TIDMAGM
RNS Number : 3942H
Applied Graphene Materials PLC
06 April 2022
6 April 2022
Applied Graphene Materials plc
("Applied Graphene Materials", "the Group" or "the Company")
Interim results for the six months ended 31 January 2022
Applied Graphene Materials, the producer of specialty graphene
materials, is pleased to announce its interim results for the six
months ended 31 January 2022.
Highlights
Operational highlights
Coatings
-- Increase in pipeline engagements in the past twelve months
-- Completed projects leading to customer product launches
-- Successful engagements with
o UK Environment Agency
o Alltimes Coatings
o Stanvac
o Protective floor applications
o Launch of finished anti-corrosion primers
-- Strong product range with continuing commitment to develop
further for industrial coatings opportunities
-- Chemical resistant coatings portfolio expected to launch in April 2022
-- Car care sector progress continues apace with a number of
customer products coming to market
-- Pace of evaluation of our materials has slowed due to the
COVID legacy and supply chain issues within the sector impacting
customer R&D activity
-- Growth in total pipeline engagements to 192 (2021: 135)
including 24 completed developments (2021: 10) and resulting
revenue potential to GBP3.2 million (2021: GBP3.7 million)
Composites and functional materials
-- Growth in engagements for graphene in composites in the hydrogen storage sector
-- Development of Thermal Interface Materials
Distribution
-- Steady progress with deeper technical input has established greater distributor capability
-- Addition of Rayoung Chemtech in Taiwan
Strategic highlights
-- Technology development continuing apace
o Innovative coatings technology to meet the need for
sustainable innovation and to support new opportunities in, for
example, chemical resistance applications
o Battery technology materials evaluations
o Hydrogen fuel cells materials solutions and storage
o IP platform grown
-- Positive regulatory activity in the USA
-- Continuing IP development
Financial overview
-- Revenue - GBP46,000 (2021: GBP42,000)
-- Operating expenses - unchanged at GBP1.7 million (2021: GBP1.7 million)
-- EBITDA * - loss of GBP1.7 million (2021: loss of GBP1.6 million)
-- Loss before tax - GBP1.9 million (2021: loss of GBP1.8 million)
-- Cash at bank - GBP4.2 million (2021: GBP2.3 million)
-- Basic EPS - loss of 2.6 pence per share (2021: loss of 3.3 pence)
* EBITDA comprises loss on ordinary activities before interest,
tax, exceptional costs, depreciation and amortisation.
Adrian Potts, Chief Executive Officer, commented:
"We continue to make excellent progress with our graphene
nanoplatelet dispersion technology for a broad range of
applications in the protective coatings, composites and functional
materials sectors alongside our longer-range development activity
into green energy. Despite the COVID-19 legacy, we have managed our
in-house resources well which has enabled the development of new
applications for the chemical resistant coatings and composites
industries. We look forward to actively marketing this data to the
industry soon.
Commercial revenues have been slower to develop than we would
have liked for the period due to the compound effects of COVID-19
and supply chain challenges across the liquid resins industry. Many
of our customers have been challenged to source the raw materials
needed for their standard products and have temporarily refocused
resources away from research and innovation, which has led to a
slowing of customer evaluation, formulating and testing of our
products.
We have worked hard with our distributors through this period to
support their efforts technically with their customers and we see
this as a good investment for future potential. With the
progressive re-emergence of the industry, we are anticipating
increasing engagement with our graphene nanoplatelet products."
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 +44 (0) 1642 438 214
Adrian Potts, Chief Executive Officer
David Blain, Chief Financial Officer
Singer Capital Markets
+44 (0) 207 496 3000
Peter Steel / Amanda Gray
Allenby Capital Limited +44 (0) 203 328 5656
Nick Athanas / Liz Kirchner (Corporate Finance)
Matt Butlin / Kelly Gardiner (Sales and Corporate Broking)
Hudson Sandler
+44 (0) 207 796 4133
Nick Lyon / Emily Dillon
Notes to Editors
Applied Graphene Materials - For the last decade, AGM has been
at the forefront of harnessing the possibilities of graphene.
Founded originally by Professor Karl Coleman, the Group has grown
from an academic idea from Durham University to a world leader in
the development and application of graphene nanoplatelet
dispersions for customers in the coatings, composites and
functional materials sectors.
The Group utilises its proprietary bottom-up manufacturing
process to produce high purity graphene nanoplatelets. Its
expertise in dispersion chemistry enables AGM to create optimised,
stable and easy to handle dispersions that customers use in
real-world industrial products. AGM's unique approach enables
industries to fully realise the potential of graphene in a simple,
safe and easy to formulate way.
AGM, based at the Wilton Centre on Teesside, was admitted to AIM
in November 2013, raising GBP11 million. The Group successfully
raised GBP8.5m in January 2016 and a further GBP9.8m in November
2017. Since August 2020, the Group's shares are also listed on
OTCQB in the United States and, in January 2021, the Group
successfully raised a further GBP6m gross. As a result of the
funding support and its industry leading technology platform, AGM
has been able to develop a significant sales distribution network
covering Europe, North America and Asia. The Group continues to
work closely with industrial partners, and has seen the successful
launch of numerous commercial products enhanced by its Graphene
Dispersions.
https://www.appliedgraphenematerials.com/
Business review
with Adrian Potts
Overview
Steady engagement
In the industrial protective coatings industry, where the bulk
of our current customer engagement currently sits, progress has
been impeded by the continuing impact of COVID-19 and customers'
supply chain challenges for basic raw materials. Whilst this has
affected AGM somewhat less from an operational and technology
development standpoint, we have seen a significant slowing of pace
of activity at our customers. As a result, revenues for the period
have been below our expectations. We are, accordingly, moderating
our current year revenue expectations. Despite this, we have seen
an increase in total engagements in the twelve months and five new
products using our graphene dispersion technology have come to
market in the past six months.
