Versarien Plc (LON:VRS), the advanced engineering materials group, has announced its unaudited interim results for the six months ended 31 March 2023.
Financial Summary
● Group revenues of £2.62 million (2022: £3.89 million)
● Graphene revenues of £0.09 million (2022: £0.97 million)
● Adjusted LBITDA* of £2.01 million (2022: £0.31 million)
● Loss before tax of £3.40 million (2022: £2.16 million)
● Cash of £0.76 million as at 31 March 2023 (30 September 2022: £1.35 million), with placing to raise gross proceeds of £0.53 million post period end
*Adjusted LBITDA (Loss Before Interest, Tax, Depreciation and Amortisation) excludes Exceptional items, Share-based payment charges and other losses)
Turnaround Strategy
As announced on 29 March 2023, the Company has engaged experienced strategy and turnaround specialist, David Stone, and his firm Prompt Business Strategies Limited, to aid the Company in developing its strategic plans which are:
· To maintain and strengthen the Group’s scientific teams supported by grant funding applications
· To use the Group’s internally generated know-how in the areas of construction and textiles to be a manufacturing light operation as Versarien works with its prospective customers
· As commercial traction develops to licence Versarien’s technology, brands and manufacturing know-how
· To divest non-core activities and Asian assets to reduce the requirement for funding from the capital markets
Diane Savory, Non-executive Chair of Versarien, commented:
“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.”
