REG - Versarien PLC - Interim Results
06/12/2021 07:00
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RNS Number : 5811U Versarien PLC 06 December 2021
06 December 2021
Versarien Plc
("Versarien", the "Company" or the "Group")
Interim Results for the six months ended 30 September 2021
Versarien Plc (AIM: VRS), the advanced engineering materials group, is pleased
to announce its unaudited interim results for the six months ended 30
September 2021.
Financial Highlights
● Group revenues from continuing operations up 41% to £3.82 million
(H1 2020: £2.71 million)*
● Graphene revenues up 166% to £0.93 million (H1 2020: £0.35
million)
● Adjusted LBITDA** for continuing operations reduced by 39% to
£0.71 million (H1 2020: £1.16 million)
● Reported loss before tax of £3.11 million (H1 2020: £4.34
million)
● Reported loss before tax from continuing operations of £2.96
million (H1 2020: £4.31 million)
● Cash of £3.46 million at 30 September 2021 (31 March 2021: £2.36
million)
*Excludes discontinued revenues of £0.45 million (H1 2020: £0.41 million)
**Adjusted LBITDA (Loss Before Interest, Tax, Depreciation and Amortisation)
excludes exceptional items, share-based payment charges and other losses)
Operational Highlights
● £1.93 million strategic investment in Versarien by GrapheneLab Co.
Ltd., South Korea, together with royalty and trademark agreements
● Acquisition of Spanish graphene manufacturing assets to provide up to
an additional 100 tonne powder capacity per annum
● Orders placed for the purchase of equipment to scale up ink
production capacity by an additional 12,000 litres per annum
● Lease signed on new dedicated graphene production facility in
Longhope, Gloucestershire
● Textile supply agreement signed with Crosslete and discussions
ongoing with multiple garment suppliers
Post Period Highlights
● Grant agreement signed to support the development of Pseudo-Capacitor
technology aimed at zero emissions for port-side infrastructure
● Commercial agreement signed with Superdry to produce graphene
enhanced garments
● Royalty agreement signed with Gerdau S.A for the distribution of
graphene masks primarily in Latin America
Neill Ricketts, CEO of Versarien, commented:
"The first half of this financial year has seen continued progress in our
pursuit of commercialisation whilst increasing both production capacity and
our global footprint. GSCALE remains on track with particularly pleasing
results in textiles and concrete. We remain conscious of our environmental
obligations which also brings commercial opportunities as we seek to solve
some of the global issues and challenges using graphene and allied two
dimensional materials"
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN
For further information please contact:
Versarien Plc
Neill Ricketts - Chief Executive Officer +44 (0) 1594 887204
Chris Leigh - Chief Financial Officer
SP Angel Corporate Finance (Nominated Adviser and Joint Broker)
Matthew Johnson +44 (0) 20 3470 0470
Ewan Leggat
Adam Cowl
Berenberg (Joint Broker)
Mark Whitmore +44 (0) 20 3207 7800
Ciaran Walsh
Yellow Jersey (Investor Relations) Versarien@yellowjersey.pr.com (mailto:Versarien@yellowjersey.pr.com)
Charles Goodwin +44 (0) 20 3004 9512
Henry Wilkinson
Notes to Editors:
The strategy of Versarien Plc (AIM:VRS) is to be a globally recognised
graphene company with a wide portfolio of high-quality verified materials
allied to the largest relevant IP portfolio supported by its own UK based
research and development centre driving recurring revenue growth through its
innovative graphene product applications.
For further information please see: http://www.versarien.com
(http://www.versarien.com)
Chairman's Statement
I referred in the annual report to the challenges that Covid-19 had presented,
and to the progress that had been made in spite of the restrictions placed
upon us. It is therefore extremely pleasing to be able to report continuing
progress at the interim stage.
In particular, advancements in both textiles and concrete have been made and
the latter brings the opportunity for significant environmental benefits. We
are able to deliver on these projects with the continued support of the UK
government through the IUK loan and the strategic investment from GrapheneLab
Co Ltd., our partner in South Korea.
Continuing progress means we have to scale up production as demonstrated by
the move to dedicated manufacturing facilities in Longhope, Gloucestershire.
At this new facility we are commissioning the recently acquired equipment
sourced from Spain. This is a significant step on our journey to future
revenue generation.
Our global footprint and product portfolio are both important strands of our
strategy to become a global player in the graphene space. We have now
commissioned all the equipment acquired from Hanwha and have been able to
produce high quality CVD single layer graphene suitable for use in the
electronics industry.