Long term sales prospects through distribution
Supplying graphene in standard dispersions with a long shelf
life is key to successful customer engagement through distribution.
Our distributors have developed a solid appreciation for our
products over the past months. Over the past year of integrating
our products with our distributors, we have focused on a deeper
level of technical support to enable them to be successful. We are
now confident that momentum is being realised and that this will
become a solid foundation for future growth.
We were extremely pleased to add Rayoung Chemtech to the AGM
sales network in March 2022, and their enthusiastic approach is
already leading to product sampling for their prospective customer
base. Regulatory support for all distributors is progressing to
plan.
Right products for Protective Coatings progress
The protective coatings industry is slowly emerging from the
damaging effects of COVID and major supply disruption. Our efforts
in technology development enable us to have confidence that as
customer resources return, we will see improved progress in the use
of our products - from customers in the evaluation stages through
to increasing activity with launched products. Having a broad
dispersion product range approach whereby graphene dispersions can
contribute to a range of chemistries and end-user scenarios is a
key enabler to future success in graphene application in this
sector.
Our innovative solutions serve customer needs well for ease of
materials adoption on a repeatable basis. Where innovators are
looking to adopt more sustainable technical solutions, we have
already established a solid product range to meet these
opportunities. The industry push toward lower VOC and water-based
solutions for higher performance coatings means our dispersions are
well placed to fulfil this opportunity.
We are excited about the imminent marketing and application of
our graphene dispersions into the Chemical Resistant coatings
sector. A major data generation project for such coatings immersed
in a range of harsh chemicals is expected to establish graphene as
an important protective agent in this sector.
With stable dispersion products already established, we are well
placed to pursue this sector with products that we know are easily
integrated into end formulations. Similarly, we are also developing
further additions to the product range with the inclusion of top
coat product solutions to add to primer technologies in due
course.
We are seeing positive opportunities emerging for our products
in harsh environment coastal flood defence applications,
construction, infrastructure, electrical, aerospace and
concrete.
The car care sector continues to engage with graphene as a
materials technology with a number of larger partners currently
working with our materials. Once successful, these represent a
potential step-change in volume use for this market.
Composites and functional materials technologies
Our graphene dispersions offer specific technology progress
opportunities in these sectors. Efforts in the hydrogen storage
space are gathering momentum from the solid example established
with Infinite Composites Technologies.
We are progressing the development of thermal interface
materials from the platform of thermal adhesive technology. We
anticipate a positive engagement in the automotive sector for such
materials which embody high thermal conductivity and low weight
gain through low density. Other speciality applications include the
printing of conductive graphene inks.
Platform technology for broad application scope
We have established a solid technology base of standard
dispersions of a number of graphene types to enable breadth of
engagement in the sectors in which we operate. As well as
developing innovative solutions for the protective coatings
industry for anti-corrosion and bringing new application
opportunities for innovators to consider this material, we are now
engaged in new products to generate future application
possibilities for graphene. Evolution of the product range to
enable industrial anti-static coatings is one such example.
Our longer-range technology development in the areas of material
evaluation for battery technologies and hydrogen fuel and storage
are progressing well. Our IP portfolio has been further increased,
underpinning the value of the dispersion and application technology
we have developed.
Our proactive approach to regulatory matters is making positive
progress, particularly in the USA.
Sustainability is key to our product development and AGM offers
both innovative products to meet the needs of product formulators
wanting to integrate graphene into greener, more sustainable
solutions. We are underpinning the efficiency of graphene in
industrial coatings with a life cycle analysis study to demonstrate
the sustainability benefits of use of this innovative material in
such applications.
Manufacturing base
Further leased space to accommodate an increase in dispersion
capability is being contracted and equipment is on order to support
the anticipated need for increased demand.
COVID impact and supply chain
We have seen the direct impact on our customers' activity in
terms of resourcing availability and continuity. When the severe
impact of supply chain constraint is overlaid with the impact of
COVID, it is clear that this has impacted our direct engagement
with our customers insofar as progressing evaluation and use of
graphene, as customers' priorities have shifted away from research
and development. As activity levels begin to return to normal, we
see AGM as well placed to engage with the industry, having managed
our own COVID protocols well and progressed our technology
development in the background.
COMMERCIAL PROGRESS
REVENUES
Trading has been difficult within our focus sector of industrial
protective coatings due to the continuing impact of COVID and the
challenges around supply chain issues for basic raw materials. With
many engagements, we have seen a slowing of activity within our
customers as their priorities have been centred on basic supply
management with diminished resources. As a result, our revenues for
the six months have proven to be disappointing. We are however
positive about the gradual emergence of activity levels in the
protective coatings sector and the potential to re-commence
materials testing on a number of accounts. Behind the scenes, our
technology team has been making good progress on developments to
support new opportunities within the broader coatings sector, which
we see ourselves as well placed to capitalise on.
PIPELINE OF ENGAGEMENTS
We have seen progressive growth in our pipeline of engagements
over the past 12 months, with an increase from 135 to 192,
including now 24 completed products. It is pleasing to see this
steady growth in the number of products being launched by our
customers, which will drive our future sales of dispersed graphene
materials. We believe steady, positive progress is being made in
the evaluation of our graphene materials by customers interested in
both graphene as a novel material and in the practical use of this
innovative materials technology. The pace of a number of customer
evaluations has unfortunately slowed as discussed due to the
effects of COVID and the supply chain within the coatings industry.
We see this as a timing issue only.
