Applied Graphene Materials (LON:AGM), the producer of specialty graphene materials and dispersions, announced its full year results for the year ended 31 July 2019.
Operational and commercial highlights
- Good commercial progress being made, albeit yet to lead to revenue growth due to time to introduce and test materials rigorously for customer product launch
- Customer/AGM new product launches:
- JBL formally launched its Hycote anti-corrosion primer
- Alltimes launched its Advantage Graphene roof coating product for construction use
- Applied Nano Surfaces is scaling up production of a low-friction aerosol-based coating product, Tricolit®
- Thermal adhesive product launched by an independent high performance product specialist
- AGM’s water based application launched in July 2019
- Two new distributors appointed – CAME in Italy and Carst and Walker in South Africa following full launch of our Genable® standard dispersion product range
- Strong technical data to demonstrate the efficacy of AGM’s graphene dispersions presented at major coatings industry conferences
- Manufacturing patent granted in key territory in May 2019
- Total income £0.12 million (2018: £0.20 million)
- EBITDA* Loss of £4.83 million (2018: loss of £4.54 million)
- Cash at bank £6.13 million (2018: £10.44 million)
- Basic EPS Loss of 7.9 pence per share (2018: loss of 8.2 pence)
- Adjusted EPS Loss of 7.9 pence per share (2018: loss of 7.5 pence)
* EBITDA comprises loss before interest, tax, exceptional costs, depreciation and amortisation.
Post year end
· R&D tax credit of £0.62m received in August 2019 further strengthens the Company’s cash position
· On 9 October 2019 the Company entered into a consultation period with staff to re-align its resources which will reduce costs
· The re-alignment will further extend the Company’s cash runway
Adrian Potts, Chief Executive Officer, commented:
“This year we have continued to consolidate our industry-leading IP in the integration of graphene into coatings, in collaboration with our commercial partners. Our dispersion technology is critical to building the strong technical foundations that will support the success and long-term sustainability of our business.
As announced, revenue development this year has been slower to materialise than expected. The route to launch graphene-enhanced products takes time to realise full potential, due to the varied and often lengthy testing processes and the complexity of effectively transferring graphene’s exceptional properties. The restructuring process we are implementing will re-align our business to focus on our core dispersion technology and will reduce our cost base to sustain the business while we focus on achieving conversion of our pipeline of approximately 100 active engagements, and in particular our core near term customers, into meaningful revenues.
Our commercial momentum continues to build, and we have been pleased to announce progress on a number of partnerships, as well as product launches by Alltimes Coatings, and James Briggs which are on schedule for this calendar year. Meanwhile, we are also progressing a large number of collaborations with customers under non-disclosure agreements, and look forward to updating the market on these in due course.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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.