Applied Graphene Materials

LN: AGM

Market Cap£16.7m

Last Close 26p

Applied Graphene Materials (AGM) develops graphene dispersions that customers use to enhance the properties of coatings, composites and functional materials. It also manufactures high-purity graphene nanoplatelets using a proprietary process based on sustainable, readily available raw materials instead of graphite.

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Investment summary

Applied Graphene Materials’ (AGM’s) FY21 results advise of a doubling in the number of ongoing customer engagements and cumulative number of products launched by customers during the year. Customers collectively launched 11 new products during FY21, primarily in the car care sector. A further three have been launched since end FY21 suggesting that market adoption of AGM’s group’s nanoplatelet dispersions is accelerating.

Y/E Jul	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2020A	0.1	(3.1)	(3.5)	(6.1)	N/A	N/A
2021A	0.1	(3.2)	(3.6)	(6.3)	N/A	N/A
2022E	N/A	N/A	N/A	N/A	N/A	N/A
2023E	N/A	N/A	N/A	N/A	N/A	N/A

Industry outlook

Revenue growth during FY21 was not as fast as customer engagement, 48% y-o-y to £0.1m, because coronavirus-related travel restrictions prevented some customers from deploying their graphene-enhanced coatings on projects. Growth accelerated in H221 (67% vs 20% H121) as restrictions eased. Full year EBITDA losses were similar to the prior year at £3.1m. AGM raised £5.5m (net) in January at 41p/share. Management estimates the funds raised have extended the cash runway beyond January 2023, enabling it to convert the opportunity pipeline into meaningful annual revenues during the period to January 2023.

Last updated on 02/12/2021