Graphene manufacturer Versarien has seen its losses increase after an “extremely challenging” period.
The Gloucestershire engineering firm, which makes products using the nanomaterial for the automotive, clothing, biomedical and aerospace sectors, reported a pre-tax loss of £3.4m for the six months to March - up from a £2.1m loss for the same period last year. The AIM-listed firm, which has previously secured partnerships with fashion label Superdry and kit suppliers of the England rugby team Umbro, saw group revenue dip from £3.9m to £2.6m, with graphene revenue in particular sliding from around £1m to around £90,000.
It comes after bosses warned investors in February the business would need “continuing support”, after tough economic conditions “delayed the commercialisation we were anticipating” for its products. Soon after the company posted a marginally widened loss of £8.4m for the 18 months to the end of September 2022, co-founder Neill Ricketts resigned as chief executive.
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In an update on Friday, June 9, the board said it had been working on a turnaround strategy, including maintaining its scientific team through grant funding applications, streamlining its focus on the construction and textile sectors and to sell other parts of the business, including its assets in Asia.
Non-executive chair Diane Savory said, based on certain asset sale assumptions, projections suggested Versarein would have “sufficient resources for a further period of 24 months”, though “nothing is certain in this respect”. Ms Savory said: "The period under review was extremely challenging from a financial perspective, both from a balance sheet point of view and with the decline in Graphene revenues reflecting the ending of the DSTL development contract.
“However, following the annual general meeting we have, with the assistance of David Stone and his team, been developing a strategy that focuses on maintaining appropriate IP to support our core end-sectors of construction and textiles whilst reducing cash-outflows to a level that can be supported by proposed asset sales, marketing of which is in process. We believe this strategy will ensure a brighter future for Versarien."
In May the company raised around £320,000 through a stock market share placing following Mr Ricketts resignation, and £530,000 through a further placing in May. Versarein employs between 100 and 120 people across its global operations, including 10 at its recently expanded factory in the Forest of Dean, while it also has a Spanish subsidiary and lab space in South Korea.
The company said as part of its turnaround strategy it would look to reduce manufacturing and infrastructure costs at its Longhope facility, whilst maintaining current staffing levels.
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