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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Versarien Plc | LSE:VRS | London | Ordinary Share | GB00B8YZTJ80 | ORD 0.01P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.0075 | 7.32% | 0.11 | 0.102 | 0.11 | 0.11 | 0.11 | 0.11 | 3,701,669 | 11:52:16 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Chemicals & Chem Preps, Nec | 11.64M | -8.07M | -0.0244 | -0.05 | 363.86k |
From Apr 2019 to Apr 2024
TIDMVRS
RNS Number : 7513F
Versarien PLC
17 July 2019
17 July 2019
Versarien Plc
("Versarien" or the "Company" or the "Group")
Preliminary Results for the year ended 31 March 2019
Versarien Plc (AIM:VRS), the advanced engineering materials group, is pleased to announce its unaudited results for the year ended 31 March 2019.
Operational highlights
Hot Features
Premium
-- Thirteen new graphene application collaborations and MOU agreements
secured during the year, with one entered into post period,
with partners based in the UK and overseas
-- Versarien joined the Graphene Engineering Innovation Centre
("GEIC") as a tier one member gaining access to development
and scale-up facilities worth c.GBP60 million
-- Continued investment in capital equipment as collaboration
agreements progress
-- Acquisition of Gnanomat S.L. ("GNA"), a company based in Spain
developing energy storage technology
-- Establishment of a US subsidiary, Versarien Graphene Inc.,
to exploit opportunities in North America
-- UK Government continues to support the Company's international
expansion plans by seconding staff to Versarien, an 'Export
Champion'
-- Polygrene(TM) launched, a new graphene enhanced polymer to
improve thermal and electricity conductivity
-- Mature businesses showing steady financial performance providing
stability for the emerging businesses
Financial highlights
-- Group revenues remained steady at GBP9.14 million (2018: GBP9.02
million)
-- Adjusted LBITDA* of GBP1.1 million (2018: GBP0.8 million)
-- Loss before tax of GBP2.8 million (2018: GBP1.6 million) after
share based payments charge in the year of GBP0.7 million (2018:
GBP0.1 million)
-- Cash at 31 March 2019 of GBP4.3 million (2018: GBP2.3 million)
-- Successful fundraising of GBP5.2 million gross in September
2018
-- Net assets increased by 66% to GBP13.3 million (2018: GBP8.0
million)
* Adjusted LBITDA (Loss before interest, tax, depreciation and amortisation) excludes exceptional items and share based payment charges.
Post Period Highlights
-- Versarien became the first company in the world to complete
the US Graphene Council's 'Verified Graphene Producer' programme
validating our technology to customers and collaborators
-- First graphene orders received from the USA and Japan
-- Term Sheet signed with the Beijing Institute of Graphene Technology
("BIGT") for China expansion
-- EU 'REACH' approval to produce up to 10 tonnes of graphene per
annum received
-- Appointment of Susan Bowen as a Non-executive Director
Commenting on the results, Neill Ricketts, Chief Executive Officer of Versarien, said: "The year to 31 March 2019 has, again, been one of great progress for Versarien particularly in our emerging technologies businesses, globally and in the UK. The graphene businesses have delivered on our strategy of expansion into global markets and progress is being seen in our existing collaborations, as well as new collaborations being entered into. We look forward to showcasing our new technologies at future investor events.
"Having spent some time examining opportunities for expansion into China, the Board concluded that the best one lies with BIGT and consequently signed a term sheet with them in April 2019. A wholly owned foreign enterprise is being established and will be managed by BIGT on behalf of Versarien, with planned investment from a BIGT managed fund. BIGT will focus on both the manufacture and sale of our graphene in China using our patented technology.
"Opportunities in South Korea, Japan and India are emerging as a result of the support given to us by the UK Government seconded staff and we have established operations in North America, albeit they are at an early stage.
"New graphene production equipment has been installed in the UK and is now up and running at our Cheltenham manufacturing site which will enable us to meet the initial expected demands of our graphene based products. Testing of new equipment is underway which, if successful, would expand our production capacity to up to 30 tonnes per annum of high quality graphene. Manufacture and sale of graphene at these levels requires certain permissions under EU regulations and I am pleased to report that we have been successful in our registration and are now accredited to produce significant volumes of graphene under the EU rules for chemical production.
"Our mature businesses have focussed on efficiency gains and overall have returned acceptable results whilst also looking at opportunities for inclusion of graphene in their future products. This includes using graphene in headphones and mobile phone cases, through to producing Hexotene enhanced ceramics for use in satellite engines.
