Graphene manufacturer Versarien is considering selling off parts of the business with bosses' pay stopped “indefinitely”, as it looks to make “significant cost reductions”.
The Gloucestershire-based firm, which makes products from the nanomaterial for a range of industries, announced ahead of its AGM on Wednesday that reductions to its workforce had been made.
The AIM-listed business had employed between 100 and 120 people across its global operations, including 10 at its recently expanded factory in the Forest of Dean.
In an update to investors, the board said in order to further reduce cash expenses, non-executive directors had agreed “to waive any remuneration from the company indefinitely”, while executive directors' pay was also being reviewed.
Chair Diane Savory added that Versarien, which has previously secured partnerships with fashion label Superdry and kit suppliers of the England rugby team Umbro, was looking at generating proceeds from disposals in order to fund its activities, with its overseas operations in Spain and South Korea also under review.
She explained the other options being looked into include "potentially available grant income, possible interest from strategic investors and the potential issue of additional equity”.
Ms Savory said: "As previously noted, the graphene market-place has proved challenging for all participants, but with a streamlined business and a strong focus we believe Versarien has the potential to deliver significant returns from the commercialisation of its technology.”
It comes after chief executive and co-founder Neill Ricketts resigned earlier this month, weeks after he warned the business needed “continuing support” from investors through tough economic conditions.
Last month Versarien posted a marginally widened loss of £8.4m in its latest set of financial results, with Mr Ricketts saying at the time current macroeconomic conditions combined with the disruptive nature of its products had “delayed the commercialisation we were anticipating”.
Following Mr Ricketts’ resignation, Versarien raised £318,000 through a stock market share placing, with the proceeds to go towards developing its tech for construction and textile applications, as well as for general operational and working capital purposes.
Day-to-day activities at the company are now being led by executive directors, Chris Leigh and Steve Hodge, with the board updating that it was “actively evaluating an appropriate longer-term strategy” and recruitment of a new CEO.
Mr Ricketts is currently on gardening leave and remains a significant shareholder and director. Versarien has confirmed he is entitled to attend and vote at board meetings for the duration of his 12-month notice period.
In the firm’s latest statement, Ms Savory - a former chief operating officer at Superdry - said the board had brought in strategy and turnaround specialist David Stone and his firm Prompt Business Strategies on a consultancy basis.
Ms Savory said: “I believe that with the continued hard work and dedication of the Versarien team, coupled with the continued support of our partners and investors, we can overcome the challenges we face and successfully commercialise the company's significant technology base. The company looks forward to providing further updates in due course."
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