Versarien Share Discussion Threads

[superg1] 21/4/2017 14:29

BTW

Recently while playing with relevant VRS words to see what I could find I dropped on this page. The words I used are not on the page but a bit obvious why I ended up there.

I have dropped hints about standards coming from the NGI/National Physical laboratory and website.



So when this boxes start to get filled and the standards set for companies like VRS it will be a good day.

This Certification Service is delivered through a partnership between the UK’s National Physical Laboratory (NPL), and the National Graphene Institute (NGI): each contributes world-leading science and technology coupled with ‘real world’ experience, to provide a unique and important service to support the growing market for materials and products that incorporate 2D materials.

[chumbo] 21/4/2017 13:28

Compoundup - are you ok to pick me up from Sheffield? :-)

[festario] 21/4/2017 12:58

It's what usually happens, I have to admit.

[superg1] 21/4/2017 12:57

The Chairman could have been selling of course and he may need the cash for those businesses he has.

However I think the main issue is Fest buying we were fine until he arrived. ;-)

[superg1] 21/4/2017 12:54

Ax

Generally I find most on the BBs are jittery folk with a very short term view. Most sell on a dropping share price then buy on highs. Many trade but don't consider themselves as traders.

On this one for me I think there is a market for graphene but also know having looked deeper at least one of the underlying businesses it could see dramatic turns too.

EG it's clear in chat on the investor day VRS have sold GO too which isn't really known to be a product for them but nomads don't allow such things to be mentioned officially as not rns worthy etc. But then the nomad doesn't really want the company to tell investors that either or other matters or other new sales.

So for me I switch off to the micro events and stick to the factors that matter, the business.

I tend to hang around a few years and then decide. Unless of course I spot lies and deceit which unfortunately is all too common on the AIM.

[superg1] 21/4/2017 12:41

Aha

Good to know you are still about. I enjoyed that pint in the Market Tavern and the chat about Mayfair in days gone by.

Quite a bit of 'fun' those Avanti days. TB of RHPS went into overdrive on that one as I recall.

Hopefully we may cross paths again one day.

[compoundup] 21/4/2017 12:26

Am inclined to think some active investors will be taking profits ahead of Sunday's potential market-turmoil-inducing French elections. WDIK?
"too much red" is one of the nicer prospects at the end of the working week :-)

[weildy2] 21/4/2017 12:22

SG. Re your post 3693. I assume you were referring to me. I was most grateful for your advice at the time, but at least made enough to buy a good bottle of champagne. Hope all is well with you. I very rarely post these days, just watch from the sidelines. Regards, Brian

[axotyl] 21/4/2017 11:52

Getting a little twitchy about it heading south....any encouragement? Or an opportunity to stock up for the long-term?

Bit too much red.....

[compoundup] 21/4/2017 11:42

8 May jaunt 2pm session - possible car share from Cheltenham area - pm me

[luckyorange] 21/4/2017 11:34

Not very patient john henry they will get there either with the graphene ink or Nanene, if a big company wanted the IP what would it be worth?

Cash not needed, sales team being beefed up, new Chair coming hopefully with a bit of oomph, Branson promoting graphene, only a matter of time I would think!

[superg1] 21/4/2017 10:14

It also depends on investment views. Some will be in for a quick flip some buy and hold.

I'm not one to expect companies to change the world in a few weeks and tend to hang around for years. NR and co have a great record elsewhere generating revenue then have seen the relevant companies fall apart after they go.

The Elektron guys posting seem to think highly of Neill and very little of Keith the CEO at Elektron.

[superg1] 21/4/2017 10:03

JH

It's a funny old game £8 mill or so revenue pa and AGM with one trick unproven as yet and £100k to £200k revenue with a higher M/C.

3 years AGM have claimed they can produce big but never have shockingly poor sales too but that's because it doesn't work to date.

They will have been making sales which those at the Cambridge day will probably hear about.

[john henry] 21/4/2017 09:04

Let's hope the company start providing something to spread the jam. 30 M market cap needs some justification.

[shavian] 21/4/2017 08:57

10 o'clock slots on 8May all gone too. Missed out due to dithering. Sorry chaps, I'm sure you'll all report back with the details. See you at the next one, hopefully Cheltenham.

