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Applied Graphene Materials, the producer of specialty graphene materials and dispersions, announces its full year results for the year ended 31 July 2019.

Operational and commercial highlights

• Good commercial progress being made, albeit yet to lead to revenue growth due to time to introduce and test materials rigorously for customer product launch
• Customer/AGM new product launches:
  • JBL formally launched its Hycote anti-corrosion primer
  • Alltimes launched its Advantage Graphene roof coating product for construction use
  • Applied Nano Surfaces is scaling up production of a low-friction aerosol-based coating product, Tricolit®
  • Thermal adhesive product launched by an independent high performance product specialist
  • AGM's water based application launched in July 2019
• Two new distributors appointed  - CAME in Italy and Carst and Walker in South Africa following full launch of our Genable® standard dispersion product range
• Strong technical data to demonstrate the efficacy of AGM's graphene dispersions presented at major coatings industry conferences
• Manufacturing patent granted in key territory in May 2019

Financial overview

• Total income              £0.12 million (2018: £0.20 million)
• EBITDA*                     Loss of £4.83 million (2018: loss of £4.54 million)
• Cash at bank              £6.13 million (2018: £10.44 million)
• Basic EPS                  Loss of 7.9 pence per share (2018: loss of 8.2 pence)
• Adjusted EPS             Loss of 7.9 pence per share (2018: loss of 7.5 pence)

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

Post year end

• R&D tax credit of £0.62m received in August 2019 further strengthens the Company's cash position
• On 9 October 2019 the Company entered into a consultation period with staff to re-align its resources which will reduce costs
• The re-alignment will further extend the Company's cash runway

Adrian Potts, Chief Executive Officer, commented:

"This year we have continued to consolidate our industry-leading IP in the integration of graphene into coatings, in collaboration with our commercial partners. Our dispersion technology is critical to building the strong technical foundations that will support the success and long-term sustainability of our business.

As announced, revenue development this year has been slower to materialise than expected. The route to launch graphene-enhanced products takes time to realise full potential, due to the varied and often lengthy testing processes and the complexity of effectively transferring graphene's exceptional properties. The restructuring process we are implementing will re-align our business to focus on our core dispersion technology and will reduce our cost base to sustain the business while we focus on achieving conversion of our pipeline of approximately 100 active engagements, and in particular our core near term customers, into meaningful revenues.

Our commercial momentum continues to build, and we have been pleased to announce progress on a number of partnerships, as well as product launches by Alltimes Coatings, and James Briggs which are on schedule for this calendar year. Meanwhile, we are also progressing a large number of collaborations with customers under non-disclosure agreements, and look forward to updating the market on these in due course."

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.

To read the full release, please click here.