TIDMVRS
RNS Number : 5811U
Versarien PLC
06 December 2021
06 December 2021
Versarien Plc
("Versarien", the "Company" or the "Group")
Interim Results for the six months ended 30 September 2021
Versarien Plc (AIM: VRS), the advanced engineering materials
group, is pleased to announce its unaudited interim results for the
six months ended 30 September 2021.
Financial Highlights
-- Group revenues from continuing operations up 41% to GBP3.82
million (H1 2020: GBP2.71 million)*
-- Graphene revenues up 1 66% to GBP0.93 million (H1 2020: GBP0.35 million)
-- Adjusted LBITDA** for continuing operations reduced by 39% to
GBP0.71 million (H1 2020: GBP1.16 million)
-- Reported loss before tax of GBP3.11 million (H1 2020: GBP4.34 million)
-- Reported loss before tax from continuing operations of
GBP2.96 million (H1 2020: GBP4.31 million)
-- Cash of GBP3.46 million at 30 September 2021 (31 March 2021: GBP2.36 million)
*Excludes discontinued revenues of GBP0.45 million (H1 2020:
GBP0.41 million)
**A djusted LBITDA (Loss Before Interest, Tax, Depreciation and
Amortisation) excludes exceptional items, share-based payment
charges and other losses)
Operational Highlights
-- GBP1.93 million strategic investment in Versarien by
GrapheneLab Co. Ltd., South Korea, together with royalty and
trademark agreements
-- Acquisition of Spanish graphene manufacturing assets to
provide up to an additional 100 tonne powder capacity per annum
-- Orders placed for the purchase of equipment to scale up ink
production capacity by an additional 12,000 litres per annum
-- Lease signed on new dedicated graphene production facility in Longhope, Gloucestershire
-- Textile supply agreement signed with Crosslete and
discussions ongoing with multiple garment suppliers
Post Period Highlights
-- Grant agreement signed to support the development of
Pseudo-Capacitor technology aimed at zero emissions for port-side
infrastructure
-- Commercial agreement signed with Superdry to produce graphene enhanced garments
-- Royalty agreement signed with Gerdau S.A for the distribution
of graphene masks primarily in Latin America
Neill Ricketts, CEO of Versarien, commented:
"The first half of this financial year has seen continued
progress in our pursuit of commercialisation whilst increasing both
production capacity and our global footprint. GSCALE remains on
track with particularly pleasing results in textiles and concrete.
We remain conscious of our environmental obligations which also
brings commercial opportunities as we seek to solve some of the
global issues and challenges using graphene and allied two
dimensional materials"
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014
WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL)
ACT 2018, AS AMED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO
BE IN THE PUBLIC DOMAIN
For further information please contact:
Versarien Plc
Neill Ricketts - Chief Executive Officer +44 (0) 1594 887204
Chris Leigh - Chief Financial Officer
SP Angel Corporate Finance (Nominated Adviser
and Joint Broker)
Matthew Johnson
Ewan Leggat
Adam Cowl +44 (0) 20 3470 0470
Berenberg (Joint Broker)
Mark Whitmore
Ciaran Walsh +44 (0) 20 3207 7800
Yellow Jersey (Investor Relations) Versarien@yellowjersey.pr.com
Charles Goodwin
Henry Wilkinson +44 (0) 20 3004 9512
Notes to Editors:
The strategy of Versarien Plc (AIM:VRS) is to be a globally
recognised graphene company with a wide portfolio of high-quality
verified materials allied to the largest relevant IP portfolio
supported by its own UK based research and development centre
driving recurring revenue growth through its innovative graphene
product applications.
For further information please see: http://www.versarien.com
Chairman's Statement
I referred in the annual report to the challenges that Covid-19
had presented, and to the progress that had been made in spite of
the restrictions placed upon us. It is therefore extremely pleasing
to be able to report continuing progress at the interim stage.
In particular, advancements in both textiles and concrete have
been made and the latter brings the opportunity for significant
environmental benefits. We are able to deliver on these projects
with the continued support of the UK government through the IUK
loan and the strategic investment from GrapheneLab Co Ltd., our
partner in South Korea.
