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Market capitalisation
GBP4m
Research: TMT
Applied Graphene Materials (AGM) has announced a supply agreement with one of the world’s largest car care brands, which will be using AGM’s graphene dispersions in the manufacture of its automotive detailing products. While the value of this agreement has not been disclosed, it is significant because it is the first with a major player in the car care sector.
Applied Graphene Materials |
Playing with the big boys |
Supply agreement |
Tech hardware & equipment |
15 September 2022 |
Share price performance Business description
Analyst
Applied Graphene Materials is a research client of Edison Investment Research Limited |
Applied Graphene Materials (AGM) has announced a supply agreement with one of the world’s largest car care brands, which will be using AGM’s graphene dispersions in the manufacture of its automotive detailing products. While the value of this agreement has not been disclosed, it is significant because it is the first with a major player in the car care sector.
Year end |
Revenue (£m) |
EBITDA (£m) |
PBT* |
EPS* |
DPS |
P/E |
07/19 |
0.1 |
(4.6) |
(4.8) |
(7.9) |
0.0 |
N/A |
07/20 |
0.1 |
(3.1) |
(3.5) |
(6.1) |
0.0 |
N/A |
07/21 |
0.1 |
(3.2) |
(3.6) |
(5.6) |
0.0 |
N/A |
07/22e** |
0.1 |
(3.7) |
(4.1) |
(5.8) |
0.0 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Consensus estimates.
Supplying dispersions to a major player in the car care sector is significant for AGM. It has already announced multiple product launches with smaller participants. For example, in May 2021, successful Dragons’ Den contestant Tru-Tension launched a detailing spray for motorbikes that was enhanced with AGM’s graphene nanoplatelet technology. Customer Infinity Wax launched its first graphene-enhanced product, a detailing spray for cars, in Q4 CY20, followed by a graphene-enhanced wax in CY21. So far, however, none of these relatively small customers has generated meaningful revenues for AGM. The agreement with the global household name may potentially change that, though the financial details have not been disclosed.
The new customer has over 80 years’ experience producing award-winning products for the international car care sector. The addition of AGM's graphene nanoplatelet dispersion technology into the customer’s car care systems has the potential to significantly improve the barrier performance of its waxes, polishes and finishing sprays for vehicles, thus providing better protection for surfaces and improving vehicle aesthetics.
AGM was chosen as a supplier because its proprietary dispersions of graphene nanoplatelets make it easier for its customers to incorporate graphene in their products in a repeatable, consistent fashion at volume. This helps customers cut the time it takes for them to bring graphene-enhanced products to the market.
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Research: TMT
SenSen Networks (SNS) reported accelerating growth in FY22, with operating results reflecting continued investments to support the company’s rapid, ongoing vertical and geographic expansion. Management’s expense rationalization efforts should stabilize SNS’s cost base. We adjust our forecasts to account for ongoing macro events and rising inflation, though we still forecast substantial growth through FY24. SenSen’s shift to a ‘pragmatic SaaS’ model should boost margins, and we see the company’s growth potential as underappreciated in the market.
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