As announced in October 2021, I will be standing down at the end of this
calendar year and Diane Savory will be taking up the post. As we develop our
projects, her expertise in managing a public company, chairing the
Gloucestershire LEP and experience in textiles will be invaluable. I wish her
well in what will be an exciting stage of Versarien's development.
James Stewart CBE
Non-executive Chairman
06 December 2021
Chief Executive Officer's Review
As described in the Annual Report, following the focus on graphene and the
discontinuance of the aluminium business, segmental analysis is now split
between technology and mature operations. The GSCALE project is described in
each of the paragraphs below, but in the immediate future management we will
be concentrating on the construction and leisure sectors whilst still
progressing the described activities.
UK Technology Operations
The technology operations are now located in six countries being England,
Ireland, Spain, South Korea, China and America. UK production (G) is now
concentrated at our new 18,000 square foot dedicated graphene facility in
Longhope, Gloucestershire housing production equipment previously located at
Cheltenham as well as the newly arrived plant and equipment from Spain, which
is in the process of commissioning. We are also bringing forward plans for the
occupation of a 10,000 square foot innovation centre currently under
construction which will include graphene enhanced concrete with polypropylene
fibres in the design eliminating the need for steel rebar and providing a
strong demonstrator for the technology.
Carbon fibre developments in transport (S) addresses a UK market worth £4
billion in which graphene enhanced composites can reduce weight and improve
strength. Versarien has been working extensively in the area of graphene
enhanced carbon fibre reinforced polymers( CFRP) for various applications,
many of which can be applied to the automotive sector. Versarien was awarded a
Technology Developer Accelerator Program (TDAP) grant from the Advanced
Propulsion Centre (APC) in 2020 to develop an innovative low-carbon component
which will result in reduced vehicle emissions. The TDAP project has overseen
the development of a low weight, high strength automotive component which can
be directly applied to multiple areas of any vehicle. In partnership with
Lotus Cars, the University of Sheffield's Advanced Manufacturing and Research
Centre (AMRC) and other supply chain partners one outcome from the project is
a graphene enhanced CFRP bonnet assembly for the Lotus Evija electric sports
car. Graphene enhanced CFRP in the Lotus Evija Bonnet has achieved three key
objectives:
1. Mechanical - improved mechanical performance by at least 10% compared to
the base prepreg material (fibrous material pre-impregnated with a particular
synthetic resin)
2. Visual - Surface quality to meet Lotus' paint specification
3. Price - Achieved a 10% -25% cost reduction
All three objectives were achieved using a hot press production process with
lower capital costs and faster manufacturing. Further development will
continue as Versarien and Lotus further optimise the process for use in any
body panel. Several other projects are ongoing that contribute to further
development of enhanced CFRPs for conventional structural supports, which
could provide an innovative alternative for automotive, aerospace and rail
manufacturers.
The mission for construction (C) is to reduce CO(2) emissions. 24.7 million
tons of ready mixed concrete is used in the UK annually and there are 250,000
miles of roads. Significant reductions in CO(2) can be achieved by reducing
the amount of cement used in ready mix whilst still maintaining strength,
reducing curing and drying times and reducing or eliminating the need for
steel. Introducing graphene reinforced concrete, graphene enhanced polymer
fibres and recycled materials has a major impact on reducing CO(2) levels.
Opportunities exist in extending asset life by eliminating cracking, using
graphene enhanced polypropylene chopped fibres to replace ferrous rebar,
development of self healing concrete, faster curing without cracking,
non-destructive microwave rapid repair and 3-dimensional printing.
Studies have shown improved compression strength of ~38%, improved flexural
strength of between 14% and 45%, increased tensile strength of ~15%, improved
water permeability of ~200%, and increased corrosion resistance.
We are working on national highways projects as well as with HS2 for printed
concrete and with non-government bodies on flood defences and rail for light
quick deployment of flexible design buildings as well as having trademarked
Cementene ™ for concrete.
Other project areas include wind turbine bases, building house rafts, water
industry, flooring screed, very light rail structures, slipform roads/runways.
The mission for Polymers (A), is to reduce the amount of fossil fuel based
plastics required where 3.3 million tonnes of plastic is processed in the UK
alone and in particular, to increase the recyclability of packaging plastics
where incorporating graphene in plastic and bio based plastic has a material
effect.