Continuing progress means we have to scale up production as
demonstrated by the move to dedicated manufacturing facilities in
Longhope, Gloucestershire. At this new facility we are
commissioning the recently acquired equipment sourced from Spain.
This is a significant step on our journey to future revenue
generation.
Our global footprint and product portfolio are both important
strands of our strategy to become a global player in the graphene
space. We have now commissioned all the equipment acquired from
Hanwha and have been able to produce high quality CVD single layer
graphene suitable for use in the electronics industry.
As announced in October 2021, I will be standing down at the end
of this calendar year and Diane Savory will be taking up the post.
As we develop our projects, her expertise in managing a public
company, chairing the Gloucestershire LEP and experience in
textiles will be invaluable. I wish her well in what will be an
exciting stage of Versarien's development.
James Stewart CBE
Non-executive Chairman
06 December 2021
Chief Executive Officer's Review
As described in the Annual Report, following the focus on
graphene and the discontinuance of the aluminium business,
segmental analysis is now split between technology and mature
operations. The GSCALE project is described in each of the
paragraphs below, but in the immediate future management we will be
concentrating on the construction and leisure sectors whilst still
progressing the described activities.
UK Technology Operations
The technology operations are now located in six countries being
England, Ireland, Spain, South Korea, China and America. UK
production (G) is now concentrated at our new 18,000 square foot
dedicated graphene facility in Longhope, Gloucestershire housing
production equipment previously located at Cheltenham as well as
the newly arrived plant and equipment from Spain, which is in the
process of commissioning. We are also bringing forward plans for
the occupation of a 10,000 square foot innovation centre currently
under construction which will include graphene enhanced concrete
with polypropylene fibres in the design eliminating the need for
steel rebar and providing a strong demonstrator for the
technology.
Carbon fibre developments in transport (S ) addresses a UK
market worth GBP4 billion in which graphene enhanced composites can
reduce weight and improve strength. Versarien has been working
extensively in the area of graphene enhanced carbon fibre
reinforced polymers( CFRP) for various applications, many of which
can be applied to the automotive sector. Versarien was awarded a
Technology Developer Accelerator Program (TDAP) grant from the
Advanced Propulsion Centre (APC) in 2020 to develop an innovative
low-carbon component which will result in reduced vehicle
emissions. The TDAP project has overseen the development of a low
weight, high strength automotive component which can be directly
applied to multiple areas of any vehicle. In partnership with Lotus
Cars, the University of Sheffield's Advanced Manufacturing and
Research Centre (AMRC) and other supply chain partners one outcome
from the project is a graphene enhanced CFRP bonnet assembly for
the Lotus Evija electric sports car. Graphene enhanced CFRP in the
Lotus Evija Bonnet has achieved three key objectives:
1. Mechanical - improved mechanical performance by at least 10%
compared to the base prepreg material (fibrous material
pre-impregnated with a particular synthetic resin)
2. Visual - Surface quality to meet Lotus' paint
specification
3. Price - Achieved a 10% -25% cost reduction
All three objectives were achieved using a hot press production
process with lower capital costs and faster manufacturing. Further
development will continue as Versarien and Lotus further optimise
the process for use in any body panel. Several other projects are
ongoing that contribute to further development of enhanced CFRPs
for conventional structural supports, which could provide an
innovative alternative for automotive, aerospace and rail
manufacturers.
The mission for construction (C) is to reduce CO(2) emissions.
24.7 million tons of ready mixed concrete is used in the UK
annually and there are 250,000 miles of roads. Significant
reductions in CO(2) can be achieved by reducing the amount of
cement used in ready mix whilst still maintaining strength,
reducing curing and drying times and reducing or eliminating the
need for steel. Introducing graphene reinforced concrete, graphene
enhanced polymer fibres and recycled materials has a major impact
on reducing CO(2) levels.
Opportunities exist in extending asset life by eliminating
cracking, using graphene enhanced polypropylene chopped fibres to
replace ferrous rebar, development of self healing concrete, faster
curing without cracking, non-destructive microwave rapid repair and
3-dimensional printing.
