Graft Polymer, a prominent UK-based firm specializing in polymer modification and drug-delivery systems, experienced a significant blow on Wednesday as its share price plunged by 37.5%. This drastic drop followed the company's acknowledgment of serious doubts about its future stability, brought on by dwindling revenues and escalating pretax losses in the first half of 2023.
The company's revenue fell to GBP 240,000 (GBP 1 = $1.21) from GBP 331,000, and its pretax loss increased to GBP 1.1 million for H1 2023 from GBP 815,000 the previous year. Additionally, Graft Polymer reported net cash outflows of GBP 1.1 million during this period. These financial setbacks have led the company to seek additional equity funding to ensure its operational viability.
Graft Polymer has emphasized that its future hinges on establishing a robust financial structure and generating consistent cash flow. If the company fails to secure the necessary funding, it may be compelled to revise its accounting basis.
Despite these challenges, Graft Polymer remains optimistic about its sales prospects for 2023 and 2024. The company is relying on its expanded operations and a promising pipeline from its production site in Slovenia to secure more customer mandates. The firm believes that these factors will help it navigate the current financial turbulence and bolster its market position in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.