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Versarien PLC Interim Results

06/12/2018 7:01am

UK Regulatory (RNS & others)


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Versarien PLC

06 December 2018

6 December 2018

Versarien plc

Interim Results

Versarien plc (AIM: VRS) ("Versarien", the "Company" or the "Group"), the advanced engineering materials group, is pleased to announce its interim results for the six months ended 30 September 2018.

Financial Highlights

   --     Group revenues increased by 19% to GBP5.22 million (H1 2017: GBP4.38 million) 
   --     LBITDA* reduced by 16% to GBP0.36 million (H1 2017: GBP0.43 million) 

-- Loss before tax remained stable at GBP0.78 million (H1 2017: GBP0.77 million) after increased investment in the graphene businesses

-- Cash of GBP6.07 million at 30 September 2018 (30 September 2017: GBP0.35 million) following successful fund raising of GBP5.15 million gross in September 2018

   --     Net assets increased to GBP12.32 million (30 September 2017: GBP5.72 million) 

*LBITDA (Loss Before Interest, Tax, Depreciation and Amortisation) excludes exceptional items and share-based payment charges

Operational Highlights

-- 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 GBP2,647,000, settled by GBP673,000 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."

For further information please contact:

 
 Versarien plc 
 Neill Ricketts - Chief Executive Officer    +44 (0) 1242 269122 
 Chris Leigh - Chief Financial Officer 
 
 Arden Partners plc (Nominated Adviser)      www.arden-partners.com 
 John Llewellyn-Lloyd / Dan Gee-Summons      +44 (0) 20 7614 5900 
 
 IFC Advisory (Financial PR and IR)          www.investor-focus.co.uk 
 Tim Metcalfe / Graham Herring / Heather 
  Armstrong                                  +44 (0) 20 3934 6630 
 

Notes to Editors:

About Versarien

Versarien plc (AIM: VRS), is an advanced engineering materials group. Leveraging proprietary technology, the Group creates innovative engineering solutions for its clients in a diverse range of industries. Versarien has six subsidiaries operating under two divisions:

Graphene and Plastics

2-DTech Ltd, which specialises in the supply, characterisation and early stage development of graphene products. www.2-dtech.com

AAC Cyroma Limited, which specialises in the supply of vacuum-formed and injection-moulded products to the automotive, construction, utilities and retail industry sectors. Using Versarien's existing graphene manufacturing capabilities, AAC will have the ability to produce graphene-enhanced plastic products. www.aaccyroma.co.uk

Cambridge Graphene Limited, supplies novel inks based on graphene and related materials, using patented processes to develop graphene materials technology.

www.cambridgegraphene.com

Gnanomat S.L. ("GNA"), based in the Parque Cientifico Madrid, Spain, is a company capable of utilising Versarien's graphene products in an environmentally friendly, scalable production process for energy storage devices that offer high power density, almost instant recharging and very long lifetimes for use in electrical vehicles and portable electronics products. www.gnanomat.com

Hard Wear and Metallic Products

Versarien Technologies Limited has developed an additive process for creating advanced micro-porous metals targeting the thermal management industry and supplies extruded aluminium. www.versarien-technologies.co.uk

Total Carbide Limited, a leading manufacturer in sintered tungsten carbide for applications in arduous environments such as the oil and gas industry. www.totalcarbide.com

Chief Executive's Statement

We have seen our graphene technology gain much momentum and success since the release of our annual results in July, along with good progress in all areas of the business. Our graphene products have gained significant interest both in the UK and abroad, particularly in China, where four MOUs have now been signed to both sell and manufacture our products there. Our graphene products are being tested and developed in new industries such as sub-sea insulation and the acquisition of Gnanomat S.L in October complements our strategy of incorporating graphene into energy storage devices. In addition, I am pleased to report our more mature businesses have returned improved financial performance.

