Directa Plus trading accelerates after solid first quarter

17th Jun 2022 13:44

(Sharecast News) - Graphene products producer Directa Plus said in an update on Friday that it has seen an acceleration in trading in the last two months, having performed in line with 2021 in the first quarter.

The AIM-traded firm, which was holding its annual general meeting, said revenue to the end of May totalled €4.6m (£3.75m) - 44% ahead of the same period last year - driven by growth across all of its commercial verticals, with sales in line with expectations.

It said it was continuing to work to mitigate inflationary pressure on costs, while maintaining increased investment in operations.

"Directa Plus remains optimistic on its ability to secure a very material contract for which it has tendered via the company's subsidiary, Setcar, for environmental remediation services," the board said in its statement.

"The company now expects a decision on the tender early in the second half.

"The contract is significantly larger than anything secured to date and, if awarded, it is expected to commence by year end."

Directa Plus said it was "encouraged" by the progress made in the financial year to date, with accelerated growth rates enabled by its fundraise at the end of 2021.

"The company's strategy to invest in high value opportunities in key verticals remains in place, with a particular focus presently on US markets.

"Directa Plus is seeing accelerated traction for environmental remediation and textiles and sees high potential for entry into international filtration markets, paints and lithium sulphur batteries with blue chip partners.

"The board looks forward to updating investors on progress in due course."

At 1113 BST, shares in Directa Plus were up 7.22% at 104p.

Reporting by Josh White at Sharecast.com.