"I would like to take this opportunity to thank our continually supportive investor base and our employees for their hard work as we look forward to the future with optimism and confidence."
For further information please contact:
Versarien Plc www.versarien.com Neill Ricketts - Chief Executive Officer +44 (0) 1242 269122 Chris Leigh - Chief Financial Officer Cannacord Genuity Group Inc (Nominated Adviser and Broker) Bobbie Hilliam / Emma Gabriel +44 (0)20 7523 8000 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 Limited, 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 Ltd, 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, fast recharging and long lifetime 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
Versarien consists of two main business segments; Graphene and Plastic Products focussed on delivering graphene solutions through plastics and carbon fibre composites, and Hard Wear and Metallic Products focussed on delivering aluminium and tungsten carbide products.
Graphene and Plastic Products
The graphene businesses continue to make significant progress. We are very proud to be the first company in the world to receive independent verification from the US based Graphene Council that has declared our Nanene graphene nano-platelets meet their standards. Not only is this a confirmation of the quality of our product, but also provides us with a competitive advantage.
With the launch of Polygrene(TM) , we have again increased our range of graphene-based products, providing a polymer which can improve thermal and electrical conductivity.
The UK Government continues to provide support to Versarien with seconded staff and has also entered into partnership with us as an 'Export Champion'. This support enables us to increase our global presence and succeed in our global strategy. In China we now have many MOUs (multiple with Fortune 500 companies) which are project related across a multitude of sectors, with work either currently on-going or with preliminary discussions and testing taking place. In South Korea we have two collaboration agreements now in place and discussions with around 20 companies which are on-going and we are engaging with JETRO, a core government organisation for attracting inward investment in Japan. In India we are looking at opportunities for a joint venture arrangement with a suitable partner.
I am pleased to provide an update on our current commercial collaborations:
Date entered Description Current status
into
October 2017 Collaboration with Development of applications continuing
Israel Aerospace with multiple partners, including
Industries GEIC and Warwick Manufacturing
Group ("WMG").
----------------------------- --------------------------------------------
November 2017 Collaboration with Blow moulded bottle samples were
Global Consumer successfully produced at customer
Goods Company facility. Samples currently being
tested and assessed at customer
facility and WMG. A new agreement
has also been signed with a separate
division of this company. The
agreement will focus on the development
of flexible packaging solutions
and seek to utilise graphene properties
in new and existing packaging.
----------------------------- --------------------------------------------
December 2017 Agreement with Global Masterbatch testing completed
Chemical Major with notable improvements in puncture
resistance. Further tests underway
with Graphinks and Hexotene.
----------------------------- --------------------------------------------
January 2018 Agreement with Global First sample garments produced
Apparel Manufacturer and independently tested to industry
standards by a recognised UK based
test house. The results show wide
improvement in key areas when
compared to a non-graphene garment.
The key areas included abrasion
resistance, moisture and air permeability,
water vapour and thermal resistance,
stretch, wicking and drying rate.
A Second batch of garments is
currently being produced and will
go to other engagement partners
for wearer trials.
----------------------------- --------------------------------------------
February 2018 Medical Technology Initial positive discussions have
collaboration at now been held with two leading
Addenbrooke's hospital global manufacturers of dressings
and further multi-partner discussions
will be held in the near future.
----------------------------- --------------------------------------------
February 2018 Agreement with the Production relocation caused temporary
shoemaker Vivobarefoot delay to the project. Initial
compounding of materials has now
been successfully completed with
different variations of materials
and loadings. Further tests now
underway and first samples to
be produced. Commercial understanding
over a launch product in place.
----------------------------- --------------------------------------------
March 2018 Collaboration with Project held up due to change
Team Sky (now Team of sponsor. The parties will re-engage
INEOS) for cycling in September 2019.
equipment
----------------------------- --------------------------------------------
March 2018 Collaboration with Sample parts have been sent to
world leading aerospace us for initial evaluation.
group
----------------------------- --------------------------------------------
April 2018 Agreement with Luxus Active supply chain partner, who
are working with us on various
projects.
----------------------------- --------------------------------------------
May 2018 Consumer goods collaboration Initial testing at limited loadings
for polymer structures showed a demonstrable improvement
in plastics in potential use of plastics.
Targets have now been set to achieve
significant reductions in plastics
use. Further development in bottle
design and weight/percentage loadings
has now commenced.
----------------------------- --------------------------------------------
June 2018 Agreement with Arrow IP application submitted for initial
Green Tech water-soluble polymer. Engagement
underway in India with multiple
companies across various sectors.
