(Alliance News) - Applied Graphene Materials PLC on Wednesday reported "good" progress in the first half of its financial year and said it does not expect the Covid-19 outbreak to hurt its business.
For the six months to the end of January, the company's pretax loss narrowed to GBP2.3 million from GBP2.4 million. Revenue remained insignificant, but operating costs were reduced.
No dividend was declared.
Revenue totalled GBP35,000, up 35% from GBP26,000 a year before. The growth was attributed to an increase in the supply of production orders of graphene and evaluation quantities of graphene to commercial partners. After strong sales in February, revenue in the year to date is GBP60,000, up 20%.
Looking ahead, Applied Graphene Materials said it does not believe the virus outbreak will hurt cash until the fourth quarter of 2021. Instead, the reduction in travel and remote working will improve its cash position.
At at the end of January, the company had net cash of GBP4.3 million.
"The business is in a strong position to support further progress, with net cash of GBP4.3 million and ongoing cash operating costs reduced by 23% as a result of our realignment in October. We are confident that our pipeline of engagements is moving progressively towards further product launches and growing revenues in the near-term, with these successes expected to come primarily from our focus area of paints and coatings," said Chief Executive Adrian Potts.
The stock was trading 14% lower at 9.70 pence each at midday Wednesday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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