Studies have shown improved compression strength of 38%,
improved flexural strength of between 14% and 45%, increased
tensile strength of 15%, improved water permeability of 200%, and
increased corrosion resistance.
We are working on national highways projects as well as with HS2
for printed concrete and with non-government bodies on flood
defences and rail for light quick deployment of flexible design
buildings as well as having trademarked Cementene (TM) for
concrete.
Other project areas include wind turbine bases, building house
rafts, water industry, flooring screed, very light rail structures,
slipform roads/runways.
The mission for Polymers (A), is to reduce the amount of fossil
fuel based plastics required where 3.3 million tonnes of plastic is
processed in the UK alone and in particular, to increase the
recyclability of packaging plastics where incorporating graphene in
plastic and bio based plastic has a material effect.
Plastic packaging accounts for 44% of plastic used in the UK but
67% of plastic waste with over 2 million tonnes of plastic
packaging used in the UK each year. This is mostly new rather than
recycled plastic and Versarien is looking at the effect of adding
graphene as a reinforcing filler into HDPE blow moulded bottles to
improve the performance of recycled plastics. Pilot trials have
shown a 20% weight reduction at a 1.5% - 2% loading.
We continue to work with one of the world's largest packaging
companies to evaluate graphene-based coatings as well as on other
projects including optical wear, airway medical suction units and
other forms of packaging.
The mission for Leisure (L) is similar to polymers, in reducing
the use of fossil fuel based materials, but also to improve
performance, garment lifetime, recyclability and functionality. In
a UK market worth an estimated GBP5.8 billion the use of graphene
inks and graphene enhanced material fibres can make a substantial
difference.
As disclosed in the recently announced agreement with Superdry
we have developed a number of sample garments which is testament to
the benefits of utilising Versarien's graphene technology. We
continue to work with many organisations on sportswear, civilian
and military clothing as well as in specialist applications such as
athletic performance, fire and police.
The mission for Elastomers (E) is to improve performance, extend
lifetime, recyclability and functionality in the areas of tyres and
rubbers (including footwear). The global footwear market is
expected to reach $440 billion by 2026 and we are focussed on
graphene reinforced biomaterials and conventional elastomers. Our
work on electric vehicle tyres has proved 5% reduction in rolling
resistance which will help for greater range in electric vehicles.
Abrasion is also significantly improved with a new graphene
variant.
In footwear we have been able to demonstrate significant
increases in tensile strength (50%), modulus (30%), elongation
(20%) and tear strength (23%) when compared to reference
non-graphene compounds. We are working with Enso, Vivo Barefoot and
Flux on these applications.
The GBP1.95 million development agreement with DSTL announced in
November 2020 has progressed well and we are on track to complete
it in accordance with the agreed milestones.
International Technology Operations
Our international operations are also making progress. In the
USA we have signed 22 confidentiality agreements, are working on 14
active projects and have 5 collaborations in place. Sectors include
coatings and anticorrosion, packaging/bottling, fabrics, polymers,
elastomers, thermal transfer fluids and insulation materials.
In South Korea, we have successfully relocated and commissioned
the plant and equipment acquired in the transaction with Hanwha
last December, clean room facilities are operational and we have
been able to produce high quality CVD graphene samples. The next
steps will be to begin commercialising the 100 plus patents
acquired by collaborating with institutions and South Korean
companies as well as working with our partners at GrapheneLab Co
Ltd. on government projects. Whilst this is early stage, we are
excited by the many opportunities in the South Korean market
including our collaboration on biocides with SD Lab Korea.
Gnanomat in Spain is working with other Group operations on a
number of projects in energy storage, biocide materials, screening,
sensors, coatings and conductive inks. It has launched a number of
products where graphene is combined with metal nano-particles and
metal oxides whilst upgrading its manufacturing capability
supported by the INN-PRESSME EU funding.
We continue to evaluate the opportunities in China whilst
ensuring that we protect our IP and operate in accordance with UK
Government guidelines. The macro-political environment has meant
that we are now focussing on South Korea as our route to the Asian
market.
