Commenting on the results Ray Gibbs, CEO of Haydale, said: “This has been another busy period for the Group. We have been successful in raising funds to commercialise our technology, with a major focus on producing enhanced composite materials, especially in meeting market needs for resins capable of delivering high performance electrical conductivity, improved thermal heat management and light-weighting opportunities. Our acquisition of leading composite consultants, EPL (renamed “HCS”), in November 2014, is now showing significant progress with the recent launch of three new products and impressive enhanced properties of Huntsman’s Araldite(R) resins. During the period we have invested significant internal resources in R&D in the advanced composite arena, and especially focussed on improving the Huntsman epoxy resin. We have achieved an impressive 380% increase in thermal conductivity (essential for rapid heating and cooling of composites such as tooling), 70% increase in fracture toughness (impact resistance) and taking the resin from being electrically inert to conductive (used for anti-static requirements on electronic housings). We are looking for our investment in R&D to generate IP and provide anticipated greater commercial benefits in future periods.
We are delighted to now have in place a complete supply chain for delivery of graphene enhanced commercial composite products – being a number of unfunctionalised nano-material suppliers, the market leaders in supply of quality epoxy resins (Huntsman), the producer of the intermediate composite products known as prepregs (SHD Composites Limited) all utilising Haydale’s patented dispersion technology. Crucial to Haydale is that sales are expected to be generated by each of the supply chain partners’ existing routes to market and their respective extensive global customer bases
The next 12 months will be an exciting time for the Group as we anticipate driving material revenues to the Group from the high levels of focussed investment we have made and continue to make.”
Haydale (AIM: HAYD), the Group focused on the commercialisation of graphene and other nano materials using their proprietary plasma process, has told DirectorsTalk its unaudited interim results for the six months ended 31 December 2015.
Operational Highlights
— Announcement of collaboration agreements with major, world leading resin companies including Huntsman Advanced Materials. The agreements specified a joint development of “graphene” enhanced resins such as Huntsman’s market leader epoxy resin ARALDITE(R) in key composite markets, focussing initially on electrical and thermal conductivity;
— Confirmation of granted patent by the European Patent Office of the Haydale Plasma functionalisation process for carbon and other nano particles;
— Delivery, commissioning and installation of a HT60 R&D reactor to UK based, Centre of Process and Innovation (“CPI”);
— Grant funded development projects totally over GBP450,000 secured, including UV visible bruisable composites and hydrogen pressure vessels for hydrogen powered fuel cell vehicles; and
— Successfully secured two collaborative 18 month research projects managed by the National Aerospace Technology Exploitation Programme (“NATEP”) for aircraft lightning strike protection utilising graphene enhanced composites, and conductive adhesives. These projects are being managed by Haydale’s recently formed Aerospace and Defence division.
Financial Highlights
-- Total income up 63% year-on-year to GBP0.8 million (2014: GBP0.5 million);
— Significant investment in R&D in period of GBP0.5 million (2014: GBP0.4 million), particularly in respect of graphene enhanced resins for the composite markets;
-- Total loss after tax for the period of GBP1.9 million (2014: GBP1.5 million);
— Completion of significantly oversubscribed placing and open offer raising GBP6.0 million largely for commercialisation of Haydale’s technology in the composites market;
— Investment in capex to increase capacity in the period of GBP0.5 million (2014: GBP0.6 million); and
-- Cash at period end of GBP5.0 million (30 June 2014: GBP2.0 million).
Post Period End Highlights
— Huntsman announced strong initial results from HCS graphene enhanced ARALDITE(R) resins in thermal management and electrical conductivity. This work is the platform for development of a range of new graphene enhanced Araldite(R) resins which will be targeted at the industrial composites, automotive and aerospace markets. The next stage of development will focus on demonstration of these resins in carbon fibre composites manufactured with a range of typical processes used by Huntsman’s end customers;
— Announcement of three new prepreg (resin pre-impregnated woven fabrics) products to be launched in conjunction with SHD Composites Limited. Target markets include aerospace, automotive and sporting goods, together with the $1.25bn “out of autoclave ” carbon fibre curing resin industrial tooling market;
— Tie up with UK supercar company Briggs Automotive Company (“BAC”) to develop a graphene enhanced body panel that delivers significant weight saving to the BAC Mono single seat road car;
— Set up and commissioning of composite pipe testing facility at Haydale Composite Solutions (“HCS”) to enable the development and approval of graphene enhanced polymer pipes for the oil and gas industry;
— An additional five new R&D grant awards worth over GBP350,000 to accelerate development of new products enhanced by the incorporation of functionalised graphene and other nano materials;
— Second patent application from the Swansea University pipeline agreement, this time in wearable heated apparel aimed at high performance material for elite sports.
