24 September 2025

Directa Plus plc

("Directa Plus" or the "Company" or, together with its subsidiaries, the "Group")

Half Year Report for the Period Ended 30 June 2025

Directa Plus (AIM: DCTA), a leading producer and supplier of graphene-based products for use in consumer and industrial markets, announces its half year results for the six months ended 30 June 2025.

Financial performance

* Contribution margin is a managerial metric calculated as (Revenue - Direct variable costs) / Revenue.

**EBITDA loss represents results from operating activities before tax, interest, depreciation and amortisation.

Operational performance

Environmental remediation: 82% of period revenue (H1 2024: 81%)

Textiles: 18% of period revenue (H1 2024: 19%)

Outlook

Giulio Cesareo, Founder & CEO of Directa Plus, said: "The Group delivered solid progress in the first half of the year, underpinned by operational upgrades, the successful ongoing restructuring of Setcar, and continued commercial momentum. With the commissioning of our new production line in H2, enabling the launch of nanographite-based products alongside our premium G+® materials, we are well positioned to broaden our market reach and capture new growth opportunities. Supported by a strong pipeline in Environmental Remediation, a stabilising Textile division, and targeted R&D initiatives, the Board remains confident that FY25 will deliver a material year-on-year EBITDA improvement, laying the foundations for sustainable long-term growth."

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About Directa Plus

Directa Plus (www.directa-plus.com) is one of the largest producers and suppliers of graphene-based products for use in consumer and industrial markets. The Company's graphene manufacturing capability uses proprietary patented technology based on a plasma super expansion process. Starting from natural graphite, each step of Directa Plus' production process - expansion, exfoliation and drying - creates graphene-based materials and hybrid graphene materials ready for a variety of uses and available in various forms such as powder, liquid and paste.

This proprietary production process uses a physical process, rather than a chemical process, to process graphite into pristine graphene nanoplatelets, which enables Directa Plus to offer a sustainable, non-toxic product, without unwanted by-products. Directa Plus' products are made of hybrid graphene materials and graphene nano-platelets. The products (marketed as G+®) have multiple applications due to its properties. These G+® products can be categorised into various families, with different products being suitable for specific practical applications.

Directa Plus was established in 2005 and is based in Lomazzo (Como, Italy) and has been listed on the AIM market of the London Stock Exchange since May 2016. The Company holds the Green Economy Mark from London Stock Exchange which recognises companies that contribute to the global green economy.

Chief Executive Officer's Statement 

Overview

The Group has delivered a solid performance in the first half, in line with management expectations, reflecting a focus on high-value contracts, strong cost control and operational efficiencies. This is largely due to the successful ongoing restructuring of the Group's Italian team and operations, and its environmental subsidiary, Setcar, which is progressing to plan.

We are laying the foundations for scalable growth through our investment in a next-generation production platform and the expansion of our intellectual property portfolio, which now includes 116 granted patents and 39 applications pending across 22 patent families. These advances reinforce our competitive positioning and ensure the Group is well placed to capture emerging market opportunities. In particular, the new production line will enable the introduction of nanographite-based materials and other product grades designed for both high-value and cost-sensitive applications, broadening our market reach and opening entirely new commercial scenarios for the Group.

Financial performance

The stronger H1 FY25 performance, marked by 15% revenue growth to €3.90m (H1 FY24: €3.39m) and a significant LBITDA improvement of 38% to €1.13m (H1 FY24: €1.81m), demonstrates the effectiveness of our strategic focus and disciplined cost management.

Management is actively prioritising higher-margin contracts, driving reductions in direct production costs, and maintaining close oversight of overheads while safeguarding the investments required to support long-term business growth. Cash monitoring remains critical, with management continually balancing the trade-off between funding growth initiatives and ensuring the overall sustainability of the business.