Graphene and Plastic Products

We are pleased to provide an update on our collaborations:

 
 Date     Description                             Current status 
 Oct-17   Collaboration with Israel Aerospace     Further testing to be carried 
           Industries                              out in early 2019 
         --------------------------------------  ---------------------------------- 
 Nov-17   Collaboration with global consumer      Masterbatch ready, waiting 
           goods company                           on confirmation for testing 
                                                   date at UK production plant 
         --------------------------------------  ---------------------------------- 
 Dec-17   Agreement with global chemical          Masterbatch testing awaited 
           major                                   with interest in trialling 
                                                   inks with films 
         --------------------------------------  ---------------------------------- 
 Jan-18   Agreement with global apparel           Commercial discussions in 
           manufacturer                            progress -masterbatch polymer 
                                                   blends to be trialled early 
                                                   January. 
         --------------------------------------  ---------------------------------- 
 Feb-18   Agreement with shoemaker Vivobarefoot   30kg elastomer masterbatch 
                                                   to be sent to China factory 
                                                   to produce first prototypes 
                                                   for new soles. 
         --------------------------------------  ---------------------------------- 
 Feb-18   Medical technology collaboration        Testing continues to go well 
           at Addenbrooke's hospital               with commercial discussions 
                                                   due to commence shortly 
         --------------------------------------  ---------------------------------- 
 Mar-18   Collaboration with Team Sky             Specific applications being 
           for cycling equipment                   reviewed 
         --------------------------------------  ---------------------------------- 
 Mar-18   Collaboration with world-leading        Awaiting completion of customer 
           aerospace group                         re-organisation to continue 
                                                   original project. Additionally 
                                                   working on paints for composite 
                                                   structures. 
         --------------------------------------  ---------------------------------- 
 Apr-18   Agreement with Luxus                    Active supply chain partner 
         --------------------------------------  ---------------------------------- 
 May-18   Consumer goods collaboration            Second batch testing at a 
           for polymer structures in plastics      different wt% in progress 
                                                   with initial testing showed 
                                                   improvements in the weight 
                                                   of the bottles. 
         --------------------------------------  ---------------------------------- 
 Jun-18   Commercial agreement with MediaDevil    First headphones to be supplied 
                                                   December 2018. New polymer 
                                                   for phone cases to be tested 
                                                   with supply commencing 2019 
                                                   Q2 
         --------------------------------------  ---------------------------------- 
 Jun-18   Agreement with Arrow Greentech          AGT are actively talking 
                                                   with tyre producers and we 
                                                   are waiting on the results 
                                                   of the trials for bank notes. 
         --------------------------------------  ---------------------------------- 
 Jul-18   Collaboration with ZapGo Limited        Secondary trials now underway 
                                                   in conjunction with Gnanomat. 
         --------------------------------------  ---------------------------------- 
 Aug-18   Sporting goods collaboration            Samples and configured materials 
                                                   supplied to be compounded 
                                                   and tested in football boots. 
         --------------------------------------  ---------------------------------- 
 Aug-18   Collaboration with Axia Materials,      Multi-partner funding application 
           South Korea                             in progress 
         --------------------------------------  ---------------------------------- 
 Aug-18   Construction materials collaboration    Initial order for compounded 
           with AECOM                              material received 
         --------------------------------------  ---------------------------------- 
 Oct-18   Collaboration with Advanced             Sample materials sent 
           Insulation 
         --------------------------------------  ---------------------------------- 
 

Our new graphene production equipment has duly arrived and will shortly be commissioned enabling us to produce sufficient amounts of Nanene to satisfy the current needs of the collaborations and anticipated orders. With our DIT secondees in place, and access to the engineers and scientists from leading universities such as Cambridge, Manchester and Warwick, we are continuing our focus on agreeing further collaborations and progressing our existing ones. We anticipate that this will lead to larger orders for our graphene products and the emergence of commercial products enhanced through the use of Versarien's graphene.

Our collaboration with Tungshu is progressing with a number of projects identified. These include incorporating graphene ink in consumer heating systems, incorporating Gnanomat's technology into Tungshu's battery products and using graphene insole sensors in Tungshu's smart wearables.

