TIDMVRS
RNS Number : 2421O
Versarien PLC
02 October 2023
2 October 2023
Versarien plc
("Versarien", the "Company" or the "Group")
Corporate Update
Versarien plc (AIM: VRS), the advanced materials engineering
firm, provides the following update on developments at the
Company.
As described in the General Meeting statement issued on 4 July
2023, the Company's cost base has been reduced significantly with
unaudited LBITDAE (loss before interest, tax, depreciation,
amortisation and exceptional items) now at a much lower run rate
than in the first six months of the financial year, with a
consequent reduction in cash burn. Despite this reduced cost base,
the Company continues to make progress in line with its stated
strategy 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 leisure and construction leisure 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; and
-- to divest non--core activities and Korean assets to reduce
the requirement for funding from external sources.
Commercial progress
Recent commercial progress has been made in the Company's core
areas of leisure and construction, together with Gnanomat's wider
areas of interest. This includes:
-- Umbro have launched their Autumn/Winter 2023 range with
Versarien's Graphene-Wear(TM) coatings integrated into Umbro's Pro
Training Elite capsule. Versarien is generating initial revenues
for the Graphene-Wear(TM) ink formulation and royalties for the use
of the Company's trademark in the finished product.
-- Versarien has delivered additional Graphene-Wear(TM) rubber
compound to Flux Footwear LLC's supply chain partners following an
order required for shoe production. Versarien is generating initial
revenues for the Graphene-Wear(TM) compound and royalties for the
use of the Company's trademark in the finished product.
-- Further Cementene(TM) trials with key partners, including
Banagher Precast Concrete Limited ("Banagher"), are ongoing. This
follows the trials undertaken by Banagher as announced on 17 May
2023.
-- The Cementene(TM) admixture certification process is ongoing.
Should this certification be received, the Company expects it to
facilitate significant commercial opportunities for the deployment
of Cementene(TM) in construction projects.
-- As previously announced, Versarien has been shortlisted by
the Global Cement and Concrete Association (GCCA) from a global
list of applications, for its pioneering Innovandi Open Challenge
scheme, to work on developing low-carbon concrete for the world.
This process is ongoing.
-- The Company is discussing further iterations of the 3D
printed concrete headwall, as outlined in the announcement on 6
March 2023, in collaboration with its partners under the Digital
Roads of the Future Partnership. In addition, 3D printed concrete
structures have been supplied by Versarien for other projects,
including for those being undertaken by local authorities.
-- The Company is pleased to report it has been selected to
attend the Innovate UK Global Business Innovation Programme (GBIP)
in Germany which is focusing on sustainable materials for
construction. The programme of events will take place in November
2023.
-- A statement of work has been received, funded by a UK
aviation company, to perform graphene dispersion, mechanical
testing and material characterisation of thermoset composites being
developed by the customer. This project will take approximately 14
weeks for 2-DTech to complete.
-- As announced on 13 September 2023, Gnanomat is the recipient
of a EUR415,000 grant award from ICEX Trade and Investment to
enable the company to commercialise and launch a new line of
conductive inks. In addition, Gnanomat is working with a large
Latin American corporation to develop novel supercapacitors and
with a Southeast Asian corporation to advance the electromagnetic
interference (EMI) shielding properties of thermoset composites
utilising carbon and hybrid nanomaterials. This latter project will
be led by Gnanomat and will be performed in collaboration with
Versarien subsidiaries 2-DTech and Cambridge Graphene.
Further potential commercial arrangements and opportunities
remain in discussion.
Research and Development
The Company's R&D team has been slimmed down significantly
during 2023, due to cost cutting to concentrate on its strategic
objectives. The board believes it has retained the key people that
can continue the Company's R&D and commercialisation efforts.
In line with the Company's strategy, it continues to focus on the
development opportunities it has, including submitting applications
to participate in Innovate UK, Horizon Europe and other
grant-funded projects with various consortia comprising leading
industry participants.
Financial performance and f uture funding
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. 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.
The annual audit for the financial year ending 30 September 2023
is now in the planning stage and, as was the case last year, the
key audit matters will 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 2023 are expected to be announced in
January 2024.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
For further information please contact:
Versarien c/o IFC
Stephen Hodge, Chief Executive Officer
Chris Leigh, Chief Financial Officer
SP Angel Corporate Finance (Nominated
Adviser and Broker) +44 (0)20 3470
Matthew Johnson, Adam Cowl 0470
IFC Advisory Limited (Financial PR and
Investor Relations) +44 (0) 20 3934
Tim Metcalfe, Zach Cohen 6630
For further information please see : http://www.versarien.com
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END
UPDEAKNNAEKDEFA
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