and advanced composite
consulting services; (ii) sale of silicon carbide whiskers and
fibres; and (iii) long-term graphene-related grant funded
projects.
The Group's total income for the year ended 30 June 2018 of
GBP4.23 million (FY17: GBP3.91 million), comprised commercial
revenues of GBP3.40 million (FY17: GBP3.00 million) and grant
income of GBP0.83 million (FY17: GBP0.90 million). Although the
Group has made significant progress during the year, the 8 per
cent. increase in income year-on-year was lower than management's
expectations. The Group's income suffered in the second half of
FY18 from a combination of specific customers requesting to defer
shipment of product into the current financial year and longer than
anticipated lead times by customers to reach commercial
volumes.
The Group's gross profit, which excludes the income from grant
funded projects was GBP2.0 million (FY17: GBP2.1 million)
delivering a gross profit margin of 59% (FY17: 70%). The reduction
in margin was primarily due to a different sales mix from the
Group's US operations as it looks to expand the markets for its
products. The Group's adjusted EBITDA (adjusted for share-based
payment charges, profit/loss on disposal of property, plant and
equipment and profit/loss on disposal of intangible assets) was a
loss of GBP4.89 million (FY17: GBP4.19 million). The Directors
consider that adjusted EBITDA is a more useful measure of the
Group's performance and comparative performance than EBITDA because
it is a closer measure to operating cashflow and it reduces the
effects of one-off transactions and other non-cash items.
At the year end, the Group's contracted order book stood at
GBP4.67 million (FY17: GBP5.40 million) and, since the year end,
additional long term orders have been secured resulting in an order
book as at 10 September 2018 of GBP5.19 million to be delivered
over the coming years.
Total administrative costs increased approximately 6 per cent.
In the year to GBP8.85 million (FY17: GBP8.35 million). During the
year, we continued to invest in increasing our know-how, knowledge
and understanding of mixing and dispersion techniques alongside our
industry leading collaboration partners. Overall R&D spend for
the year was GBP1.05 million (FY17: GBP1.15 million), of which
GBP0.88 million was expensed during the year (FY17: GBP0.91
million), with the balance of GBP0.18 million being capitalised,
(FY17: GBP0.24 million). This internal funded development
expenditure is expected to lead to sales of new products in future
financial years. The Group's other administrative costs for the
year totaled GBP7.68 million (FY17: GBP7.09 million), the increase
reflecting the investment in our Far East operations during the
year, specifically in Taiwan. Overall, the loss from before tax for
the year was GBP6.12 million (FY17: GBP5.64 million loss), and
included non-cash items of GBP1.17 million (FY17: GBP1.14 million).
The loss per share for the year reduced marginally to GBP0.22
(FY17: GBP0.28 loss).
Statement of Financial Position and Cashflows
As at 30 June 2018, net assets amounted to GBP12.54 million
(2017: GBP8.91 million), including cash balances of GBP5.09 million
(2017: GBP2.10 million). Other current assets decreased to GBP2.56
million at the year end (2017: GBP2.89 million), and current
liabilities reduced to GBP2.51 million as at 30 June 2018 (2017:
GBP2.89 million). Deferred consideration of GBP0.47 million was
settled during the year, being amounts due to the vendors following
the acquisition of ACM in 2016. Net cash outflow from operating
activities, before working capital movements for the year was
GBP4.86 million (2017: GBP4.19 million), the principal contributing
factor being the loss from operations activities of GBP6.02 million
(2017: GBP5.34 million). Expenditure on capital equipment again
utilised a significant portion of cash during the year at GBP0.72
million (FY17: GBP0.42 million).
Capital Structure and Funding
As at 30 June 2018, the Company had 27,328,773 ordinary shares
in issue (2017: 19,597,713). During the year, the Company issued
7,731,060 new ordinary shares, in connection with the Company's
placing and offer for subscription which raised GBP9.28 million
(before expenses) and was completed on 30 October 2017. No options
were exercised into ordinary shares during the year (FY17:
39,500).
The Group repaid borrowings of GBP0.47 million during the year
(FY17: GBP2.82 million), principally in relation to the Group's US
borrowing facilities which are secured on the Group's US based
tangible assets. This in turn reduced Haydale's financing costs in
the year to GBP0.1 million from GBP0.3 million in the prior year.