Plastic packaging accounts for 44% of plastic used in the UK but 67% of
plastic waste with over 2 million tonnes of plastic packaging used in the UK
each year. This is mostly new rather than recycled plastic and Versarien is
looking at the effect of adding graphene as a reinforcing filler into HDPE
blow moulded bottles to improve the performance of recycled plastics. Pilot
trials have shown a 20% weight reduction at a 1.5% - 2% loading.
We continue to work with one of the world's largest packaging companies to
evaluate graphene-based coatings as well as on other projects including
optical wear, airway medical suction units and other forms of packaging.
The mission for Leisure (L) is similar to polymers, in reducing the use of
fossil fuel based materials, but also to improve performance, garment
lifetime, recyclability and functionality. In a UK market worth an estimated
£5.8 billion the use of graphene inks and graphene enhanced material fibres
can make a substantial difference.
As disclosed in the recently announced agreement with Superdry we have
developed a number of sample garments which is testament to the benefits of
utilising Versarien's graphene technology. We continue to work with many
organisations on sportswear, civilian and military clothing as well as in
specialist applications such as athletic performance, fire and police.
The mission for Elastomers (E) is to improve performance, extend lifetime,
recyclability and functionality in the areas of tyres and rubbers (including
footwear). The global footwear market is expected to reach $440 billion by
2026 and we are focussed on graphene reinforced biomaterials and conventional
elastomers. Our work on electric vehicle tyres has proved ~5% reduction in
rolling resistance which will help for greater range in electric vehicles.
Abrasion is also significantly improved with a new graphene variant.
In footwear we have been able to demonstrate significant increases in tensile
strength (~50%), modulus (~30%), elongation (~20%) and tear strength (~23%)
when compared to reference non-graphene compounds. We are working with Enso,
Vivo Barefoot and Flux on these applications.
The £1.95 million development agreement with DSTL announced in November
2020 has progressed well and we are on track to complete it in accordance
with the agreed milestones.
International Technology Operations
Our international operations are also making progress. In the USA we have
signed 22 confidentiality agreements, are working on 14 active projects and
have 5 collaborations in place. Sectors include coatings and anticorrosion,
packaging/bottling, fabrics, polymers, elastomers, thermal transfer fluids and
insulation materials.
In South Korea, we have successfully relocated and commissioned the plant and
equipment acquired in the transaction with Hanwha last December, clean room
facilities are operational and we have been able to produce high quality CVD
graphene samples. The next steps will be to begin commercialising the 100 plus
patents acquired by collaborating with institutions and South Korean companies
as well as working with our partners at GrapheneLab Co Ltd. on government
projects. Whilst this is early stage, we are excited by the many opportunities
in the South Korean market including our collaboration on biocides with SD Lab
Korea.
Gnanomat in Spain is working with other Group operations on a number of
projects in energy storage, biocide materials, screening, sensors, coatings
and conductive inks. It has launched a number of products where graphene is
combined with metal nano-particles and metal oxides whilst upgrading its
manufacturing capability supported by the INN-PRESSME EU funding.
We continue to evaluate the opportunities in China whilst ensuring that we
protect our IP and operate in accordance with UK Government guidelines. The
macro-political environment has meant that we are now focussing on South Korea
as our route to the Asian market.
Mature Businesses
Both AAC Cyroma Limited (plastic products) and Total Carbide Limited (hard
wear parts) remained operational throughout the Covid-19 pandemic. Last year
was challenging but I am pleased to report that sales have increased by 23%
over the comparative period and that they have returned to profitability.
We have exited the aluminium business which is shown as discontinued in the
financial statements. We continue to examine ways in which both mature
businesses can support the technology business in the future and form
synergies to improve efficiency.
Current trading and outlook
As of writing, the outlook for the pandemic is far from certain as is the
economy, and we remain vigilant around costs. However, the opportunities for
graphene both in the UK and abroad in textiles and concrete are areas of
particular near-term focus whilst still progressing the other areas of our
GSCALE project.
Neill Ricketts
Chief Executive Officer
06 December 2021
Chief Financial Officer's review
Group Results
As stated in the annual report, the aluminium business based at Cheltenham has
now ceased and consequently these results are split between continuing and
discontinued operations and the segmental analysis between the technology and
mature businesses.
In total, Versarien's revenue for the six months ended 30 September 2021 was
£4.28 million (H1 2020: £3.12 million), up £1.16 million, an increase of
37%. The revenue from the continuing businesses increased by 41% to £3.82
million up from £2.71 million. Revenue from graphene, including that
recognised under the DSTL project, was up 166% to £0.93 million from £0.35
million in the comparative period.