Our plastic products business performed well in the first half and is providing a very useful contribution to Group performance. Our focus remains on exploring further options for incorporating graphene into injection-moulded plastics following the success of our collaboration with Media Devil, announced in June 2018.

Metallic Products and Hard Wear products

This business segment has increased its revenue and returned to profitability. It has continued to receive additional aerospace orders with Total Carbide joining the "Westcott Space Cluster", which includes the UK Space Agency, establishing itself as an aerospace supplier in addition to servicing its traditional oil and gas customer base.

Current trading and outlook

With the interest we are experiencing for both our powder and ink graphene technologies globally, the acquisition of Gnanomat, the development of graphene compounded material and a strong balance sheet we are in an excellent position to achieve the product commercialisation we are striving for.

Neill Ricketts

Chief Executive Officer

6 December 2018

Chief Financial Officer's Review

Group Results

Versarien's revenue for the half-year ended 30 September 2018 has increased by 19% to GBP5.22 million compared to the same period last year (H1 2017: GBP4.38 million).

The operating loss before exceptional items, depreciation, amortisation and share based payment charges was GBP0.36 million compared with a loss of GBP0.43 million in the comparative period last year, a reduction of GBP0.07 million. This is particularly pleasing given that our operating expenses before exceptional costs and share-based payments have increased by GBP0.2 million, principally as a result of increased investment in our graphene businesses.

Exceptional costs were incurred in the period of GBP0.07 million, which mostly relate to acquisition costs incurred for Gnanomat S.L. and costs related to the expansion into China. The loss before tax for the period was GBP0.79 million (H1 2017: loss GBP0.77 million).

Group net assets at 30 September 2018 were GBP12.3 million (31 March 2018 GBP7.98 million) with cash at the period end of GBP6.01 million (31 March 2018: GBP2.30 million), which includes GBP4.96 million (net of expenses) from the fund raising announced on 24 September 2018. Cash outflow from operating activities was GBP0.82 million (H1 2017: GBP1.01 million). The Group capitalised GBP0.16 million (H1 2017: GBP0.04 million) principally in development costs and GBP0.11 million (H1 2017: GBP0.04 million) in new plant and equipment.

Graphene and Plastic Products

Revenue, principally arising from plastic products, for the period was GBP2.79 million (H1 2017: GBP2.21 million), returning an LBITDA before exceptional items of GBP0.28 million (H1 2017: loss GBP0.25 million). The segment capitalised development costs of GBP0.13 million (H1 2017: GBP0.04 million) as work continued on developing specific applications using graphene. Cash used by the business segment was GBP0.68 million, of which GBP0.08 million was used to acquire new assets.

Hard Wear and Metallic Products

Revenue for the period improved by 12% to GBP2.43 million (H1 2017: GBP2.17 million) with an increase in EBITDA before exceptional items to GBP0.25 million (H1 2017: GBP0.06 million). The segment consumed GBP0.01 million in cash in the period, of which GBP0.02 was for new plant and machinery, and shows the operational improvements which have been made to reach an almost break even cashflow point for this division.

