Haydale (LSE:HAYD) reported revenue of approximately £5.0 million for the financial year ended 2026, below management’s previous expectations, as operational capacity constraints and delays in product deployment affected performance.
The AIM-listed advanced materials and clean technology company also reported an adjusted EBITDA loss of approximately £2.69 million, larger than previously anticipated, although gross margins improved to around 44% during the period.
Haydale attributed the revenue shortfall primarily to limitations in its ability to deliver projects through its SaveMoneyCutCarbon (SMCC) business, alongside delays in increasing deployment of its JustHeat product.
According to the company, demand for SaveMoneyCutCarbon’s services exceeded the delivery capacity available during the financial year, restricting the volume of projects that could be completed and recognised as revenue.
The company said the shortfall reflected operational delivery constraints rather than a reduction in customer demand or deterioration in the economics of individual projects.
Despite the lower-than-expected revenue and increased adjusted EBITDA loss, Haydale ended FY26 with cash balances ahead of management’s expectations. The supplied update did not disclose the year-end cash figure.
Gross margins of approximately 44% reflected an improvement in the proportion of revenue retained after direct costs, although the increase was insufficient to offset the impact of lower revenue on the group’s adjusted operating performance.
In response to the operational constraints, Haydale is changing the delivery structure of SaveMoneyCutCarbon, moving towards a model that relies more extensively on external installation and service partners.
The revised approach includes a new joint venture with Quidos Protect, which will provide access to an established nationwide supply chain for energy efficiency and clean technology installations.
Under the proposed structure, SaveMoneyCutCarbon will focus on customer relationships, project origination, programme management and consultancy services, while the joint venture will support the delivery of installation work through its partner network.
The delivery arrangements will cover solar energy systems, battery storage, electric vehicle charging infrastructure and other energy efficiency measures.
Haydale expects the new model to reduce the amount of fixed operational infrastructure required to support project delivery, allowing the business to use external capacity rather than expanding its own installation resources at the same rate as customer activity.
The company estimates that the annualised revenue required to reach operating breakeven will fall from approximately £17 million under its previous structure to around £10 million following implementation of the revised model.
This represents a reduction of approximately £7 million, or 41%, in the annualised revenue threshold needed to cover operating costs.
Management continues to target operating breakeven for the group’s current trading business during the first half of FY27.
The target remains dependent on the implementation of the revised delivery arrangements, the conversion of customer demand into completed projects and the resulting revenue and cost performance.
SaveMoneyCutCarbon provides energy and water efficiency services to commercial customers, including businesses and property-sector organisations seeking to implement energy-saving technologies and infrastructure improvements.
Its activities include consultancy, project planning, programme management and the supply of technologies intended to reduce energy and water consumption.
The company has been developing relationships with commercial partners to generate projects and expand its delivery network across the United Kingdom.
The joint venture with Quidos Protect is intended to address the installation capacity limitations identified during FY26 while allowing SaveMoneyCutCarbon to concentrate on project development and customer management.
Haydale expects the revised structure to reduce the working capital and fixed-cost requirements associated with delivering projects directly, although the financial impact will depend on operational performance following implementation.
The company is also continuing work on its JustHeat product following the delays experienced during FY26, which contributed to the difference between reported revenue and earlier expectations.
Haydale’s near-term priorities include implementing the new national delivery model, progressing its existing commercial pipeline and working towards its H1 FY27 operating breakeven target.
About Haydale plc
Haydale plc is an AIM-listed advanced materials and clean technology group with activities focused on energy efficiency, water efficiency and related technologies.
The company operates through its SaveMoneyCutCarbon business, which provides consultancy, technology procurement and project management services to commercial and property-sector customers.
SaveMoneyCutCarbon supports the development and implementation of energy and water efficiency projects, including solar installations, battery storage, electric vehicle charging systems and building retrofit measures.
Its commercial activities include project origination, programme design, customer advisory services and the coordination of installation and delivery partners.
Haydale is transitioning SaveMoneyCutCarbon towards a national delivery model supported by external installation providers, including its joint venture arrangements with Quidos Protect.
The company aims to expand its project delivery capabilities while reducing the fixed infrastructure required to support additional customer contracts.
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