----------------------------- --------------------------------------------
June 2018 Commercial agreement First earphones launched into
with MediaDevil the market in December 2018, with
next generation products now being
designed. In addition, new accessories
such as phone cases with graphene
have now been tested, with launch
dates currently being planned.
----------------------------- --------------------------------------------
July 2018 Collaboration with Trials continue with different
ZapGo Ltd materials and loadings.
----------------------------- --------------------------------------------
August-2018 Sporting goods collaboration Initial trials of a new Polygrene
mix show significant improvement
in outer soles with further development
now underway. In addition, work
has commenced on a new design
for another variation of football
shoe. Confirmation that this partner
will also feature in the wearer
trials for the garments referred
to in the update with the global
apparel manufacturer.
----------------------------- --------------------------------------------
August-2018 Collaboration with Consortium of companies exploring
Axia Materials, further funding opportunities
South Korea and potential new partners.
----------------------------- --------------------------------------------
August-2018 Construction materials Collaboration progressing well
collaboration with with additional collaboration
AECOM agreement signed to investigate
graphene enhanced concrete structures.
----------------------------- --------------------------------------------
October-2018 Collaboration with Testing underway at customer facility.
Advanced Insulation
----------------------------- --------------------------------------------
December 2018 Collaboration with Work plan created with involved
Chinese Aerospace multiple partners, including GEIC
Company and WMG.
----------------------------- --------------------------------------------
December 2018 MOU China Railway Several projects are now underway
including concrete projects which
feature multiple partners, including
GEIC.
----------------------------- --------------------------------------------
December 2018 LOI/MOU Tungshu Our collaboration with Tungshu
Optoelectronics is continuing with a number of
projects identified. These include
flexible packaging, thermal interfaces
for heat dissipation in electronics,
thermoplastic components, various
electrical devices and using graphene
insole sensors in Tungshu's smart
wearables.
----------------------------- --------------------------------------------
March 2019 Further collaboration Workplan created with involved
with Chinese Aerospace multiple partners, including GEIC
Company and WMG.
----------------------------- --------------------------------------------
May 2019 Collaboration agreement Initial workflow plan agreed and
with BP Polymers being implemented.
----------------------------- --------------------------------------------
The level of our graphene related sales is mainly dependent upon the rate at which our collaborations progress. The year under review has seen significant progress which is expected to validate our business model and provide future sales growth from the current minimal levels. Alongside the collaborations, we have seen an increase in interest following our Graphene Council verification with our first orders from partners in USA and Japan post period end.
During the year we have invested in new plant and equipment aimed at increasing annual production capacity to three tonnes of graphene and one tonne of Hexotene by the end of 2019. This should enable us to meet the expected demand for our high-quality graphene-based products.
We are now in discussions with many cities, provinces and companies in China, and have signed a Term Sheet with BIGT in April 2019. Final contracts have yet to be completed, so there cannot be certainty, but the intention is that other interested parties and regions will form tier two investment opportunities in joint ventures to be agreed.
Since its acquisition in October 2018, GNA has been awarded a patent by the Oficina Espanola de Patentes y Marcas, the Spanish patent office, covering a method of obtaining nanomaterials composed of carbonaceous material and metallic oxides. This has also been filed under the PCT regime.
GNA has also recruited a new Chief Technology Officer and successfully completed the testing of its pilot production plant. It has also entered into collaboration agreements with two supercapacitor manufacturers and is in dialogue with a further three global supercapacitor manufacturers, as well as participating in the European Battery Alliance.
AAC Cyroma, our plastics business, was principally a strategic purchase to allow us to incorporate graphene into plastic products as well as providing revenue and cash flow in its own right. Its revenues have remained stable and returned a reasonable result whilst working with the first mover collaborations, such as with Media Devil and its own customer base, with samples being provided for customer testing.
Hard Wear and Metallic Products
Our Hard Wear parts business has performed in line with the previous year and a recent review of operations has been conducted to improve operational efficiencies. It is particularly pleasing that it has seen an increase it its recent order books and is now involved in a project involving the use of Hexotene in ceramics. We have previously stated that the thermal/aluminum products business is non-core, but nonetheless recent restructuring has improved its business performance.
