Key points:
- Haydale Graphene’s share price plunged 5.45% on trading update.
- Investors were disappointed with the firm’s persistent losses.
- So, should you buy Haydale shares? Read on to find out.
The Haydale Graphene Industries PLC (LON: HAYD) share price plunged 5.45% after releasing a trading update about its fiscal year ended June 2022. The company confirmed that it expects to report full-year revenues of £2.9 million, which is ahead of previous estimates.
The graphene company also revealed that it expects to generate a gross profit of approximately £1.74 million during the same period. Its pretax losses were slightly lower than previous guidance after reaching £3.35 million.
Also read: The Best Undervalued Stocks To Watch In 2022.
The firm reassured investors that the increased momentum witnessed in its commercial operations during the second half of the previous year is likely to persist into the new year, resulting in higher revenues and profits.
Haydale Graphene attributes its broader product portfolio and growing customer base to its higher expectations for the new year. In addition, the company is counting on the investments made in its marketing and sales activities and the higher quality production processes to drive its revenues higher.
However, its overall losses/profits will be impacted by inflationary cost pressures that have affected many parts of its business, reducing its profit margins while increasing potential losses.
Still, Haydale Graphene expressed confidence that it will deliver impressive results in the current year due to the positive impact that the HT1400 has had on its production capabilities. The company is also counting on its investments in human capital to drive growth and exploit the commercial opportunities identified by the firm.
The nanomaterials manufacturer has witnessed increased demand for its products across multiple industries, including aerospace, automotive, marine, sports and printing inks & coatings sectors.
The company harnesses the power of graphene and nanomaterials to deliver benefits to multiple industries. Investors are looking forward to when Haydale Graphene will become profitable and start rewarding loyal shareholders.
So, should you buy Haydale shares? The answer depends on your investment horizon. Long-term investors may find the stock attractive, given the prospects of the graphene industry.
*This is not investment advice. Always do your due diligence before making investment decisions.
Haydale graphene share price.
The Haydale Graphene share price plunged 5.45% to trade at 5.20p, falling from Monday’s closing price of 5.50p.