The Group's total borrowings at the year end were GBP0.90 million
(2017: GBP1.27 million), all of which were held by the Group's US
subsidiaries.
Haydale's objectives when managing capital are to safeguard the
Group's ability to continue as a going concern in order to provide
return to equity holders of the Company and benefits to other
stakeholders and to maintain an optimal capital structure to reduce
the cost of capital. The Group manages this objective through tight
control of its cash resources to meet its forecast future cash
requirements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2018
Note Year Year
ended ended
30 June 30 June
2018 2017
GBP'000 GBP'000
REVENUE 5 3,403 3,004
Cost of sales (1,403) (894)
Gross profit 2,000 2,110
Other operating income 5 831 901
Administrative expenses
----------------------------------------------- ------- ---------- ----------
Research and development expenditure (878) (908)
Share based payment expense (291) (351)
Other administrative expenses (7,684) (7,090)
------------------------------------------------- ------- ---------- ----------
(8,853) (8,349)
LOSS FROM OPERATIONS (6,022) (5,338)
Finance costs (95) (297)
LOSS BEFORE TAXATION 6 (6,117) (5,635)
Taxation 7 850 883
LOSS FOR THE YEAR FROM CONTINUING OPERATIONS (5,267) (4,752)
Other comprehensive income:
Items that may be reclassified to profit
or loss:
Exchange differences on translation of
foreign operations (47) (74)
Remeasurements of defined benefit pension
schemes (99) (36)
TOTAL COMPREHENSIVE LOSS FOR THE YEAR
FROM CONTINUING OPERATIONS (5,413) (4,862)
Loss for the year attributable to:
Owners of the parent (5,413) (4,862)
Non-controlling interest - -
(5,413) (4,862)
Total comprehensive loss attributable
to:
Owners of the parent (5,413) (4,862)
Non-controlling interest - -
(5,413) (4,862)
Loss per share attributable to owners
of the Parent
Basic (GBP) 8 (0.22) (0.28)
Diluted (GBP) 8 (0.22) (0.28)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2018
Company Registration No. 07228939 Note 30 June 30 June
2018 2017
GBP'000 GBP'000
ASSETS
Non-current assets
Goodwill 9 2,087 2,115
Intangible assets 9 2,130 2,152
Property, plant and equipment 10 5,061 5,074
Deferred tax asset 550 679
9,828 10,020
Current assets
Inventories 11 1,022 1,212
Trade receivables 13 705 798
Other receivables 14 362 535
Corporation tax 473 345
Cash and bank balances 5,092 2,091
7,654 4,981
TOTAL ASSETS 17,482 15,001
LIABILITIES
Non-current liabilities
Bank loans 14 640 911
Deferred tax 675 1,234
Pension Obligation 1,120 969
2,435 3,114
Current liabilities
Bank loans 14 256 359
Trade and other payables 13 2,172 2,305
Deferred income 78 253
Corporation tax - 65
2,506 2,982
TOTAL LIABILITIES 4,941 6,096
TOTAL NET ASSETS 12,541 8,905
EQUITY
Capital and reserves attributable to
equity holders of the parent
Share capital 12 547 392
Share premium account 12 27,539 18,936
Share-based payment reserve 1,298 1,007
Foreign exchange reserve (160) (113)
Retained earnings (16,683) (11,317)
TOTAL EQUITY 12,541 8,905
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2018
Share Share Share-based Foreign Retained Other reserves Total Equity
capital premium payment Exchange profits GBP'000 GBP'000
GBP'000 GBP'000 reserve Reserve GBP'000
GBP'000 GBP'000
At 1 July 2016 305 11,840 656 (39) (6,117) (44) 6,601
Total
comprehensive
loss for the year - - - (74) (4,787) - (4,861)
Recognition of
share-based
payments - - 351 - - - 351
Issue of ordinary
share capital 87 7,253 - - - - 7,340
Repurchase of
NCI - - - - (413) 44 (369)
Transaction costs
in respect of
share issues - (157) - - - - (157)
At 30 June 2017 392 18,936 1,007 (113) (11,317) - 8,905
Total
Comprehensive
loss for the year - - - (47) (5,366) - (5,413)
Recognition of
share-based
payments - - 291 - - - 291
Issue of ordinary
share capital 155 9,123 - - - - 9,278
Transaction costs
in respect of
share issues - (520) - - - - (520)
At 30 June 2018 547 27,539 1,298 (160) (16,683) - 12,541
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2018
Note Year Year
ended ended
30 June 30 June
2018 2017
GBP'000 GBP'000
Cash flow from operating activities
Loss before taxation (6,117) (5,635)
Adjustments for:-
Amortisation of intangible assets 9 149 157
