TIDMAGM
RNS Number : 4681H
Applied Graphene Materials PLC
25 March 2020
25 March 2020
Applied Graphene Materials plc
("Applied Graphene Materials", "the Group" or "the Company")
Interim results for the six months ended 31 January 2020
Applied Graphene Materials, the producer of specialty graphene
materials, is pleased to announce its interim results for the six
months ended 31 January 2020.
Highlights
Operational highlights
Coatings:
-- Significant progress during the period with a number of key
mass market and industrial product launches re-enforcing customer
momentum in core coatings market, highlights included:
- Halfords launched instore and online sale of graphene primer in October 2019
Aerosol primer produces exceptional corrosion protection, due to
Applied Graphene Materials ("AGM") graphene dispersion
- James Briggs Ltd (JBL) launched Hycote graphene anti-corrosion primer in October 2019
Product for sale in mainstream market on Amazon and Tetrosyl
Express
- Alltimes Coatings Ltd launched Advantage Graphene liquid
coating roofing system in August 2019
Significantly enhanced anti-corrosion performance delivered by
incorporating AGM's graphene, includes unparalleled 30 year
warranty
- Blocksil launched Graphene enhanced Top Coat MT Product for
harsh environment industrial applications demanding outstanding
anti-corrosion protection in January 2020
- Blocksil, has been specified for the supply of their product
containing our graphene dispersions for a long-term refurbishment
project for Avanti for its large industrial satellite
communications structures.
Composites:
-- Design, manufacture and demonstration of 10m carbon fibre
forming tool incorporating graphene, suitable for advanced fibre
placement methods for aerospace and other high volume manufacturing
applications.
- Cost effective solution incorporates graphene to enhance
longevity in multi-component manufacturing, through increasing the
toughness of the composite tooling material
Strategic highlights
-- Strategic review completed with a focus on commercial momentum and cash conservation
-- The strategic review established that Asia has potential to
be a core market territory for AGM regarding graphene exploitation
and commercialization
-- Positive engagement with Beijing investor community in
October 2019; ongoing COVID 19 has delayed follow up
-- Resources aligned across business development and technical
teams to support product development, rigorous testing and customer
engagement
-- Streamlining of manufacturing operations to focus on dispersion capabilities
-- Company's cash run-way extended until at least Q4 2021
COVID 19
-- Continuing operationally in a manner to maximise the safety
of our team members and maintain business continuity. Activity at
our customers is being monitored and we continue to work with them
to maintain progress as circumstances will allow in the coming
months.
Financial overview
-- REVENUE
- Revenue of GBP35,000 (2019: GBP26,000)
- Strong sales in February 2020
- YTD revenues are GBP60,000 - 20% higher than the total for the
year ended 31 July 2019 of GBP50,000
-- EBITDA* - Loss of GBP1.9 million (2019: loss of GBP2.2 million)
-- Loss before tax - GBP2.3 million (2019: loss of GBP2.4 million)
-- Cash at bank - GBP4.3 million (2019: GBP8.2 million)
-- Basic EPS - Loss of 4.0 pence per share (2019: loss of 4.4 pence)
* EBITDA comprises loss on ordinary activities before interest,
tax, exceptional costs, depreciation and amortisation.
Adrian Potts, Chief Executive Officer, said:
"I am pleased that AGM has continued to make good progress in
converting customer engagement into product launches, with several
applications launched in the period that are now available to
retail as well as specialist industrial customers. Our progress
continues to be underpinned by AGM's industry-leading know-how in
graphene dispersion and application. We are building an
ever-increasing bank of supporting data that will help us
accelerate customer application and testing, while the
standardisation of a number of our graphene products will also make
our material more acceptable to a broader customer base. Our focus
remains on helping our customers realise the significant commercial
potential the incorporation of graphene can offer them. 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.
Our year to date sales already exceed last year's total sales by
20%, and the business is in a strong position to support further
progress, with net cash of GBP4.3m at 31 January 2020, and ongoing
cash operating costs reduced by 23% as a result of our realignment
in October. We are closely monitoring the COVID-19 pandemic and we
have taken the appropriate precautions to keep our employees safe.
We intend to operate and support our client engagements as much as
we can, whilst following governmental guidelines."
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
Adrian Potts, Chief Executive Officer
David Blain, Chief Financial Officer +44 (0) 1642 438 214
N+1 Singer
Peter Steel/ Justin McKeegan +44 (0) 207 496 3000
Hudson Sandler
Charlie Jack / Emily Dillon +44 (0) 207 796 4133
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 GBP11 million, and is based at the
Wilton Site on Teesside. In January 2016 the Group raised GBP8.5m
to support its ongoing activities and in October 2017 the Group
raised a further GBP9.8m.
Business review
with Adrian Potts
Our focus on working closely with customers to accelerate
commercial momentum is yielding positive results with a number of
important launches made during the period.
Overview
- Commercial progress has been positive in the period with
further customer product launches. This follows extensive
collaboration with customers to ensure they gain from AGM's unique
graphene dispersion and application IP and data proof points. We
are especially pleased that Blocksil, a UK coatings manufacturer,
has been specified for the supply of their product containing our
graphene dispersions for a long-term refurbishment project for
Avanti for its large industrial satellite communications
structures. Similarly, with a coatings product launched by Alltimes
Coatings, we see the use of graphene dispersions deliver excellent
performance and long-range cost benefits. I am confident that these
and other products will progressively develop long-term revenue
momentum for AGM as the benefits continue to be realised for larger
scale industrial applications.
Applying graphene into high performance composite materials
continues to be challenging and involves long trialing processes.
However, AGM has developed a practical technology to extend the
longevity of composite materials, which offers excellent
opportunity for end-users in both tooling and part manufacturing.
Most recently AGM and its composites partners have demonstrated a
10m graphene-enhanced composite tooling fixture, which is proving
to the composite materials community the practical viability of
using AGM's graphene to enhance composite performance further. It
is also encouraging to see companies starting to place repeat
orders for graphene dispersions to enhance their composite
application technology in space and aerospace sectors.
Continuing the theme of excellence in engagement, we are
optimistic about the completion of efforts with Airbus to qualify
and approve for flight our TP300 thermal adhesive and continue to
work closely with them to support the process.
- Technical knowledge . We are well ahead of the curve in terms
of market-leading dispersion technology for graphenes whereby our
products are commercially available, stable, easy to use and come
with exceptional product guidance. We continue our push with
product development in the area of coatings technology primarily to
support near term revenue potential - and are seeing this borne out
by product launches by coatings customers. Underpinning all our
technical progress and IP are significant data proof points we have
created that are borne from extensive long term trials.
