Directa Plus (DCTA) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €3.39m, down from €4.59m in H1 2023, mainly due to delayed contracts and a strategic shift to higher value business.

• Contribution margin improved to 52% (from 44%), reflecting a focus on higher-margin contracts and cost efficiencies.

• Environmental remediation accounted for 81% of revenue, with significant progress in expanding Setcar and international opportunities.

• Textiles contributed 19% of revenue, impacted by reduced consumer spending and a temporary slowdown from a major customer.

• Completed a £6.9m capital raise in June 2024 to fund Setcar acquisition and support growth initiatives.

Financial highlights

• Total income for H1 2024 was €3.45m, down from €4.73m in H1 2023.

• EBITDA loss widened to €1.81m (H1 2023: €1.25m); loss before tax was €2.48m (H1 2023: €1.91m).

• Cash at period end was €0.93m, rising to €6.06m by end of August 2024 after the capital raise.

• Basic and diluted loss per share for H1 2024 was €0.04 (H1 2023: €0.03).

• Net assets at 30 June 2024 were €5.50m (31 Dec 2023: €6.58m).

Outlook and guidance

• FY2024 revenue now expected to be around €7m, materially below previous market expectations of €17m, due to delayed tenders and contract starts.

• Focus remains on converting a strong pipeline, especially in environmental remediation, and achieving breakeven EBITDA run rate by end of FY2025.

• Management is prioritizing cost reduction, margin improvement, and international expansion.