Mature Businesses
Both AAC Cyroma Limited (plastic products) and Total Carbide
Limited (hard wear parts) remained operational throughout the
Covid-19 pandemic. Last year was challenging but I am pleased to
report that sales have increased by 23% over the comparative period
and that they have returned to profitability.
We have exited the aluminium business which is shown as
discontinued in the financial statements. We continue to examine
ways in which both mature businesses can support the technology
business in the future and form synergies to improve
efficiency.
Current trading and outlook
As of writing, the outlook for the pandemic is far from certain
as is the economy, and we remain vigilant around costs. However,
the opportunities for graphene both in the UK and abroad in
textiles and concrete are areas of particular near-term focus
whilst still progressing the other areas of our GSCALE project.
Neill Ricketts
Chief Executive Officer
06 December 2021
Chief Financial Officer's review
Group Results
As stated in the annual report, the aluminium business based at
Cheltenham has now ceased and consequently these results are split
between continuing and discontinued operations and the segmental
analysis between the technology and mature businesses.
In total, Versarien's revenue for the six months ended 30
September 2021 was GBP4.28 million (H1 2020: GBP3.12 million), up
GBP1.16 million, an increase of 37%. The revenue from the
continuing businesses increased by 41% to GBP3.82 million up from
GBP2.71 million. Revenue from graphene, including that recognised
under the DSTL project, was up 166% to GBP0.93 million from GBP0.35
million in the comparative period.
The total loss from operations was GBP3.00 million (H1 2020:
GBP4.28 million). This was after charging GBP0.83 million in
respect of the six-monthly valuation of the Lanstead Sharing
Agreements (H1 2020: GBP1.82 million).
The adjusted LBITDA for continuing operations was GBP0.71
million compared to GBP1.16 million, a reduction of 39% calculated
as follows:
Six months ended Six months ended
30 September 2021 30 September 2020
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Continuing Discontinued TOTAL Continuing Discontinued TOTAL
operations operations operations operations
---------------------- ------------ ------------- -------- ------------ ------------- --------
Loss from operations (2,862) (144) (3,006) (4,254) (21) (4,275)
Depreciation and
Amortisation 683 41 724 504 48 552
Share based payments 595 - 595 597 - 597
Exceptional items 41 67 108 178 - 178
Other losses 830 - 830 1,817 - 1,817
---------------------- ------------ ------------- -------- ------------ ------------- --------
Adjusted LBITDA (713) (36) (749) (1,158) 27 (1,131)
---------------------- ------------ ------------- -------- ------------ ------------- --------
Exceptional costs were incurred in the period of GBP0.11 million
(H1 2020: GBP0.18 million), which mostly relate to the costs
associated with the move to the new premises in Longhope. The
reported loss before tax for the period was GBP3.11 million (H1
2020: GBP4.34 million). Group net assets at 30 September 2021 were
GBP15.9 million (31 March 2021: GBP16.5 million) with cash at the
period end of GBP3.5 million (31 March 2021: GBP2.4 million).
Net cash used in operating activities was GBP1.19 million (H1
2020: GBP0.75 million), investment in development costs and
equipment was GBP1.87 million (H1 2020: GBP0.17 million) and
principal lease payments were GBP0.39 million (H1 2020: GBP0.48
million) giving total cash outflows of GBP3.45 million (H1 2020:
GBP1.40 million). These activities were financed by net funds
received from the Lanstead sharing agreements of GBP1.80 million
(H1 2020: GBP0.93 million), net loans received of GBP1.11 million
(H1 2020: GBP1.96 million and net funds received from the share
issue to GrapheneLab Co Ltd. of GBP1.90 million (H1 2020: GBPNil)
totalling GBP4.81 million (H1 2020: GBP2.89 million). The surplus
of GBP1.36 million (H1 2020: GBP1.49 million) resulted in reduced
drawings on the invoice finance facilities of GBP0.26 million (H1
2020: GBP0.64 million) thus increasing cash at the period-end by
GBP1.10 million (H1 2020: GBP0.85 million). As we progress our
GSCALE project we continue to draw on the GBP5 million IUK loan
facility, repayment of which is due to commence in 2024.