(Profit)/Loss on disposal of intangible 75 -
assets
Capitalised loan costs written off - 77
Depreciation of property, plant and
equipment 10 675 560
(Profit)/Loss on disposal of property, (60) -
plant and equipment
Share-based payment charge 291 351
Finance costs 95 297
Pension - net interest expense 37 -
Operating cash flow before working capital
changes (4,855) (4,193)
Decrease/(Increase) in inventories 190 (12)
Decrease/(Increase) in trade and other
receivables 266 (596)
(Decrease)/Increase in payables and
deferred income 159 260
Cash used in operations (4,240) (4,541)
Income tax received 269 412
Net cash used in operating activities (3,971) (4,129)
Cash flow used in investing activities
Purchase of property, plant and equipment (723) (415)
Purchase of Intangible Assets (175) (245)
Proceeds from disposal of property, 83 -
plant and equipment
Acquisition of subsidiary - deferred
consideration (444) 4
Purchase of non-controlling shareholding - (413)
Net cash used in investing activities (1,259) (1,069)
Cash flow used in financing activities
Finance costs (95) (297)
Proceeds from issue of share capital
(net of share issue costs) 8,757 6,058
New bank loans raised - 1,408
Repayments of borrowings (446) (2,817)
Net cash flow from financing activities 8,216 4,352
Effects of exchange rates changes 15 75
Net increase / (decrease) in cash and
cash equivalents 3,001 (771)
Cash and cash equivalents at beginning
of the financial year 2,091 2,862
Cash and cash equivalents at end of
the financial year 5,092 2,091
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 30 June 2018
1. General information
Haydale Graphene Industries Plc (the "Company") and its
subsidiaries (together the "Group") are focussed on enabling
technology for the commercialisation of graphene and other
nanomaterials. The Company is a public limited company which is
listed on the AIM Market of the London Stock Exchange plc and is
incorporated and registered in England and Wales. The Company's
registered office is Clos Fferws, Parc Hendre, Capel Hendre,
Ammanford, Carmarthenshire, SA18 3BL.
2. Group Annual Report and Statutory Accounts
The financial information of the Group set out above does not
constitute "statutory accounts" for the purposes of Section 435 of
the Companies Act 2006. The financial information for the year
ended 30 June 2018 has been extracted from the Group's audited
financial statements which were approved by the Board of directors
on 17 September 2018 and will be delivered to the Registrar of
Companies for England and Wales in due course. The report of the
auditor on these financial statements is unqualified, did not
include any references to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and
did not contain a statement under Section 498 (2) or Section 498
(3) of the Companies Act 2006.
3. Basis of preparation
Whilst the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of International Financial Reporting
Standards ('IFRSs') as adopted by the European Union, this
announcement does not itself contain sufficient information to
comply with those IFRSs. This financial information has been
prepared in accordance with the accounting policies set out in the
30 June 2018 report and financial statements.
4. Going concern
The Group's consolidated financial statements are prepared on a
going concern basis which the Directors believe continues to be
appropriate. The Group meets its day-to-day working capital
requirements through existing cash resources which at 30 June 2018,
amounts to GBP5.092 million. The Directors have prepared cash flow
projections for the period ending no less than 12 months from the
date of their approval of these financial statements. On the basis
of those projections, and current cash resources, the Directors
believe that the Group will be able to continue to trade for the
foreseeable future.
5. Segment analysis
IFRS 8 requires operating segments to be identified on the basis
of internal reports about components of the Group that are
regularly reviewed by the chief operating decision maker (which
takes the form of the board of directors of Haydale Graphene
Industries Plc) as defined in IFRS 8, in order to allocate
resources to the segment and to assess its performance.