- Regulatory approval is all-important for the long-term volume
supply chain. As a new materials technology, the challenge in this
area is to work with the relevant authorities to determine the
appropriate data which in turn will give confidence in the products
we make and sell as regards safe use. I see our efforts in this
area as second-to-none, as typified by the extensive testing
completed to support customer product launches in the aerosol
coatings sector. All this takes time and resource, but I am
confident that the long-range positive results firmly based on
detailed supporting data will be realised.
- Re-alignment. We have completed the re-alignment of the
business. We are focused on the key areas that will drive
revenue in the future - dispersion technology, specific graphene
manufacturing, excellent customer service, and supporting data to
enable easy adoption of this new technology for the coatings
sector. We are in good shape and achieving momentum, solid
technical progress and have a cash runway to Q4 2021. This gives
the board confidence that the coming months leave AGM in a good
position to continue to fulfil our mission to deliver revenue
growth from graphene materials dispersed in a manner that can be
readily adopted for real applications.
In summary, we continue our efforts to develop the potential for
graphene adoption into publicly available applications including
coatings, composites and specialty products. The in-depth technical
engagements with our customers are starting to gain momentum with
the launch of both commercial mass market and specialist industrial
products. The development of sales revenues will come as these
products become specified and approved for use on a broader basis
in a growing number of industrial areas. Operating from a
re-aligned cost base, we are in a good position for business
continuity.
COVID-19
As the coronavirus situation develops, we have taken the
appropriate precautions, to keep our employees safe . We also
recognize that the seriousness of the situation has the potential
to impact our customers' and partners' activity, so continue to
work as closely with them as possible , whilst following
governmental guidelines, to ensure positive progress continues to
be made.
AGM's cash runway to Q4 2021 is not impacted by COVID-19 - in
fact the reduction in travel and remote working will improve the
Company's cash position.
The essential manufacturing of customer orders and monitoring of
customer service and long term projects is managed on a rotating
staff basis. No sickness from this virus has been reported to date.
All meetings are moved to remote format and all travel halted until
further notice. All planned conference attendance has been
postponed until a later date by organisers. Costs have reduced
accordingly. Our customers may find it more difficult to generate
sales as their customers may be focused on the current crisis
rather than new technology projects. We are monitoring government
guidance on a daily basis and our policy is to follow such
guidance.
Commercial Progress Summary
At AGM, we are firmly of the view that a continuing strategy
focused on well-dispersed graphene materials targeted at key
sectors is the best means for successful long-range commercial
success. The reason for this is simple - the supply of
easily-to-adopt, ready-to-use dispersions suitable for a range of
target applications is the best catalyst for customer success. It
should be noted that, once supplied and even with the support of
AGM-supplied data, there is often an iterative nature to customer
testing to ensure the best results are achieved on a
customer-by-customer basis. It is often the case that such
iteration can take 6 months or more to prove the utility of
graphene in a customer's particular chemistry or proposed end-use,
and some engagements have been ongoing for much longer. This
requires patience on the part of AGM.
We are able to supply standardized dispersions which help to
satisfy a growing number of applications. These give customers
critical confidence in the consistency of quality and
reproducibility of batch to batch test results for their finished
products. Of course, there is also the option to customize our
dispersed materials to suit a specific customer's application or
need for method of delivery into their formulation. This requires
an even deeper level of engagement to ensure the level of
understanding is high to provide the best chance of success. There
can be many variables to this, but excellence in customer
collaboration is one of our key values ensuring we work assiduously
to deliver success for our customers. It is the quality of this
engagement that will ultimately ensure a successful outcome to a
project and ensure revenue in the longer term.
In the high-performance coatings space, where we have chosen to
principally operate, we continue to make good progress towards
generating exemplary technical solutions for customers to consider.
Once engaged with a customer, and graphene dispersions have been
supplied and tested, we aim to generate profitable revenue from the
repeat supply of high-quality dispersed materials.
We continue with 92 positive engagements in our pipeline at 31
January 2020 and the movements since 31 July 2019 are as
follows:
Approval time
-------------------------------
Scouting/
Stage of development Short Medium Long unclear Total
----------------------------------- ----- ------ ----- --------- -----
Agreement on scope of sampling
and engagement 4 8 0 0 12
(0) (-3) (-5) (-1) (-9)
----------------------------------- ----- ------ ----- --------- -----
Initial testing and interpretation
of results 12 27 5 1 45
(3) (-1) (-8) (0) (6)
----------------------------------- ----- ------ ----- --------- -----
Repeat testing for consistency
and review of results 7 6 1 0 14
(2) (-3) (1) (0) (0)
----------------------------------- ----- ------ ----- --------- -----
Final product trials formulation
and specification 5 8 0 0 13
(2) (4) (0) (0) (6)
----------------------------------- ----- ------ ----- --------- -----
Final commercial engagement 6 2 0 0 8
(0) (0) (0) (0) (0)
----------------------------------- ----- ------ ----- --------- -----
Totals at 31 January 2020 34 51 6 1 92
Movement since 31 July 2019 (7) (-3) (-12) (-1) (-9)
----------------------------------- ----- ------ ----- --------- -----
It is also pleasing to see progress with composite materials and
with our specialty industrial focused product offerings. Our
printed graphene inks for composite materials incorporation have
been demonstrated in a large composite application for tooling
technology. We continue to make positive progress towards
successful completion of the qualification of our TP300 thermal
paste with Airbus with a view to securing revenues for this
application.
Coatings Sector
The commercial realization of previously announced customer
product launches has been the focal point in the coatings sector.
Coatings technology is recognized by the industry as one of the
application focus areas for graphene commercialization.
Solid progress has been made with Blocksil Ltd in the marketing
and application of their Graphene Enhanced Top Coat MT, a high
performance, anti-corrosion coating for industrial applications
across a broad range of harsh environments. Blocksil's new
graphene-enhanced coatings system delivers mechanical and physical
properties following a single coat, and the Graphene Enhanced Top
Coat MT is sustainable, volatile organic compound free and easily
applied. Retaining full flexibility and adhesion, the enhanced
product delivers excellent anti-corrosion performance and UV
resistance, alongside improved levels of toughness and fire
resistance. As a result, Blocksil has now secured global approval
with Avanti Communications plc for supply of this coating for front
and rear surfaces and support structures on their large satellite
communications dish structures.
Avanti is a pioneering satellite communications technology
business, with a global network of high value ground stations, some
in the most remote and demanding of locations. The selection of the
Graphene Enhanced Top Coat MT is anticipated to deliver significant
long-term cost savings in repainting and maintenance across Avanti
transmission dish structures on a progressive basis. The first
application is anticipated to take place in the coming months at an
Avanti site in Germany, with the expectation of follow up activity
across multiple Avanti sites. The success of Blocksil in this field
underscores the performance of the graphene enhanced coating
technology and we look forward to forthcoming revenue generation
accordingly.