The mature business segment is seeing increased revenues albeit
not yet to pre-covid levels and an overall return to profitability.
We continue to maintain strict control over costs.
In summary, it is pleasing to report that the Group's financial
results are showing revenue recovery, significantly reduced losses
and an improvement in cash resources as we continue to focus on
expanding our production facilities with our continued focus on
GSCALE.
Chris Leigh
Chief Financial Officer
06 December 2021
Consolidated Interim Financial Statements
Group statement of comprehensive income
For the half year ended 30 September 2021
30 September 30 September
2021 2020
Unaudited Unaudited
GBP'000 GBP'000
Notes
Continuing operations
Revenue 3 3,824 2,709
Cost of sales (2,744) (2,310)
------------------------------------------- ------ ------------- -------------
Gross profit 1,080 399
Other operating income 88 72
Other losses (830) (1,817)
Operating expenses (including exceptional
items) (3,200) (2,908)
------------------------------------------- ------ ------------- -------------
Loss from operations before exceptional
items (2,818) (4,076)
Exceptional items 4 (44) (178)
------------------------------------------- ------ ------------- -------------
Loss from operations (2,862) (4,254)
Finance charge (96) (58)
------------------------------------------- ------ ------------- -------------
Loss before income tax (2,958) (4,312)
Income Tax 5 - -
------------------------------------------- ------ ------------- -------------
Loss from continuing operations (2,958) (4,312)
Loss from discontinued operations 2 (155) (27)
------------------------------------------- ------ ------------- -------------
Loss for the period (3,113) (4,339)
------------------------------------------- ------ ------------- -------------
Loss attributable to:
- Owners of the parent company (3,021) (4,158)
- Non-controlling interest (92) (181)
------------------------------------------- ------ ------------- -------------
(3,113) (4,339)
------------------------------------------- ------ ------------- -------------
Loss per share attributable to the equity
holders of the Company:
Basic and diluted loss per share 6 (1.56)p (2.45)p
------------------------------------------- ------ ------------- -------------
There is no other comprehensive income for the year.
The other losses in the period relates to the fair value
assessment of the Lanstead sharing agreements at the balance sheet
date.
Group statement of financial position
As at 30 September 2021
30 September 31 March
2021 2021
Unaudited Audited
Note GBP'000 GBP'000
Assets
Non-current assets
Intangible Assets 7 10,397 9,706
Property, plant and equipment 4,865 4,119
Deferred taxation 25 25
Trade and other receivables 40 772
---------------------------------------------------- ---- ------------ --------
15,327 14,622
---------------------------------------------------- ---- ------------ --------
Current assets
Inventory 1,666 1,814
Trade and other receivables 4,391 6,449
Cash and cash equivalents 3,462 2,359
---------------------------------------------------- ---- ------------ --------
9,519 10,622
---------------------------------------------------- ---- ------------ --------
Total assets 24,846 25,244
---------------------------------------------------- ---- ------------ --------
Equity
Called up share capital 1,941 1,899
Share premium 34,864 33,003
Merger reserve 1,256 1,256
Share-based payment reserve 3,844 3,249
Accumulated losses (24,646) (21,625)
---------------------------------------------------- ---- ------------ --------
Equity attributable to owners of the parent company 17,259 17,782
Non-controlling interest (1,380) (1,288)
---------------------------------------------------- ---- ------------ --------
Total equity 15,879 16,494
---------------------------------------------------- ---- ------------ --------
Liabilities
Non-current liabilities
Trade and other payables 1, 308 1,222
Deferred taxation 67 67
Innovate Loan 3,341 2,260
Long-term borrowings 3 04 356
---------------------------------------------------- ---- ------------ --------
5,020 3,905
---------------------------------------------------- ---- ------------ --------
Current liabilities
Trade and other payables 3,162 3,748
Provisions 119 119
Invoice discounting advances 376 631
Current portion of long-term borrowings 290 347
---------------------------------------------------- ---- ------------ --------
3,947 4,845
---------------------------------------------------- ---- ------------ --------
Total liabilities 8,967 8,750
---------------------------------------------------- ---- ------------ --------
Total equity and liabilities 24,846 25,244
---------------------------------------------------- ---- ------------ --------
Group statement of changes in equity
For the half year ended 30 September 2021
Share Share-based Non-
Share premium Merger payment Accumulated controlling Total
