Applied Graphene Materials' loss widens as revenue falters

Applied Graphene Materials on Wednesday reported a widened interim loss after revenue remained negligible and increasing costs took their toll, though sales momentum is expected to build.

The specialty graphene materials producer reported a loss before tax of £2.4m for the six months ended 31 January, a 4% increase in loss compared to the same period the year before, as revenue dropped by 52% to £26,000.

Meanwhile, cost of sales increased to £0.2m from £0.1 as a result of increased rent, labour and materials used in preparing the company's manufacturing plant for commercial production.

However, the AIM traded company said it expects sales momentum to build over the second half of the year as it releases additional products such as a new paint primer which will be launched by chemicals group James Briggs Limited, while a new coating system is being trialled with Applied Nano Systems and accreditation for thermal glue is nearing completion with Airbus.

Adrian Potts, chief executive of Applied Graphene, said: "We continue to make positive progress with providing robust technology solutions for our key focus market of coatings technology. Whilst the pace of such progress is not always as rapid as we would like, this is reflective of the intensity, breadth and depth of engagement with multiple customers and the length of time it often takes to formulate a solution and then test it. This can often last six months or more in the case of an iterative effort."

Applied Graphene had cash at bank of £8.2m at the end of the period, down from £12.0m at the same point the year before

"I am pleased with the progress achieved over the last six months, albeit that the timing of certain revenues is behind our previous expectations and look forward to the future with confidence as we focus on increasing the momentum in the business," said Potts.

Applied Graphene Materials' shares were up 0.86% at 32.78p at 1336 BST.