[luckyorange] 20/4/2017 23:37

Another of superg's favourite companies mentioned here :-)
Thought this may be of interest because I always felt the chairman was drawing money for nothing, it's a positive that he has gone.

the Alternative Investment Market (AIM) is a public one, its relatively relaxed regulations and its application of the ‘comply-or-explain’ rule mean that the role of the board can be very different to that of companies on, for example, the main list.

The old adage states that “the chief executive runs the company and the chairman runs the board.” This is also true for AIM companies, but, owing to the nature of organisations listed on this market (typically small, growing companies), the chairman is likely to be more involved in the operational side of the company than his/her counterparts on the main list.

“AIM companies invariably have smaller boards [than most companies on the main list] and, hence, their directors are much closer to the business: what goes on, issues, operations, etc. In smaller companies, the board will become involved with actions that they would not be able to concern themselves with in larger firms. This has advantages in that one can see that one’s decisions are having a direct impact. The chairman in a smaller company is going to be much more closely involved in helping the CEO run the business and that can be a lot more fun,” says Paul Clarke, Associate at Criticaleye and Non-executive Director of Brookwell.

Complying with the Code

Neil Matthews, Partner & Head of Equity Capital Markets at Eversheds, comments that, although AIM-listed firms are not required to adhere to the UK Corporate Governance Code, in relation to board composition, they should comply in the name of governance. Having this framework in place can make it easier to move up to the main list if that becomes an option.

“Any AIM company would be well advised to follow the corporate governance code,” says Neil. “Some will become ‘super’ compliant, but it is advised at least to have the minimum amount. This almost certainly means having a separate CEO and chairman.” By following the code, organisations are demonstrating they are comfortable with corporate governance and that they have strong non-executives.

NOMAD

Created to allow smaller companies to float shares with a more flexible regulatory framework than is applicable on the main market, AIM has no requirements for capitalisation or number of shares issued. Based on the ‘comply-or-explain’ option, AIM allows companies to comply with its rules or explain why they will not comply. In return for granting this leeway, the Exchange requires continuous oversight and advice by the issuer’s underwriter – the NOMAD.

“The role of the NOMAD is central to AIM’s regulatory model, as these brokers play the role of gatekeepers, advisors and regulators of AIM companies. In advising each firm as to which rules should be complied with and the manner in which existing requirements should be met, NOMADs provide the essential service allowing firms to abide by specific regulations, reducing regulatory costs in the process. Clearly, the chairman should have a close working relationship with the NOMAD,” says David Pearson, a Criticaleye Associate and former Chairman of Vividas Group plc, a one-time AIM-listed company.

Investors

One of the major differences between main-list chairmen and their AIM-listed counterparts is that, due to the nature of AIM investors, the chairman may have to become an advocate with major shareholders.

Conventional thinkers believe that the CEO and finance director should be the only directors that deal with investors, as institutions usually want to talk to the people who run the business. However, it is considered best governance practice for the chairman to meet one-on-one with key shareholders, mostly institutional investors. “That is very good because I can talk about the company away from the chief executive and finance director. It gives investors a view of what we’re up to, where I see the company going and how that all ties back,” says John Brackenbury, Criticaleye Associate and Founder and Chairman of Avanti Communications plc.

Paul says, “Where the shares are illiquid and investors cannot exit, then the chair may well be contacted by the investor if attempts to deal with the CEO have not been successful.”

Conversely, there are those that believe that the investors should be dealt with exclusively by the board, arguing that the management team should be concerned with running the organisation, not courting investors.

Succession planning

Another key part of the chairman’s role is in the succession planning of the leadership team.

“For example,” says John, “Every July I have a meeting with the chief executive because, if he was run over by a bus or our technical director was run over by a bus or our finance director was run over by a bus, you’ve got to have plans in place. This is particularly important relating to knowing who is coming up through the ranks so that, in the event that we need to replace someone quickly, we know if we will need to go outside, or deal with it internally. I actually do sit down and review that annually.” The chair also has to consider the succession plans for his/her own position.

What makes a good chairman?

A successful chair of an AIM-listed company will understand the business, be able to mentor high-level executives and have a good grasp of corporate governance regulations and guidelines.

“A good chairman is someone who is experienced in a public company, is a good listener and is available to the CEO at any time. He/she should respect that he/she does not run the company but can give good advice in a fashion that can influence the CEO without taking over and running the business,” says Paul.

