24 May 2017 07:00
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Applied Graphene Materials plc
("Applied Graphene Materials", "AGM" or "the Group")
New Proprietary Graphene Delivery Technology
and Trading Update
Applied Graphene Materials, the producer of specialty graphene materials, is pleased to provide information about its new, proprietary technology, Structural InkTM, which enables the highly targeted delivery of graphene to composites, together with a trading update.
Significant progress has been made in Applied Graphene Material's core target market segments of composites and coatings, including new intellectual property.
Structural InkTM
Applied Graphene Materials has registered a patent having developed a highly innovative, new technology, Structural InkTM, that once fully commercialised will be targeted at the advanced composites industry.
Structural InkTM comprises the deposition of graphene nanoplatelets directly onto composite laminates in a controlled and targeted manner. By adopting Structural InkTM technology, end users will have the ability to increase mechanical toughness, which can be derived through the addition of graphene. Application to specific areas will enable the optimisation of the performance and structural design of composite materials. Ultimately this will improve component integrity and performance, enable further weight reduction and also reduce total manufacturing costs.
Applied Graphene Materials has signed heads of terms for a Joint Development Agreement (JDA) with the University of Sheffield Advanced Manufacturing Research Centre with Boeing (AMRC). This JDA will focus on the development and commercial exploitation of Structural InkTM technology, through collaboration projects with AMRC's industry partners. At an early phase in the development cycle, AGM plans to locate a technology demonstration cell within the AMRC's Composites Centre.
Richard Scaife, the AMRC Composites Centre Manager, said: "Over the last 24 months, our research staff and engineers have been collaborating with Applied Graphene Materials on its Structural InkTM technology development and we are delighted that we are now able to progress to a formal, long term agreement. While this technology is still relatively immature in aerospace terms, we believe it highlights significant potential for performance improvements with both weight and cost savings to those designing critical composite structures. In the near future we will be sharing information on this technology with our aerospace partners, but also see the potential for early adoption with partners operating in less safety critical industrial sectors."
Although at an early phase of its development cycle, four specialist end-users from different sectors of the composites industry have committed to explore Structural InkTM. These include Prodrive Composites Limited ("Prodrive"), which has signed heads of terms for a Joint Development Agreement with Applied Graphene Materials to focus on the development towards near term applications. Prodrive works in the high-end automotive, motorsport, aerospace and leisure goods sectors, designing and producing lightweight, high performance composite structures.
John McQuilliam, Chief Engineer of Prodrive Composites commented "We have investigated the potential for graphene within Prodrive's business and identified several application areas for development and ideally early adoption. We feel confident that Applied Graphene Materials represents a strong partner for Prodrive, having an approach to development that is both innovative, yet realistic. We understand that some features of their graphene technology are quite unique, but are also reassured that adoption into other commercial composite applications has already been proven."
Trading Update
The Group has continued to make good progress during the year. Taking the latest forecast into consideration our expectation is that LBITDA* for the year ending 31st July 2017 will be in line with earlier estimates at a loss of £(4.0m) based on revenues for the current year of £0.3m. Cash is expected to be significantly ahead of expectation at £4.5m.
Jon Mabbitt, Chief Executive Officer of Applied Graphene Materials, said:
"We are very excited about the opportunity that Structural InkTM opens up for AGM and our customers. Whilst we continue to collaborate with customers on developing tailored graphene dispersions for a range of applications, this printing technology offers AGM another route to market and a tried and tested product offer that we believe will be very compelling for composites end users.
It is pleasing that we are being recognized as a highly supportive and competent development partner for industrial graphene applications. The foundations we have laid over the last 3 years are really starting to bear fruit. We have consistently focused on the core markets where we know we can deliver significant enhancements for large-scale industries and our collaborations across these areas continue to build momentum."
*LBITDA comprises loss on ordinary activities before interest, tax, exceptional costs, depreciation and amortisation
Ends
For further information, please contact:
Applied Graphene Materials +44 (0) 1642 438 214
Jon Mabbitt, Chief Executive Officer
N+1 Singer +44 (0) 207 496 3000
Richard Lindley / Nick Owen
Hudson Sandler +44 (0) 207 796 4133
Charlie Jack / Emily Dillon / Jocelyn Spottiswoode
Notes to Editors
About Applied Graphene Materials
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 application in three core markets: coatings, composites and polymers and functional fluids.
The Group has developed proprietary bottom-up processes capable of producing high purity graphene nanoplatelets using a continuous process. The manufacturing processes are based on sustainable, readily available raw materials and therefore do not rely on the supply of graphite, unlike most other graphene production techniques. Applied Graphene Materials owns the intellectual property and know-how behind these processes.
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 a further £8.5 million to support its ongoing activities.
About the AMRC
The University of Sheffield Advanced Manufacturing Research Centre with Boeing (AMRC) is a world-class centre for research into advanced manufacturing technologies used in the aerospace, automotive, medical and other high-value manufacturing sectors. The AMRC has a global reputation for helping companies overcome manufacturing problems and is a model for collaborative research involving universities, academics and industry worldwide.
Combining state of the art technologies with the AMRC's expertise in design and prototyping, machining, casting, welding, additive manufacturing, composites, robotics and automation and structural testing, has created a manufacturing resource far beyond anything previously available in the UK.
www.amrc.co.uk
The AMRC is a member of the High Value Manufacturing Catapult, a consortium of leading manufacturing and process research centres, backed by the UK's innovation agency, Innovate UK.
About Prodrive Composites
Prodrive is one of the world's largest and most successful motorsport and technology businesses. They employ more than 500 staff at their headquarters in Banbury and their composites manufacturing facility in Milton Keynes. While the company is perhaps best known for motorsport, today it is just one part of an organisation, which in the last decade has diversified to become a technology business working in a range of sectors and providing a range of services.