18 Sep 2015 07:00
18 September 2015
Applied Graphene Materials plc
("Applied Graphene Materials", "the Group" or "the Company")
Period end trading update
Applied Graphene Materials plc, the producer of specialty graphene materials, is pleased to provide the following update ahead of the announcement of its full year results for the year ended 31 July 2015.
Financial and operational performance in 2015
The overall trading performance of the Group for the period has been slightly ahead of the Directors' expectations. Net cash was approximately £4.7 million at the year end.
The pace of progress in the areas of customer evaluation, development of customer relationships, performance data generation and manufacturing process enhancements has been strong in the second half of the year. Highlights for the year include:
· Significant broadening of the pipeline of identified opportunities for collaboration;
· Over 120 evaluation samples provided to customers in more than 20 countries;
· More evaluation quantities were provided in the final quarter of the financial year than during the previous nine months combined;
· Two full week periods of 24 hour continuous running have been undertaken to support customer demands for graphene;
· First patent approval received from the Japanese Patent Office;
· Positive data generated from independent coatings and oil trials; and
· Promotional activity at 25 major international exhibitions in target market sectors.
The Board remains pleased with the progress achieved across these areas and more importantly, the increased pace of progress and momentum as the year has progressed.
Post period developments
Customer relationships
The Group remains focussed on its three core target markets of polymers & composites, coatings and functional fluids, and is developing a portfolio of commercial opportunities extending over the short (less than 12 months), medium (less than three years) and longer (three years and beyond) terms.
A number of near term opportunities were highlighted at the time of the announcement of the Group's interim results in March 2015. During the new financial year, these have begun to convert into formal joint development agreements and/or programs, although the precise nature of these projects is subject to ongoing confidentiality provisions. These collaborations include Millers Oils, a leading independent blender of oil and fuel additives, plus others with leading consumer brands who wish to remain anonymous. Such collaborations represent an important milestone on the route to production orders and a fuller update will be provided with the full year results in November. The precise timetable to production orders remains to be determined, and whilst these collaborations are not expected to result in significant revenues for the business during 2016, the Board considers that the traction achieved provides compelling evidence of the benefits of graphene and the value that Applied Graphene Materials can add.
Development of manufacturing capacity
The Group expects to commence continuous 24 hour running of the manufacturing process later in the current financial year as demand increases. As previously signalled, the Group remains committed to putting in place appropriate additional manufacturing capacity in advance of the anticipated growth in demand for graphene in order to secure its long term market position.
Through our work with customers, together with our own in-house research and testing, there is clear evidence that a single method of manufacture of graphene nanoplatelets will not satisfy the full range of market opportunities that exist for graphene. Therefore, in addition to developing the capacity of our existing proprietary manufacturing process, the Group is investing in additional complementary production techniques based on processes, for which the Group has already made patent applications, which will open up an even broader addressable market.
Final results
Applied Graphene Materials' full year results for the year ended 31 July 2015 are expected to be announced on Wednesday 11 November 2015.
Ends
For further information, please contact:
Applied Graphene Materials +44 (0) 1642 438 214
Jon Mabbitt, Chief Executive Officer
Oliver Lightowlers, Chief Financial Officer
N+1 Singer +44 (0) 207 496 3000
Shaun Dobson / Richard Lindley / Nick Owen
Hudson Sandler +44 (0) 207 796 4133
Charlie Jack / Emily Dillon
Notes to Editors
Applied Graphene Materials
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.
The Group has developed a proprietary bottom-up process for the production of high purity graphene nanoplatelets and owns the intellectual property and know-how behind this process. Applied Graphene Materials' 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. It is capable of producing high purity graphene using a continuous process. Applied Graphene Materials provides dispersion and product integration expertise to deliver solutions for a wide range of applications.
Millers Oils
Millers Oils were established in 1887 in West Yorkshire. The business has a pedigree of innovation with nanotechnology in engine oils and is:
· A leading independent blender of oil and fuel additives;
· An innovator of new products for all markets;
· Supplier to industrial, commercial vehicle and automotive markets;
· A global supplier, distributing all over the world, including the Far East, USA and South America;
· Focussed on delivering high quality products and services to customers;
· Dedicated to helping customers' processes and vehicles run more efficiently and for longer.
Millers Oils' independence means they can source the best raw materials for formulations, and its size means they can respond quickly to new market trends and requirements.