Chris Leigh

Chief Financial Officer

6 December 2018

Group statement of comprehensive income

For the half year ended 30 September 2018

 
                                                              Six months     Six months       Year 
                                                                   ended          ended      ended 
                                                            30 September   30 September   31 March 
                                                                    2018           2017       2018 
                                                               Unaudited      Unaudited    Audited 
                                                    Notes        GBP'000        GBP'000    GBP'000 
--------------------------------------------------  -----  -------------  -------------  --------- 
Continuing operations 
Revenue                                                 2          5,215          4,380      9,024 
Cost of sales                                                    (3,772)        (3,311)    (6,496) 
--------------------------------------------------  -----  -------------  -------------  --------- 
Gross profit                                                       1,443          1,069      2,528 
Other operating income                                                 2             28         63 
Operating expenses (including exceptional items)                 (2,210)        (1,848)    (4,102) 
--------------------------------------------------  -----  -------------  -------------  --------- 
Loss from operations before exceptional items                      (693)          (751)    (1,477) 
Exceptional items                                       3           (72)              -       (34) 
--------------------------------------------------  -----  -------------  -------------  --------- 
Loss from operations                                               (765)          (751)    (1,511) 
Finance charge                                                      (23)           (21)       (50) 
--------------------------------------------------  -----  -------------  -------------  --------- 
Loss before income tax                                             (788)          (772)    (1,561) 
Income tax                                                            56              -         63 
--------------------------------------------------  -----  -------------  -------------  --------- 
Loss for the period                                                (732)          (772)    (1,498) 
--------------------------------------------------  -----  -------------  -------------  --------- 
Loss attributable to: 
- Owners of the parent company                                     (659)          (711)    (1,381) 
- Non-controlling interest                                          (73)           (61)      (117) 
--------------------------------------------------  -----  -------------  -------------  --------- 
                                                                   (732)          (772)    (1,498) 
--------------------------------------------------  -----  -------------  -------------  --------- 
Loss per share attributable to the equity holders 
 of the Company: 
Basic and diluted loss per share                        4        (0.44)p        (0.54)p    (1.00)p 
--------------------------------------------------  -----  -------------  -------------  --------- 
 

There were no comprehensive gains or losses in the year other than those included in the Group Statement of Comprehensive Income.

Group statement of financial position

As at 30 September 2018

 
                                                    30 September  30 September  31 March 
                                                            2018          2017      2018 
                                                       Unaudited     Unaudited   Audited 
                                              Note       GBP'000       GBP'000   GBP'000 
--------------------------------------------  ----  ------------  ------------  -------- 
Assets 
Non-current assets 
Intangible Assets                                5         2,812         2,877     2,678 
Property, plant and equipment                              2,887         2,946     2,980 
Deferred taxation                                             25            25        25 
--------------------------------------------  ----  ------------  ------------  -------- 
                                                           5,724         5,848     5,683 
--------------------------------------------  ----  ------------  ------------  -------- 
Current assets 
Inventory                                                  2,128         1,953     1,961 
Trade and other receivables                                2,400         1,732     2,437 
Current tax                                                   52            35        77 
Cash and cash equivalents                                  6,073           353     2,296 
--------------------------------------------  ----  ------------  ------------  -------- 
                                                          10,653         4,073     6,771 
--------------------------------------------  ----  ------------  ------------  -------- 
Total assets                                              16,377         9,921    12,454 
--------------------------------------------  ----  ------------  ------------  -------- 
Equity 
Called up share capital                                    1,522         1,313     1,486 
Share premium                                             17,453         9,762    12,529 
Merger reserve                                             1,256         1,256     1,256 
Share-based payment reserve                                  295           146       187 
Accumulated losses                                       (7,884)       (6,555)   (7,225) 
--------------------------------------------  ----  ------------  ------------  -------- 
Equity attributable to owners of the parent 
 company                                                  12,642         5,922     8,233 
Non-controlling interest                                   (327)         (198)     (254) 
--------------------------------------------  ----  ------------  ------------  -------- 
Total equity                                              12,315         5,724     7,979 
--------------------------------------------  ----  ------------  ------------  -------- 
Liabilities 
Non-current liabilities 
--------------------------------------------  ----  ------------  ------------  -------- 
Trade and other payables                                     238           195       167 
Provisions                                                     -            80         - 
Deferred taxation                                             64            64        64 
Long-term borrowings                                         495           744       456 
--------------------------------------------  ----  ------------  ------------  -------- 
                                                             797         1,083       687 
--------------------------------------------  ----  ------------  ------------  -------- 
Current liabilities 
Trade and other payables                                   1,510         1,893     1,849 
Invoice discounting advances                               1,064           689     1,117 
Current tax                                                  212           217       284 
Provisions                                                    80             -        80 
Current portion of long-term borrowings                      399           315       458 
--------------------------------------------  ----  ------------  ------------  -------- 
                                                           3,265         3,114     3,788 
--------------------------------------------  ----  ------------  ------------  -------- 
Total liabilities                                          4,062         4,197     4,475 
--------------------------------------------  ----  ------------  ------------  -------- 
Total equity and liabilities                              16,377         9,921    12,454 
--------------------------------------------  ----  ------------  ------------  -------- 
 