Key performance indicators
As a Group that consists of mature products supporting the development of early stage technology products, we concentrate on the following financial metrics:
2019 2018
GBP'000 GBP'000
Revenue 9,140 9,024
--------- ---------
Gross margin percentage 27% 28%
--------- ---------
Loss before interest, tax, depreciation, amortisation,
exceptional costs and share based charges (1,134) (801)
--------- ---------
Cash used by Graphene and Plastic Products (1,305) (1,090)
--------- ---------
Cash used by Hard Wear and Metallic Products (266) (82)
--------- ---------
Cash raised/(utilised) by parent (before loans
to/from subsidiaries) 3,567 2,101
--------- ---------
Net Cash raised and generated/(used) by the Group 1,996 929
--------- ---------
Current trading and outlook
The Group has started the new financial year very positively, with pleasing levels of revenue and profit from its Plastics and Hard Wear and Metallic businesses. With the investment in operational efficiencies made in the year ended 31 March 2019, we anticipate a further positive impact to the results in the current financial year.
We have also seen progress in the US, with four new collaboration agreements having been recently entered into in North America, and were pleased to announce that we received our first order in June 2019 for 12kg of our graphene from a US based company, operating in the oil and gas exploration sector. We also look forward to working with potential new US based partners following the American Graphene Summit in May 2019, where Versarien was a leading participant.
We also look to the future with great excitement regarding our expansion into China, South Korea and Japan which could bring significant growth for the graphene businesses. We have already seen our first order from a North American corporate research and development centre of a Japanese headquartered company. This customer is a global automotive components company that has operations in over 40 countries, employing in excess of 250,000 people.
This current year we expect, with confidence, to see the benefits of the many achievements and progress that we have accomplished during the year ended 31 March 2019, and the continued trend of increased orders for our products.
Neill Ricketts
Chief Executive Officer
Financial Review
Versarien's revenue for the year ended 31 March 2019 was GBP9.1 million (2018: GBP9.0 million) with operating losses before exceptional costs, depreciation, amortisation and share based payment charges of GBP1.1 million (2018: GBP0.8 million).
Exceptional costs were GBP0.4 million (2018: GBP0.03 million) as a result of the Group's focus on global expansion and growth through acquisition. The loss before tax for the year was GBP2.8 million (2018: GBP1.6 million), after share based payment charges of GBP0.7 million in the year (2018: GBP0.1 million).
It is the Board's intention to continue to align shareholder and senior staff interests through the award of share options rather than just remuneration. IFRS 2 (share based payments) dictates the accounting treatment of such options using simulations such as Black Scholes or Monte Carlo to try and determine the fair value of such awards. These models contain many assumptions, but one which has a material impact on the valuation is share volatility. Versarien, in line with many other AIM quoted shares, has seen a high level of volatility since being admitted to AIM. The consequence of this is that such simulation models allow for large share price movements resulting in a high charge in the year of GBP0.7 million (2018: GBP0.1 million). This is a non-cash movement in the accounts and is simply an accounting transaction required under IFRS 2 to reflect the potential future value of the shares.
As part of the expansion of our graphene businesses in the UK and overseas, we have continued to invest heavily in them. We are confident, that whilst revenues of any material amount have yet to be achieved, with the investment that we have made, the accreditations awarded and progress of our collaborations this year, significant future revenues will be achieved. Adjusted LBITDA for the graphene businesses was GBP1.1 million (2018: GBP0.9 million).
Our plastics business, AAC Cyroma has had a steady year, returning revenues of GBP4.7 million (2018: GBP4.6 million) and EBITDA of GBP0.2 million (2018: GBP0.4 million).
Our mature Hard Wear and Metallic businesses have provided stability to support the development of the emerging businesses, with Total Carbide returning revenues of GBP3.2 million (2018: GBP3.2million) and EBITDA of GBP0.5 million (2018: GBP0.5 million) and Versarien Technologies similarly returning revenues of GBP1.2 million (2018: GBP1.2 million) and adjusted LBITDA of GBP0.1 million (2018 GBP0.1 million).
Group net assets at 31 March 2019 were GBP13.3 million (2018: GBP8.0 million) following the acquisition of Gnanomat S.L. ("GNA"). The consideration for the acquisition was GBP2,647,000 settled by cash of GBP0.7 million, by way of GNA issuing new shares in its company to Versarien, and the issue of 1,316,278 new ordinary shares of 1 pence each in Versarien to existing GNA shareholders at an agreed price of 150 pence per share. In September 2018 the Group successfully raised GBP5.2 million before expenses, and at the year end the Group had cash of GBP4.3m (2018: GBP2.3 million), of which GBP0.6 million (2018: GBP1.1 million) had been drawn under the invoice finance facilities. As at period end the Company had GBP0.6 million of headroom in its invoice finance facilities (2018: GBP0.7 million). The Directors consider this sufficient for our current activities over the coming twelve months having made certain assumptions, further details of which are contained below.
