A WONDER substance firm is closer to its first profit as lucrative contracts provide a platform to strengthen global expansion plans, bosses have told The Northern Echo.

Applied Graphene Materials (AGM) says it is making strong progress towards its goal of spearheading international markets.

Officials last night said “there is a hell of a lot going on” to sustain its ambitions, with a stellar satellite deal alongside Airbus Defence and Space complemented by talks with fishing rod makers around the world following the extension of work alongside Wearside manufacturer Century Composites.

The company, based at the Wilton Centre, near Redcar, produces graphene, which is acclaimed by experts for being ultra-lightweight yet overtly tough and capable of conducting electricity, despite being as thin as a human hair.

Formed as a spin-out of Durham University, the firm, which raised £11m from an AIM market flotation, has recorded losses as it builds its market presence, increases production capacity and carries out sampling work with potential customers.

However, Jon Mabbitt, chief executive, said the business, which also has a deal with SHD Composites that could see its graphene used in motorsport parts and is supporting paint supplier James Briggs on anti-corrosion coatings, was ready to take the next step in its evolution.

Although reluctant to reveal a date for realising its financial target, Mr Mabbitt said he was determined the business would continue its growth in a sensible and controlled manner.

He also said the firm’s contract highlights, such as its Airbus agreement, which is expected to see AGM’S graphene used in mobile phone and broadcasting satellites, were the tip of the iceberg, with swathes of work bound by strict confidentiality clauses.

He told the Echo: “A lot of it is dictated by customer adoption but (getting to break even) is in the foreseeable future. We are into the hard yards (and the work we are doing) should manifest itself over the next couple of years.

“We will take a progressive approach to how we expand the business without being overly risk taking, but we don’t want to be behind the curve.

“Century have been very pleased with the performance and uptake and have started expanding the use of graphene into other products in their range.

“It’s a bit of cliché, but it is a win-win situation for both of us.

“But Century is just one user and we are working with other fishing rod makers around the globe.

“We are expanding our reach through our network and have repeat orders with SHD and a name like Airbus always sounds good.

“These are areas where we are starting to get revenues from; we aren’t going to do it all in one fell swoop but they are steps along the way.

“There is also a hell of a lot that is going on that we cannot talk about.

“These companies are looking to get a step on their competitors, so the last thing they want to do is tell the world.”

According to its latest results, released yesterday, AGM’s finances held steady in the six months to January 31, as its offering began translating into long-term agreements.

Losses before tax were down from £2.3m to £2.1m, with earnings before interest, tax, depreciation and amortisation showing a loss of £2m compared to £2.1m this time last year.

Mr Mabbitt added: “We continue to focus on market sectors where we believe our products can add most value and where we see largescale and long-term commercial opportunity.

“Excellent progress has been made on scaling up facilities to increase manufacturing capacity to meet demand from early adopters and work is underway to further increase capacity over the coming months.

“Our intent remains to become a global graphene market leader."