Versarien plc (LON:VRS), the advanced materials engineering group, will be holding its Annual General Meeting at 10.30 a.m. today, at which the Chair, Diane Savory, will provide the following statement:
“As previously noted, the graphene market-place has proved challenging for all participants, but with a streamlined business and a strong focus we believe Versarien has the potential to deliver significant returns from the commercialisation of its technology.
Our primary focus is on the construction and textiles sectors, which we believe are at the highest technology readiness level, and where we are already starting to see the emergence of commercial revenues. The launch of Umbro’s ProTraining Elite range, including garments incorporating the Company’s Graphene-Wear™ technology, has been a particular highlight. Versarien is focussing on its relationships with Umbro, BiaBrazil and Go To Gym as primary opportunities, whilst continuing dialogue with additional sportswear brands.
In the construction sector the Company has commissioned its 3D concrete printer and successfully completed several projects, including the 3D printed concrete headwall for use in highway construction projects, part of the Digital Roads of the Future Partnership, a collaboration led by the University of Cambridge, Costain and National Highways, of which Versarien is a partner. CementeneTM, which is our graphene admixture for the construction industry, has also been used in a number of concrete pours, providing validation for the technology and we are pursuing the necessary accreditations to allow full-scale commercialisation.
The mature businesses, as previously announced, are no longer core activities for the Company and the Board is evaluating options for divestment to focus solely on exploiting our graphene technology. In addition, the Board is reviewing its overseas operations in Spain and South Korea.
Whilst we remain confident of the commercial benefits of our graphene technology and that it can bring significant returns to Versarien, the Company continues to face a number of challenges that the Board is working hard to overcome.
Neill Ricketts resigned as Chief Executive Officer of the Company on 9 March 2023. Neill had led the Company since it was founded and remains a significant shareholder. Neill is now on garden leave and has ceased to have day-to-day responsibilities, unless required by the Company, but remains a director of Versarien for the duration of his 12 month notice period. The Board would very much like to thank Neill for his contribution and dedication to the Company since its formation and looks forward to his continuing support.
Following Neill’s resignation, the day-to-day activities of the Company are now being led by the executive directors, Chris Leigh and Steve Hodge, and the Board is actively evaluating both the appropriate longer-term strategy for the Company and the recruitment of a new Chief Executive Officer. To aid the Board in developing both its strategic and management plans, it has engaged experienced strategy and turnaround specialist, David Stone, and his firm Prompt Business Strategies Limited, on a consultancy basis.
The Board is also focused on ensuring that the Company has an appropriate cost base for its planned activities and minimising expenditure as far as possible. Significant cost reductions have already occurred, with a reduction in staff numbers and discretionary spend. However, in order to further reduce the Company’s cash expenses the non-executive directors, including myself, have agreed to waive any remuneration from the Company indefinitely. The executive directors’ pay is also being reviewed.
Despite these cost reductions, the Company will require further funding to support its activities. The Board is evaluating all appropriate options, including the proceeds from any disposals, potentially available grant income, possible interest from strategic investors and the potential issue of additional equity, together with the appropriate quantum and timing of any such funding. At this time it is not possible to be more specific on the type of funding that may be secured.
In conclusion, I believe that with the continued hard work and dedication of the Versarien team, coupled with the continued support of our partners and investors, we can overcome the challenges we face and successfully commercialise the Company’s significant technology base. Versarien plc looks forward to providing further updates in due course.”