Cash outflow from operating activities was GBP1.7 million (2018: GBP1.9 million). The Group invested GBP0.7 million, net of cash, in acquisitions (2018: GBPnil), GBP0.4 million (2018: GBP0.1 million) in capitalised development costs, and GBP0.5 million (2018: GBP0.3 million) in plant and machinery.
Going concern
The financial statements, which are not yet approved, have been prepared on a going concern basis, which the Directors believe to be appropriate for the following reasons:
-- The Group meets its day-to-day working capital requirements through careful cash management and the use of its invoice discounting facilities; and
-- As at 31 March 2019, the Group had cash balances totalling GBP4.3 million with GBP0.6 million of headroom on its invoice discounting facilities.
The Directors have prepared detailed projections of expected future cash flows for a period of twelve months from the date of issue of this preliminary statement. These show that the Group is expected to have sufficient cash available to meet its obligations as they fall due for the foreseeable future (at least twelve months). These projections assume modest sales growth in the mature revenue generating businesses and the continued utilisation of the invoice finance facilities.
After due consideration, the Directors have concluded that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future (at least twelve months). For this reason, they continue to adopt the going concern basis in preparing the consolidated financial statements.
Chris Leigh
Chief Financial Officer
Group statement of comprehensive Income (unaudited)
Year ended 31 March 2019
2019 2018
Notes GBP'000 GBP'000
-------------------------------------------------- ----- --------- --------
Continuing operations
Revenue 2 9,140 9,024
Cost of sales (6,706) (6,496)
-------------------------------------------------- ----- --------- --------
Gross profit 2,434 2,528
Other operating income 148 63
Operating expenses (including exceptional items) (5,345) (4,102)
-------------------------------------------------- ----- --------- --------
Loss from operations before exceptional items (2,343) (1,477)
Exceptional items 3 (420) (34)
-------------------------------------------------- ----- --------- --------
Loss from operations (2,763) (1,511)
Finance costs (66) (50)
Finance income - -
-------------------------------------------------- ----- --------- --------
Loss before income tax (2,829) (1,561)
Income tax 117 63
-------------------------------------------------- ----- --------- --------
Loss for the year (2,712) (1,498)
-------------------------------------------------- ----- --------- --------
Loss attributable to:
- Owners of the parent company (2,473) (1,381)
- Non-controlling interest (239) (117)
-------------------------------------------------- ----- --------- --------
(2,712) (1,498)
-------------------------------------------------- ----- --------- --------
Loss per share attributable to the equity holders
of the Company:
Basic and diluted loss per share 5 (1.64)p (1.00)p
-------------------------------------------------- ----- --------- --------
There is no other comprehensive income for the year.
Group statement of financial position (unaudited)
As at 31 March 2019
2019 2018
Notes GBP'000 GBP'000
---------------------------------------------------- ----- -------- --------
Assets
Non-current assets
Intangible assets 6 5,318 2,678
Property, plant and equipment 7 3,170 2,980
Deferred taxation 25 25
---------------------------------------------------- ----- -------- --------
8,513 5,683
---------------------------------------------------- ----- -------- --------
Current assets
Inventory 2,253 1,961
Trade and other receivables 2,141 2,437
Current tax 106 77
Cash and cash equivalents 4,292 2,296
---------------------------------------------------- ----- -------- --------
8,792 6,771
---------------------------------------------------- ----- -------- --------
Total assets 17,305 12,454
---------------------------------------------------- ----- -------- --------
Equity
Called up share capital 8 1,536 1,486
Share premium account 8 19,776 12,529
Merger reserve 1,256 1,256
Share-based payment reserve 899 187
Retained losses (9,698) (7,225)
---------------------------------------------------- ----- -------- --------
Equity attributable to owners of the parent company 13,769 8,233
Non-controlling interest (493) (254)
---------------------------------------------------- ----- -------- --------
Total equity 13,276 7,979
---------------------------------------------------- ----- -------- --------
Liabilities
Non-current liabilities
Trade and other payables 328 167
Deferred tax 69 64
Long-term borrowings 708 456
---------------------------------------------------- ----- -------- --------
1,105 687
---------------------------------------------------- ----- -------- --------