“A chair also has to be able to summarise discussions, round up the dissenting opinion so that all agree a course of action, bring up issues that need to be discussed, not panic or react to a problem as a CEO might and remember that he/she does not run the company. Lastly, the chairman will not know everything so it is helpful that they have a good network of contacts,” he continues.

It is imperative that the chairman keeps the board looking at the medium- to long-term, rather than just the day-to-day operations. “In a well-run AIM-listed company, the chairman can help to ensure that sufficient board time is allocated to strategic and medium/long-term issues when the temptation is often to get sucked into urgent matters,” says Andy Morrison, former CEO, Xtract Energy plc.

The CEO perspective

The most important element of a chairman’s role, aside from running the board, is the relationship he/she has with the CEO. This partnership is vital to a smooth running organisation.

“Following the retirement from the board of our previous chairman, I recently had the task of recruiting a new candidate for the role,” says Stuart Green, CEO, ZOO Digital Group plc. “From a City perspective, it is important for the chairman to be credible as an ambassador for the company, with a good track record with other quoted companies, strong in corporate governance and seen to be independent. From a business perspective, we wanted someone with the capability to understand our proposition and the market. And from a personal perspective, I wanted someone who would work closely with me and provide support and guidance to help me and the business to grow. It would be easy for an established CEO to see an incoming chairman as a potential threat, and I know that some CEOs are really only looking for someone to turn up to meetings once a month and provide the rubber stamp. But AIM is for small companies that need all the help they can get to grow and be successful, and I think it is vital to capitalise on the contribution of a good chairman. Having the right credentials is obviously important for the role, but good chemistry is the secret sauce for an effective and productive chairman/CEO relationship. I’m pleased to say that we found the right guy for ZOO!”

Tips to aspiring chairmen

It may seem like a natural progression to move from CEO to chairman, however, it is not a sweeping generalisation to say that ex-CEOs don’t always take well to playing second fiddle to the CEO. “There is no guarantee that a successful CEO can become a successful chairman, as the requirements of the roles are very different,” says David Pearson.

Chairmen have to remember that they don’t run the business. Paul says, “You are there as a good counsel and advisor. As a good chairman, you are there to influence and bring together all the views and, in extremis, you are the man in the chair seat and may have to take the difficult decisions, such as removing the CEO. The chairman has to lead that sort of action.”

David recommends taking some training in governance, familiarising yourself with the listing rules and spending time with a NOMAD discussing what a successful AIM company looks like. “Do your due diligence duly and diligently,” he says.

The Role of an AIM-listed chairman

• Run the board
• Be involved in choosing a NOMAD
• Succession planning
• Deal with major investors/shareholders
• Hire and fire the CEO
• Be a sounding board and counsel to the CEO

[shavian] 20/4/2017 17:38

It would be nice to have both of them as non-execs!

[superg1] 20/4/2017 17:01

On the selling.

Part of that imo will be the graphene hype crew that appeared post BBC news. If you look at AGM Haydale and VRS they have all been hit since that died down.

EG AGM flew on the hype up on BBC hype to something like 225 and is now 172. AGM has been tight shares for some time so it's flies on any volume up and down.

Then of course VRS has seen some big rises so plays going to be profit taking churn which is essential in any share Imo. Too high too fast with little sell action can leave many high and dry.

But what about graphene. It struck me today, we have James Dyson (DYSON UOM partner) that has been picking and prodding at what is in graphene for some time and now Richard Branson having a mooch around talking highly of graphene.

[superg1] 20/4/2017 16:53

I think the odd London scribbler has already scribbled but you can't see it just yet.

[vasilis] 20/4/2017 16:41

Shavian :-)

Thanks for giving us the 'chuckle of the day'. More like 'gold star' for you than 'red button'!

[anley] 20/4/2017 16:30

It seems to me that either an institution such as Henderson have and are sellers and a few of the smaller trades are being unwound by the 15p buyers...........so be it.

It will be interesting if any London scribblers go on 8 May - I can't as I will be away on business.

[superg1] 20/4/2017 16:03

I see all the 2pm positions have gone just 10am now.

[phoenixs] 20/4/2017 13:34

booked in for the 10.00 on 8th May.

[phoenixs] 20/4/2017 13:18

How on earth did I know I was going to get a red button for that!! Surprise me at least.