HIGH-VALUE satellite work could propel a company behind an acclaimed material to new levels, bosses have revealed.

Applied Graphene Materials (AGM) is working with Airbus Defence and Space on a potential supply agreement.

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

Officials say its Airbus talks, which look at using graphene in satellites, could translate to product development and adoption as early as next year, as well as further aerospace work.

They added the Airbus’ advances are proof of it having “done the hard yards”, as further development work across other sectors translates into orders.

Last week, the business revealed it had obtained its first production order and commercial application deal with Century Composites, which will see the fishing operator use AGM’s graphene in its Graphex range.

However, the firm is also supporting Sherwin-Williams Protective and Marine Coatings and corrosion management operation TWI Limited, and previously announced a deal with paint supplier, James Briggs Limited, which is expected to see the operator use graphene in anti-corrosion primers.

Bosses say the business, a spin-out of Durham University, has made “substantial progress” over the last 12 months, saying they expect further agreements to be announced in the coming months.

Jon Mabbitt, chief executive, told The Northern Echo: “We have done a lot of the hard yards and put in the foundations for a sustainable and successful business going forward.

“It validates the choices we have made about the intellectual property around taking the raw material and formatting it.

“We are focusing on high-value applications and trying to get the model around that.”

Mr Mabbitt was speaking yesterday (Monday, October 17), as AGM revealed its full-year results for the period to July 31.

The accounts showed the business, which employs about 40 people, saw total revenues rise from £100,000 to £300,000, while there was £7.7m cash at the bank.

However, the report also revealed a higher loss before tax, of £4.5m, though Oliver Lightowlers, chief financial officer, said the deficit was an anticipated consequence of the business’ continued expansion.

He said: “We expected to make a loss.

“We are in the phase of commercially building the business.

“What we can expect is to grow revenues and that will help to offset the cost base.”

Earlier this year, Mr Mabbitt told The Northern Echo an £8.5m shares offer would help AGM create new jobs and bolster work on its material.

The business previously raised £11m from an Alternative Investment Market flotation, but its expansion has been helped by a further £8.5m shares offer, with around £1m spent to help product development.

He added: “We will need people for business development and sales and technical people; it will be across the board.”