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Applied Graphene Materials

LN: AGM

Market Cap£11m

Last Close 16.55p

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 readily available raw materials instead of graphite.

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Investment summary

During H122, supply chain issues affecting the global coatings industry took resources away from new product development. Consequently, although Applied Graphene Materials’ (AGM’s) H122 revenues were similar to those in H121 (£46k H122 vs £42k H121), they were below management expectations, leading the company to moderate its full year expectations. EBITDA losses widened by 9% y-o-y to £1,723k as a result of rising utility costs and a small increase in staff numbers. Net cash (excluding IFRS 16 lease liabilities) reduced by £2.1m during H122 to £4.2m at the period end.

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) (5.6) 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

Nevertheless, the company made progress on multiple projects during the period, strengthening its position by taking it into complementary markets including preparing for the launch of a chemical resistant coatings portfolio. Management estimates that AGM has a cash runway beyond January 2023, potentially enabling it to convert its opportunity pipeline, which was worth £3.2m on a probability weighted basis at end H122, into meaningful annual revenues during the intervening period.

Last updated on 20/05/2022
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Share price graph
Balance sheet
Forecast net debt (£m) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (15.1) (37.6) (49.2)
Relative* (12.0) (35.8) (50.2)
52-week high/low 32.5p/16.6p
*% relative to local index
Key management
Adrian Potts CEO
David Blain CFO