Blocksil remains actively engaged with other end users and
specifiers across industries with high value assets and
infrastructure operating under harsh environmental conditions.
Blocksill b elieves the long-term cost savings offered by the new,
higher-performance coating, will drive significant demand from its
customers and as a result, Genable dispersion revenues for AGM.
Guy Williams, MD of Blocksil Ltd described the quality of
working with AGM and the expectations from their coatings
technology - "Blocksil has been working with AGM for many months
now in developing our Graphene Enhanced Top Coat MT. As with any
product Blocksil develops or brings to market, we spend time
researching and testing it before launching. In this case, we were
able to utilise AGM's extensive laboratory facilities to identify
the key features. We have also been working behind the scenes with
potential end-users to obtain real life application data. This, in
turn, allows us to fine-tune the finished product. Blocksil sees
huge potential for Graphene Enhanced Top Coat MT across all manner
of structural steel industries worldwide. To this end we are
interested in talking to any structural steel users or contractors
- the benefits and cost savings they will gain over conventional
corrosion-resistant coatings cannot be overestimated."
Alltimes Coatings launched their Advantage Graphene Coatings
system in July 2019. Since that time, Alltimes has been extremely
active in promoting the new technology designed to enhance the
construction industry. Working with Architects and Surveyors is a
key activity in this sector to ensure the knowledge base is
available and awareness is high regarding new coating materials
technologies in a relatively conservative space. The technology was
recently demonstrated at the Wilton site in Redcar, Cleveland
through the replacement coating of one of the buildings. This is
typical of the types of coastal assets subject to harsh
environments and resulting corrosion where Alltimes Advantage
Graphene was used to good effect to refurbish the building.
Video coverage of this activity can be seen here :-
https://www.appliedgraphenematerials.com/news-events/archive/real-life-roofing-application-using-graphene-enhanced-anti-corrosion-coatings/
Nigel Alltimes, MD, talking about the product and the quality of
engagement with AGM as their development partner notes " We believe
with the launch of Advantage Graphene, we are bringing to market a
unique and revolutionary liquid roofing system for our industrial
and commercial customers. Without doubt, AGM's deep understanding
of coating technology and how best to effectively integrate
graphene into novel chemistry, has played a major role in the
successful launch of this product. Early feedback from our
customers has been very positive and we anticipate strong uptake as
we extend the performance of our product range with graphene
technology."
Alltimes, though their Advantage Graphene product, have been
able to extend the warranty of their coatings system from 20 to 30
years life as a result of our graphene development efforts.
In the aerosols sector, we saw the launch of a
graphene-containing primer in the Halford's retail range in
addition to the previously announced launch of the Hykote aerosol
primer from James Briggs Ltd. The standout advantage of the new
aerosol primer is the exceptional corrosion protection (1750+ hours
ASTM G-85), that has resulted from the incorporation of AGM's
graphene dispersion. As a zinc-free primer system, the paint also
has positive environmental and performance features, significantly
out-performing current industry standards.
Jim Millar, Commercial Director of James Briggs noted "We were
pleased to see the retail launch of the Halfords branded coating
and have good expectations for sales of this and our Hycote branded
product as the season for application for these coatings
approaches. Outlets for these aerosol products is through both the
retail sector and the professional automotive paint shops, so we
anticipate strong sales for both channels."
Continuing the theme of quality of engagement and delivery of
high-performance products, we see positive progress in the areas of
anti-corrosion on steel for a range of environments, as well as
coatings for aluminium corrosion performance through to barrier
performance for other substrates including concrete.
Engagement with close customers such as HMG Paints, Teal and
Mackrill and others continues to be meaningful, as we seek to
optimize graphene-enhanced coating solutions with them. As noted
above, this is an iterative process of formulation, test and review
of data.
In an additional area of protective coatings, a customer
completed testing of AGM graphene dispersions for an automotive
protective finish system. The customer is approaching launch of a
new product imminently. AGM looks forward to a successful launch
and revenue stream in the autofinish market. We are now pursuing
other similar potential customers for this specific technology
application.
Product development follows our strategic focus on the coatings
sector as the prime means of delivering revenue and value for AGM.
We have continued in FY20 H1 with our product development efforts
to deliver exemplary technology solutions using graphene that
coatings customers can consider adopting.
Water-based product dispersions development continues for both acrylic and epoxy platforms
to maximise the opportunity for engagement in environmentally friendlier coatings. A-GNP35
high surface area materials at low loading levels in final coatings formulations continues
to perform well. The G enable(R) dispersions range suitable for water-based product continues
to develop and we are able to support customers to an ever greater extent with in-depth technical
advice.
We are approaching completion of our efforts for developing
graphene dispersions for harsher "C4/C5" corrosion applications.
The output from this programme has yielded a useful technology
package whereby:-
- Graphene doped interlayer tie coat layers can yield
significant system performance improvements. This in turn:-
o Enables the customer to continue use of regulated zinc-based
primers where needed
o Enables the customer to use their nominated top coat to
maintain colour choice
o Enables critical anti-corrosion performance enhancement
through the use of graphene in the inter-layer of a 3 layer
coating
o Provides lowest Risk to incorporate Graphene tie coat into a 2
or 3 coat system to work with conventional legislative
environment
- As a single layer alternative, Genable 1200 added to a thicker
coatings layer has also demonstrated outstanding performance - good
for both barrier performance and UV resistance. The low loading of
A-GNP35 graphene means less colour change in a coating - another
positive. Such a coating using our in-house starting point
formulations can achieve "C4High" performance with a single layer.
Such a system could be used directly with commercial top coat for
good performance advantages as a complete system.
Anti-corrosion performance enhancing dispersions for coatings in
yet harsher environments continue to be pursued in our CX advanced
development programme. Anticipating good utility for full offshore,
marine and cyclic applications such as ballast tanks, we expect
completion of our test efforts around Q3 2020.
It was recently noted by The Graphene Council in their
Commercialization Update that the key to successful exploitation of
the technology is a matter of matching the right material at a
certain price point to speci c application and performance
objective. Whilst the technology for integrating graphene into
coatings is producing excellent test results in our exemplar
testing, the key underlying benefit for this technology remains the
potential value proposition for the end user or asset owner. With
potential extension to a coating's life (as evidenced for example
by Alltimes warranty extension) combined with the reduction of
corrosion and also the possible realization of using thinner
coatings or fewer layers, it is important to recognize the true
value potential this represents. Significant systemized cost-downs
should be realizable using these materials.
AGM is confident the prospects remain good for long range
success through the communication of this key summary
messaging.
- Graphene in coatings can be a highly effective anti-corrosion and barrier additive
- Graphene is available in easy-to-use dispersions
- Full guidance is available for easy integration of this new technology
- Low risk adoption for new technology is possible
- Significant cost effectiveness and performance improvement is
realized in end-to-end review of coatings uses
We believe this approach is validated by both the traction we
are starting to see in the markets we operate in and by good
alignment with The Graphene Council's assessment of where the
industry is currently at, with a view to longer range Industry /
Application adoption as a widely used material, as follows:-
- Identification of markets and customers beyond universities and small R&D sales.
