WILTON-BASED and Durham University-born Applied Graphene Materials recently released a pre-close update on trading indicating the progress the company, which listed in November 2013, is making.

Clearly impressed, the market felt the announcement warranted a five per cent mark-up in the company’s share price.

Once your shares are open to mass consumption it is crucial expectations are met, especially so when the listing is nascent and the company relatively small (in stock market terms, not in potential or scale of appeal).

The risk of falling short of expectations is often inversely proportional to the length of time they have been trading for.

This is for myriad reasons, not least that the market, under-informed due to an understandable lack of research, can apply an unrealistically high premium to the company’s likely growth and price it far too optimistically.

Applied Graphene floated at 155p per share and those who were in at the start could sell at the time of writing for north of 400p.

Not that they would necessarily want to, of course.

To hit expectations given the growth that had been priced in is noteworthy.

When you dig down into the detail of the statement, too, it becomes clear that the company is moving ahead determinedly but prudently, initially supplying smaller amounts of its product before moving to full production volumes.

Cash is being spent diligently.

Of course, we are talking about an absolutely earth-shattering, ground-breaking, pioneering, the-world-will-never-be-the-same-again sort of material here.

How great that the region is home to the UK’s leading manufacturer, too.

Importantly for us investment managers, it is refreshing that the list of North-Eastern stock market accomplishments is growing.

In actual fact, we do lag the wider UK in terms of deal activity, notably so in terms of the number of IPOs or floatations.

No North-East company has come to the market this year, which seems odd given that stock markets are buoyant and applying high valuations at present.

The successful debut experienced by companies such as Applied Graphene and Kromek, who followed hot on the heels of stellar performer Utilitywise, must also be reassuring to those considering it.

Established names such as Go Ahead and Bellway show that stock market longevity is achievable.

A dearth of listings certainly isn’t any indictment of the health of our local business and enterprise, however.

Far from it.

The region’s eminence in graphene is new born but for years there has been a Tees-Tyne axis at the forefront of subsea technology.

The announcement that work will start on the new Neptune National Centre for Subsea and Offshore Engineering excellence on Tyneside, and Five Quarter’s plans for energy extraction under the North Sea both represent very good news.

The collision and collusion of industry and academia at both should build upon the region’s position in this sector, in much the same way that Teesside is striving to develop as a hotbed of engineering.

In the meantime, the hope is that the likes of Applied Graphene can enjoy sustained growth, and I’m sure it is more than just their shareholders who would be glad to see it.

Nick Williams is an assistant director at Brewin Dolphin and offers advice on a wide range of financial services. Past performance is not an indication of future performance. The value of any investment and any income can fall and you may get back less than you invested. No investment is suitable for all people and should you have any doubts you should consult an authorised financial adviser. The information contained in this article has been taken from public sources and is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.