For management purposes, the Group is organised into the
following reportable segments:
-- Resins, Polymers and Composites (known as RPC) ; and
-- Advanced Materials (including SiC and Inks) (known as AMAT)
These strategic business units were created on 1 July 2017,
prior to this date management did not distinguish between different
operating segments.
Geographical information
All revenues of the Group are derived from its principal
activity, the sale and distribution of nano-technology and silicon
carbide products or the delivery of research projects into those
nano materials. The Group's revenue from external customers by
geographical location are detailed below.
2018 2017
GBP'000 GBP'000
By destination
United Kingdom 238 265
Europe 516 952
United States of America 532 131
China 448 11
Thailand 199 73
South Korea 93 14
Japan 1,299 1,545
Rest of the World 78 13
3,403 3,004
During 2018, 38% (2017: 51%) of the Group's revenue depended on
a single customer. During 2018, 10% (2017: 12%) of the Group's
revenue depended on a second single customer.
Revenue within Europe was predominantly split between Germany
(6%) and Ireland (5%) (2017: Germany 19%, and Ireland 10%), as a
proportion of total group turnover for the year.
All amounts shown as other income within the Statement of
Comprehensive Income are generated within and from the United
Kingdom. These amounts include income earned as part of a number of
grant funded projects and a government grant which is being
released over a period of 5 years. The residual amount is reflected
in deferred income.
Revenue from goods was GBP2.48 million or 73% (2017: GBP2.09
million or 70%) and revenue from services was GBP0.80 million or
24% (2017: GBP0.69 million or 23%).
The split of revenue by type was as follows:
2018 2017
GBP'000 GBP'000
Services 836 691
Reactors 89 225
Goods 2,478 2,088
3,403 3,004
RPC AMAT TOTAL
GBP'000 GBP'000 GBP'000
Services 809 27 836
Reactors - 89 89
Goods 209 2,269 2,478
1,018 2,385 3,403
6. Loss before taxation
Loss before taxation is arrived at after charging:
2018 2017
GBP'000 GBP'000
Research and development:
- current period's expenditure 878 908
- amortisation of capitalised expenditure - 77
- amortisation of other intangibles 149 157
Loss on disposal of intangibles - Note 75 -
10
Depreciation of property, plant and equipment 675 560
Profit on disposal of property, plant (9) -
and equipment
Foreign Exchange (33) (20)
Operating lease rentals:
- land and buildings 572 447
- plant and machinery 6 7
7. Income tax
Current tax credit 2018 2017
GBP'000 GBP'000
Total income tax credits:
* for the financial year 399 280
* under provision in the previous financial year 63 33
_________ _________
Total Current Tax 462 313
_________ _________
Deferred tax credit
Origination and reversal of temporary
differences 388 204
Recognition of previously unrecognised
deferred tax assets - 366
_________ _________
388 570
_________ _________
850 883
The reason for the difference between the actual tax charge for
the year and the standard rate of corporation tax in the United
Kingdom applied to the losses for the year are as follows:
2018 2017
GBP'000 GBP'000
Loss for the year (5,267) (4,752)
Income tax credit (850) (883)
Loss before income taxes (6,117) (5,635)
Tax using the Group's domestic tax rates
of 19% (2017 - 19.75%) 1,162 1,113
Expenses not deductible for tax purposes (274) (251)
Different tax rates applied in overseas
jurisdictions 26 53
R&D enhancement 234 285
R&D costs capitalised 36 -
Surrender for R&D tax credit (15) (94)
Adjustment for under/(over) provision
in previous periods 63 33
Movement in unrecognised losses carried (747) -
forward
Movement in unrecognised fixed asset (23) -
temporary differences
Deferred tax: Origination and reversal
of temporary differences 388 (622)
Recognition of previously unrecognised
deferred tax assets - 366
Total tax credit 850 883
Changes in tax rates and factors affecting the future tax
charge
The main rate of corporation tax for UK companies reduced from
20% to 19% from 1 April 2017. The Finance Bill 2016, which was
substantively enacted in September 2016, announced a further
reduction to the main rate of corporation tax. The rate will reduce
to 17% from 1 April 2020.
The main rate of corporate tax in the U.S reduced from 34% to
21% effective from 1 January 2018 as part of the U.S tax reforms.
