Directa Plus Reports Challenging 2024 Results Amid Revenue Decline and CEO Succession Plan

• Securing full control of Setcar and initiating a major operational overhaul.
• Contract renewals with big names like FORD Otosan.
• Post-period wins: A significant €1.59 million extension with OMV Petrom (using Grafysorber®) and a new $1.5m agreement with Midia International for offshore work in the Black Sea.

Yes, they faced setbacks (a major €44m tender unexpectedly lost, delays with Liberty Galați due to the customer’s financial issues), but the core technology and pipeline look robust.

Textiles (20% of Revenue)

This segment felt the sting of squeezed European consumer spending. Revenue share dropped from 30% to 20%. However, it’s not all doom and gloom:

• Continued work with major workwear, defence, and fashion brands.
• Growing global interest in G+ graphene’s properties (thermal conductivity, antimicrobial).
• Signs of a potential market recovery later in 2025 as inflation stabilises.
• Notable win: A contract with Heathcoat Fabrics (UK) for thermal dissipation tech.

The slowdown appears temporary, linked more to macroeconomics than product appeal.

Other Verticals (1% of Revenue)

Keep an eye on:

• GiPave (Asphalt): Used at the Imola F1 circuit and Rome resurfacing projects – proving its durability and green credentials.
• Batteries: Collaboration with shareholder Nant G Power on next-gen lithium-ion prototypes.

These represent exciting future growth vectors, albeit small for now.

Operational Shifts: Cutting Costs & Boosting Efficiency

Management hasn’t been idle. Recognising the tough environment, they’ve been busy sharpening the axe:

• €0.5 million annualised cost savings identified, set to flow through in 2025.
• Production line overhaul: A renewed team is remodelling the line for greater flexibility and lower costs.
• Major efficiency win: Swapping argon gas for nitrogen gas in production – slashing costs and improving the environmental footprint.
• R&D refocus: Strengthening the team to better align with near-term market needs.
• Setcar restructuring: Post-acquisition, headcount has been reduced and new leadership (including a General Manager with 15+ years experience) installed to drive efficiency.

This isn’t just cost-cutting; it’s strategic repositioning for profitability.

Outlook: Green Shoots & A Solid Order Book

Here’s where things get decidedly more upbeat. The early signs for 2025 are promising:

• Q1 FY2025 Revenue: Approximately €2 million – that’s a 40% jump on Q1 2024!
• Current Order Book: A healthy €7 million for FY2025, providing much-improved visibility.
• Pipeline Strength: Described as “good,” supporting confidence in meeting market expectations for the full year.

The momentum from late 2024 contract wins (Grassi, Ford Otosan, Cummins, Metchem) and the recent OMV Petrom/Midia deals is tangible. The Board’s confidence in hitting FY25 targets feels more than just boilerplate.

A Founding Era Ends: CEO Succession Plan Announced

In a significant but planned development, Founder and CEO Giulio Cesareo confirmed he will step down by the 2026 AGM. Cesareo has been the driving force since 2005, taking the unique graphene production process from concept to commercial reality.

The Board now has a clear 12-month runway to manage the succession, emphasising the need to retain Cesareo’s “knowledge, expertise and customer contacts.” This isn’t a sudden exit; it’s a considered transition for a company moving from its pioneering phase into a new chapter of commercial scaling. One to watch closely.

The Bottom Line: Tough Year, Stronger Foundations, Brighter Future?

Let’s be clear: 2024 was undeniably challenging for Directa Plus. Revenue fell sharply due to external pressures and strategic choices. However, looking beyond the headline loss reveals a company making decisive moves:

• Fortifying its balance sheet with a successful capital raise.
• Doubling down on its high-margin Environmental Remediation segment by taking full control of Setcar.
• Actively driving down costs and improving production efficiency.
• Securing a solid order book and showing strong early revenue growth in 2025.
• Planning thoughtfully for the post-founder CEO era.

The graphene market potential remains enormous. Directa Plus, with its patented, eco-friendly production process and focus on practical applications like environmental cleanup and performance textiles, is still well-positioned. 2024 was about battening down the hatches and setting new foundations. 2025 looks set to be the test of whether they can truly capitalise on that positioning and deliver sustainable growth. The Q1 bounce and €7m order book suggest the recovery story has genuine legs. Keep this one on your watchlist.