Current liabilities
Trade and other payables 1,528 1,849
Provisions 174 80
Current tax 257 284
Invoice discounting advances 603 1,117
Current portion of long-term borrowings 362 458
---------------------------------------------------- ----- -------- --------
2,924 3,788
---------------------------------------------------- ----- -------- --------
Total liabilities 4,029 4,475
---------------------------------------------------- ----- -------- --------
Total equity and liabilities 17,305 12,454
---------------------------------------------------- ----- -------- --------
Group statement of changes in equity (unaudited)
Year ended 31 March 2019
Share Share-based Non-controlling
Share premium Merger payment Accumulated Interest Total
capital account reserve reserve losses GBP'000 equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------- -------- -------- -------- ----------- ----------- ---------------- --------------
At 1 April 2017 1,313 9,762 1,256 115 (5,844) (137) 6,465
Issue of shares 173 2,767 - - - - 2,940
Loss for the year - - - - (1,381) (117) (1,498)
Share-based payments - - - 72 - - 72
--------------------- -------- -------- -------- ----------- ----------- ---------------- --------------
At 31 March 2018 1,486 12,529 1,256 187 (7,225) (254) 7,979
Issue of shares 50 7,247 - - - - 7,297
Loss for the year - - - - (2,473) (239) (2,712)
Share-based payments - - - 712 - - 712
--------------------- -------- -------- -------- ----------- ----------- ---------------- --------------
At 31 March 2019 1,536 19,776 1,256 899 (9,698) (493) 13,276
--------------------- -------- -------- -------- ----------- ----------- ---------------- --------------
Statement of Group cash flows (unaudited)
Year ended 31 March 2019
2019 2018
Notes GBP'000 GBP'000
------------------------------------------------- ----- --------- ---------
Cash flows from operating activities
Cash used in operations 9 (1,737) (1,907)
Interest paid (66) (50)
Corporation Tax paid - (9)
------------------------------------------------- ----- --------- ---------
Net cash used in operating activities (1,803) (1,966)
------------------------------------------------- ----- --------- ---------
Cash flows from investing activities
Acquisition of subsidiaries (net of cash
acquired) (673) -
Purchase of intangible assets (434) (148)
Purchase of property, plant and equipment (541) (280)
Net cash used in investing activities (1,648) (428)
------------------------------------------------- ----- --------- ---------
Cash flows from financing activities
Share issue 5,155 3,069
Share issue costs (200) (129)
Finance leases (net of repayments) 156 1
Invoice discounting loan (repayments)/proceeds (514) 382
------------------------------------------------- ----- --------- ---------
Net cash generated from financing activities 4,597 3,323
------------------------------------------------- ----- --------- ---------
Increase/(decrease) in cash and cash equivalents 1,146 929
Cash acquired on acquisition 850 -
Cash and cash equivalents at beginning of
year 2,296 1,367
------------------------------------------------- ----- --------- ---------
Cash and cash equivalents at end of year 4,292 2,296
------------------------------------------------- ----- --------- ---------
Notes to the Financial Statements (unaudited)
1. Basis of preparation
The consolidated financial statements consolidate the results of the Company and its subsidiaries (together referred to as the "Group").
The financial information included in this preliminary announcement does not constitute statutory accounts of the Group for the years ended 31 March 2019 or 31 March 2018. The financial information for the year ended 31 March 2018 is derived from statutory accounts upon which the auditors have reported. Their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006. The auditors work on the statutory accounts of the Group for the year ended 31 March 2019 is not yet complete.
Both the consolidated financial statements and the Company financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU ("IFRS").
2. Segmental reporting
At 31 March 2019 the Group was organised into two business segments. Central costs are reported separately.
Information reported to the Group's Chief Executive Officer for the purposes of resource allocation and assessment of performance is focused on the two principal business segments of Graphene and Plastic Products and Hard Wear and Metallic Products and, accordingly, the Group's reportable segments under IFRS 8 are based on these activities.
Segment profit/(loss) represents the profit/(loss) earned by each segment, including a share of central administration costs, which are allocated on the basis of actual use or pro rata to sales. This is the measure reported to the Chief Executive Officer for the purposes of resource allocation and assessment of segment performance.