capital account reserve reserve losses interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- -------- -------- -------- ----------- ----------- ------------ --------
At 1 April 2020 (audited) 1,697 25,497 1,256 2,056 (13,846) (999) 15,661
Loss for the period - - - - (4,158) (181) (4,339)
Share-based charge - - - 597 - - 597
--------------------------------- -------- -------- -------- ----------- ----------- ------------ --------
At 30 September 2020 (unaudited) 1,697 25,497 1,256 2,653 (18,004) (1,180) 11,919
Issue of shares 202 7,506 - - - - 7,708
Loss for the period - - - - (3,621) (108) (3,729)
Share-based payments - - - 596 - - 596
--------------------------------- -------- -------- -------- ----------- ----------- ------------ --------
At 31 March 2021 (audited) 1,899 33,003 1,256 3,249 (21,625) (1,288) 16,494
Issue of shares 42 1,861 - - - - 1,903
Loss for the period - - - - (3,021) (92) (3,113)
Share-based payments - - - 595 - - 595
--------------------------------- -------- -------- -------- ----------- ----------- ------------ --------
At 30 September 2021 (unaudited) 1,941 34,864 1,256 3,844 (24,646) (1,380) (15,879)
--------------------------------- -------- -------- -------- ----------- ----------- ------------ --------
Included within the merger reserve is GBP53,000 in respect of
the merger with Versarien Technologies Limited (now Versarien
Graphene Limited) and GBP964,000 in respect of the acquisition of
Total Carbide Limited and GBP239,000 in respect of the acquisition
of AAC Cyroma Limited.
Statement of Group cash flows
For the half year ended 30 September 2021
Six months Six months
ended ended
30 September 30 September
2021 2020
Unaudited Unaudited
GBP'000 GBP'000
----------------------------------------------- ------------- --------------
Cash flows from operating activities
Cash used in operations (1,081) (683)
Interest paid (107) (64)
----------------------------------------------- ------------- --------------
Net cash used in operating activities (1,188) (747)
----------------------------------------------- ------------- --------------
Cash flows from investing activities
Purchase of intangible assets (853) (169)
Purchase of property, plant and equipment (1,018) (1)
----------------------------------------------- ------------- --------------
Net cash used in investing activities (1,871) (170)
----------------------------------------------- ------------- --------------
Cash flows from financing activities
Share issue 1,926 -
Share issue costs (23) -
Principal payment of leases under IFRS 16 (386) (480)
Innovate UK loan received 1,081 1,964
Net proceeds from CBIL loan 25 -
Funds received from Lanstead Sharing Agreement 1,794 925
Net invoice discounting advances (255) (643)
----------------------------------------------- ------------- --------------
Net cash generated from financing activities 4,1 62 1,766
----------------------------------------------- ------------- --------------
Increase in cash and cash equivalents 1,103 849
Cash and cash equivalents at start of period 2,359 1,657
----------------------------------------------- ------------- --------------
Cash and cash equivalents at end of period 3,462 2,506
----------------------------------------------- ------------- --------------
Note to the statement of Group cash flows
For the half year ended 30 September 2021
Six months Six months
ended ended
30 September 30 September
2021 2020
Unaudited Unaudited
GBP'000 GBP'000
---------------------------------------- ------------- --------------
Loss before income tax (3,113) (4,339)
Adjustments for:
Share-based payments 595 597
Depreciation and amortisation 724 552
Disposal of non-current assets 87 4
Finance cost 107 64
Loss on FV movement of share agreement 830 1,817
Decrease in inventories 148 242
Decrease in trade and other receivables 166 447
(Decrease) in trade and other payables (625) (67)
---------------------------------------- ------------- --------------
Cash used in operations (1,081) (683)
---------------------------------------- ------------- --------------
Discontinued operations Six months Six months
ended ended
30 September 30 September
2021 2020
Unaudited Unaudited
GBP'000 GBP'000
--------------------------------------------------------- -------------- --------------
Net cash generated/(used) in operating activities 122 (7)
Net cash used in investing activities (3) -
Net cash generated/(used) from financing activities (118) 15
--------------------------------------------------------- -------------- --------------
Increase in cash and cash equivalents from discontinued
operations 1 8
--------------------------------------------------------- -------------- --------------
Notes to the unaudited interim statements
For the half year ended 30 September 2021
1. Basis of preparation
Versarien Plc is an AIM quoted company incorporated and
domiciled in the United Kingdom under the Companies Act 2006. The
Company's registered office is Units 1A-D, Longhope Business Park,
Monmouth Road, Longhope, Gloucestershire, GL17 0QZ.
