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Applied Graphene Materials, the producer of specialty graphene materials, is pleased to announce its interim results for the six months ended 31 January 2019.

Highlights

Operational:

• Finalising the terms of the Hycote product launch by James Briggs Limited (JBL)
• Scale-up trials continuing with Applied Nano Systems (ANS) for a graphene-loaded coating system
• New anti-corrosion data developed, widely presented and exhibited to ensure AGM remains a leader in innovation in coatings and maximises opportunities to establish new commercial collaborations. Positive feedback received from the sector
• NATEP collaborative development programme focusing on enhancement of fire-retardant materials in aircraft and mass transit markets has seen positive progress in performance testing and manufacturability trials
• Structural Ink trials producing useful performance gains in composites
• Airbus Space and Defence (Airbus) qualification nearing completion and is close to first order commitment
• Increase in presence as global graphene community member - signed a Memorandum of Understanding and developed links with the National Graphene Institute and the Graphene Engineering Innovation Centre and joined The Graphene Council and the Industry Council of The National Graphene Association

Strategic:

• New Executive team in place focused on accelerating commercial momentum
• Extensive strategic review of the business completed and commercial strategy refined
• Pragmatic review of revenue pipeline against likelihood of success
• Focus on converting our 120 active engagements towards meaningful revenues
• Seeking to appoint distributors to increase channels to market for standard products
• Greater presence in the graphene market as a key influencer

Financial:

EBITDA*	Loss of £2.2 million (2018: loss of £2.0 million)
Loss before tax	Loss of £2.4 million (2018: loss of £2.3 million)
Cash at bank	£8.2 million (2018: £12.0 million)
Basic and diluted EPS	Loss of 4.4 pence per share (2018: loss of 6.4 pence)

*EBITDA comprises loss on ordinary activities before interest, tax, exceptional costs, depreciation and amortisation.

Adrian Potts, Chief Executive Officer, commented:

"We continue to make positive progress with providing robust technology solutions for our key focus market of coatings technology. Whilst the pace of such progress is not always as rapid as we would like, this is reflective of the intensity, breadth and depth of engagement with multiple customers and the length of time it often takes to formulate a solution and then test it. This can often last six months or more in the case of an iterative effort. We are determined to provide robust, repeatable graphene-based technical solutions in conjunction with our customers as a key means of securing long term business opportunities and creating line-of-sight to revenue. 

Our strategy and expected milestones in the next 12 months include:

• Significant sales development as a result of existing pipeline engagements transitioning to repeat customers;
• Launch of customer products containing AGM graphene dispersion solutions, principally in the coatings sector;
• Airbus completion of satellite builds with AGM thermal adhesives on board;
• Maturing pipeline customers completing their iterative testing, product reviews and launching products;
• Technology development efforts bringing forth platform solutions for customer engagement in the broader coatings space - both for ever-harsher conditions and in more environmentally friendly water-based coatings systems; and
• Increasing routes to market through distribution agreements for standard products.

I am pleased with the progress achieved over the last six months, albeit that the timing of certain revenues is behind our previous expectations and look forward to the future with confidence as we focus on increasing the momentum in the business."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Applied Graphene Materials' results presentation, with audio commentary, is expected to be made available on its website at http://www.appliedgraphenematerials.com in due course.

For further information, please contact:

Applied Graphene Materials	+44 (0) 1642 438 214
Adrian Potts, Chief Executive Officer David Blain, Chief Financial Officer
N+1 Singer	+44 (0) 207 496 3000
Richard Lindley / Justin McKeegan / Mia Gardner
Hudson Sandler	+44 (0) 207 796 4133
Charlie Jack / Emily Dillon

Notes to Editors

Applied Graphene Materials works in partnership with its customers using its knowledge and expertise to provide bespoke graphene dispersions and formats to deliver enhancements and benefits for a wide range of applications. The Group's strategy is to target commercial applications in three core markets: coatings, composites and functional materials. 

The Group has developed proprietary bottom-up processes which are capable of producing high purity graphene nanoplatelets using a continuous process. The manufacturing process is based on sustainable, readily available raw materials and therefore does not rely on the supply of graphite, unlike a number of other graphene production techniques. Applied Graphene Materials owns the intellectual property and know-how behind this process.

Applied Graphene Materials was founded by Professor Karl Coleman in 2010 with its operations and processes based on technology that he initially developed at Durham University.  The Group was admitted to AIM in November 2013, raising £11 million, and is based at the Wilton Site on Teesside. In January 2016 the Group raised £8.5m to support its ongoing activities and in October 2017 the Group raised a further £9.8m.

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