Review of operations

Important upgrades to the Group's production system and capabilities are nearing completion, with full commissioning expected in Q4 2025. The revamped facility is now fully automated, capable of handling multiple precursors, and designed for scalability and replicability. These upgrades will enhance the Group's ability to deliver highly tailored materials at competitive cost, including for the first time nano-graphite and additives, to meet the evolving needs of our customers. Entering the high-volume nano-graphite market will enable the Group to expand our addressable market volume by at least 10x and reinforce our service offering across strategic sectors that include elastomers, batteries, composites, paints, and cement, alongside strengthening established key customer relationships in the Environmental and Textile verticals. This flexibility will enable the Group to capture demand across a broader range of customer segments and market contexts.

Enhanced levels of process automation and control, associated with the investment programme, will also improve operational reliability, consistency and production capacity. As previously announced, the new system includes the replacement of argon gas with nitrogen gas as the main production energy source, delivering greater energy efficiency and cost savings, expected to cut direct production costs while improving sustainability.

The major reorganisation of Setcar's operations is progressing to plan. The restructuring has strengthened governance, streamlined operations, and created a more resilient and financially disciplined business. These improvements are reflected in a half-year performance that highlights a notable advance over the prior year with Setcar now better aligned with the Group's strategy and culture. Key steps included a governance restructuring with a new General Manager, workforce optimisation to eliminate inefficiencies, and the termination of low-margin contracts - allowing Setcar to focus on high-value projects and the commercial rollout of Grafysorber®. This alignment also ensures that Setcar can support the Group's broader objectives, including innovation, market expansion, and the delivery of high-value contracts across key strategic sectors.

Environmental remediation (82% of revenue)

The positive impact of Setcar's restructuring is already visible, with the Romanian subsidiary delivering solid results in the first six months of 2025, both in terms of revenues and margins.

The Group secured several important contract renewals across its Environmental division, including those with Ford Otosan, Cummins and Metchem. Further contracts renewals are currently being discussed.

At the end of August 2025, Setcar was invited by Ford Otosan to submit an offer for services covering Q4 2025 and the whole of 2026. The renewal process has evolved into a highly competitive auction, requiring Setcar to revise its pricing downward to remain competitive. Setcar has submitted its offer and, as of the date of this announcement, no final decision has been communicated by Ford. The Company is closely monitoring developments and has prepared contingency plans for all potential outcomes, while already implementing measures identified to partially recover margins should the contract be renewed under the revised terms.

In the period, Setcar secured initial agreements with Midia International SA, worth up to $1.5 million, to provide tank cleaning and waste disposal services as part of an offshore drilling campaign in the Black Sea, specifically the Trident EX30 block. The project will involve the use of Directa Plus's proprietary Grafysorber® technology to treat the contaminated water. The operations are most likely now expected to commence in Q1 2026, compared with the original plan to start and complete in Q4 2025. The delay is due to logistical complexities related to relocating the offshore platform in the Black Sea from the Middle East. The contract remains fully valid and unchanged in scope and value, but the revised timetable will shift the related revenue and profit contribution to next year.  

The Group also secured a €1.59 million contract extension with OMV Petrom to treat oil sludges, emulsions, and contaminated water, starting in H2 FY25. This contract extends the original framework agreement, which commenced in 2021 and has generated over €1.0 million in revenues to date, to 31 December 2026, ensuring the continuity of services without interruption.

During H1, a distribution agreement was also signed with a US based agent to enter the substantial environmental decontamination market in the United States. In Italy, commercial traction is also accelerating, with the main port authority for oil-based operations in the Port of Genoa endorsing Grafysorber® through increasing orders.

Through Setcar's restructuring, we are actively positioning ourselves to unlock additional opportunities, leveraging our proprietary environmental remediation technology and tapping into the substantial market potential ahead.

Textiles (18% of revenue)

The European textiles market has faced challenges in recent years with weaker consumer spending causing a slow-down in the Group's revenues. We have gradually seen signs of improvement, with further stabilisation expected in H2. Additionally, the growing focus on sustainability and circular economy regulations presents opportunities for companies investing in innovation and responsible production. Against this backdrop, we remain committed to optimising our operations and leveraging market trends to strengthen our commercial position.

