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.
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.
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.