Opportunities by stage of development and pipeline value:
1 2 3 4 5
Repeat
Initial testing Final product
Agreement testing for trials,
on scope and consistency formulation Final
of sampling interpretation and review and commercial
As at and engagement of results of results specification agreement Completed Total Value*
31.01.22 74 60 13 15 6 24 192 GBP3.2m
31.07.21 79 70 15 9 8 19 200 GBP3.7m
31.01.21 39 54 19 8 5 10 135 GBP3.7m
* The value of development stages 1 - 5 is probability-weighted.
The value of completed projects is at full sales opportunity.
The number of opportunities in the final stages of the pipeline
(stages 4 and 5) has grown from 17 to 21 during the period as a
result of eleven opportunities moving up the pipeline, 5
opportunities being completed and 2 opportunities discontinued. In
total, net of additions to the pipeline, eight opportunities have
been discontinued during the period.
The majority of our activity within the pipeline continues to be
centred upon protective coatings technology. Protective coatings is
our strategically important market where we have demonstrated the
performance advantages of graphene nanoplatelet dispersions. Most
of this activity is for industrial-focused customers with activity
also in aerospace, oil/gas and marine.
We currently can identify six further customer engagements which
we believe are close to commercial traction.
The probability weighted average sales value of the 168 projects
in the pipeline at 31 January 2022 is GBP2.7m (31/7/21: GBP2.9m)
reflecting the completion of 5 projects and the net discontinuation
of 8 projects. The sales opportunity of the completed projects at
that date is GBP0.5m (31/7/21: GBP0.8m) and this reduction in sales
value reflects a more cautious valuation of these projects based on
recent sales experience and the ongoing difficult trading
environment.
DISTRIBUTION NETWORK
Steady progress has been made with our distributor development,
although the investigation of graphene as a new class of candidate
technology has taken longer than desired with some of our
distributors' customers. This has required targeted support from
AGM technical staff to enable product engagements to progress.
However, we are confident that this investment will pay off in the
successful outcomes that will be reached with our distributors. It
is now a key objective to increase the quantum of engagements
through our distribution partners to enable greater traction in
commercial results.
Post period we were pleased to announce the addition of Rayoung
Chemtech to the AGM team as our distribution partner for the Taiwan
coatings and composites market. We are very encouraged by the level
of activity already happening through them and the number of
samples requested for testing. We are also anticipating adding
further distributors to the team; progress has been made in Latin
America and India and we anticipate further announcements in due
course.
We continue to assist our distributors with product regulatory
support for our products in the respective territories. This is
particularly important for future volume sales of our A-GNP35-based
dispersions in the United States, where engagement with the
Environmental Protection Agency (EPA) is active in pursuit of a
Pre-Manufacture Notice and TSCA listing.
PROTECTIVE COATINGS SECTOR
As AGM's strategically important sector for delivery of our
technology solutions, sales volumes have been slower to develop
than expected. This is directly as a result of activity levels in
the sector having been substantially reduced and this is due
to:-
- COVID-19 has continued to adversely affect work patterns and
continuity at a number of our customers - particularly those in
early-stage evaluation of our products. This has resulted in much
slower testing and adoption and hence a reduced stream of launched
products to market. At some engagements, R&D programmes have
been shelved altogether.
- Global supply chain issues in the coatings industry have
significantly changed priorities for development, innovation and
R&D staff. Unprecedented supply issues for many constituents of
coatings including resins, solvents, additives have been
significantly disrupted. In a number of cases, customers have
reprioritised their R&D team efforts to solely address
integration of alternate basic product supply; this has a direct
impact on longer-range innovation activities, particularly when
overlayed with the impact of disrupted work patterns from
COVID.
Two years on, we are starting to see a return in activity in the
industrial coatings space which is encouraging.
Current Sector Products and Marketing
Despite the slow pace of customer activity, AGM has focused on
continuing the important work of developing our comprehensive
platform of technology and our product offerings for the protective
coatings sector. These are supported by extensive data and guidance
documents on exemplar formulations, arising from many months of
testing. These data serve to equip customers on how to be
successful with the use of graphene dispersions. Across the range
of applications, we have products that which can fulfil
requirements in:-
- general Industrial C3 anti-corrosion applications;
- use of graphene in harsher C4 to C5 applications in primers,
and intermediate coats. This gives the end-user substantial
flexibility to design systems where the graphene can be used
throughout the various layers in a protective coatings assembly, or
selectively in tandem with an existing primer system;
- dispersions that can confidently be used to achieve very harsh
corrosion performance in CX type applications e.g. for coastal and
offshore environments; and
- innovative water-based applications for sustainable advantage.
AGM's extensive product portfolio for this sector and beyond
includes
- standard, stable, easy to use graphene dispersions to enable
our end customer to formulate their own products using a range of
additive chemistries from resins to solvents;
- a range of innovative low VOC and bio-based dispersion
products to meet the needs of innovators looking for a greener
sustainable solution;
- water-based dispersions specifically engineered for effective
water-based solutions for coatings innovators;
- dispersions based on a range of types of graphenes to match customer need; and
- finished primers to enable customers to use directly or
evaluate performance of a graphene-based product with ease.
We are planning a major marketing push in the area of chemical
resistant coatings in April 2022. This application opportunity is
anticipated to open up substantial new prospects for use of our
graphene dispersions in a broader range of coatings possibilities
beyond corrosion. This application portfolio is expected to include
engagements in both the areas of protective coatings for diverse
aggressive chemicals for storage, transport, flooring through to
composite materials which are often used in chemical storage
applications.
We are also expecting the successful development of a
graphene-enhanced top coat product to complement the use of AGM's
graphene-enabled primers and intermediate barrier coats. This will
give the end user full flexibility in determining the specification
of their protective coatings system developments.
Customer experiences of successfully formulated products using
our graphene where we anticipate growing usage as these products
become adopted include: -
Harsh corrosion - UK Environment Agency (UKEA)
We have supplied our Graphene HC Primer to UKEA contractors for
the first use of this finished coating on UK flood defence assets
in the Northeast of England. We are pursuing the next phase of this
engagement with sales of primer anticipated to further locations.
