Graft Polymer is at an early stage of exploiting its polymers and additives technology. Revenues are still small, but there are potential products that could lead to significant growth.

The business should have strong operational gearing. The geographic reach of the business will be expanded through distribution agreements, and these should increase volumes.

The share price ended the week at 22p, after nearly 645,000 shares were traded. The current valuation depends on optimism about the medium-term growth in revenues. The cash raised will enable investment to build capacity ahead of in...