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(Sharecast News) - Directa Plus said on an update on Wednesday that it expected to report modest revenue growth and a significantly improved earnings performance for the year ended 31 December, supported by cost controls, operational efficiencies and progress across its graphene and environmental remediation businesses.
The AIM-traded producer of graphene nanoplatelet-based products expected 2025 revenue of 7m, up from 6.66m the prior year, with its adjusted EBITDA loss broadly in line with market expectations at around 2.5m, compared with 3.64m in 2024.
It said the improvement reflected what it described as disciplined cost management and operational efficiencies delivered during a transitional year.
Operationally, Directa Plus said it made advances in technology, production and product capabilities, strengthening its ability to manufacture advanced graphene-based materials at low cost and at scale with high consistency.
Enhancements to develop interlocked and blended graphene materials reportedly broadened the product portfolio and improved the group's ability to address high-growth applications, including PFAS-related fields, defence and highly regulated industrial sectors, at a time of increasing interest in graphene adoption.
The group said it was continuing to restructure its environmental remediation subsidiary, Setcar, delivering at least 0.7m of annualised cost savings in 2025 through headcount reductions and operational efficiencies.
Setcar also secured a 1.5m total waste management contract with Ford following a competitive tender, covering a further 15-month period, with the formal contract currently being finalised.
In addition, Directa Plus initiated a process to explore the potential sale of non-strategic land held by Setcar, estimated to be worth at least 0.5m.
Looking ahead, the board said it remained focussed on capturing high-growth opportunities for graphene-based solutions and monetising its core intellectual property, supported by a substantial patent portfolio.
The group said it continued to assess options including partnerships, joint ventures and licensing arrangements, alongside funding solutions required in 2026 to support future growth.
Gross cash at the end of 2025 stood at 1.5m, down from 4.98m a year earlier.
The company also announced board changes, with non-executive chairman Richard Hickinbotham set to step down on 31 January after nearly nine years on the board to take up a full-time executive role.
Giulio Cesareo would assume the role of interim chairman from that date, while the previously-announced CEO succession process remained ongoing.
"2025 has been a year of transition for Directa," said chief executive Giulio Cesareo.
"Alongside revenue growth and a significant improvement in EBITDA performance, we have strengthened our technology platform, sharpened our operational focus and taken decisive steps to improve efficiency across the group.
"These actions have positioned us to better address high-growth, highly regulated markets where our graphene-based solutions have demonstrated clear added value."
Cesareo said that with a stronger balance sheet and a growing opportunity pipeline, the company entered 2026 focused on execution, value creation and the "disciplined monetisation" of its core intellectual property and securing requisite funding that will be needed in 2026 to support future growth.
"I would like to thank Richard Hickinbotham for his leadership over the past nine years and for the wise counsel and steadfast support he has provided throughout his tenure, particularly as we navigated a number of challenges.
"His contribution as chairman has been invaluable, and we wish him every success in his new role."
At 1342 GMT, shares in Directa Plus were down 18.52% at 11p.
Reporting by Josh White for Sharecast.com.