The total loss from operations was £3.00 million (H1 2020: £4.28 million).
This was after charging £0.83 million in respect of the six-monthly valuation
of the Lanstead Sharing Agreements (H1 2020: £1.82 million).
The adjusted LBITDA for continuing operations was £0.71 million compared to
£1.16 million, a reduction of 39% calculated as follows:
Six months ended Six months ended
30 September 2021 30 September 2020
£'000 £'000 £'000 £'000 £'000 £'000
Continuing operations Discontinued operations TOTAL Continuing operations Discontinued operations TOTAL
Loss from operations (2,862) (144) (3,006) (4,254) (21) (4,275)
Depreciation and Amortisation 683 41 724 504 48 552
Share based payments 595 - 595 597 - 597
Exceptional items 41 67 108 178 - 178
Other losses 830 - 830 1,817 - 1,817
Adjusted LBITDA (713) (36) (749) (1,158) 27 (1,131)
Exceptional costs were incurred in the period of £0.11 million (H1 2020:
£0.18 million), which mostly relate to the costs associated with the move to
the new premises in Longhope. The reported loss before tax for the period was
£3.11 million (H1 2020: £4.34 million). Group net assets at 30 September
2021 were £15.9 million (31 March 2021: £16.5 million) with cash at the
period end of £3.5 million (31 March 2021: £2.4 million).
Net cash used in operating activities was £1.19 million (H1 2020: £0.75
million), investment in development costs and equipment was £1.87 million (H1
2020: £0.17 million) and principal lease payments were £0.39 million (H1
2020: £0.48 million) giving total cash outflows of £3.45 million (H1 2020:
£1.40 million). These activities were financed by net funds received from the
Lanstead sharing agreements of £1.80 million (H1 2020: £0.93 million), net
loans received of £1.11 million (H1 2020: £1.96 million and net funds
received from the share issue to GrapheneLab Co Ltd. of £1.90 million (H1
2020: £Nil) totalling £4.81 million (H1 2020: £2.89 million). The surplus
of £1.36 million (H1 2020: £1.49 million) resulted in reduced drawings on
the invoice finance facilities of £0.26 million (H1 2020: £0.64 million)
thus increasing cash at the period-end by £1.10 million (H1 2020: £0.85
million). As we progress our GSCALE project we continue to draw on the £5
million IUK loan facility, repayment of which is due to commence in 2024.
The mature business segment is seeing increased revenues albeit not yet to
pre-covid levels and an overall return to profitability. We continue to
maintain strict control over costs.
In summary, it is pleasing to report that the Group's financial results are
showing revenue recovery, significantly reduced losses and an improvement in
cash resources as we continue to focus on expanding our production facilities
with our continued focus on GSCALE.
Chris Leigh
Chief Financial Officer
06 December 2021
Consolidated Interim Financial Statements
Group statement of comprehensive income
For the half year ended 30 September 2021
30 September 30 September
2021 2020
Unaudited Unaudited
£'000 £'000
Notes
Continuing operations
Revenue 3 3,824 2,709
Cost of sales (2,744) (2,310)
Gross profit 1,080 399
Other operating income 88 72
Other losses (830) (1,817)
Operating expenses (including exceptional items) (3,200) (2,908)
Loss from operations before exceptional items (2,818) (4,076)
Exceptional items 4 (44) (178)
Loss from operations (2,862) (4,254)
Finance charge (96) (58)
Loss before income tax (2,958) (4,312)
Income Tax 5 - -
Loss from continuing operations (2,958) (4,312)
Loss from discontinued operations 2 (155) (27)
Loss for the period (3,113) (4,339)
Loss attributable to:
- Owners of the parent company (3,021) (4,158)
- Non-controlling interest (92) (181)
(3,113) (4,339)
Loss per share attributable to the equity holders of the Company:
Basic and diluted loss per share 6 (1.56)p (2.45)p
There is no other comprehensive income for the year.
The other losses in the period relates to the fair value assessment of the
Lanstead sharing agreements at the balance sheet date.