The interim financial statements were prepared by the Directors
and approved for issue on 06 December 2021. These interim financial
statements do not comprise statutory accounts within the meaning of
section 434 of the Companies Act 2006. Statutory accounts for the
year ended 31 March 2021 were approved by the Board of Directors on
16 August 2021 and delivered to the Registrar of Companies. The
report of the auditors on those accounts was unqualified and did
not contain statements under sections 498 (2) or (3) of the
Companies Act 2006.
As permitted, these interim financial statements have been
prepared in accordance with UK AIM Rules and UK-adopted IAS 34,
"Interim Financial Reporting". They should be read in conjunction
with the annual financial statements for the year ended 31 March
2021, which have been prepared in accordance with UK-adopted
international accounting standards, consistent with the IFRS
framework adopted in UK law. The accounting policies applied are
consistent with those of the annual financial statements for the
year ended 31 March 2021, as described in those annual financial
statements. Where new standards or amendments to existing standards
have become effective during the year, there has been no material
impact on the net assets or results of the Group.
These interim financial statements have been prepared on a going
concern basis using similar assumptions to those made in the
statutory accounts to 31 March 2021.
Certain statements within this report are forward looking. The
expectations reflected in these statements are considered
reasonable. However, no assurance can be given that they are
correct. As these statements involve risks and uncertainties the
actual results may differ materially from those expressed or
implied by these statements. The interim financial statements have
not been audited.
2. Discontinued operations
On 5 August, within the preliminary results, the Group announced
its decision to exit the non-core aluminium business of Versarien
Technologies Limited based in Cheltenham. The company has been
re-named Versarien Graphene Limited and will be used as the revenue
generating entity for UK graphene sales whilst 2-DTech Limited and
Cambridge Graphene Limited will continue as the UK research and
development arms of the graphene business. Financial information
relating to
the discontinued operation is set out below.
Six months ended Six months ended
30 September 30 September
2021 2020
Unaudited Unaudited
Notes GBP'000 GBP'000
Revenue 3 451 408
Cost of sales (363) (297)
------------------------------------------ ----- ---------------- ------------------
Gross profit 88 111
Other operating income 1 2
Other losses - -
Operating expenses (including exceptional
items) (233) (134)
------------------------------------------ ----- ---------------- ------------------
Loss from operations before exceptional
items (80) (21)
Exceptional items 4 (64) -
------------------------------------------ ----- ---------------- ------------------
Loss from operations (144) (21)
Finance charge (11) (6)
------------------------------------------ ----- ---------------- ------------------
Loss before income tax (155) (27)
Income Tax 5 - -
------------------------------------------ ----- ---------------- ------------------
Loss from discontinued operations (155) (27)
------------------------------------------ ----- ---------------- ------------------
3. Segmental information
The segment analysis for the six months to 30 September 2021 is
as follows:
Central Technology Mature Discontinued Intra-group TOTAL
Businesses Businesses Operations Adjustments
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue - 925 2,899 451 - 4,275
------------------------- -------- ------------ ------------ ------------- ------------- --------
Gross Margin - 254 826 88 - 1,168
Other gains/(losses) (830) - - - - (830)
Other operating
income - 86 2 1 - 89
Operating expenses (1,070) (1, 379) (755) (233) 4 (3,433)
------------------------- -------- ------------ ------------ ------------- ------------- --------
(Loss)/ profit
from operations (1,900) ( 1,039) 73 (144) 4 (3,006)
Finance income/(charge) (47) ( 13) (36) (11) - (107)