Group statement of changes in equity

For the half year ended 30 September 2018

 
                                              Share                   Share-based                       Non- 
                                    Share   premium           Merger      payment  Accumulated   controlling     Total 
                                  capital   account          reserve      reserve       losses      interest    equity 
                                  GBP'000   GBP'000          GBP'000      GBP'000      GBP'000       GBP'000   GBP'000 
-------------------------------  --------  --------  ---------------  -----------  -----------  ------------  -------- 
At 1 April 2017 (audited)           1,313     9,762            1,256          115      (5,844)         (137)     6,465 
Loss for the period                     -         -                -            -        (711)          (61)     (772) 
Share-based charge                      -         -                -           31            -             -        31 
-------------------------------  --------  --------  ---------------  -----------  -----------  ------------  -------- 
At 30 September 2017 
 (unaudited)                        1,313     9,762          1,256            146      (6,555)         (198)     5,724 
Issue of shares                       173     2,767         -                   -            -             -     2,940 
Loss for the period                     -         -         -                   -        (670)          (56)     (726) 
Share-based payments                    -         -         -                  41            -             -        41 
-------------------------------  --------  --------  ---------------  -----------  -----------  ------------  -------- 
At 1 April 2018 (audited)           1,486    12,529          1,256            187      (7,225)         (254)     7,979 
Issue of shares, net of issue 
 costs                                 36     4,924         -                   -            -             -     4,960 
Loss for the period                     -         -         -                   -        (659)          (73)     (732) 
Share-based payments                    -         -         -                 108            -             -       108 
At 30 September 2018 
 (unaudited)                        1,522    17,453            1,256          295      (7,884)         (327)    12,315 
-------------------------------  --------  --------  ---------------  -----------  -----------  ------------  -------- 
 

Included within the merger reserve is GBP53,000 in respect of the merger with Versarien Technologies Limited and GBP964,000 in respect of the acquisition of Total Carbide Limited and GBP239,000 in respect of the acquisition of AAC Cyroma Limited.

Statement of Group cash flows

For the half year ended 30 September 2018

 
                                                      Six months     Six months           Year 
                                                           ended          ended          ended 
                                                    30 September   30 September       31 March 
                                                            2018           2017           2018 
                                                       Unaudited      Unaudited        Audited 
                                                         GBP'000        GBP'000        GBP'000 
-------------------------------------------------  -------------  -------------  ------------- 
Cash flows from operating activities 
Cash used in operations                                    (820)        (1,010)        (1,907) 
Interest paid                                               (23)           (21)           (50) 
Corporation tax paid                                           -              -            (9) 
-------------------------------------------------  -------------  -------------  ------------- 
Net cash used in operating activities                      (843)        (1,031)        (1,966) 
-------------------------------------------------  -------------  -------------  ------------- 
Cash flows from investing activities 
Purchase of intangible assets                              (159)           (42)          (148) 
Purchase of property, plant and equipment                  (108)           (42)          (280) 
-------------------------------------------------  -------------  -------------  ------------- 
Net cash used in investing activities                      (267)           (84)          (428) 
-------------------------------------------------  -------------  -------------  ------------- 
Cash flows from financing activities 
Share issue                                                5,154              -          3,069 
Share issue costs                                          (194)              -          (129) 
Finance leases net of repayments                            (20)            147              1 
Invoice discounting advances                                (53)           (46)            382 
-------------------------------------------------  -------------  -------------  ------------- 
Net cash generated from financing activities               4,887            101          3,323 
-------------------------------------------------  -------------  -------------  ------------- 
Increase/(decrease) in cash and cash equivalents           3,777        (1,014)            929 
Cash and cash equivalents at start of period               2,296          1,367          1,367 
-------------------------------------------------  -------------  -------------  ------------- 
Cash and cash equivalents at end of period                 6,073            353          2,296 
-------------------------------------------------  -------------  -------------  ------------- 
 

