Applied Graphene Materials PLC (LON:AGM) has announced plans to streamline its manufacturing segment to focus on the distribution and applications of its products.

The restructuring will cost £200,000, but will reduce cash operating costs by £900,000 and £1.1mln for the years ending 31 July 2020 and 2021, respectively. 

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AGM’s income for the year to 31 July was £120,000 with an underlying loss of £4.6mln.

Net cash as of 31 July was £6.1mln, while the AIM-listed firm said it received £600,000 in tax incentives in August.

Full year results will be released next week.

“The board strongly believes that AGM is well placed in graphene and target market sectors and is confident that, with the reduced cost base and existing cash resources, the company will have sufficient time to significantly grow revenues in the emerging graphene market,” said chief executive Adrian Potts.

Shares dipped 3.16% to 18.4p on Tuesday afternoon.