The segment analysis for the period ended 31 March 2019 is as follows:
Graphene Hard Wear
and Plastic and Metallic Intra-group
Central Products Products adjustments Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- ------------ -------------- ------------ --------
Revenue - 4,729 4,416 (5) 9,140
-------------------------- -------- ------------ -------------- ------------ --------
Gross profit - 1,064 1,370 - 2,434
Other operating income - 144 4 - 148
Operating expenses (1,430) (2,582) (1,274) (59) (5,345)
-------------------------- -------- ------------ -------------- ------------ --------
(Loss) from operations (1,430) (1,374) 100 (59) (2,763)
Finance income/(charge) 3 (43) (26) - (66)
-------------------------- -------- ------------ -------------- ------------ --------
(Loss)/profit before tax (1,427) (1,417) 74 (59) (2,829)
-------------------------- -------- ------------ -------------- ------------ --------
Total assets 16,058 5,536 4,780 (9,069) 17,305
Total liabilities (1,107) (6,963) (4,068) 8,109 (4,029)
-------------------------- -------- ------------ -------------- ------------ --------
Net assets/(liabilities) 14,951 (1,427) 712 (960) 13,276
-------------------------- -------- ------------ -------------- ------------ --------
Capital expenditure 166 775 34 - 975
Depreciation/amortisation 13 245 207 32 497
-------------------------- -------- ------------ -------------- ------------ --------
The segment analysis for the period ended 31 March 2018 is as follows:
Graphene Hard Wear
and Plastic And Metallic Intra-group
Central Products Products adjustments Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- ------------ -------------- ------------ --------
Revenue - 4,643 4,385 (4) 9,024
-------------------------- -------- ------------ -------------- ------------ --------
Gross profit - 1,198 1,330 - 2,528
Other operating income - 9 54 - 63
Operating expenses (695) (1,918) (1,437) (52) (4,102)
-------------------------- -------- ------------ -------------- ------------ --------
(Loss) from operations (695) (711) (53) (52) (1,511)
Finance income/(charge) - (21) (29) - (50)
-------------------------- -------- ------------ -------------- ------------ --------
(Loss) before tax (695) (732) (82) (52) (1,561)
-------------------------- -------- ------------ -------------- ------------ --------
Total assets 9,264 4,575 4,911 (6,296) 12,454
Total liabilities (897) (5,358) (4,345) 6,125 (4,475) -------------------------- -------- ------------ -------------- ------------ -------- Net assets/(liabilities) 8,367 (783) 566 (171) 7,979 -------------------------- -------- ------------ -------------- ------------ -------- Capital expenditure 2 373 53 - 428 Depreciation/amortisation and impairment 5 227 511 52 795 -------------------------- -------- ------------ -------------- ------------ --------
Geographical information
The Group's revenue from external customers and information about its segment assets by geographical location are detailed below:
Revenue from external
customers Non-current assets
----------------------- --------------------
2019 2018 2019 2018
GBP'000 GBP'000 GBP'000 GBP'000
--------------- ----------- ---------- --------- ---------
United Kingdom 7,577 7,657 6,203 5,683
Rest of Europe 1,065 1,002 2,310 -
North America 306 2 - -
Other 192 363 - -
--------------- ----------- ---------- --------- ---------
9,140 9,024 8,513 5,683
--------------- ----------- ---------- --------- ---------
3. Exceptional items
2019 2018
GBP'000 GBP'000
Relocation and restructuring costs 59 31
Costs relating to expansion in China 271 -
Costs relating to setting up of the US subsidiary 28 -
Acquisition costs 29 -
Release of deferred consideration - (80)
Impairment of development costs (note 6) net of deferred
grant income release - 72
Other 33 11
--------------------------------------------------------- -------- --------
420 34
--------------------------------------------------------- -------- --------
4. Dividends
As stated in the Company's AIM Admission Document, the Board will not be declaring or proposing any dividends until such time as the commercialisation of its product portfolio has generated sufficient distributable reserves from which to do so.
5. Loss per ordinary share
The calculation of the basic loss per share for the period ended 31 March 2019 and 31 March 2018 is based on the losses attributable to the shareholders of Versarien Plc divided by the weighted average number of shares in issue during the year. The calculation of diluted loss per share is based on the basic loss per share adjusted to allow for the issue of shares on the assumed conversion of all dilutive options. However, in accordance with IAS 33 "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 31 March 2019 there were 14,985,100 (2018: 8,222,830) potential ordinary shares which have been disregarded in the calculation of diluted loss per share as they were considered non-dilutive at that date.
