Versarien plc (AIM: VRS) , the advanced engineering materials group, has given DirectorsTalk its interim results for the six months ended 30 September 2016.
· Significant advances made in the graphene division with pivotal collaborations formed to develop and commercialise graphene enhanced products in targeted markets including:
o sports equipment in collaboration with Bromley Technologies
o 3D printing industry in collaboration with Absolute Engineering
o aerospace industry in collaboration with CT Engineering
o a further nine collaborations with other partners
o conclusion of collaboration with the National Graphene Institute demonstrating a 52% increase in transverse sheer strength of carbon fibre composites
o patented graphene process moved from research base in Manchester to scale up production facility in Cheltenham
· Hard Wear business relocated to new facilities in Oxfordshire on favourable terms; early signs of uplift in core oil and gas market now being seen
· Continuing OEM pipeline of enquires on copper foam together with distributor restocking; move away from development to production with associated 47% reduction in operational expenses.
· First significant commercial order received for the supply of graphene nano-platelets (GNPs)
· Acquisition of AAC Cyroma Limited in October 2016 enabling the production of graphene enhanced plastics
· Approved supplier of graphene to a major UK biomedical project exploring 2 dimensional materials assisting in the treatment of cancer, diabetes and dementia
· Group revenues of £1.64 million (2015: £2.36 million); largely as a result of reduced component supplies to the oil and gas sector
· Cash of £1.51 million (2015: £2.57 million)
· Fully subscribed placing in July 2016 of £1.04 million net of expenses
· Focus on tight cost control resulting in 15% operational expense reduction
· Net assets of £5.14 million (2015: £6.57 million)
· LBITDA* of £0.80 million (2015: £0.53 million)
· Loss before tax of £1.47 million (2015: £0.84 million)
· Exceptional costs of £0.47 million from factory relocation and acquisition
*LBITDA excludes exceptional items and share-based payment charges
Neill Ricketts, CEO of Versarien plc LON:VRS, commented: “The Group has made significant advances in the commercialisation of graphene with the first supply order now received and also in the product applications in which graphene can be used. The recent acquisition of AAC Cyroma, a well-established profitable business, provides a transformational opportunity to incorporate graphene into injection and vacuum moulded plastic products whilst being a cash generative business in its own right.
“With so much progress made following the positive test results from the University of Manchester and National Graphene Institute we can clearly demonstrate an exceptional performance improvement from incorporating graphene into carbon fibre composites. Consequently, the Group is focusing on accelerating development and commercialisation of its graphene enhanced products through partnerships and its own manufacturing capability.”