------------------------- -------- ------------ ------------ ------------- ------------- --------
(Loss)/profit
before tax (1,947) (1, 052) 37 (155) 4 (3,113)
------------------------- -------- ------------ ------------ ------------- ------------- --------
The segment analysis for the six months to 30 September 2020 is
as follows:
Central Technology Mature Discontinued Intra-group TOTAL
Businesses Businesses Operations Adjustments
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue - 347 2,362 408 - 3,117
------------------------- -------- ------------ ------------ ------------- ------------- --------
Gross Margin - (71) 470 111 - 510
Other gains/(losses) (1,817) - - - - (1,817)
Other operating
income - 70 2 2 - 74
Operating expenses (1,191) (945) (763) (134) (9) (3,042)
------------------------- -------- ------------ ------------ ------------- ------------- --------
(Loss)/ profit
from operations (3,008) (946) (291) (21) (9) (4,275)
Finance income/(charge) (4) (22) (32) (6) - (64)
------------------------- -------- ------------ ------------ ------------- ------------- --------
(Loss)/profit
before tax (3,012) (968) (323) (27) (9) (4,339)
------------------------- -------- ------------ ------------ ------------- ------------- --------
4. Exceptional items
Six months Six months
ended ended
30 September 30 September
2021 2020
Unaudited Unaudited
GBP'000 GBP'000
-------------------------------------- ------------- -------------
Relocation and restructuring costs 108 6
Costs relating to expansion in China - 70
Costs relating to setting up of the
Korean subsidiary - 6
Costs relating to asset purchase from
Hanwha - 85
Other - 11
-------------------------------------- ------------- -------------
108 178
-------------------------------------- ------------- -------------
5. Taxation
The tax charge on the results for the period has been estimated
at GBPnil (2020: GBPnil). At the last year end the Group had GBP
19.4 million of trading losses carried forward to set-off against
future trading profits.
6. Loss per share
The loss per share has been calculated by dividing the loss
after taxation of GBP3,021,000 (2020: GBP4,158,000) by the weighted
average number of shares in issue of 193,845,746 (2020:
169,682,290) during the period.
The calculation of the diluted earnings per share is based on
the basic earnings per share adjusted to allow for the issue of
shares on the assumed conversion of all dilutive options. However,
in accordance with IAS33 "Earnings per Share", potential Ordinary
shares are only considered dilutive when their conversion would
decrease the profit per share or increase the loss per share. As at
30 September 2021 there were 14,677,130 (2020: 14,677,130)
potential Ordinary shares that have been disregarded in the
calculation of diluted earnings per share as they were considered
non-dilutive at that date.
7. Intangible assets
30 September 31 March
2021 2021
Unaudited Audited
GBP'000 GBP'000
----------------------------- ------------ --------
Goodwill 3,555 3,555
Customer relationships/order
books 14 27
Development costs 3,297 2,453
Licence 51 58
Intellectual property 3,480 3,613
----------------------------- ------------ --------
Total 10,397 9,706
----------------------------- ------------ --------
8. Dividends
As stated in the 2013 AIM Admission document, the Board's
objective is to continue to grow the Group's business and it is
expected that any surplus cash resources will, in the short to
medium term, be re-invested into the research and development of
the Group's products. In view of this, no dividend is declared and
the Directors will not be recommending a dividend for the
foreseeable future. However, the Board intends that the Company
will recommend or declare dividends at some future date once they
consider it commercially prudent for the Company to do so, bearing
in mind its financial position and the capital resources required
for its development.
9. Interim Report
This interim announcement is available on the Group's website at
www.versarien.com
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END
IR EAKADELPFFFA
(END) Dow Jones Newswires
December 06, 2021 02:00 ET (07:00 GMT)
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