This is an important project for AGM as it marks the practical use
of a harsh environment corrosion primer in real-world applications
where the objective is maintenance reduction through longer life
graphene-enhanced coating systems in harsh, salty coastal
environments. The coating deployed is the result of some 18 months
of product formulation and extensive testing. As well as sales to
UKEA, the use serves as an important demonstrator of graphene use
in a new platform of coatings innovation for further harsh
environment applications. A further customer-focused development
project is underway to finalise a top coat to complement the primer
product for UKEA. It is collaborations where the customer has clear
objectives which enable successful product outcomes underpinning
sales potential for the longer term.
Industrial construction - Alltimes Coatings
Positive progress has been made with Alltimes Coatings and the
use of their Advantage Graphene product on a growing number of
roofing and construction cladding projects. Certification with
architects of this product and technical solution is starting to
gather momentum which is expected to lead to direct specification
on future projects as the product of architect choice. Demonstrable
performance of the product through rigorous testing is important to
the certification process, and this is a key service AGM offers to
our customers.
Automotive - James Briggs Ltd
JBL continue to take regular shipments of graphene dispersions
for their aerosol products for their own brand and white label
customers. Consistent repeatable quality of dispersions is vital to
continuing repeat orders.
Industrial Plant - Stanvac-Superon
The Stanvac graphene-based conductive coating product designed
for reducing losses on power transmission line connectors has been
used to demonstrate superior performance through this new product
offering. We confidently await formal customer approval of the
Stanvac product, which in turn will enable wider adoption and a
progressive increase in sales volume of dispersed materials.
Stability of dispersion is a key attribute for shipping over large
distances.
Industrial - Blocksil
Blocksil launched a new graphene-enhanced primer which has been
designed to complement their TopCoatMT product and hence
effectively double potential volumes of dispersions to Blocksil
projects, which include RTE and UK Network Rail. Regrettably,
funding for the Network Rail trackside enclosure refurbishment has
been substantially delayed and contractor issues for RTE and Avanti
have meant these projects have stalled. We anticipate a gradual
increase in activity with Network Rail as funding is anticipated to
be restored in April.
Protective floor coatings
Our lead customer in this sector reports that the testing phase
is complete and that they are moving towards the development of a
marketing campaign for the graphene product. We eagerly anticipate
the launch of this innovative concrete floor coating product where
graphene is being used in a highly effective way to replace legacy
materials at significantly lower loadings, giving the customer
greater flexibility and manageable cost.
The imminent chemical resistant coatings technology product
launch is expected to add to the number of engagements in this
important sector opportunity.
We are also anticipating the further development and launch of
an antistatic capability to floor coatings formulations to suit
potential in, for example, the electronics sector.
Aerospace
The lead customer for this activity continues their testing
process for the adoption of a graphene-loaded aluminium primer
product with a view to eventual third-party approvals to enable use
on flight assets. Whilst this represents a lengthy process to
navigate involving multiple test stages with the customer, the
certifying bodies and individual project applications, the focus is
on timely completion of these steps and volume uptake of
dispersions in this coating.
Other protective coatings
We continue to make good progress with a broadening range of
application opportunities for graphene nanoplatelets as a
protective barrier agent in a coating format. Sectors such as
packaging and PPE represent active engagements.
Integration of finished products into the range
We launched two new primer products to the sector in the period
to demonstrate directly the potential of graphene in protective
coatings. One of the products is for general purpose "C3"
industrial use and the second is for much harsher anti-corrosion
protective applications, typified by the UKEA coastal flood defence
application. These products also enable customers who wish to fast
track their development to evaluate a finished graphene-enhanced
formulation to demonstrate effectiveness in their specific
application.
64% of the pipeline represents protective coatings engagements
with the majority in the industrial coatings space.
Car care
When correctly formulated, the inclusion of graphene
nanoplatelets can impart excellent UV resistance, chemical
resistance and ease of incorporation and application in finished
car care products. Typically, low loading levels of graphene
material are required to make a positive contribution to the
performance of the end customer's product. AGM's dispersion product
offerings make it easy for the end user to integrate graphene into
their products. We offer both water-based and a range of
sector-relevant solvent-based dispersions of graphene nanoplatelets
which are aligned well with the customers' needs.
Early customer launches with smaller, niche operators have
demonstrated strong performance but unfortunately have not
generated anticipated demand from their lower than anticipated
retail product sales. As we engage with larger product formulators
in the market, we anticipate better traction in volume-based
revenues translating from product launches.
Post product launch, one of our USA customers continues to roll
out their new technology to their dealer network and they
anticipate progressively increased adoption and may require future
inventory provision through our distributor.
The pipeline for engagements in this sector remains steady at
21% of the total with four customer evaluations at an advanced
stage and completing testing. We are at an advanced product
development stage of engagement with one larger car care supplier
and are hopeful of a positive outcome for product integration and
consequential sales volumes once testing is finalised.
We were pleased to be able to supply 3 dispersion products in
volume to a further undisclosed USA customer in the car care
products sector which will enable them to launch a graphene-based
product range imminently.
A further customer in this space is completing product stability
testing for water-based and solvent-based products, with a view to
launching products to the US market.
COMPOSITES SECTOR
Use of our graphene nanoplatelets in composites structures
enable very specific performance gains in these already
high-performance materials. This means that a targeted use of GNPs
to achieve specific performance gains can now be within reach for
end users. As ever, it is the process of how the material is
incorporated that determines the quality and success of the outcome
- AGM's dispersed graphene systems are ideal for such targeted
inclusion.
