**Summary of Directa Plus PLC Half-Year Report (H1 2025)**
**Financial Performance**
**Revenue Growth** Increased by 15% to €3.90 million (H1 2024: €3.39 million).
**Total Income** €3.92 million (H1 2024: €3.45 million).
**Contribution Margin** Improved to 54% (H1 2024: 52%) due to higher-margin contracts and production efficiency measures.
**EBITDA Loss** Reduced by 38% to €1.13 million (H1 2024: €1.81 million), indicating progress toward breakeven.
**Loss Before Tax** €1.66 million (H1 2024: €2.48 million).
**Cash Position** €2.97 million at period end (December 2024: €4.98 million), with cash discipline prioritized.
**Operational Highlights**
**Production Upgrade** Revamping of the production line nearing completion, expected to be fully commissioned in Q4 2025. This will enable fully automated, scalable production of nanographite-based materials, reduce costs, and improve sustainability.
**Talent and Innovation** New hires in production and R&D are accelerating innovation, including applications in elastomers, plastics, coatings, and batteries.
**Environmental Remediation (82% of revenue):** Setcar restructuring has yielded solid results, with new project wins like a $1.5 million contract with Midia International SA and a €1.59 million contract extension with OMV Petrom.
**Textiles (18% of revenue)** Early signs of stabilization in the European market, with contract renewals secured and expansion into workwear, defense, and luxury applications.
**Outlook**
**H2 Trading:** Started wellwith continued commercial momentum.
**Market Expansion** Upgraded production line will enable targeting of high-value and cost-sensitive sectors, opening new market opportunities.
**Future Focus** While Environmental Remediation and Textiles remain core, the Board sees significant potential in new verticals under development, supported by a broad IP portfolio and graphene expertise.
**EBITDA Improvement** The Board is confident of a material year-on-year EBITDA improvement in FY25, though moderated by project timing delays and contract pricing dynamics.
**CEO Statement (Giulio Cesareo)**
Highlighted solid H1 progress driven by operational upgrades, Setcar restructuring, and commercial momentum. Emphasized the potential of the new production line to broaden market reach and capture growth opportunities. Reiterated confidence in FY25 EBITDA improvement despite temporary challenges.
**Financial Statements Key Points**
**Loss per Share** Basic and diluted loss per share at €0.02 (H1 2024: €0.04).
**Cash Flow** Net cash used in operating activities was €1.33 million (H1 2024: €0.25 million).
**Going Concern** Directors adopted the going concern basis, but noted material uncertainty due to macroeconomic challenges and stressed scenarios.
**Conclusion**
Directa Plus PLC demonstrated resilience in H1 2025 with revenue growth, improved margins, and operational advancements. Despite challenges like project delays and competitive contract renewals, the company is positioned for long-term growth through production upgrades, innovation, and market expansion. The Board remains confident in achieving a material EBITDA improvement in FY25, laying the foundation for sustainable growth.