- Identification of the right price / volume mix for pro tability.
- Customer education (awareness, information, interest, evaluation, adoption).
- Engagement with regulatory scrutiny and requirements for volume uptake (e.g. REACH)
- Engagement with and satisfaction of Health and Safety concerns (human exposure)
I believe we are doing the right things to encourage the
adoption of our products in this sector.
Composites Sector
We recently witnessed the completion of a major demonstration of
AGM's novel graphene enhanced chemistry, pointing towards lower
cost and high-performance composite tool designs for the Aerospace
Industry and beyond. Composite materials are routinely used for
flight components. However, in the manufacture of these parts, due
consideration has to be made to the selection of the tooling, or
forming fixture. Such fixtures are frequently also made of
composite materials. Following on from the successful completion of
the UK government-funded NATEP technology programme, AGM partners
Composite Tooling and Engineering Solutions Ltd (CTES), and SHD
Composites Ltd (SHD) have made a significant step forward in
demonstrating viability of the programme output with an example 10m
long composite tool.
Composite forming fixtures or mould tools themselves require a
master model to enable them to be made accurately to service the
manufacture of the finished part. The complete process can be
expensive and time-consuming due to multiple manufacturing
stages.
SHD have developed a prototype composite tooling material that
combines cure at lower initial process temperatures yet can be used
at elevated service temperature in excess of 300C. This cure
flexibility enables the use of a lower cost route to a final mould
tool.
The composite tooling resin chemistry has been further enhanced
by the addition of AGM's A-GNP35 graphene nanoplatelets,
significantly strengthening the matrix fracture toughness and
providing extra resilience against variations in processing
conditions and resin micro-cracking over repeated part production
cycles. The graphene can be applied into the bulk of the tool
structure by addition into the tooling material matrix resin or can
be discreetly targeted at critical areas by means of AGM's
Structural Ink printing technology. Longevity and robustness of
tooling in a multi-part production environment is key to overall
programme cost management, and this technology represents the good
potential in this regard.
A suitably ambitious mould tool demonstrator to show real
manufacturing potential was selected as a 10m long Carbon Fibre
Reinforced Plastic Advanced Fibre Placement mandrel tool. The
fixture was engineered by CTES, manufactured by Retrac Composites
Ltd, Swindon and is a purposeful representation of the industry's
latest and highly demanding requirements.
The delivery of a fully functional, large composite tool
incorporating AGM's graphene application technology, which will
significantly lower fixture costs while offering superior longevity
to match long part build programmes, is a testament to the quality
of the collaboration. Over coming weeks, the project team will be
disseminating more details through industry forums. The technology
can equally be applied to thermoset and thermoplastic composite
component materials parts, and represents an exciting new materials
development that has the clear potential to offer significant time
and cost savings to composite tool designers.
In the world of composite materials structures, there are few
more demanding applications than those found in space programmes.
Repeat customer Infinite Composites Technology (ICT) continue to
press ahead with their exciting developments for pressure vessels.
Using AGM graphenes dispersed in components of their structural
materials, ICT are enabled to realise the additional mechanical and
barrier performance our graphene materials have to offer. ICT
recently received their fourth patent for their innovative
solutions to pressure vessel technology.
Composites Evolution Ltd continues to press ahead with customer
testing of their AGM graphene-containing products derived from the
NEAT collaborative project. The programme yielded a prepreg product
that can be used in aircraft interiors with enhanced mechanical
performance as well as critical fire, smoke and toxicity
attributes. We are pleased to have been able to supply further
materials for their extended customer testing and look forward to
successful outcomes with materials approvals for transport and
infrastructure applications for their materials. We continue with
customer engagements with our Structural Ink technology. In
printing graphene inks into composite structures, we continue to
see positive performance uplifts in the area of fracture toughness
- an essential attribute for the longevity of composite parts. As
this technology continues to develop on a customer-by-customer
basis, it will enable the development of longer-range revenue.
Functional Materials Sector
Airbus continues apace with their product and flight
qualification of our TP300 thermal paste adhesive. Final product
configuration is now being pursued through a third-party to enable
the product to be supplied in meter-and-mix pre-kitted cartridges.
The final testing of the product through this formatting change is
now ongoing. T arget completion for this work is now in the first
half of 2020. It is Airbus's intention to offer this product
thereafter on their new-generation satellite platforms such as
Eurostar Neo. TP300 is a very low density, high-performance thermal
paste adhesive that offers specific performance and commercial
benefits against established competitor products. We have also now
received a number of inquiries related to thermal interface
materials, but the successful fulfilment of these is mainly subject
to successful outcomes with Airbus.
Marketing
Our commitment continues in disseminating the findings of our
research and product development efforts to the technical
community. We recognize this as a prime means of engaging with
technologists at key customer targets. We presented at a webinar
arranged jointly by The Graphene Council and The Society for
Protective Coatings (SSPC) specific to the performance of graphene
as a real technology prospect for the anti-corrosion sector for
coatings products. Planned presentations at NACE and ACS
conferences have had to be shelved due to the postponement of these
events amongst many others due to COVID-19 concerns. We continue
with our objective to provide supporting data to achieve successful
outcomes with customer engagements. As such, our Technical
Application Notes, available on our web site represent a valuable
resource to guide customers through the practical integration of
our technology.
Distribution
Recognizing our products require strong technical backup
support, CAME in Italy are performing well in their development of
a number of potential customers for AGM's Genable dispersion
technology across a number of sectors. We are pleased with their
level of engagement with their customer base and anticipate the
start of revenues from their activity soon. Similarly, we have seen
good levels of engagement with Carst & Walker and Inabata from
their expanded arrangement with AGM.
We anticipate building on this model as a key conduit to market
with the appointment of further distributors in the near
future.
Asia
Building on the solid technological progress leading to
engagement on a broadening global platform, we were pleased to be
included as a presenter to IP Group's Deep Tech Conference in
Beijing in October 2019. The Conference assembles investors,
stakeholders, government entities and potential clients for
emerging technologies. In an extremely busy session, we presented
and held multiple one-to-one meetings. Substantial interest was
generated from this one event, highlighting the potential of a
well-thought-out applications-focused exploitation strategy for
graphene materials. With multiple graphene manufacturers in the
region, the opportunity is apparent to engage more fully with good
potential for positive momentum in the longer term. For now, our
efforts are subject to the constraints of the COVID-19 situation.
Still, we continue to pursue engagements remotely until such time
as we are able to visit again in person.
Regulatory
We continue with our efforts with the graphene REACH consortium
to achieve the long-range goal of accreditation for volume supply.