Work continues with Infinite Composites Technologies (ICT) as a
platform demonstrator for high-pressure linerless tank systems for
gas storage which incorporate our graphene dispersions to great
effect.
Increased toughness and tensile strength of the composite plus
enhanced leakage control under extremes of testing from the use of
graphene in their matrix system contributes to higher performance
and longer life. As ICT progressively increases build-rate
momentum, we are encouraged to see demand for our specialty
dispersed products for their pressure vessels, and we anticipate an
increased volume of dispersions to be supplied to them in the
coming months.
A number of additional current engagements in the area of
pressure storage vessel technology are now actively evaluating our
graphene dispersions. The appetite for the exploration of the use
of graphene in this area is expected to continue to grow, given the
increasing awareness and interest in hydrogen power to sit
alongside current and future battery technologies. We anticipate a
growing and longer-term demand in hydrogen storage applications and
are confident that we are well placed with the end-to-end
understanding of how to use graphene to enable specific, desirable
benefits for a breadth of composites processing solutions for these
demanding applications.
More generally, the effort to characterise the performance of
graphenes in composites is progressing at the University of Maine's
Advanced Structure and Composites Center in partnership with The
Graphene Council. Further individual customer engagements are
incorporating graphene into their systems, usually with customised
dispersions, as the means of delivering graphene to suit individual
processing methodologies - one of AGM's strengths.
FUNCTIONAL MATERIALS SECTOR
Customer approval for the Genable 4300 product for an aerospace
client is still pending. Given the technical benefits of this
family of products including high thermal conductivity and low
density, we are now progressing the development of formulations to
create a broader platform technology targeting the opportunity for
heat dissipation with low mass for battery technology in
lightweight automotive solutions. This short term development
effort is expected to yield a number of product formats to enable
broad engagement in the automotive sector and beyond.
Customer demand for printed ink materials has been challenging,
with a specific customer project cancelled following initial
evaluation. The technology platform still holds appeal for
conductive printing applications and we continue to promote the
potential on the basis that higher conductivity, low density
printed technologies will be a requirement in the industry.
TECHNOLOGY DIRECTION
AGM's technology roadmap is focused on the successful
integration of graphene nanoplatelets, principally in liquid
product systems through our innovative dispersion technology. We
have approached this foundational challenge by developing and
establishing a robust range of dispersions to make graphene:-
- easy to integrate into end-use formulations;
- easy to handle;
- safe to handle;
- stable for extended shelf life;
- repeatable, consistent in outcome to give end-users confidence
in the products they develop with graphene;
- available in custom solutions suitable for specific application opportunities; and
- having the relevant regulatory approvals.
Our know-how has enabled us to develop dispersions that also
incorporate commercially available exfoliated graphenes in addition
to our own in-house manufactured nanoplatelet products. This is
important given the breadth of performance attributes of materials
offered within the "graphene nanoplatelet" family of materials; the
opportunity to serve the customer with the appropriate product
offering against their technical need is important for successful
outcomes.
AGM's strategy is to apply our platform dispersion technology in
the areas of protective coatings (principally anti-corrosion),
composite materials and functional (or specialty) products.
Latterly we have extrapolated our application strategy further to
address areas including:-
- chemical resistant coatings;
- Top Coat products to complement primer products (eg for UKEA etc);
- hybrid dispersion formulations for broader utility for a range
of anti-corrosion opportunities;
- long term coastal exposure testing of exemplar protective
coatings formulation to demonstrate long term performance of such
coatings;
- development of floor coatings expertise to include anti-static attributes;
- coatings for wind turbine applications to combat erosion;
- life cycle demonstration of graphene-enhanced protective coatings;
- dispersions suitable for textile application;
- thermal interface materials for battery applications;
- battery applications for our graphene coatings products including:-
o LTO Project at St Andrew's University;
o Dielectrics project at WMG; and
o Silicon-Lithium project at Northumbria University;
- applications of novel graphene structures for hydrogen fuel cells; and
- further development of Graphene in composite pressure vessels
IP
We have made positive progress with continuing to build an IP
portfolio around both the effectiveness of graphenes and the
application of these materials through dispersion technology.
During the period a UK Patent was granted for the use for graphene
nanoplatelets in water-based coatings. Post period, patent grants
were notified in Singapore for Corrosion protection for metallic
substrates comprising one or more 2D materials platelets. We
anticipate the Chinese Patent Office granting our patent for
Aluminium corrosion protection with graphene. The G enable
trademark has been granted in USA and Turkey.
We have further been informed that a patent covering water-borne
corrosion has been cleared for grant in Canada.
REGULATORY
We continue to work with the REACH consortium to review graphene
materials and the various morphologies available under the
group-based volume approval we have in place.
Brexit has placed additional parallel demands on EU REACH. A
consortium is expected to be established to deal with the detail of
Graphene registration in the UK in due course. In the meantime, AGM
has put in place the necessary documentation for Downstream User
Import Notification and Poison Centre Notifications.
Efforts for registration in other regions continue apace to
support distributor opportunities. The most challenging area
currently for regulatory approval is in the USA and we are well
underway with filing for approval for a TSCA listing with the
Environmental Protection Agency (EPA). The cost of such activity is
not insignificant but the commitment to regulatory approval will
fundamentally underpin long-range volume opportunity in this
area.
We continue to input and interact with various other bodies with
an interest in graphene classification and regulatory aspects. The
Graphene Council, of which we are a member, is taking a positive
inter-agency approach with a view to maturing the process of
standardization and classification of the substantial range of
materials that fall under the 2D carbon umbrella.
MANUFACTURING
Focus in the period has been on manufacturing footprint for
dispersions, the technology for which continues to be developed. We
are in the process of completing a lease on extending our space in
the Innovation Centre at Wilton to enable an expanded dispersion
plant to be added. Equipment is on order and we anticipate
completion in the summer of 2022.