This has reduced the deferred tax liability attributable to the
group's subsidiaries based in South Carolina.
The Group has tax losses that are available indefinitely for
offset against future taxable profits of the companies
approximately amounting to GBP15,780,000 (2017: GBP12,629,000) and
GBP3,843,000 (2017: GBP4,946,000) of fixed asset timing
differences. The group currently expects to be able to utilise its
US tax losses in the foreseeable future and a deferred tax asset
has been recognised in respect of these tax losses accordingly.
8. Loss per share
The calculations of loss per share are based on the following
losses and number of shares:
2018 2017
GBP'000 GBP'000
Loss after tax attributable
to owners of Haydale Graphene
Industries Plc (5,413) (4,862)
Weighted average number
of shares:
* Basic and Diluted 24,744,693 17,232,137
Loss per share:
Basic (GBP) and Diluted
(GBP) (0.22) (0.28)
The loss attributable to ordinary shareholders and weighted
average number of ordinary shares for the purpose of calculating
the diluted earnings per ordinary share are identical to those used
for basic earnings per share. This is because the exercise of share
options would have the effect of reducing the loss per ordinary
share and is therefore not dilutive under the terms of IAS 33. At
30 June 2018, there were 3,619,940 (2017: 1,634,856) options and
warrants outstanding.
9. Intangible assets
Customer Development Goodwill Total
Relationships expenditure GBP'000 GBP'000
GBP'000 GBP'000
Cost
At 1 July 2016 285 1,129 685 2,099
Additions - 244 - 244
Additions from
acquisitions 869 55 1,429 2,353
At 1 July 2017 1,154 1,428 2,114 4,696
Additions - 175 - 175
Disposals (55) (27) (82)
At 30 June 2018 1,154 1,548 2,087 4,789
Accumulated amortisation
At 1 July 2016 58 215 - 273
Charge for the
period 115 42 - 157
At 1 July 2017 173 257 - 430
Charge for the
year 115 34 - 149
Disposals - (7) - (7)
At 30 June 2018 288 284 - 572
Net book value
At 30 June 2018 866 1,264 2,087 4,217
At 30 June 2017 981 1,171 2,114 4,266
At 30 June 2016 227 914 685 1,826
10. Property, plant and equipment
Leasehold Plant and Fixtures Motor vehicles Assets under Total
improvements machinery and fittings GBP'000 construction GBP'000
GBP'000 GBP'000 GBP'000 GBP,000
Cost
At 1 July 2016 492 2,171 97 2 15 2,777
Additions 17 290 34 - 74 415
Additions from
acquisitions 11 3,544 283 32 - 3,870
FX on additions
from acqn's (1) (210) (16) - - (227)
Transfers - 15 - - (15) -
At 1 July 2017 519 5,810 398 34 74 6,835
Additions 65 217 76 - 365 723
FX translation (1) (30) 21 (1) - (11)
Disposals - (124) (3) (2) - (129)
Transfers - 98 - - (98) -
At 30 June 2018 583 5,971 492 31 341 7,418
Accumulated depreciation
At 1 July 2016 136 991 72 2 - 1,201
Charge for the
year 47 467 41 5 - 560
At 1 July 2017 183 1,458 113 7 - 1,761
Charge for the
year 57 562 50 6 - 675
FX Translation - (1) 27 - - 26
Disposals - (100) (3) (2) - (105)
At 30 June 2018 240 1,919 187 11 - 2,357
Net book value
At 30 June 2018 343 4,052 305 20 341 5,061
At 30 June 2017 336 4,352 285 27 74 5,074
At 30 June 2016 356 1,180 25 - 15 1,576
11. Inventories
2018 2017
GBP'000 GBP'000
Raw materials 291 274
Work in progress 271 296
Finished goods 460 642
1,022 1,212
The total value of inventories recognised in cost of sales
during during the year was GBP924,091 (2017: GBP252,394)
Raw materials and finished goods comprise functionalised carbon,
chemicals and associated raw materials. Work in progress comprises
recoverable costs on long-term contracts.
12. Share capital and share premium
Number of Share capital Share premium Total
shares GBP'000 GBP'000 GBP'000
No.
