Versarien plc (LON: VRS), the advanced engineering materials group, has today provided its interim results for the six months ended 30 September 2018.
· Group revenues increased by 19% to £5.22 million (H1 2017: £4.38 million)
· LBITDA* reduced by 16% to £0.36 million (H1 2017: £0.43 million)
· Loss before tax remained stable at £0.78 million (H1 2017: £0.77 million) after increased investment in the graphene businesses
· Cash of £6.07 million at 30 September 2018 (30 September 2017: £0.35 million) following successful fund raising of £5.15 million gross in September 2018
· Net assets increased to £12.32 million (30 September 2017: £5.72 million)
*LBITDA (Loss Before Interest, Tax, Depreciation and Amortisation) excludes exceptional items and share-based payment charges
· Nine collaboration agreements signed in the period with many other parties at varying stages of testing
· Graphene quality assurance team strengthened with two key appointments both of whom are at the forefront of developing the international standards that will define graphene and other nanomaterials
· Overseas expansion team strengthened by the appointment of two secondees from the Department of International Trade
· Continued investment in graphene manufacturing capability
· Mature businesses showing continued improvement in financial performance
Post Period Highlights
· In October 2018, Versarien completed its acquisition of 62% of the Spanish company Gnanomat S.L. for £2,647,000, settled by £673,000 in cash, and the issue of 1,316,275 new ordinary shares at an agreed price of 150p per New Ordinary Share. Gnanomat S.L. specialises in incorporating graphene into supercapacitors
· After gaining Federal Aviation Administration (FAA) certification, Versarien has received its first order for 1kg of its graphene nano platelets for use in fire retardant aircraft interior parts for a major global airline, with further orders anticipated
· Memorandum of Understanding signed with Tungshu Optoelectronic Technology Ltd, one of the world’s leading suppliers of optoelectronic display materials
· Memorandum of Understanding signed with Jinan High-tech Financial Investment Co., Ltd to establish a manufacturing centre in the Jinan Innovation Zone, Shandong Province, China
· Jinan High Tech Investment Fund panel of experts determine the graphene technology of Versarien to have certain world leading properties
· New graphene enhanced polymer compound product launched, branded Polygrene
· Memorandum of Understanding signed with CTCE, a subsidiary of China Railway Group Limited
· AECOM place first order for compounded material as part of infrastructure project
Neill Ricketts, CEO of Versarien, commented:
“The last few months have seen significant progress across the Group, in both our emerging technologies and more mature businesses. Expansion of the graphene business into China has attracted a large number of suitors and we are repeating the process in other Asian territories. Our collaboration agreements are progressing well, in particular with AECOM where we have recently announced the first supply of graphene enhanced compound.
“In line with our strategy of acquiring IP led businesses we completed the purchase of a controlling stake in Gnanomat SL and I am pleased that it has now obtained confirmation of patent approval for its production process.
“Our hard wear and metallic products business has shown an increase both in sales and profitability and our plastics business has increased its sales and its operating profits.
“With the global progress we have made over the last few months, and with funds from our placing in September we are extremely well positioned for the future and look forward to reporting further success over the coming months.”
Versarien also announced today that it has signed a supply agreement to provide it’s new graphene enhanced polymer range to AECOM for a current infrastructure project.
This supply agreement follows the collaboration the Company entered into with AECOM, a US headquartered and Fortune 500 company, announced on 24 August 2018. This collaboration covered a project that AECOM and Versarien have been undertaking involving the incorporation of Versarien’s graphene nano-platelets into large scale polymer structures used in civil infrastructure projects, with a view to increasing their structural strength.
AECOM have confirmed the first Statement of Work from the supply agreement which includes the supply of 50 kg of Versarien’s graphene enhanced polymer material to be delivered in early December 2018, with a further SOW expected to cover the delivery of 200 kg in early January 2019. These quantities will be used for final testing of the structures and upon successful completion of final tests, the companies expect to make further announcements in Q1 2019.
Neill Ricketts, CEO of Versarien, commented:
“We are delighted that our collaboration with AECOM has progressed as we had anticipated.
“This application has significant potential for Versarien, as the volumes of graphene that are required in these types of structure are significantly larger than for many other applications given the scale of the structures being produced.
“We look forward to continuing to work with AECOM on the final phases of testing and look forward to making further announcements on this project in the New Year.”