We continue to evaluate a broader range of product offerings to
ensure we have the best combination of materials to suit the
end-customer's application. As the industry develops, the
consistency of graphene in the customer's hands will be crucial to
successful, repeatable outcomes for graphene adoption. We are
focused in this area to deliver the highest quality, most
consistent dispersed graphene materials to enable our customers to
achieve these goals time after time.
SUSTAINABILITY
Our focus on sustainability has centred on our product offerings
and the power of graphene to bring about a more sustainable
solution as compared with conventional materials offerings.
The application of our coatings with UKEA is illustrative of the
potential of a longer life cycle between maintenance events to
reduce cost of maintenance and reduce the environmental impact of
stripping and recoating large assets. In pursuit of this, a Life
Cycle Analysis study is being completed to review the impact of
graphene-based coatings.
As the coatings industry is moving towards a more water-based
focus, our water-based graphene dispersions offer an ideal
opportunity for end users to innovate with an easy-to-use solution
to introduce new technical solutions to the coatings applications.
A UK patent was granted for this technology in the period. In
pursuit of a more sustainable basis for coatings products, we also
offer lower VOC and bio-based product dispersions.
COVID-19 IMPACT
COVID-19 has had a deeper impact on our business revenues as the
effects of the pandemic have progressed. As noted earlier, this has
been seen most clearly in the impact on our customers, work
patterns, availability of customer R&D resources and the
refocus on basic raw materials in an industry that is extremely
supply-chain challenged.
We are confident that with the emergence of the protective
coatings industry from this situation, we will start to gather
momentum again and see positive progress in the coming months.
We have managed our in-house capability well, although latterly
have seen a greater disruption with the more transmissible Omicron
variant.
OUTLOOK
Whilst we have seen a significant slowing of activity levels in
the industrial protective coatings industry, we have continued with
our efforts to develop, test and demonstrate practical graphene
solutions for end-users to adopt. Given the current operational
conditions in our sector we are reducing our short term revenue
expectations but we remain confident about the long term future.
Our product range is designed to meet the needs of innovators in
the industry evaluating substitution with graphene into
conventional chemistries and those looking for more advanced
sustainable solutions. We are also adept at customising graphene
solutions to suit specific opportunities and customer needs.
We believe that AGM is extremely well placed to engage with
these opportunities as the industrial coatings sector returns to
more normal product development activity levels. Offering a broader
platform of technology, supported with regulatory positioning and
additional capacity, is key to serving emerging customers well. We
are committed to developing this platform further in the areas of
chemical resistance and adjacent requirements for the sector such
as anti-static performance.
Our global distribution platform is now well trained in the
utility and use of our products and we are anticipating stronger
performance from them to drive the number of engagements in our
pipeline.
Emerging opportunities in the areas of battery technology and
hydrogen fuel and storage are progressing as we develop our
technology platform to support this sector.
Our cash resources continue to extend beyond 31 January 2023.
The Board is confident that the technology positioning of AGM will
enable solid future opportunities.
Adrian Potts
Chief Executive Officer
6 April 2022
Financial review
With David Blain
Summary
-- Revenues increased to GBP46,000 (2021: GBP42,000), with the
lower than anticipated growth reflecting the effect of COVID-19 and
various issues faced by our customers.
-- The knock-on impact of the ongoing conflict in Ukraine on
industry, the economy and our cost base continues to add
uncertainty to our operational performance.
-- Operating costs reduced by GBP14,000.
-- EBITDA loss of GBP1.72 million (2021: GBP1.58 million loss).
-- Cash at bank of GBP4.2 million (2021: GBP2.3 million).
-- EPS loss of 2.6 pence per share (2021: loss of 3.3 pence per share).
Revenue
Revenue for the period was GBP46,000 (2021: GBP42,000) arising
from the supply of production orders of graphene and evaluation
quantities of graphene to commercial partners. Revenues increased
marginally during the period reflecting the very difficult
operating conditions endured by the industries that our customers
operate in, as reflected in the CEO's statement.
Cost of sales
Cost of sales reflect the cost of operating the production
facilities during the period and increased by GBP132,000 to
GBP278,000 (2021: GBP146,000). The increase in costs primarily
reflects increases in staff and utility costs.
Operating costs
Operating costs for the period were GBP1,674,000 (2021:
GBP1,688,000). The reduction in costs of GBP14,000 reflects the
increase of staff and insurance costs of GBP90,000 offset by
reductions in depreciation and legal fees totalling GBP104,000.
Loss on ordinary activities before tax
A loss on ordinary activities before tax of GBP1,906,000 (2021:
loss of GBP1,794,000) was recognised.
Loss on ordinary activities before interest, tax, exceptional
costs, depreciation and amortisation (EBITDA)
The EBITDA loss for the Group increased to a loss of
GBP1,723,000 for the six-month period ended 31 January 2022 (2021:
loss of GBP1,578,000). The losses incurred in the period relate to
the day-to-day costs of the business and include the ongoing costs
associated with research and development of new applications of
graphene together with the technical input provided to our
commercial partners as they look to evaluate and incorporate
graphene into their product lines. The EBITDA loss for the period
under review was GBP145,000 greater than the previous period,
primarily due to an increase in the gross loss of GBP128,000 and an
increase in operating costs (excluding depreciation) of
GBP17,000.
Net finance expense
Net finance expense for the period was GBPnil (2021:
GBP2,000).
Tax
R&D tax credits for the current year are accrued on a
monthly basis, resulting in a credit of GBP207,000 for the period
(2021: GBP178,000).
Earnings per share
Basic earnings per share was a loss of 2.6 pence per share
(2021: loss of 3.3 pence per share).
Dividend
No dividend has been proposed for the period ended 31 January
2022 (2021: GBPnil).
