Directa Plus PLC on Wednesday said it expects to underperform against market expectations, citing shorter term headwinds, as it posted a chunkier interim loss.

The London-based graphene product maker said pretax loss widened to €2.5 million in the first half of 2024, from €1.9 million a year ago.

Revenue fell 26% to €3.4 million from €4.6 million.

Directa Plus shares dived 27% to 11.67 pence each on Wednesday afternoon in London.

Employee benefit expenses increased to €2.3 million from €2.2 million.

Costs for raw materials and consumables decreased to €1.5 million from €2.2 million.

Looking ahead, Chief Executive Officer Giulio Cesareo said: ‘Despite these shorter-term impacts, we are seeing increasing traction in graphene technology and its applications globally and I am confident we have the right strategy and team in place to capture this growing market demand. Bolstered by the successful capital raise in the half, with a more efficient organisational structure, we are well positioned to make specific investments in new commercial and technical capabilities and to deliver on the large pipeline of opportunities, in particular in Romania where the board remains confident that the tender will be finalised in the coming months.’

The company expects its 2024 results to materially underperform against market expectations, citing shorter term headwinds and an extended timeline for the award of a substantial tender for its subsidiary Setcar SA, which deals with the decontamination of industrial plants and environmental services.

The company cites consensus market expectations of €17 million for revenue, compared to €10.5 million in 2023, and adjusted loss before interest, tax, depreciation and amortisation of €1 million, compared to €2.6 million.

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