Bosses at Versarien have said the beleaguered graphene manufacturer has cut costs “significantly” as it continues its turnaround strategy.
The Gloucestershire engineering firm, which makes products using the nanomaterial for the automotive, clothing, biomedical and aerospace sectors, reported a widened £3.4m pre-tax loss in its half-year results last month.
Earlier this year the AIM-listed firm, which has previously secured partnerships with fashion label Superdry and kit suppliers of the England rugby team Umbro, said the tough economic conditions had delayed the commercialisation of 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.
Ahead of a general meeting with its shareholders on Tuesday (July 4) to discuss the future of the business, Versarien’s board said it was continuing with efforts to sell off some of the firm’s assets, including equipment and intellectual property it acquired from South Korean firm Hanwha Aerospace in 2020.
Directors said there were “a number of interested parties, particularly in the intellectual property”, though the timing of any sale and the amount of funding it would generate was “uncertain”.
The board said: “The company's cost base has been reduced significantly in recent months with unaudited LBITDAE (loss before interest, tax, depreciation, amortisation and exceptional items) at a much lower level than in the first six months of the financial year.”
They added that the company was continuing to streamline its focus on the construction and textile sectors. The company’s graphene-enhanced concrete has been selected for a number of global trials, while it continues to supply Umbro and other sports equipment clients.
Non-executive chair Diane Savory said last month, based on certain asset sale assumptions, projections suggested Versarien would have “sufficient resources for a further period of 24 months”, though “nothing is certain in this respect”.
The business, which had employed between 100 and 120 people across its global operations, including 10 at its recently expanded factory in the Forest of Dean, said in February its workforce had been reduced. It added that non-executive directors had also agreed “to waive any remuneration from the company indefinitely”, while executive directors' pay was also being reviewed.
Strategy and turnaround specialist David Stone and his firm Prompt Business Strategies have been appointed by the company on a consultancy basis.
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