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Applied Graphene Materials expects contracts soon as testing continues

Adrian Potts, chief executive, said while commercial progress has been slower than it would have liked it was making progress
Hycote is launching a graphene-enhanced primer

Applied Graphene Materials PLC (LON:AGM) expects sales momentum to build in the current six months as new products reach the commercial stage.

A new paint primer using graphene is set to be launched shortly by chemicals group James Briggs Limited, a new coating system is on trial with Applied Nano Systems while accreditation with Airbus for a thermal glue is nearing completion.

WATCH: Applied Graphene predicts more sales ahead of new product launches

Adrian Potts, chief executive, said while commercial progress has been slower than it would have liked it was making progress in the coatings technology space.

New products 

For example, the deal with JBL’s Hycote division is running a little behind schedule due to a colour suite upgrade, but the product should be launched over the next six months.

Near-term revenues have been affected a result, but Applied Graphene is confident about its longer-term potential saying initial feedback from the market has been very positive.

Another paint manufacturer, HMG is testing an anti-corrosion product using graphene for commercial vehicles, with a technical evaluation underway for a primer for this market.

Elsewhere in rust prevention, ten aerospace groups are looking at the use of graphene to improve the performance of aluminium substrates used on aircraft.

The work with Swedish group ANS, meanwhile, has led to one of the first direct-to-metal water-based graphene-fortified coating systems with scale-up trials underway.

Applied Graphene also expects to get its thermal paste adhesive, Genable 4400, approved with Airbus Space and Defence for use on satellites.

First orders here might be in the second half of this year or early next year dependent on when approval from Airbus comes through.

Early stages

Interim results reflected that the graphene and nanotechnology coatings specialist is still in the early stages of its development.

Revenues were minimal over the past six months to January while losses rose to  £2.37mln (£2.29mln) with cash at bank of  £8.26mln.

“We will be presenting at the NGA's Graphene Summit in May 2019 in Washington DC, and will have the opportunity to input to policy and environmental standards development for this new technology,” said Potts.

“We have also joined The Graphene Council and anticipate the opportunity to present webinars such as graphene solutions for anti-corrosion coatings to an ever-widening audience “.

Shares were unchanged at 32.5p, valuing the group at £16mln.

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