Weighted
Loss average
attributable number
to of Basic loss
shareholders shares per share
GBP'000 GBP'000 pence
------------------------- ------------- -------- ----------
Year ended 31 March 2019 (2,473) 151,129 (1.64)
Year ended 31 March 2018 (1,381) 138,208 (1.00)
------------------------- ------------- -------- ----------
6. Intangible assets
Other
Goodwill intangibles Total
GBP'000 GBP'000 GBP'000
---------------------------------------- -------- ------------ -------------
Cost
At 1 April 2017 2,167 1,395 3,562
Additions - 148 148
---------------------------------------- -------- ------------ -------------
At 1 April 2018 2,167 1,543 3,710
Additions - 434 434
Disposals - (21) (21)
Acquisitions 2,264 20 2,284
---------------------------------------- -------- ------------ -------------
At 31 March 2019 4,431 1,976 6,407
---------------------------------------- -------- ------------ -------------
Accumulated amortisation and impairment
At 1 April 2017 - 639 639
Impairment 191 191
Amortisation charge - 202 202
---------------------------------------- -------- ------------ -------------
At 1 April 2018 - 1,032 1,032
Disposals (13) (13)
Amortisation charge - 70 70
At 31 March 2019 - 1,089 1,089
---------------------------------------- -------- ------------ -------------
Carrying value
At 31 March 2019 4,431 887 5,318
---------------------------------------- -------- ------------ -------------
At 31 March 2018 2,167 511 2,678
---------------------------------------- -------- ------------ -------------
The impairment of Other Intangibles in 2018 relates to development costs in Versarien Technologies Limited as per exceptional items, note 3.
Other intangible assets
31 March 2019 31 March 2018
GBP'000 GBP'000
----------------------------------- ------------- -------------
Customer relationships/order books 81 113
Development costs 600 235
Licence 48 33
Intellectual property 158 130
----------------------------------- ------------- -------------
Total 887 511
----------------------------------- ------------- -------------
7. Property, plant and equipment
Plant and Leasehold
equipment improvements Total
Group GBP'000 GBP'000 GBP'000
------------------------- ---------- ------------- --------
Cost
At 1 April 2017 9,024 488 9,512
Additions 250 30 280
Disposals (27) - (27)
------------------------- ---------- ------------- --------
At 1 April 2018 9,247 518 9,765
Additions 541 - 541
Acquisitions 76 - 76
Disposals (2) - (2)
------------------------- ---------- ------------- --------
At 31 March 2019 9,862 518 10,380
------------------------- ---------- ------------- --------
Accumulated depreciation
At 1 April 2017 6,386 20 6,406
Charge for the year 372 30 402
Disposals (23) - (23)
At 1 April 2018 6,735 50 6,785
Charge for the year 393 34 427
Disposals (2) - (2)
------------------------- ---------- ------------- --------
At 31 March 2019 7,126 84 7,210
------------------------- ---------- ------------- --------
Net book value
At 31 March 2019 2,736 434 3,170
------------------------- ---------- ------------- --------
At 31 March 2018 2,512 468 2,980
------------------------- ---------- ------------- --------
Plant and equipment include the following amounts where the Group is a lessee under finance leases and hire purchase contracts:
Group Group
2019 2018
GBP'000 GBP'000
------------------------- -------- --------
Cost 4,453 3,889
Accumulated depreciation (2,567) (2,326)
Net book value 1,886 1,563
------------------------- -------- --------
8. Called up share capital and share premium
Number Ordinary Share
of shares shares premium Total
'000 GBP'000 GBP'000 GBP'000
----------------- ---------- -------- -------- --------
At 1 April 2017 131,331 1,313 9,762 11,075
Issue of shares 17,334 173 2,767 2,940
At 31 March 2018 148,665 1,486 12,529 14,015
Issue of shares 4,959 50 7,247 7,297
At 31 March 2019 153,624 1,536 19,776 21,312
----------------- ---------- -------- -------- --------
9. Cash used in operations
2019 2018
GBP'000 GBP'000
----------------------------------------------------- -------- --------
Loss before tax (2,829) (1,561)
Adjustments for:
Share-based payments 712 72
Depreciation 427 402
Amortisation 70 202
Impairment - 191
Disposal of non-current assets 8 4
R&D tax credit repayment 117 72
Finance cost 66 50
Decrease/(increase) in trade and other receivables 424 (569)
Increase in inventories (292) (73)
Decrease in trade and other payables (440) (697)
----------------------------------------------------- -------- --------
Cash flows from operating activities (1,737) (1,907)
----------------------------------------------------- -------- --------
10. Report and accounts
Copies of the 2019 Annual Report and Accounts will be posted to shareholders in due course once they are finalised and approved. Further copies may be obtained by contacting the Company Secretary at the registered office. In addition, the 2019 Annual Report and Accounts will be available to download from the investor relations section on the Company's website www.versarien.com.
- Ends -
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
FR SFAFWMFUSESW
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July 17, 2019 02:00 ET (06:00 GMT)
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