Company reports significant losses for six months ending January 31 - but says it is 'well placed' to take advantage of growing demand for graphene
A Wilton graphene company whose shares soared when it floated on the London Stock Exchange has revealed its interim results - as bosses said the firm was on target to double its workforce.
Applied Graphene Materials (AGM), admitted to the Alternative Investment Market (AIM) in November, has patented technology to ramp up production of “wonder material” graphene.
The company has reported significant losses for the six months ending January 31 - but says it is “well placed” to take advantage of a growing demand for graphene, the global market for which is predicted to hit $195m by 2018.
Interim results from AGM show losses before interest, tax, non-operating exceptional costs, depreciation and amortisation (EBITDA) of £820,270 during the period compared to a loss of £397,713 the previous year. AGM reported a loss before tax of around £1.2m, compared to a loss of £398,887 the year before.
However, the firm pointed out the growing losses reflected investment in overheads, including headcount and business infrastructure, to support the development of the business
AGM also saw net assets grow from £704,840 in 2013 to around £9.7m.
Investors on AIM sent the share price for the Durham University spin-off soaring by three times its original value within days when it first floated. AGM has raised £11m through the flotation on AIM.
AGM’s chief executive officer Jon Mabbitt said: “Our share price has held up well, it’s given us the secure financial platform to build infrastructure, expand production capacity and recruit good-quality people including PhD scientists, engineers and plant operators.
“We had 10 people at Christmas, we will have 20 or more by the end of July and we’ve also invested in lab equipment and increased our footprint at Wilton.
“It’s likely that we will continue at Wilton, we have no plans to move elsewhere but we may open satellite offices if we are to become an international company.”
Graphene, a one-molecule-thick layer of graphite, is 100 times stronger than steel yet six times lighter, and conducts electricity 20 times better than copper.
AGM is now at the centre of a growing graphene development hub on Teesside, after the Centre for Process Innovation (CPI) announced it is to establish a £14m facility at NETPark in Sedgefield to speed up the commercialisation of the material.
Mr Mabbitt has welcomed the Graphene Applications Innovation Centre announcement, which comes after large cash boosts went towards graphene development in Manchester and Cambridge.
He said: “CPI helped build the equipment we have in place and we are working with them on material processes. This is a small but rapidly-growing field.
“There has been so much investment going into Cambridge and Manchester including £60m towards the National Graphene Institute - it’s great news for Teesside to be awarded this.”
AGM is the only company using its production process, developed by company founder Prof Karl Coleman. The company is collaborating with household names Dyson and Proctor and Gamble and other un-named companies, including some on Teesside.
Mr Mabbitt said a higher profile within its target markets had helped AGM generate more customer collaborations, and the intention was to sell into the paints, coatings, polymers, lubricants and oils markets.
“The quality and purity of our product is what sets us apart, other methods inevitably leave some graphite behind.”
AGM has also announced Michael Sean Christie, currently group finance director of Croda International, has been appointed as a non executive director of AGM, with effect from April 24.
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