Cash flow
Net cash used in operations was GBP1,914,000 (2021:
GBP1,294,000). The increase in cash utilised in operations was
caused by the increased operating loss and an increase in net
working capital.
Capital expenditure of GBP114,000 (2021: GBP106,000) was
incurred in the period mainly relating to the development of
intellectual property assets.
Balance sheet
Net assets increased to GBP6,036,000 (2021: GBP3,828,000),
principally reflecting the new shares issued in February 2021
offset by the trading loss for the period.
Cash at bank at 31 January 2022 was GBP4,214,000 (2021:
GBP2,291,000). 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.
The property lease at Wilton is in the process of being renewed
in April 2022, and will result in the recognition of an additional
Right of Use (ROU) asset of GBP600,000 and a lease liability of
GBP600,000. The lease will include additional space and is for a
period of three years with a break clause after two years.
Accounting policies
The Group's consolidated financial information has been prepared
in accordance with International Accounting Standards in conformity
with the requirements of the Companies Act 2006. The Group's
significant accounting policies, which are consistent with those
set out in the audited financial statements for the year ended 31
July 2021, have been applied consistently throughout the
period.
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 33 to 35 of the Annual Report
for the year ended 31 July 2021. As disclosed n the Annual Report,
cash balances continue to fund operations beyond 31 January
2023.
Forecasting the timing and quantum of revenues at this stage of
development continues to be a key difficulty faced by the Group as
this is heavily dependent upon the product development cycle of our
customers and, therefore, is not under our control. However, we are
encouraged by the growing number of products that our customers
have launched, the expansion of our distribution through new
appointments in 2020 and the strength of our sales pipeline. The
knock-on impact of the ongoing conflict in Ukraine on industry, the
economy and our cost base continues to add uncertainty to our
operational performance.
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
6 April 2022
Consolidated income statement and statement of comprehensive
income
for the six months ended 31 January 2022
Unaudited Unaudited Audited
6 months 6 months
to to year ended
31 January 31 January 31 July
2022 2021 2021
Note GBP'000 GBP'000 GBP'000
------------------------------------------- ---- ---------- ---------- ----------
Revenue 5 46 42 123
Cost of sales (278) (146) (363)
------------------------------------------- ---- ---------- ---------- ----------
Gross loss (232) (104) (240)
Operating expenses (1,674) (1,688) (3,319)
------------------------------------------- ---- ---------- ---------- ----------
EBITDA (1,723) (1,578) (3,150)
Depreciation of tangible fixed assets (183) (214) (409)
------------------------------------------- ---- ---------- ---------- ----------
Operating loss (1,906) (1,792) (3,559)
Net finance (expense)/income - (2) (6)
------------------------------------------- ---- ---------- ---------- ----------
Loss on ordinary activities before tax 5 (1,906) (1,794) (3,565)
Tax on loss on ordinary activities 3 207 178 391
------------------------------------------- ---- ---------- ---------- ----------
Loss for the period attributable to equity
shareholders (1,699) (1,616) (3,174)
Other comprehensive income - - -
------------------------------------------- ---- ---------- ---------- ----------
Total comprehensive loss (1,699) (1,616) (3,174)
------------------------------------------- ---- ---------- ---------- ----------
Earnings per share (pence per share)
Basic 6 (2.6) (3.3) (5.6)
------------------------------------------- ---- ---------- ---------- ----------
EBITDA comprises loss on ordinary activities before interest,
tax, exceptional costs, depreciation and amortisation.
Consolidated statement of changes in shareholders' equity
for the six months ended 31 January 2022
Share Share Merger Retained Unaudited
capital premium reserve earnings total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------- ------- ------- ------- -------- ---------
As at 31 July 2020 989 27,473 1,231 (24,408) 5,285
Comprehensive loss - - - (1,616) (1,616)
Issue of shares (net) 5 87 - - 92
IFRS 2 share based payments - - - 67 67
---------------------------- ------- ------- ------- -------- ---------
As at 31 January 2021 994 27,560 1,231 (25,957) 3,828
Issue of shares (net) 293 5,167 - - 5,460
Comprehensive loss - - - (1,558) (1,558)
IFRS 2 share based payments - - - (35) (35)
---------------------------- ------- ------- ------- -------- ---------
As at 31 July 2021 1,287 32,727 1,231 (27,550) 7,695
Comprehensive loss - - - (1,699) (1,699)
IFRS 2 share based payments - - - 40 40
---------------------------- ------- ------- ------- -------- ---------
As at 31 January 2022 1,287 32,727 1,231 (29,209) 6,036
---------------------------- ------- ------- ------- -------- ---------
Consolidated balance sheet
as at 31 January 2022
Unaudited Unaudited Audited
31 January 31 January 31 July
2022 2021 2021
Note GBP'000 GBP'000 GBP'000
------------------------------ ---- ---------- ---------- --------
Assets
Non-current assets
Intangible assets 501 369 427
Right-of-use assets 7 148 73
Property, plant and equipment 1,125 1,268 1,202
------------------------------ ---- ---------- ---------- --------
1,633 1,785 1,702
------------------------------ ---- ---------- ---------- --------
Current assets
Inventories 115 77 93
Trade and other receivables 225 236 276
Corporation tax recoverable 619 662 413
Cash 4,214 2,291 6,308
------------------------------ ---- ---------- ---------- --------
5,173 3,266 7,090
------------------------------ ---- ---------- ---------- --------
Liabilities
Current liabilities
Trade and other payables (763) (1,075) (1,023)
Lease liabilities (7) (148) (74)
------------------------------ ---- ---------- ---------- --------
(770) (1,223) (1,097)
------------------------------ ---- ---------- ---------- --------
Net current assets 4,403 2,043 5,993
------------------------------ ---- ---------- ---------- --------
Net assets 6,036 3,828 7,695
------------------------------ ---- ---------- ---------- --------
Shareholders' equity
Called up share capital 8 1,287 994 1,287
Share premium account 32,727 27,560 32,727
Merger reserve 1,231 1,231 1,231
Retained earnings (29,209) (25,957) (27,550)
------------------------------ ---- ---------- ---------- --------
Equity shareholders' funds 6,036 3,828 7,695
------------------------------ ---- ---------- ---------- --------