Group statement of financial position
As at 30 September 2021
Note 30 September 31 March
2021 2021
Unaudited Audited
£'000 £'000
Assets
Non-current assets
Intangible Assets 7 10,397 9,706
Property, plant and equipment 4,865 4,119
Deferred taxation 25 25
Trade and other receivables 40 772
15,327 14,622
Current assets
Inventory 1,666 1,814
Trade and other receivables 4,391 6,449
Cash and cash equivalents 3,462 2,359
9,519 10,622
Total assets 24,846 25,244
Equity
Called up share capital 1,941 1,899
Share premium 34,864 33,003
Merger reserve 1,256 1,256
Share-based payment reserve 3,844 3,249
Accumulated losses (24,646) (21,625)
Equity attributable to owners of the parent company 17,259 17,782
Non-controlling interest (1,380) (1,288)
Total equity 15,879 16,494
Liabilities
Non-current liabilities
Trade and other payables 1,308 1,222
Deferred taxation 67 67
Innovate Loan 3,341 2,260
Long-term borrowings 304 356
5,020 3,905
Current liabilities
Trade and other payables 3,162 3,748
Provisions 119 119
Invoice discounting advances 376 631
Current portion of long-term borrowings 290 347
3,947 4,845
Total liabilities 8,967 8,750
Total equity and liabilities 24,846 25,244
Group statement of changes in equity
For the half year ended 30 September 2021
Share Share Merger Share-based Accumulated Non- Total
capital premium reserve payment losses controlling equity
£'000 account £'000 reserve £'000 interest £'000
£'000 £'000 £'000
At 1 April 2020 (audited) 1,697 25,497 1,256 2,056 (13,846) (999) 15,661
Loss for the period - - - - (4,158) (181) (4,339)
Share-based charge - - - 597 - - 597
At 30 September 2020 (unaudited) 1,697 25,497 1,256 2,653 (18,004) (1,180) 11,919
Issue of shares 202 7,506 - - - - 7,708
Loss for the period - - - - (3,621) (108) (3,729)
Share-based payments - - - 596 - - 596
At 31 March 2021 (audited) 1,899 33,003 1,256 3,249 (21,625) (1,288) 16,494
Issue of shares 42 1,861 - - - - 1,903
Loss for the period - - - - (3,021) (92) (3,113)
Share-based payments - - - 595 - - 595
At 30 September 2021 (unaudited) 1,941 34,864 1,256 3,844 (24,646) (1,380) (15,879)
Included within the merger reserve is £53,000 in respect of the merger with
Versarien Technologies Limited (now Versarien Graphene Limited) and £964,000
in respect of the acquisition of Total Carbide Limited and £239,000 in
respect of the acquisition of AAC Cyroma Limited.
Statement of Group cash flows
For the half year ended 30 September 2021
Six months ended
30 September Six months ended
2021 30 September
Unaudited 2020
£'000 Unaudited
£'000
Cash flows from operating activities
Cash used in operations (1,081) (683)
Interest paid (107) (64)
Net cash used in operating activities (1,188) (747)
Cash flows from investing activities
Purchase of intangible assets (853) (169)
Purchase of property, plant and equipment (1,018) (1)
Net cash used in investing activities (1,871) (170)
Cash flows from financing activities
Share issue 1,926 -
Share issue costs (23) -
Principal payment of leases under IFRS 16 (386) (480)
Innovate UK loan received 1,081 1,964
Net proceeds from CBIL loan 25 -
Funds received from Lanstead Sharing Agreement 1,794 925
Net invoice discounting advances (255) (643)
Net cash generated from financing activities 4,162 1,766
1,103 849
Increase in cash and cash equivalents
Cash and cash equivalents at start of period 2,359 1,657
Cash and cash equivalents at end of period 3,462 2,506
Note to the statement of Group cash flows
For the half year ended 30 September 2021
Six months ended
30 September Six months ended
2021 30 September
Unaudited 2020
£'000 Unaudited
£'000
Loss before income tax (3,113) (4,339)
Adjustments for:
Share-based payments 595 597
Depreciation and amortisation 724 552
Disposal of non-current assets 87 4
Finance cost 107 64
Loss on FV movement of share agreement 830 1,817
Decrease in inventories 148 242
Decrease in trade and other receivables 166 447
(Decrease) in trade and other payables (625) (67)
Cash used in operations (1,081) (683)
Discontinued operations Six months ended Six months ended
30 September 30 September
2021 2020
Unaudited Unaudited
£'000 £'000
Net cash generated/(used) in operating activities 122 (7)
Net cash used in investing activities (3) -
Net cash generated/(used) from financing activities (118) 15
Increase in cash and cash equivalents from discontinued operations 1 8
Notes to the unaudited interim statements
For the half year ended 30 September 2021
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
is Units 1A-D, Longhope Business Park, Monmouth Road,
Longhope, Gloucestershire, GL17 0QZ.
