Haydale (AIM: HAYD), the global advanced materials group, is pleased to announce an extension of a supply contract with a global industrial manufacturer amounting to over US$3.3 million. Haydale also, provides an update on its trial with Amiblu Technology AS (“Amiblu”), formerly Flowtite Technology.
Supply Contract Extension and Development with Global Industrial Manufacturer
Haydale Ceramic Technologies LLC (“HCT”) has developed and extended a previously announced four-year agreement to supply Silicon Carbide (“SiC”) micro-fibre to a global group selling tooling and wear-resistant solutions. Haydale has renegotiated and extended the term of the agreement. This new sole supply agreement has a potential sales value of more than US$3.3 million over a now five-year term, representing an increase of US$1.35 million in the HCT order book value which now stands at US$5.46 million.
Additionally, HCT has in the first quarter of this fiscal year received a purchase-order moving from a monthly order to a 3-month supply of SiC by a global paint and coatings company for its anti-corrosion product. This contract, worth over US$0.1 million per quarter represents a 33% uplift on previous monthly purchase orders received from the customer. Further product testing is being carried out on a second industrial application, where expected positive results will lead to a second product launch such that order values from the customer would be expected to continue to rise in the near future.
Amiblu Technology Trial
The results of the Amiblu Technology, formerly Flowtite Technology, trial in March did not show the improvements Haydale had hoped for. However, despite Amiblu’s internal management changes the Group is continuing discussions with the Amiblu R&D team with a meeting planned in Quarter Four to discuss next steps.
Commenting on the supply contract extension, Ray Gibbs, President, Business Development, at Haydale, commented:“Although there was a one-month delay in the June product shipment, the revised contract is testament to a close working relationship with a customer that has allowed us to renegotiate terms and extend the sales pipeline. Our focus on building long term business partnerships with best in class corporations has paid off.”
Commenting on the supply contract extension Keith Broadbent, COO of Haydale, said:“These contract extensions are a result of Haydale’s continued product development and service. We have made great progress with the SiC product offering which has resulted in this solidified relationship.”
Commenting on the Amiblu results, Keith Broadbent, COO of Haydale, said: “Whilst the last test results are disappointing we are still looking to continue to engage with Amiblu and iterate towards a solution which will greatly improve their product offering.”
Notice of Final Results
Haydale will publish its final results for the year ended 30 June 2018 on Tuesday, 18 September 2018.