Haydale Graphene Inds PLC ( LSE:HAYD , OTC:HDGHF , FRA:6HG ) shares fell 12% to 0.25p after the clean technology group forecast annual revenue well below market expectations and a larger adjusted loss.
Revenue for the financial year ended 30 September 2026 is expected to be £5 million, against market expectations of approximately £8 million. Its adjusted loss before interest, tax, depreciation and amortisation is forecast at approximately £2.69 million, compared with expectations of about £2 million.
Haydale attributed the revenue shortfall to delivery constraints at SaveMoneyCutCarbon and a slower commercial ramp-up of JustHeat.
The board believes the main problem is converting commercial opportunities, not underlying customer demand, prompting a change in how SaveMoneyCutCarbon delivers projects.
Haydale has agreed legally binding heads of terms for a joint venture with Quidos Protect to expand national delivery capacity while reducing fixed costs.
Under the new model, the board estimates annualised revenue needed to reach operating breakeven will fall from about £17 million to about £10 million.
Despite the revenue shortfall, gross margin is expected to reach approximately 44%, up from 37.9% at the half-year. Year-end cash is also forecast to exceed market expectations.
The board still expects its current trading business to reach operating breakeven in the second quarter of the 2027 financial year. That forecast excludes costs of developing and commercialising its thermal transfer fluid technology.