Note to the statement of Group cash flows

For the half year ended 30 September 2018

 
                                                        Six months     Six months       Year 
                                                             ended          ended      ended 
                                                      30 September   30 September   31 March 
                                                              2018           2017       2018 
                                                         Unaudited      Unaudited    Audited 
                                                           GBP'000        GBP'000    GBP'000 
---------------------------------------------------  -------------  -------------  --------- 
Loss before income tax                                       (788)          (772)    (1,561) 
Adjustments for: 
Share-based payments                                           108             31         72 
Depreciation and amortisation                                  226            290        604 
Impairment                                                       -              -        191 
Disposal of non-current assets                                   -              -          4 
Finance cost                                                    23             21         50 
R&D tax credit repayment                                        56              -         72 
Increase in inventories                                      (167)           (65)       (73) 
Decrease/(increase) in trade and other receivables              62            178      (569) 
(Decrease)/increase in trade and other payables              (340)          (693)      (697) 
---------------------------------------------------  -------------  -------------  --------- 
Cash used in operations                                      (820)        (1,010)    (1,907) 
---------------------------------------------------  -------------  -------------  --------- 
 

Notes to the unaudited interim statements

For the half year ended 30 September 2018

1. Basis of preparation

Versarien plc is an AIM quoted company incorporated and domiciled in the United Kingdom under the Companies Act 2006. The Company's registered office and its principal place of business is 2 Chosen View Road, Cheltenham, Gloucestershire, GL51 9LT.

The interim financial statements were prepared by the Directors and approved for issue 6 December 2018. These interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2018 were approved by the Board of Directors on 17 August 2018 and delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain statements under sections 498 (2) or (3) of the Companies Act 2006.

As permitted, these interim financial statements have been prepared in accordance with UK AIM Rules and IAS 34, "Interim Financial Reporting" as adopted by the European Union. They should be read in conjunction with the annual financial statements for the year ended 31 March 2018, which have been prepared in accordance with IFRS as adopted by the European Union. The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 March 2018, as described in those annual financial statements. Where new standards or amendments to existing standards have become effective during the year, there has been no material impact on the net assets or results of the Group.

These interim financial statements have been prepared on a going concern basis using similar assumptions to those made in the statutory accounts to 31 March 2018.

Certain statements within this report are forward looking. The expectations reflected in these statements are considered reasonable. However, no assurance can be given that they are correct. As these statements involve risks and uncertainties the actual results may differ materially from those expressed or implied by these statements.

The interim financial statements have not been audited.

2. Segmental information

 
                                                        Metallic 
                                           Graphene      and Hard 
                                          and Plastic      Wear     Intra-group 
                               Central     Products      Products    Adjustments    TOTAL 
                                                       ----------  ------------- 
                               GBP'000        GBP'000     GBP'000        GBP'000   GBP'000 
                              --------  -------------  ----------  ------------- 
 Six months to 30 September 
  2018 
 Sales                               -          2,790       2,425              -     5,215 
 Gross Margin                        -            707         736              -     1,443 
 Other operating income              -              -           2              -         2 
 Operating expenses              (436)        (1,082)       (594)           (26)   (2,138) 
 Exceptional items                (72)              -           -              -      (72) 
 (Loss)/ profit from 
  operations                     (508)          (375)         144           (26)     (765) 
 Finance income/(charge)             -            (9)        (14)              -      (23) 
                              --------                 ----------  -------------  -------- 
 (Loss)/profit before 
  tax                            (508)          (384)         130           (26)     (788) 
                                        -------------  ----------  -------------  -------- 
 
