StockMarketWire.com - Materials group Haydale warned of weaker sales as the closure of manufacturing operations in Taiwan and a weak aerospace backdrop weighed on growth in the first half of the year.

Sales for 2020 were now expected to be below the market's expectation for the full year, as a result of the weak first half, Haydale said.

The company decided to close the group's loss-making manufacturing facility in Taiwan and move capacity to its APAC Knowledge Centre in Bangkok, Thailand and Ammanford, UK.

The relocation would lead to a revenue shortfall of approximately £410,000 for the second half of 2020, but have a positive effect on earnings (EBITDA) and reduce the group's cash burn through.

Costs fell 22% over the comparable six months to December 2019, the company said.

'The decision to close Haydale Taiwan, the later than expected commissioning of the blanks line and the slowdown in the aerospace sector in the US has affected our short-term revenues,' it added.




At 9:23am: [LON:HAYD] Haydale Graphene Industries Plc share price was -0.25p at 1.45p



Story provided by StockMarketWire.com