Versarien Shares Plunged 28.1% on Mixed 18-Month Final Results

The Versarien PLC (LON: VRS) share price plunged 28.1% after releasing the final results for the 18 months that ended on 30 September 2022. The company generated revenues worth £11.1 million, significantly improving from the £5.7 million generated in 2021.

However, investors were disappointed that the results were being compared to the 12 months to 31 March 2021, making it unequal. Still, the data indicated that Versarien generated more revenue from its graphene operations, that is, £2.1m versus £0.7m in 2021.

Still, the advanced engineering group reported that its adjusted pretax losses rose to £2.4 million compared to the £1.9 million loss recorded in 2021. The firm’s pretax reported losses from continuing operations remained high at £8.3 million, inching higher from 2021’s  £8.1 million loss. 

Versarien highlighted some operational highlights during the 18 months, including relocating its graphene operations to a new facility in Longhope, Gloucestershire, to expand its capacity significantly. 

The company also laid a 10,000 sqft floor slab at the new Versarien innovation centre using its Cementene^TM and Polygrene^TM enhanced concrete. The firm also transferred the Spanish assets it had acquired to its Longhope facility and is about to commission an extra 100-tonne annual powder capacity. 

Versarien also discontinued its non-core aluminium business to focus on its core graphene production business. The firm partnered with Umbro to integrate Graphene-Wear^TM into Umbro’s Elite-Pro-Training Kit range for the 2023 Spring/Summer collection. 

The firm also allowed South America’s GoToGym to incorporate its Graphene-Wear^TM technology into its active wear. It also made a similar deal with BiaBrazil to integrate Graphene-Wear^TM  into its sports and activewear ranges. 

Neill Ricketts, CEO of Versarien, commented: “The extended 18-month period has seen both successes and challenges, with the first 12-months seeing the financial benefits from the DSTL contract, which focussed on understanding the advantages that graphene-loaded materials may bring to defence applications. In the period, we also successfully completed the GSCALE development stage of the project despite the macro‑economic challenges faced, and the Company is now focussing on the most advanced Technology Readiness Level stage projects of construction and textiles.”

*This is not investment advice. 

Versarien share price. 

The Versarien share price plunged 28.08% to trade at 4.79p, from Monday’s closing price of 6.66p.