Versarien plans to regroup around its commercial graphene applications (Cementene and Graphene Wear) in order to promote a recovery, while also cutting costs to stabilize the business, as the Company stated while also reporting its interim results.
In the results statement, Diane Savory, Versarien’s chair, said: "The period under review was extremely challenging from a financial perspective, both from a balance sheet point of view and with the decline in graphene revenues reflecting the ending of the DSTL development contract”. Revenues in the six months to end March 2023 were £2.62 million (2022: £3.89 million), with losses of £3.4 million (2022: £2.16 million), while cash at the end of the period £0.76 million with a further £0.53 million raised since.
Neill Ricketts departed as chief executive in March this year, following which turnaround specialist David Stone was appointed to assess the group and help with strategic plans.
Versarien’s non-graphene businesses and Hanwha IP are up for sale and if these go through as assumed, the cash runaway currently is 24 months, the Company said.
Specifically, the turnaround plan comprises
* to adopt a manufacturing light approach followed by licencing of technology manufacturing know-how and brands;
* to reduce research and development infrastructure costs whilst maintaining or increasing current staffing levels;
* selling the non-core businesses of Total Carbide and AAC Cyroma;
* selling the IP and assets that originated in the acquisition from Hanwha Aerospace;
* reducing the costs of running the parent company; and
* reducing the manufacturing and infrastructure costs at Lonhope whilst maintaining current staffing levels.
“These actions will result in a much-simplified group with significantly fewer staff,” said Savory. “ The appointment of a new CEO will be deferred until the asset sale process is completed."