Versarien reports strategic progress, begins full-year audit planning

Advanced materials engineering specialist Versarien reported progress with its strategic goals on Monday, having cut its costs as announced on 4 July with its narrowed EBITDA loss.

The AIM-traded firm said those objectives were to bolster its scientific teams, employ its proprietary knowledge in leisure and construction, licence its technologies and brands, and sell off non-central assets and Korean holdings.

Its efforts in the leisure and construction sectors and Gnanomat's broader pursuits have seen recent advancements, with Umbro releasing its autumn-winter 2023 collection featuring Versarien's ‘Graphene-Wear’ coatings.

The board said the collaboration led to initial revenues from the Graphene-Wear ink and royalties from the product's trademark usage.

On the Flux footwear partnership, following a product order, Versarien supplied additional Graphene-Wear rubber compounds to Flux Footwear, similarly leading to revenue and royalty gains for Versarien.

Elsewhere, after initial trials in May with Banagher Precast Concrete and other key partners, further Cementene trials were ongoing.

On receiving the admixture certification, Versarien expected vast commercial openings for Cementene in construction projects.

In tandem with the Global Cement and Concrete Association's Innovandi Open Challenge, the company's low-carbon concrete development initiative was also progressing.

Versarien said it also furthered the 3D-printed concrete headwall project, collaborating with partners from the Digital Roads of the Future Partnership.

The firm also supplied 3D-printed concrete structures for various other undertakings, including local authority projects.

Meanwhile, A UK-based aviation firm commissioned Versarien to conduct testing and characterisation on thermoset composites, with the 14-week project to be executed by 2-DTech.

Gnanomat, after receiving a €0.42m grant from ICEX Trade and Investment, was set to roll out a new line of conductive inks.

The company was also teaming up with corporations in Latin America and Southeast Asia on supercapacitor development and enhancing EMI shielding properties of composites.

Versarien said Gnanomat would spearhead the latter project, collaborating with Versarien subsidiaries 2-DTech and Cambridge Graphene.

Ongoing talks indicated the possibility of future commercial collaborations and opportunities.

Despite reducing its research and development team this year as part of cost-cutting measures, Versarien said it remained confident in its endeavours.

The board said it had retained essential personnel to drive research and development and commercialisation.

Staying true to its strategy, the company said it was actively pursuing development opportunities and applying for participation in grant-funded projects with leading industry partners, including Innovate UK and Horizon Europe.

“Despite the reduced cost base and income being received, the company's cash resources continue to be constrained whilst it seeks to sell both its mature businesses and the IP and equipment arising from the acquisition of assets from Hanwha Aerospace in December 2020,” the board said.

“Discussions are ongoing with third parties interested in acquiring these assets, but at this juncture there can be no certainty that sales can be satisfactorily concluded.

“Consequently, the company expects to continue to require further funding to support its activities, including potentially available grant income and the potential issue of additional equity.”

Versarien said the annual audit for the financial year ended 30 September was now in the planning stage and, as was the case last year, the critical audit matters would include going concern, goodwill impairment and impairment of capitalised development costs.

“Any impairment charges will be treated as exceptional items consistent with last year's accounting treatment.

“The company's audited results for the year ended 30 September are expected to be announced in January.”

At 1421 BST, shares in Versarien were down 11.71% at 1.05p.

Reporting by Josh White for Sharecast.com.