We have recently submitted data packages to ECHA for review of our
products as part of the continuing process towards REACH compliance
in the graphene space.
We are actively pursuing our OECD parallel process with a view
of receiving approval for supply of graphene-related materials in
volume.
Safe use of our materials is an all-important subject and to
this end the data we have gives us a high degree of confidence in
the products we manufacture and their end-use application. We see
our ability to support new customers in the adoption of our
products as second-to-none, from applications guidance to in-depth
environmental, health and safety information.
Re-alignment of resources and cash runway
In October 2019 AGM confirmed its operational update announcing
the re-alignment of resources. This has better positioned the Group
to support the product development of customers presenting
nearest-term revenue opportunities, in order to focus on sales
growth. Over recent years AGM's core expertise has been proved to
be in dispersion and the application know-how to effectively
integrate the performance benefits of graphene in customer
products. The Board decided to focus resources and activities
around meeting customer opportunities through the dispersion and
end-use application of graphene as the best means of revenue
growth.
Re-alignment has reduced the Company's operating cost base and
extended AGM's cash runway to Q4 2021, positioning the Company well
to deliver new technology and products to the market place.
The cash operating cost base of GBP4.3m in the year to 31 July
2019 is expected to fall by circa GBP0.9m and GBP1.1m for the years
ending 31 July 2020 and 2021, respectively. The cost of
implementation of these changes of circa GBP0.2m was incurred
during the period to 31 January 2020. The Company retains the
capability to scale up at the appropriate time and maintains its
core skill base.
Staff Resources
Andy Gent was promoted to the role of Commercial Director
following Nigel Blatherwick's decision to leave the Company. Andy
steps into this role with a strong background in coatings
technology, applications and distributor management resulting in
revenue growth. I wish Nigel well in the next stages of his career
in the composites sector.
We continue to monitor global guidance on the evolving situation
related to COVID-19, its potential impact on the business and the
safety and well-being of all our staff. Effective policies have
been put in place to manage the developing nature of the challenge
of this pandemic, including flexible working to enable continuity
of supply to our customers and maintenance of our long term
projects.
Outlook
The Board carries out strategic reviews to monitor the Company's
strategy and its successful execution. The Board is encouraged by
the progress made during the period and combined that with recent
changes to our cost base believes AGM is in good shape to realise
the longer-term opportunities to:
- Introduce graphene materials primarily into coatings applications
- Develop an appropriate technology platform to enable the
delivery of success in our chosen areas of activity
- Focus on customer support and excellent customer service, product quality and consistency
- Work closely with customers to create the best opportunity for success
- Secure and realise the emerging revenues arising from customer product launches
- Deliver shareholder value in the long term
Adrian Potts
Chief Executive Officer
25 March 2020
Financial review
with David Blain
Revenue
Revenue for the period was GBP35,000 (2019: GBP26,000) arising
from the supply of production orders of graphene and evaluation
quantities of graphene to commercial partners. Strong revenues in
February 2020 and year to date revenues are GBP60,000 - 20% higher
than whole of the year ended 31 July 2019 of GBP50,000.
Other income
Other income, which comprises grant income, was GBPnil (2019:
GBP23,000). Grants received related to funding for the development
of new graphene applications, with a small amount for the creation
of new jobs or the purchase of assets.
Cost of sales
Cost of sales has increased as a result of increased rent,
labour and materials used in preparing the plant for commercial
production.
Loss on ordinary activities before tax
A loss on ordinary activities before tax of GBP2,278,000 (2019:
loss of GBP2,374,000) was recognised.
Loss on ordinary activities before interest, tax, exceptional
costs, depreciation and amortisation (EBITDA)
The EBITDA loss for the Group narrowed a loss of GBP1,900,000
for the six month period ended 31 January 2020 (2019: loss of
GBP2,233,000). The losses incurred in the period relate to the day
to day costs of the business and include the ongoing costs
associated with the technical input provided to our commercial
partners as they look to evaluate and incorporate graphene into
their product lines.
Exceptional costs
Exceptional costs recognised in the period were GBP168,000
(2019: GBPnil) following a re-alignment of the cost base during the
period.
Net finance income
Net finance income for the period was GBP18,000 (2019:
GBP34,000).
Loss on ordinary activities before tax, exceptional costs and
amortisation (PBTA)
PBTA for the period decreased from a loss of GBP2,374,000 in
2019 to a loss of GBP2,278,000 for the period ended 31 January
2020.
Tax
R&D tax credits for the current year are accrued on a
monthly basis resulting in a credit of GBP300,000 for the period
(2019: GBP200,000).
Earnings per share
Basic earnings per share was a loss of 4.0 pence per share
(2019: loss of 4.4 pence per share). Adjusted basic earnings per
share (before exceptional costs) was a loss of 3.7 pence per share
(2019: loss of 4.4 pence per share).
Dividend
No dividend has been proposed for the period ended 31 January
2020 (2019: GBPnil).
Cash flow
Net cash used in operations was GBP2,334,000 (2019:
GBP2,173,000).
Capital expenditure of GBP82,000 (2019: GBP57,000) has been
incurred in the period mainly relating to the development of
intellectual property assets.
Balance sheet
Net assets have reduced to GBP6,661,000 (2019: GBP10,087,000),
principally reflecting the trading loss for the period.
Cash at bank at 31 January 2020 was GBP4,329,000 (2019:
GBP8,246,000). Monies are on deposit with a small number of
financial institutions for time periods ranging between instant
access and up to 95 days in maturity.
Accounting policies
The Group's consolidated financial information has been prepared
in accordance with International Financial Reporting Standards as
adopted in the EU. The Group's significant accounting policies,
which are consistent with those set out in the audited financial
statements for the year ended 31 July 2019, have been applied
consistently throughout the period with the exception of the
adoption of IFRS 16 'Leases' but this has not had a material impact
on the Income Statement .
Principal risks and uncertainties
Risk management forms an integral part of the business planning
and review cycle. The principal risks and uncertainties remain
unchanged from those set out on pages 24 to 27 of the Annual Report
for the year ended 31 July 2019.
Forecasting timing and quantum of revenues at this stage of
development continues to be a key difficulty faced by the Company
as this is heavily dependent upon the product development cycle of
our customers and, therefore, is not under our control.
Cautionary statement
The Business and Financial reviews have been prepared for the
shareholders of the Company, as a body, and no other persons. Their
purpose is to assist shareholders of the Company in assessing the
strategies adopted by the Group and the potential for those
strategies to succeed, and for no other purpose. The Business and
Financial reviews contain forward-looking statements that are
subject to risk factors associated with, amongst other things, the
economic and business circumstances occurring from time to time in
the sectors and markets in which the Group operates. It is believed
that the expectations reflected in these statements are reasonable
but they may be affected by a wide range of variables which could
cause actual results to differ materially from those currently
anticipated. No assurances can be given that the forward-looking
statements in the Business and Financial reviews will be realised.
