Applied Graphene Materials plc (LON:AGM), the producer of specialty graphene materials, has announced its interim results for the six months ended 31 January 2022.
Highlights
Operational highlights
Coatings
· Increase in pipeline engagements in the past twelve months
· Completed projects leading to customer product launches
· Successful engagements with
o UK Environment Agency
o Alltimes Coatings
o Stanvac
o Protective floor applications
o Launch of finished anti-corrosion primers
· Strong product range with continuing commitment to develop further for industrial coatings opportunities
· Chemical resistant coatings portfolio expected to launch in April 2022
· Car care sector progress continues apace with a number of customer products coming to market
· Pace of evaluation of our materials has slowed due to the COVID legacy and supply chain issues within the sector impacting customer R&D activity
· Growth in total pipeline engagements to 192 (2021: 135) including 24 completed developments (2021: 10) and resulting revenue potential to £3.2 million (2021: £3.7 million)
Composites and functional materials
· Growth in engagements for graphene in composites in the hydrogen storage sector
· Development of Thermal Interface Materials
Distribution
· Steady progress with deeper technical input has established greater distributor capability
· Addition of Rayoung Chemtech in Taiwan
Strategic highlights
· Technology development continuing apace
o Innovative coatings technology to meet the need for sustainable innovation and to support new opportunities in, for example, chemical resistance applications
o Battery technology materials evaluations
o Hydrogen fuel cells materials solutions and storage
o IP platform grown
· Positive regulatory activity in the USA
· Continuing IP development
Financial overview
· Revenue – £46,000 (2021: £42,000)
· Operating expenses – unchanged at £1.7 million (2021: £1.7 million)
· EBITDA* – loss of £1.7 million (2021: loss of £1.6 million)
· Loss before tax – £1.9 million (2021: loss of £1.8 million)
· Cash at bank – £4.2 million (2021: £2.3 million)
· Basic EPS – loss of 2.6 pence per share (2021: loss of 3.3 pence)
* EBITDA comprises loss on ordinary activities before interest, tax, exceptional costs, depreciation and amortisation.
Adrian Potts, Chief Executive Officer, commented:
“We continue to make excellent progress with our graphene nanoplatelet dispersion technology for a broad range of applications in the protective coatings, composites and functional materials sectors alongside our longer-range development activity into green energy. Despite the COVID-19 legacy, we have managed our in-house resources well which has enabled the development of new applications for the chemical resistant coatings and composites industries. We look forward to actively marketing this data to the industry soon.
Commercial revenues have been slower to develop than we would have liked for the period due to the compound effects of COVID-19 and supply chain challenges across the liquid resins industry. Many of our customers have been challenged to source the raw materials needed for their standard products and have temporarily refocused resources away from research and innovation, which has led to a slowing of customer evaluation, formulating and testing of our products.
We have worked hard with our distributors through this period to support their efforts technically with their customers and we see this as a good investment for future potential. With the progressive re-emergence of the industry, we are anticipating increasing engagement with our graphene nanoplatelet products.”
Applied Graphene Materials’ results presentation, with audio commentary, is expected to be made available on its website at http://www.appliedgraphenematerials.com in due course.
Applied Graphene Materials – For the last decade, AGM has been at the forefront of harnessing the possibilities of graphene. Founded originally by Professor Karl Coleman, the Group has grown from an academic idea from Durham University to a world leader in the development and application of graphene nanoplatelet dispersions for customers in the coatings, composites and functional materials sectors.
The Group utilises its proprietary bottom-up manufacturing process to produce high purity graphene nanoplatelets. Its expertise in dispersion chemistry enables AGM to create optimised, stable and easy to handle dispersions that customers use in real-world industrial products. AGM’s unique approach enables industries to fully realise the potential of graphene in a simple, safe and easy to formulate way.
AGM, based at the Wilton Centre on Teesside, was admitted to AIM in November 2013, raising £11 million. The Group successfully raised £8.5m in January 2016 and a further £9.8m in November 2017. Since August 2020, the Group’s shares are also listed on OTCQB in the United States and, in January 2021, the Group successfully raised a further £6m gross. As a result of the funding support and its industry leading technology platform, AGM has been able to develop a significant sales distribution network covering Europe, North America and Asia. The Group continues to work closely with industrial partners, and has seen the successful launch of numerous commercial products enhanced by its Graphene Dispersions.