Consolidated cash flow statement
for the six months ended 31 January 2022
Unaudited Unaudited Audited
6 months 6 months
to to year ended
31 January 31 January 31 July
2022 2021 2021
Note GBP'000 GBP'000 GBP'000
--------------------------------------------- ---- ---------- ---------- ----------
Operating activities
Net cash used in operations 7 (1,914) (1,294) (3,019)
Finance income/(expense) - 9 (6)
Tax received - - 461
--------------------------------------------- ---- ---------- ---------- ----------
Net cash used in operating activities (1,914) (1,285) (2,564)
--------------------------------------------- ---- ---------- ---------- ----------
Investing activities
Purchase of intangible assets (74) (93) (151)
Purchase of property, plant and equipment (40) (13) (67)
--------------------------------------------- ---- ---------- ---------- ----------
Net cash used in investing activities (114) (106) (218)
--------------------------------------------- ---- ---------- ---------- ----------
Financing activities
Issue of shares (net of costs) - 71 5,552
Capital element of lease obligations (66) (74) (147)
Net cash generated from financing activities (66) (3) 5,405
--------------------------------------------- ---- ---------- ---------- ----------
Net decrease in net cash and cash deposits (2,094) (1,394) 2,623
Opening net cash and cash deposits 6,308 3,685 3,685
--------------------------------------------- ---- ---------- ---------- ----------
Net cash and cash deposits at end of period 4,214 2,291 6,308
--------------------------------------------- ---- ---------- ---------- ----------
Net cash and cash deposits include:
--------------------------------------------- ---- ---------- ---------- ----------
Cash (maturity less than 95 days) 4,214 2,291 6,308
--------------------------------------------- ---- ---------- ---------- ----------
Net cash and cash deposits at end of period 4,214 2,291 6,308
--------------------------------------------- ---- ---------- ---------- ----------
Notes to the Interim Report
for the six months ended 31 January 2022
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 6
April 2022.
2 Basis of accounting
The consolidated interim financial information for the period
ended 31 January 2022 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
Accounting Standards in conformity with the requirements of the
Companies Act 2006 and IFRIC interpretations. 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 2021. These
accounting policies are drawn up in accordance with adopted
International Accounting Standards (IAS) and International
Financial Reporting Standards 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
2022. 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 2022 and for the six months ended 31
January 2021 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 2021 have been
extracted from the audited financial statements.
New and amended standards adopted by the Group
No new or amended standards have been adopted by the Group in
respect of the interim period ended 31 January 2022.
3 Taxation
The Group has not recognised any tax assets in respect of
trading losses from previous financial years. Research and
development tax credits for the period up to 31 January 2022 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
2022 (2021: GBPnil).
5 Segmental analysis
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. The Group has one operating segment: the manufacture,
dispersion and development of applications for graphene. 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. As the business evolves this is
an area that will be assessed on a regular basis and additional
segmental reporting will be provided at the appropriate time.
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
2022 2021 2021
'm 'm 'm
----------------------------------------------------- ---------- ---------- ----------
Weighted average number of shares for basic earnings
per share 64.3 49.6 56.4
----------------------------------------------------- ---------- ---------- ----------
The Group was loss making for the periods ended 31 January 2022
and 31 January 2021 and also for the year ended 31 July 2021.
Diluted loss per share has not been presented 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
2022 2021 2021
GBP'000 GBP'000 GBP'000
-------------------------------------------------------- ---------- ---------- ----------
Loss for the period attributable to equity shareholders (1,699) (1,616) (3,174)
Tax on loss (207) (178) (391)
Net finance income - 2 6
Depreciation of property, plant and equipment 183 214 409
-------------------------------------------------------- ---------- ---------- ----------
EBITDA (1,723) (1,578) (3,150)
Depreciation of property, plant and equipment (183) (214) (409)
-------------------------------------------------------- ---------- ---------- ----------
Operating loss (1,906) (1,792) (3,559)
Depreciation of tangible fixed assets 183 214 409
IFRS 2 share based payments charge 40 67 32
(Increase)/decrease in net working capital (231) 217 99
-------------------------------------------------------- ---------- ---------- ----------
Net cash used within operations (1,914) (1,294) (3,019)
-------------------------------------------------------- ---------- ---------- ----------
8 Share capital
Unaudited
---------
number
of
Unaudited
Ordinary total
shares GBP'000
--------------------------------------------------- ---------- ---------
Allotted, called up and fully paid
At 31 July 2020 Ordinary shares of 2 pence each 49,429,380 989
New shares issued 14,909,058 298
--------------------------------------------------- ---------- ---------
At 31 July 2021 Ordinary shares of 2 pence each 64,338,438 1,287
New shares issued - -
--------------------------------------------------- ---------- ---------
At 31 January 2022 Ordinary shares of 2 pence each 64,338,438 1,287
--------------------------------------------------- ---------- ---------
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
2022 2021 2021
GBP'000 GBP'000 GBP'000
--------------------------------------------------- ---------- ---------- ----------
Top Technology Limited (controlled by shareholder)
Non-Executive fees and expenses - 8 10
--------------------------------------------------- ---------- ---------- ----------
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 21 April 2022. 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 A thermally conductive paste applied to mating surfaces
adhesive 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
------------------ --------------------------------------------------------------
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