The forward-looking statements reflect the knowledge and
information available at the date of preparation.
David Blain
Chief Financial Officer
25 March 2020
Consolidated income statement and statement of comprehensive
income
for the six months ended 31 January 2020
Unaudited Unaudited Audited
6 months 6 months
to to year ended
31 January 31 January 31 July
2020 2019 2019
Note GBP'000 GBP'000 GBP'000
-------------------------------------------------------- ---- ---------- ---------- ----------
Revenue 5 35 26 50
Other income - 23 74
-------------------------------------------------------- ---- ---------- ---------- ----------
35 49 124
Cost of sales (135) (231) (472)
-------------------------------------------------------- ---- ---------- ---------- ----------
Gross loss (100) (182) (348)
Operating expenses (2,196) (2,226) (4,554)
-------------------------------------------------------- ---- ---------- ---------- ----------
EBITDA (1,900) (2,233) (4,559)
Exceptional costs (168) - -
Depreciation of tangible fixed assets (228) (175) (343)
-------------------------------------------------------- ---- ---------- ---------- ----------
Operating loss (2,296) (2,408) (4,902)
Net finance income 18 34 67
-------------------------------------------------------- ---- ---------- ---------- ----------
PBTA (2,110) (2,374) (4,835)
Exceptional costs (168) - -
-------------------------------------------------------- ---- ---------- ---------- ----------
Loss on ordinary activities before tax 5 (2,278) (2,374) (4,835)
Tax on loss on ordinary activities 3 300 200 908
-------------------------------------------------------- ---- ---------- ---------- ----------
Loss for the period attributable to equity shareholders (1,978) (2,174) (3,927)
Other comprehensive income - - -
-------------------------------------------------------- ---- ---------- ---------- ----------
Total comprehensive loss (1,978) (2,174) (3,927)
-------------------------------------------------------- ---- ---------- ---------- ----------
Earnings per share (pence per share)
Basic 6 (4.0) (4.4) (7.9)
Diluted 6 (3.7) (4.4) (7.9)
-------------------------------------------------------- ---- ---------- ---------- ----------
EBITDA comprises loss on ordinary activities before interest,
tax, exceptional costs, depreciation and amortisation.
PBTA comprises loss on ordinary activities before tax,
exceptional costs and amortisation.
Consolidated statement of changes in shareholders' equity
for the six months ended 31 January 2020
Share Share Merger Retained Unaudited
capital premium reserve earnings total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- ------- ------- ------- -------- ---------
As at 31 July 2018 989 27,473 1,231 (17,572) 12,121
Comprehensive loss - - - (2,174) (2,174)
IFRS 2 share based payments - - - 140 140
---------------------------- ------- ------- ------- -------- ---------
As at 31 January 2019 989 27,473 1,231 (19,606) 10,087
Comprehensive loss - - - (1,753) (1,753)
IFRS 2 share based payments - - - 154 154
---------------------------- ------- ------- ------- -------- ---------
As at 31 July 2019 989 27,473 1,231 (21,205) 8,488
Comprehensive loss - - - (1,978) (1,978)
IFRS 2 share based payments - - - 150 150
---------------------------- ------- ------- ------- -------- ---------
As at 31 January 2020 989 27,473 1,231 (23,033) 6,660
---------------------------- ------- ------- ------- -------- ---------
Consolidated balance sheet
as at 31 January 2020
Unaudited Unaudited Audited
31 January 31 January 31 July
2020 2019 2019
Note GBP'000 GBP'000 GBP'000
------------------------------ ---- ---------- ---------- --------
Assets
Non-current assets
Intangible assets 211 90 155
Right-of-use assets 99 - -
Property, plant and equipment 1,518 1,763 1,645
------------------------------ ---- ---------- ---------- --------
1,828 1,853 1,800
------------------------------ ---- ---------- ---------- --------
Current assets
Inventories 69 52 52
Trade and other receivables 221 128 171
Corporation tax recoverable 1,000 615 1,323
Cash 4,329 8,246 6,135
------------------------------ ---- ---------- ---------- --------
5,619 9,041 7,681
------------------------------ ---- ---------- ---------- --------
Liabilities
Current liabilities
Trade and other payables (687) (807) (993)
Lease liabilities (91) - -
------------------------------ ---- ---------- ---------- --------
(788) (807) (993)
------------------------------ ---- ---------- ---------- --------
Net current assets 4,841 8,234 6,688
------------------------------ ---- ---------- ---------- --------
Non-current liabilities
Lease liabilities (8) - -
Net assets 6,661 10,087 8,488
------------------------------ ---- ---------- ---------- --------
Shareholders' equity
Called up share capital 8 989 989 989
Share premium account 27,473 27,473 27,473
Merger reserve 1,231 1,231 1,231
Retained earnings (23,033) (19,606) (21,205)
------------------------------ ---- ---------- ---------- --------
Equity shareholders' funds 6,661 10,087 8,488
------------------------------ ---- ---------- ---------- --------
Consolidated cash flow statement
for the six months ended 31 January 2020
Unaudited Unaudited Audited
6 months 6 months
to to year ended
31 January 31 January 31 July
2020 2019 2019
Note GBP'000 GBP'000 GBP'000
---------------------------------------------- ---- ---------- ---------- ----------
Operating activities
Net cash used in operations 7 (2,349) (2,173) (4,184)
Net finance income 2 45 69
Tax received 623 - -
---------------------------------------------- ---- ---------- ---------- ----------
Net cash used in operating activities (1,724) (2,128) (4,115)
---------------------------------------------- ---- ---------- ---------- ----------
Investing activities
Purchase of intangible assets (56) (12) (77)
Purchase of property, plant and equipment (16) (57) (116)
---------------------------------------------- ---- ---------- ---------- ----------
Net cash used in investing activities (82) (69) (193)
---------------------------------------------- ---- ---------- ---------- ----------
Net cash generated from financing activities - - -
---------------------------------------------- ---- ---------- ---------- ----------
Net decrease in net cash and cash deposits (1,806) (2,197) (4,308)
Net cash and cash deposits at 31 July 2019 6,135 10,443 10,443
---------------------------------------------- ---- ---------- ---------- ----------
Net cash and cash deposits at 31 January 2020 4,329 8,246 6,135
---------------------------------------------- ---- ---------- ---------- ----------
Net cash and cash deposits include:
---------------------------------------------- ----- ----- -----
Cash (maturity less than 95 days) 4,329 8,246 6,135
---------------------------------------------- ----- ----- -----
Net cash and cash deposits at 31 January 2020 4,329 8,246 6,135
---------------------------------------------- ----- ----- -----
Notes to the Interim Report
for the six months ended 31 January 2020
1 General information
The principal activity of Applied Graphene Materials plc is the
manufacture, dispersion and development of applications for
graphene. The Group operates principally in the United Kingdom.