 
 
   2. Segmental information 
   (continued) 
                              ------------------------------------------------------------ 
                                                        Metallic 
                                           Graphene      and Hard 
                                          and Plastic      Wear     Intra-group 
                               Central     Products      Products    Adjustments     TOTAL 
                               GBP'000        GBP'000     GBP'000        GBP'000   GBP'000 
 Six months to 30 September 
  2017 
 Sales                               -          2,207       2,173              -     4,380 
 Gross Margin                        -            531         538              -     1,069 
 Other operating income              -              -          28              -        28 
 Operating expenses              (276)          (896)       (664)           (12)   (1,848) 
 Exceptional items                   -              -           -              -         - 
 (Loss)/profit from 
  operations                     (276)          (365)        (98)           (12)     (751) 
 Finance income/(charge)           (1)           (10)        (10)              -      (21) 
                              --------  -------------  ----------  -------------  -------- 
 (Loss)/ profit before 
  tax                            (277)          (375)       (108)           (12)     (772) 
                                        -------------  ----------  -------------  -------- 
 
 

3. Exceptional items

 
                                         Six months     Six months 
                                              ended          ended  Year ended 
                                       30 September   30 September    31 March 
                                               2018           2017        2018 
                                          Unaudited      Unaudited     Audited 
                                            GBP'000        GBP'000     GBP'000 
------------------------------------  -------------  -------------  ---------- 
Acquisition costs                                61              -           - 
Relocation and restructuring costs                -              -          31 
Release of deferred consideration                 -              -        (80) 
Impairment of development costs net 
 of deferred grant income release                 -              -          72 
Other                                            11              -          11 
------------------------------------  -------------  -------------  ---------- 
                                                 72              -          34 
------------------------------------  -------------  -------------  ---------- 
 

Acquisition costs related mainly to the purchase of Gnanomat S.L. and fees associated with the expansion into China.

4. Loss per share

The loss per share has been calculated by dividing the loss after taxation of GBP659,000 (2017: GBP711,000) by the weighted average number of shares in issue of 148,859,000 (2017: 131,331,000 during the period.

The calculation of the diluted earnings per share is based on the basic earnings per share adjusted to allow for the issue of shares on the assumed conversion of all dilutive options. However, in accordance with IAS33 "Earnings per Share", potential Ordinary shares are only considered dilutive when their conversion would decrease the profit per share or increase the loss per share. As at 30 September 2018 there were 14,090,422 (2017: 3,819,862) potential Ordinary shares that have been disregarded in the calculation of diluted earnings per share as they were considered non-dilutive at that date.

5. Intangible assets

 
                                     30 September  30 September  31 March 
                                             2018          2017      2018 
                                        Unaudited     Unaudited   Audited 
                                          GBP'000       GBP'000   GBP'000 
-----------------------------------  ------------  ------------  -------- 
 
Goodwill                                    2,167         2,167     2,167 
Customer relationships/order books             87           152       113 
Development costs                             390           390       235 
Licence                                        29            37        33 
Intellectual property                         139           131       130 
-----------------------------------  ------------  ------------  -------- 
Total                                       2,812         2,877     2,678 
-----------------------------------  ------------  ------------  -------- 
 

6. Dividends

As stated in the 2013 AIM Admission document the Board's objective is to continue to grow the Group's business and it is expected that any surplus cash resources will, in the short to medium term, be re-invested into the research and development of the Group's products. In view of this, no dividend is declared and the Directors will not be recommending a dividend for the foreseeable future. However, the Board intends that the Company will recommend or declare dividends at some future date once they consider it commercially prudent for the Company to do so, bearing in mind its financial position and the capital resources required for its development.

7. Interim Report

This interim announcement is available on the Group's website at www.versarien.com

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR UGGAWPUPRGRA

(END) Dow Jones Newswires

December 06, 2018 02:01 ET (07:01 GMT)

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