Within the textiles vertical, the Group's strategic positioning has strengthened, with advanced collaborations to take advantage of the growing pipeline in workwear, defence, and luxury applications. In H2, the Company secured significant contract renewals, including those with Grassi and MC Armor.

Post period, Directa Plus has been awarded a contract by a sole source contract from a primary governmental defence department. The contract follows over two years of technical engagement and development activities in the defence sector, during which Directa Plus introduced and demonstrated as proof of concept the potential of several of its newly developed technologies. This award represents an initial phase of work, designed to validate the application of Directa Plus's graphene-based solutions. This milestone contract marks the first formal success of Directa Plus in this vertical and supports the Company's long-term strategy to expand its presence in the defence sector. The Company expects that, subject to the outcome of this initial phase, this project could lead to further commercial opportunities and revenue generation from its growing defence-focused technology platform.

The textile segment continues to show strong potential in applications where the distinctive properties of G+, such as thermal conductivity, antistatic and antimicrobial effectiveness, are highly valued by the market, particularly in workwear and defence. We are continuing to grow organically with both long-standing and new customers in these areas. At the same time, we are deepening our collaborations with leading luxury brands that recognise G+ as an innovative material for membranes across multiple uses, from outerwear to footwear. In parallel, R&D efforts are progressing on niche applications, including electronic devices and advanced air filtration.

R&D and new applications

In parallel with the continued growth of our two core verticals - Environmental Remediation and Textiles - the Group is advancing several targeted R&D projects aimed at expanding the addressable market for our G+® technologies. These include, among the others:

Directa Plus is also adopting a consultancy-driven approach for valuable requests in verticals where the Company does not hold IP or has chosen not to invest. This strategy enables Directa Plus to capitalise on development opportunities by offering services and building customer loyalty for future production orders.

Together, these initiatives represent a strong pipeline of opportunities which, alongside our established verticals, are expected to create new revenue streams from 2026 onwards and reinforce the Group's long-term growth trajectory.

People

Directa Plus continues to invest in talent, with new hires in production initiating a remodelling of the production line to increase productivity and ensure greater operational flexibility at lower direct production cost. In R&D, the Group has expanded its team and strengthened its capabilities to better align with evolving market needs and to drive innovation. These initiatives are designed to enhance the benefits of Directa Plus' technology and production process to deliver more effective, scalable and customer-oriented solutions.

The Board continues to monitor longer-term succession planning at Group level to ensure continuity of leadership and strategic direction.

IP portfolio

The Group's broad intellectual property portfolio represents a significant hidden asset of the business, acting as a barrier to entry for potential competitors and providing strategic protection for our technologies. Together with the extensive know-how accumulated over years of research and industrial development in graphene, our IP portfolio is a cornerstone of future growth.

We are currently prioritising patents with the highest commercial potential, recognising that the breadth of our portfolio offers opportunities in multiple applications. Looking ahead, the Group expects to unlock further value from its IP base, including through potential licensing opportunities.

Outlook

The Group delivered good commercial momentum in the first half of the year, with this positive trajectory continuing in H2. The international development in Environmental Remediation is progressing well, supported by a strong and growing pipeline of opportunities in Europe, the Middle East, and the US.

The upcoming production system upgrade will broaden the Group's product portfolio with advanced materials, opening access to new, high-value markets, drive efficiency and enable Directa Pls to launch a new generation of nanographite-based materials.

At the same time, R&D projects are progressing at pace beyond our two established verticals, targeting commercialisation in new markets.

While Environmental Remediation and Textiles remain the pillars of our business today, the Board sees significant future value in the new verticals being developed through our R&D pipeline, which are expected to begin contributing meaningfully from 2026.

Notwithstanding the temporary delays and uncertainties described above, the Board remains confident that the Group will close 2025 with a material improvement in EBITDA compared with 2024, reflecting the benefits of the restructuring and efficiency measures already implemented and the solid commercial momentum achieved during the year.

Giulio Cesareo

Chief Executive Officer

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2025

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2025