The Company is incorporated and domiciled in the United Kingdom
and its registered number is 8708426. The address of the registered
office is The Wilton Centre, Redcar, Cleveland TS10 4RF. The
Company was incorporated on 27 September 2013.
The interim financial information was approved for issue on 25
March 2020.
2 Basis of accounting
The consolidated interim financial information for the period
ended 31 January 2020 has been presented under the historical cost
accounting convention, as modified by financial assets and
liabilities at fair value through the income statement and share
based payments at fair value, and in accordance with International
Financial Reporting Standards (IFRS) as adopted by the European
Union, IFRIC interpretations and those parts of the Companies Act
2006 applicable to companies reporting under IFRS. The consolidated
interim financial information has been prepared on a going concern
basis.
The accounting policies used in the consolidated interim
financial information are consistent with those set out in the
audited financial statements for the year ended 31 July 2019 with
the exception of the adoption of IFRS 16 'Leases'. These accounting
policies are drawn up in accordance with adopted International
Accounting Standards ('IAS') and International Financial Reporting
Standards ('IFRS') as issued by the International Accounting
Standards Board and adopted by the EU.
AIM-quoted companies are not required to comply with IAS 34
Interim Financial Reporting and accordingly the Company has taken
advantage of this exemption.
Further IFRS or interpretations may be issued that could apply
to the Group's financial statements for the year ending 31 July
2020. If any such amendments, new standards or interpretations are
issued, then these may require the consolidated financial
information provided in this report to be changed. The Group will
continue to review its accounting policies in light of emerging
industry consensus on the practical application of IFRS.
The preparation of financial information in conformity with IFRS
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and
expenses during the reporting period. Although these estimates are
based on management's best knowledge of the amount, events or
actions, actual events ultimately may differ from those
estimates.
The consolidated interim financial information does not include
all financial risk management information and disclosures required
in the annual financial statements.
The consolidated interim financial information for the six
months ended 31 January 2020 and for the six months ended 31
January 2019 contained within the Interim Report does not
constitute statutory financial statements within the meaning of
Section 434 of the Companies Act 2006 and is unaudited. The
comparative figures for the year ended 31 July 2019 have been
extracted from the audited financial statements, on which the
Company's auditors have given an unqualified opinion.
New and amended standards adopted by the Group
The Group has adopted IFRS 16 with effect from 1 August 2019.
The standard eliminates the classification of leases as either
operating or finance leases and introduces a single accounting
model requiring lessees to recognise assets and liabilities for all
leases unless the underlying asset has a low value or the lease
term is twelve months or less. Lessees are required to recognise on
the balance sheet right-of-use assets which represent the right to
use underlying assets during the lease term and a lease liability
representing the minimum lease payment for all leases. Depreciation
of right-of-use assets and interest on lease liabilities is charged
to the Income Statement, replacing the corresponding operating
lease rentals. The Group has applied the modified retrospective
approach and therefore at the date of initial application an amount
equal to the lease liability, using appropriate incremental
borrowing rates, has been recognised as a right-of-use asset. The
Group has taken the exemptions available under IFRS 16 not to apply
the lease accounting model to leases which are considered low value
or which have a term of less than twelve months. The adoption of
IFRS 16 has increased 'non-current assets' and 'total liabilities'
at the balance sheet date by GBP0.1 million and GBP0.1 million
respectively, but has not had a material impact on the Income
Statement. Depreciation and interest costs were increased by
GBP75,000 and GBP4,000 respectively while operating charges were
reduced by GBP79,000. No adjustment was necessary to equity at the
date of transition as the Group chose to measure the right-of-use
asset at the same value as the lease liability. A weighted-average
incremental borrowing rate of 8% has been applied to lease
liabilities.
3 Taxation
The Group has not recognised any tax assets in respect of
trading losses arising in either the current financial year or
accumulated losses in previous financial years. Research and
development tax credits for the period up to 31 January 2020 have
been accrued after having taken into account the anticipated level
of research and development work carried out in the period.
4 Dividends
No dividend has been proposed for the period ended 31 January
2020 (2019: GBPnil).
5 Segmental analysis
The Group currently has one operating segment. Operating
segments are defined as components of an enterprise about which
separate financial information is available that is evaluated
regularly by the Chief Operating Decision Maker (CODM) in deciding
how to allocate resources and in assessing performance. The Group's
Chief Executive Officer has been identified as the CODM. Revenue
and profits arising from that operating segment are the same as
presented on the face of the consolidated income statement and
statement of comprehensive income.
6 Earnings per share
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of shares in issue during each period. The weighted average
number of shares in issue during the period used in the calculation
of basic earnings per share was as follows:
Unaudited Unaudited Audited
6 months 6 months
to to year ended
31 January 31 January 31 July
2020 2019 2019
'm 'm 'm
----------------------------------------------------- ---------- ---------- ----------
Weighted average number of shares for basic earnings
per share 49.4 49.4 49.4
----------------------------------------------------- ---------- ---------- ----------
Adjusted earnings per share has been calculated so as to exclude
the effect of exceptional costs including related tax charges and
credits. Adjusted earnings used in the calculation of basic
earnings per share reconciles to basic earnings as follows:
Unaudited Unaudited Audited
6 months 6 months
to to year ended
31 January 31 January 31 July
2020 2019 2019
GBP'000 GBP'000 GBP'000
---------------------------------------------- ---------- ---------- ----------
Basic earnings (1,978) (2,174) (3,927)
Exceptional costs 168 - -
---------------------------------------------- ---------- ---------- ----------
Adjusted earnings (1,825) (2,174) (3,927)
---------------------------------------------- ---------- ---------- ----------
Earnings per share (pence per share)
Basic (4.0) (4.4) (7.9)
---------------------------------------------- ---------- ---------- ----------
Adjusted earnings per share (pence per share)
Basic (3.7) (4.4) (7.9)
---------------------------------------------- ---------- ---------- ----------
The Group was loss making for the periods ended 31 January 2020
and 31 January 2019 and also for the year ended 31 July 2019.
Diluted loss per share has not been presented above as the effect
of share options issued is anti-dilutive.
