Versarien Plc (LON:VRS), the advanced engineering materials group, today announced its unaudited final results for the year ended 31 March 2016.
● Progress made across all three divisions in line with Group’s stated strategy.
● Thermal product sales of £1.3 million (2015: £0.4 million), benefiting from a full year contribution from the heat sink business acquired in February 2015.
● Strong enquiry pipeline following significant investment in last 24 months and first OEM contract negotiated for low profile copper foam heat sinks in consumer devices.
● Hard Wear products sales of £3.1m (2015: £4.6 million) affected by continued adverse conditions in oil & gas market; new opportunities emerging in defence and aerospace markets.
● Significant advances in graphene with commercial production of three graphene types in progress: production process now patented in UK, Europe and USA with China expected soon.
● Four partnerships formed post-year end to expedite adoption of graphene into key markets: batteries, carbon fibre products and enhanced composites for 3D printing and aerospace industry.
● Group revenues of £4.40 million (2015: £4.98 million)
● Net assets of £5.5 million (2015: £7.3 million)
● Cash at 31 March 2016 of £1.6 million (2015: £3.5 million)
● *LBITDA of £1.3 million (2015: £0.3 million)
● Loss before tax £1.8 million (2015: £0.9 million)
* LBITDA excludes exceptional items and share based payment charges.
Commenting on the final results, Neill Ricketts, Chief Executive Officer of Versarien Plc, said: “Versarien has made considerable progress this year moving its disruptive technologies towards production and commercialisation. We can now offer five types of graphene out of our manufacturing facilities in Cheltenham and we are in the process of securing the IP surrounding the production processes in all key territories. Since the year end we have formed partnerships that will allow us to accelerate our entry into markets that we believe will significantly benefit from the unique properties that graphene offers. In our thermal products division, we have negotiated our first commercial order for low profile copper foam heat sinks which validates our technology. Opportunities are emerging in new markets for our Hard Wear products which has maintained profitability despite the continued down turn in the oil and gas market. Overall, I am very pleased with what we achieved last year and the Board remains confident that we are well placed to capitalise on the opportunities available to us.
“We would like to take this opportunity to thank our continually supportive investor base and our employees for their hard work.”
The Group has made considerable progress in its stated strategy of capitalising on innovative IP and transforming it into commercially viable products that can tackle the technology challenges faced by modern manufacturers.
Development of our core graphene and porous copper foam production technologies has now been completed. As such, the financial results reflect a year of transition as the Group moves away from its reliance on the Hard Wear division to provide the cash backbone for product development towards the commercialisation of our disruptive technologies.
Versarien is now well positioned to become a leader in commercial applications for graphene and has validated its Versarien Cu copper foam product having negotiated its first commercial order for use in consumer devices.
We were very pleased to welcome Iain Gray CBE to the Board as a non-executive director following the retirement of Jeremy Veasey. With a lengthy career in aerospace and technology, Iain brings with him a wealth of technical and Board level experience and is well placed to help Versarien accelerate the commercialisation of its technology, especially in 2 dimensional products.
After 5 years with Versarien as Chief Technology Officer, Will Battrick resigned as a Director to pursue other interests. As the Company has evolved, the Board concluded that each business division would be best served by a dedicated technical lead at senior management level, reporting to the subsidiary Board. These appointments are in the process of being made and once completed, we believe we will have a Board and management team that is appropriate to the size and Group structure at this present time.
Post year-end developments
Since the year end a number of important initiatives have crystalised following significant groundwork carried out last year.
We have signed four MOUs to form partnerships with organisations that will allow us to accelerate the adoption of graphene into markets where this material is expected to be a game-changer: 3D printing, batteries, carbon fibre composites and aerospace. Each of these partnerships brings specialist scientific, manufacturing or target sector knowledge and will help us to penetrate these markets quicker whilst sharing development costs and knowledge.
In the Thermal Products business we have negotiated our first OEM order for low profile copper foam heat sinks for use in consumer devices, validating our product and allowing us to leverage other opportunities. Manufacturing will commence out of our new premises in Westcott alongside our Hard Wear products.
The Group continues to look for appropriate acquisition opportunities to complement organic growth, especially for graphene applications.
The Board remains confident that the Company is on track to capitalise from the progress it has made. With graphene we are moving rapidly towards commercial applications and our thermal products have gone from development into commercial production. There remains demand and opportunities from global markets and the growth prospects for our transformative products remain strong.