Applied Graphene Materials

LN: AGM

£4.7m market cap

9.5p last close

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.

Investment summary

In October 2019 Applied Graphene’s (AGM’s) management announced it was re-aligning resources around dispersion and application technology to better support product development with customers presenting the nearest-term revenue opportunities. This focus supported six customer launches of coating products containing AGM’s graphene dispersion during CY19. These launches are for both mass-market and specialist applications. As a result of the ensuing uptick in product sales, revenues so far for FY20 are already 20% higher than the whole of FY19.

Y/E Jul
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 0.2 (4.0) (4.2) (7.5) N/A N/A
2019A 0.1 (4.6) (4.8) (7.9) N/A N/A
2020E N/A N/A N/A N/A N/A N/A
2021E N/A N/A N/A N/A N/A N/A
Industry outlook

Revenues increased by 35% y-o-y during H120 to £35k, driven by rising product sales. EBITDA losses narrowed by 15% to £1.9m, reflecting the initial impact of the realignment programme which has reduced the cost base by £1m on an annualised basis. Net cash (there is no debt)reduced by £1.8m in H120 to £4.3m at the period end. Management estimates the realignment programme has extended the company’s cash runway to at least Q421.

Last updated on 13/05/2020
Sector
TMT
Share price graph
Price performance
%
1m
3m
12m
Actual (2.6) (42.4) (58.5)
Relative* (4.4) (26.8) (50.2)
52-week high/low 34.5p/8.5p
*% relative to local index
Key management
Adrian Potts CEO
David Blain CFO
Oliver Lightowlers Group Finance Director