7 Notes to the cash flow statement
Unaudited Unaudited Audited
6 months 6 months
to to year ended
31 January 31 January 31 July
2020 2019 2019
GBP'000 GBP'000 GBP'000
-------------------------------------------------------- ---------- ---------- ----------
Loss for the period attributable to equity shareholders (1,978) (2,174) (3,927)
Tax on loss (300) (200) (908)
Net finance income (18) (34) (67)
Depreciation of property, plant and equipment 153 175 343
Exceptional costs 168 - -
-------------------------------------------------------- ---------- ---------- ----------
EBITDA (1,975) (2,233) (4,559)
Depreciation of property, plant and equipment (153) (175) (343)
Exceptional costs (168) - -
-------------------------------------------------------- ---------- ---------- ----------
Operating loss (2,296) (2,408) (4,902)
Depreciation of tangible fixed assets 153 175 343
Disposal of property, plant and equipment -- - 9
IFRS 2 share based payments charge 150 140 294
(Increase)/decrease in net working capital (356) (80) 72
-------------------------------------------------------- ---------- ---------- ----------
Net cash used within operations (2,349) (2,173) (4,184)
-------------------------------------------------------- ---------- ---------- ----------
8 Share capital
Unaudited Unaudited
number of total
Ordinary shares GBP'000
--------------------------------------------------- --------------- ---------
Allotted, called up and fully paid
At 31 July 2018 Ordinary shares of 2 pence each 49,429,380 989
At 31 July 2019 Ordinary shares of 2 pence each 49,429,380 989
--------------------------------------------------- --------------- ---------
At 31 January 2020 Ordinary shares of 2 pence each 49,429,380 989
--------------------------------------------------- --------------- ---------
9 Related party transactions
Transactions between Applied Graphene Materials plc and its
subsidiaries, which are related parties, have been eliminated on
consolidation and are not disclosed in this note.
Transactions with shareholders
The following transactions with shareholders of the Group were
recorded, excluding VAT, during the period:
Unaudited Unaudited Audited
6 months 6 months
to to year ended
31 January 31 January 31 July
2020 2019 2019
GBP'000 GBP'000 GBP'000
--------------------------------------------------- ---------- ---------- ----------
University of Durham (shareholder)
Staff secondment, consultancy and other fees 4 17 33
--------------------------------------------------- ---------- ---------- ----------
Top Technology Limited (controlled by shareholder)
Non-Executive fees and expenses 8 8 15
Corporate finance fees - - -
--------------------------------------------------- ---------- ---------- ----------
IP2IPO (shareholder)
Non-Executive Director expenses - - 1
--------------------------------------------------- ---------- ---------- ----------
Remuneration of key management personnel
The remuneration of the Directors and the key management
personnel of the Group is set out below in aggregate for each of
the categories specified in IAS 24 Related Party Disclosures:
Unaudited Unaudited Audited
6 months 6 months
to to year ended
31 January 31 January 31 July
2020 2019 2019
GBP'000 GBP'000 GBP'000
------------------------------------------------- ---------- ---------- ----------
Short term employee benefits (excluding bonuses) 373 357 746
Payments to third parties 15 8 15
IFRS 2 share based payments charge 150 140 167
------------------------------------------------- ---------- ---------- ----------
538 505 928
------------------------------------------------- ---------- ---------- ----------
10 Seasonality
The Group experiences no material variations in performance
arising due to seasonality.
11 Availability of Interim Report
It is anticipated that the Interim Report will be sent to all
shareholders on 3 April 2020. Electronic copies of the report will
also be available on Applied Graphene Materials' website at
www.appliedgraphenematerials.com .
Glossary of terms
Term Meaning
---------------------- --------------------------------------------------------------
Anti-corrosion A type of coating made with neutral or slightly alkaline
pigments and a water resisting vehicle for use as a primer
on steel and other metals to prevent or inhibit corrosion
---------------------- --------------------------------------------------------------
Barrier system A method of preventing corrosion by using barrier materials
within the coating that restrict the movement of water
and other chemicals towards the metal surface
---------------------- --------------------------------------------------------------
Coat/coating When used as a verb, "coat" means to cover or apply; as
a noun, the word signifies the amount of finishing material
applied to a surface during one or more applications without
a drying period between applications
---------------------- --------------------------------------------------------------
Composites A material made up of resin and reinforcement
---------------------- --------------------------------------------------------------
Conductive inks An ink that results in a printed object which conducts
electricity
---------------------- --------------------------------------------------------------
Conductivity - The degree to which a specified material conducts electricity,
electrical calculated as the ratio of the current density in the
material to the electric field which causes the flow of
current
---------------------- --------------------------------------------------------------
Conductivity - The rate at which heat passes through a specified material,
thermal expressed as the amount of heat that flows per unit time
through a unit area with a temperature gradient of one
degree per unit distance
---------------------- --------------------------------------------------------------
Dispersion A mixture in which very small pieces of one substance
are scattered within another substance
---------------------- --------------------------------------------------------------
Elasticity The property of a film that allows it to stretch or otherwise
change size or shape and return to its original condition
without breaking or rupturing
---------------------- --------------------------------------------------------------
Fracture toughness Resistance to cracks, crazing or delamination resulting
from physical damage
---------------------- --------------------------------------------------------------
Functional fluids Sustainable base oil products - enhanced with graphene
nanoplatelets - offer exceptional performance, and friction
and wear protection, especially for lubricants and machining
fluids used in automotive and industrial applications
---------------------- --------------------------------------------------------------
Mechanical Strength, hardness, toughness, elasticity, plasticity,
brittleness, ductility and malleability are mechanical
properties used as measurements of how materials behave
under a load
---------------------- --------------------------------------------------------------
NATEP National Aerospace Technology Programme
---------------------- --------------------------------------------------------------
Polymer A long-chain molecule, consisting of many repeat units
---------------------- --------------------------------------------------------------
Prepreg A factory-made combination of reactive resins and reinforcing
fibres, plus other necessary additive chemicals, ready
to be moulded
---------------------- --------------------------------------------------------------
Primer A substance used as a preparatory coat on wood, metal
or canvas, especially to prevent the absorption of subsequent
layers of paint or the development of rust
---------------------- --------------------------------------------------------------
Resin system A polymer with indefinite and often high molecular weight
and a softening or melting range that exhibits a tendency
to flow when subjected to stress
---------------------- --------------------------------------------------------------
Substrate A material which provides the surface on which something
is deposited or inscribed
---------------------- --------------------------------------------------------------
Thermal paste adhesive A thermally conductive paste applied to mating surfaces
to bond them together by surface attachment in order to
transfer heat across the materials
---------------------- --------------------------------------------------------------
Tie coat Paint specifically formulated for situations and conditions
to provide a transition from a primer or undercoat to
a finish coat. Tie coats are used to seal the surface
of a zinc-rich primer, to bond generically different types
of coatings, or to improve the adhesion of a succeeding
coating
---------------------- --------------------------------------------------------------
Applied Graphene Materials plc
The Wilton Centre
Wilton
Redcar
Cleveland TS10 4RF
01642 438214
info@appliedgraphenematerials.com
www.appliedgraphenematerials.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
IR USSRRRUUOUUR
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March 25, 2020 03:00 ET (07:00 GMT)
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