At 1 July 2016 15,236,946 305 11,840 12,145
Issue of GBP0.02 ordinary
shares 4,360,767 87 7,096 7,183
At 30 June 2017 19,597,713 392 18,936 19,328
Issue of GBP0.02 ordinary
shares 7,731,060 155 8,603 8,758
At 30 June 2018 27,328,773 547 27,539 28,086
In October 2017, 7,731,060 shares of 2p each were issued in
connection with the Company's GBP9.3 million placing and open
offer. Issue costs amounting to GBP520,342 (2017: GBP157,360) have
been charged to the share premium account in the year.
13. Trade and other payables
2018 2017
GBP'000 GBP'000
Trade payables 687 380
Tax and social security 73 80
Accruals and other creditors 1,412 1,845
2,172 2,305
14. Bank loans
2018 2017
GBP'000 GBP'000
Bank loans 896 1,270
The borrowings are repayable
as follows:-
* within one year 256 359
* in the second year 267 261
* in the third to fifth years inclusive 373 650
896 1,270
The Group's borrowings are denominated in US dollars. The
directors consider that there is no material difference between the
fair value and carrying value of the Group's borrowings.
2018 2017
% %
Average interest rates paid 4 4
In December 2014 a three year bank loan of GBP500,000 was drawn
by the Company and securitised by cash deposits. The loan accrued
interest at 1.5% above the Bank of England base rate and was
repayable in equal monthly instalments. The loan was fully repaid
in February 2018.
In October 2016, a five year bank loan of $1,720,000 (equivalent
to approximately GBP1.4 million at the time) was drawn by Haydale
Technologies Inc ("HTI"), the Company's US holding company
subsidiary, secured on the fixed assets of HTI and its newly
acquired operating subsidiary, Advanced Composite Materials. This
loan carries an interest rate of 4% and is repayable in equal
instalments. In addition to this HTI has secured a working capital
line of credit with a rate fixed at 5.25% on the remaining
balance.
15. Operating lease arrangements
The amounts of minimum lease payments under non-cancellable
operating leases are as follows:
2018 2018 2017 2017
Land and Plant and Land and Plant and
buildings machinery buildings machinery
GBP'000 GBP'000 GBP'000 GBP'000
* within one year 573 7 547 7
* within two to five years 976 8 1,423 3
177 - - -
* later than 5 years
Aggregate amounts payable 1,726 15 1,970 10
Payments recognised as an expense under these operating leases
were as follows:
2018 2018 2017 2017
Land and Plant and Land and Plant and
buildings machinery buildings machinery
GBP'000 GBP'000 GBP'000 GBP'000
Operating lease expense 572 6 447 7
A significant proportion of the lease arrangements relate to the
premises from which HTI and HCT operate in South Carolina, USA
totalling GBP1.11 million (2017: GBP1.56 million). The lease
expires on 31 December 2020. Other leases pertain to the office and
unit contracts for the two UK facilities of in aggregate GBP0.1
million (2017: GBP0.22 million). Of the GBP0.22 million, certain
leases are cancellable with three months' notice and others have
break clauses 10 months after the date of these accounts.
During the current year a new lease agreement has been entered
into, in respect of offices at Harwell, Oxfordshire. The lease
expires in March 2028. The estimated committed costs are GBP0.36
million (2016: nil).
The facility in Thailand is leased and, at the date of these
results, will expire in 16 months. The cost is GBP0.03 million
(2017: GBP0.09 million),
Within the minimum lease payments for plant and machinery is the
cost relating the general office equipment.
16. Post Balance Sheet Events
From 1 July 2018, the Group changed its internal reporting
system to set up a third profit-centric strategic business units
("SBUs") known as "RPC", "AMAT" & "APAC". For the current
financial year and beyond, the Group intends to report sales and
profits under these three SBUs.
Since 30 June 2018, there has been the following changes to the
Board of directors of the Company:
-- The appointment of David Banks as Interim Executive Chairman in September 2018;
-- The appointment of Keith Broadbent as the Group's Chief
Operating Officer and a member of the Board in September 2018;
-- The appointment of Roger Humm as Senior Independent
Non-executive Director in September 2018; and
-- The appointment of Ray Gibbs as President, Business
Development, in September 2018, having previously held the position
of the Group's Chief Executive Officer.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR EAENXFEKPEAF
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