The interim financial statements were prepared by the Directors and approved
for issue on 06 December 2021. 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 2021 were approved by
the Board of Directors on 16 August 2021 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 UK-adopted IAS 34, "Interim Financial
Reporting". They should be read in conjunction with the annual financial
statements for the year ended 31 March 2021, which have been prepared in
accordance with UK-adopted international accounting standards, consistent with
the IFRS framework adopted in UK law. The accounting policies applied are
consistent with those of the annual financial statements for the year ended 31
March 2021, 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
2021.
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. Discontinued operations
On 5 August, within the preliminary results, the Group announced its decision
to exit the non-core aluminium business of Versarien Technologies Limited
based in Cheltenham. The company has been re-named Versarien Graphene Limited
and will be used as the revenue generating entity for UK graphene sales
whilst 2-DTech Limited and Cambridge Graphene Limited will continue as
the UK research and development arms of the graphene business. Financial
information relating to
the discontinued operation is set out below.
Notes Six months ended
30 September
2021 Six months ended
Unaudited 30 September
£'000 2020
Unaudited
£'000
Revenue 3 451 408
Cost of sales (363) (297)
Gross profit 88 111
Other operating income 1 2
Other losses - -
Operating expenses (including exceptional items) (233) (134)
Loss from operations before exceptional items (80) (21)
Exceptional items 4 (64) -
Loss from operations (144) (21)
Finance charge (11) (6)
Loss before income tax (155) (27)
Income Tax 5 - -
Loss from discontinued operations (155) (27)
3. Segmental information
The segment analysis for the six months to 30 September 2021 is as follows:
Central Technology Businesses Mature Businesses Discontinued Operations Intra-group TOTAL
Adjustments
£'000 £'000 £'000 £'000 £'000 £'000
Revenue - 925 2,899 451 - 4,275
Gross Margin - 254 826 88 - 1,168
Other gains/(losses) (830) - - - - (830)
Other operating income - 86 2 1 - 89
Operating expenses (1,070) (1,379) (755) (233) 4 (3,433)
(Loss)/ profit from operations (1,900) (1,039) 73 (144) 4 (3,006)
Finance income/(charge) (47) (13) (36) (11) - (107)
(Loss)/profit before tax (1,947) (1,052) 37 (155) 4 (3,113)
The segment analysis for the six months to 30 September 2020 is as follows:
Central Technology Businesses Mature Businesses Discontinued Operations Intra-group TOTAL
Adjustments
£'000 £'000 £'000 £'000 £'000 £'000
Revenue - 347 2,362 408 - 3,117
Gross Margin - (71) 470 111 - 510
Other gains/(losses) (1,817) - - - - (1,817)
Other operating income - 70 2 2 - 74
Operating expenses (1,191) (945) (763) (134) (9) (3,042)
(Loss)/ profit from operations (3,008) (946) (291) (21) (9) (4,275)
Finance income/(charge) (4) (22) (32) (6) - (64)
(Loss)/profit before tax (3,012) (968) (323) (27) (9) (4,339)
4. Exceptional items
Six months ended Six months ended
30 September 30 September
2021 2020
Unaudited Unaudited
£'000 £'000
Relocation and restructuring costs 108 6
Costs relating to expansion in China - 70
Costs relating to setting up of the Korean subsidiary - 6
Costs relating to asset purchase from Hanwha - 85
Other - 11
108 178
5. Taxation
The tax charge on the results for the period has been estimated at £nil
(2020: £nil). At the last year end the Group had £19.4 million of trading
losses carried forward to set-off against future trading profits.
6. Loss per share
The loss per share has been calculated by dividing the loss after taxation of
£3,021,000 (2020: £4,158,000) by the weighted average number of shares in
issue of 193,845,746 (2020: 169,682,290) 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 2021 there were 14,677,130 (2020: 14,677,130)
potential Ordinary shares that have been disregarded in the calculation of
diluted earnings per share as they were considered non-dilutive at that date.
7. Intangible assets
30 September 31 March
2021 2021
Unaudited Audited
£'000 £'000
Goodwill 3,555 3,555
Customer relationships/order books 14 27
Development costs 3,297 2,453
Licence 51 58
Intellectual property 3,480 3,613
Total 10,397 9,706
8. 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.
9. Interim Report
This interim announcement is available on the Group's website at
www.versarien.com (http://www.versarien.com)
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