TIDMVRS
RNS Number : 8255J
Versarien PLC
03 July 2017
3 July 2017
Versarien plc
("Versarien" or the "Company" or the "Group")
Final Results for the year ended 31 March 2017
Versarien Plc (AIM:VRS), the advanced engineering materials
group, is pleased to announce its unaudited final results for the
year ended 31 March 2017.
Operational highlights
-- Pipeline of graphene enquiries expanding
rapidly, including enquiries received from
America, Europe, Mexico, Japan and South
Korea
-- First significant graphene shipment of GBP0.1
million
-- Two graphene related acquisitions in the
year, both bedding down well
-- Numerous collaboration agreements signed
for graphene application development
-- Graphene enhanced ABS (Acrylonitrile-Butadiene-Styrene)
filament for use in 3D printing launched
-- Relocation of Hard Wear Products to a new
factory near Aylesbury
Financial highlights
-- Group revenues increased by 35% to GBP5.93
million (2016: GBP4.40 million)
-- Net assets of GBP6.5 million (2016: GBP5.5
million)
-- Cash at 31 March 2017 of GBP1.4 million (2016:
GBP1.6 million)
-- *LBITDA of GBP1.2million (2016: GBP1.3 million)
-- Loss before tax GBP2.2 million (2016: GBP1.8
million)
* LBITDA (Loss before interest, tax, depreciation and
amortisation) excludes exceptional items and share based payment
charges.
Commenting on the final results, Neill Ricketts, Chief Executive
Officer of Versarien, said: "The year to 31 March 2017 was one of
considerable progress for Versarien. The opportunity afforded by
our graphene powders and inks is now being recognised by a number
of global companies with whom we are engaging. Our graphene has
been independently verified as being of the highest standard and we
are seeing opportunities emerging in many different markets as a
result.
"The acquisitions of AAC Cyroma and of Cambridge Graphene are
bedding in well and in addition we are now seeing positive signs of
recovery in our traditional hard wear business.
"We 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
WH Ireland (Nominated Adviser) www.whirelandcb.com
+44 (0) 117 945
Mike Coe / Ed Allsopp 3470
IFC Advisory (Financial PR www.investor-focus.co.uk
and IR)
Tim Metcalfe / Graham Herring +44 (0) 20 3053
/ Heather Armstrong 8671
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 five subsidiaries operating under two
divisions:
Thermal and Hard Wear Products
Versarien Technologies Ltd. which produces advanced micro-porous
metals targeting the thermal management industry and manufactures
extruded aluminium heat sinks for the electronics and computing
industries. www.versarien-technologies.co.uk
Total Carbide Ltd, a leading manufacturer in sintered tungsten
carbide for applications in arduous environments such as the oil
and gas industry. www.totalcarbide.com
Graphene and Plastic Products
2-DTech Ltd, which specialises in the supply, characterisation
and early stage development of graphene products.
www.2-dtech.com
Cambridge Graphene Ltd, which supplies novel inks based on
graphene and related materials, using patented processes and
develops graphene materials technology for licensing to
manufacturers. www.cambridgegraphene.com
ACC Cyroma Ltd, 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
Chairman's statement
It has been another year of significant progress for Versarien
both organically with the progress on graphene products and
inorganically with the two acquisitions completed in the
period.
Organic Developments
Undoubtedly, the overall focus of the year has been graphene.
Versarien has positioned itself to rapidly take advantage of
developments in graphene and to commercialise them. We have
strengthened both our access to developments and our ability to
manufacture.
The Group is working on a wide range of graphene projects and
enquiries, many of which are with well known global companies. The
majority of projects and enquiries fall broadly into four
application categories:
-- enhancing the properties of plastics
-- enhancing the properties of carbon fibre reinforced plastics
-- enhancing batteries and electronic circuits
-- materials supplied for research and development purposes
Inorganic developments
During the year Versarien made two strategic acquisitions.
The first was AAC Cyroma Ltd a well established and profitable
manufacturing company based in Banbury, Oxfordshire at a cost of
GBP1.7 million. AAC Cyroma manufactures plastic products using
injection and vacuum forming processes. As part of the Group it
contributed GBP2.5 million of sales and GBP0.132 million of ebitda.
AAC Cyroma is building upon its existing business with new
contacts, optimising its manufacturing processes, capacity and
yields. In addition it is now uniquely placed to incorporate
Versarien's graphene materials into its products to offer plastic
components that have enhanced properties. The acquisition was part
funded by a fully subscribed placing of GBP1.1 million in July
2016.
The second acquisition was of an 85% holding in Cambridge
Graphene Ltd. This is a research and development company which has
spun out of the University of Cambridge. The company is developing
a range of graphene inks which have significant applications in the
printing of flexible electronic circuits and sensors. The
acquisition of Cambridge Graphene Limited was completed in January
2017 at a cost of GBP170,000 with expenses in the period of
GBP18,000. It was followed by a successful fundraising of GBP1.5
million completed in March 2017.
The Company continues to evaluate further acquisition
opportunities.
Board
As announced in April I stepped down from the board on 28th June
to be able to give more time to my other business interests. I am
pleased to have worked with the company during a period which has
seen its successful listing on AIM, its reorientation towards
Graphene and its growth through five acquisitions. I believe I
leave at a time when the company is in good shape and look forward
to observing its future development. I remain available to assist
the Company as required.
Outlook
The Board remains confident that the Company can continue to
capitalise on the progress it has made. In particular, on the
strong progress made in Graphene both in terms of material
development, manufacturing and sales.
I would like to thank all of our hardworking employees for their
contribution towards the significant progress which has been
made.
Ian Balchin
Non-Executive Chairman
Chief Executive's statement
Following the acquisition of AAC Cyroma in October 2016 and the
purchase of Cambridge Graphene in January 2017 Versarien now
consists of two main business segments; Graphene and Plastic
Products focussed on delivering graphene solutions through plastics
and carbon fibre composites and Thermal and Hard Wear products
focussed on delivering copper, aluminium and tungsten carbide
products.
Graphene and Plastic Products
Of most significance is the progress we have made during the
year in commercialising the production of graphene, having moved
out of the laboratory into a scalable production facility in
Cheltenham. Graphene Nano-Platelets (GNPs) have been independently
tested by the University of Manchester and found to be of the
highest quality.
We have entered into agreements to develop graphene enhanced PEK
(Polyetherketone) type materials which show up to a 32% improvement
in modulus at 3wt% loading, a 21% improvement in ultimate tensile
strength of the polymer matrix at 0.5wt% loading and a 17%
improvement in elongation to break at 3wt% loading.
We have shipped GBP100,000 of graphene in the form of few layer
GNP's to a European customer and launched our branded graphene
product Nanene(TM) which is manufactured using Versarien's patent
protected, mechanised exfoliation process.
We have also launched our new graphene enhanced ABS
(Acrylonitrile-Butadiene-Styrene) filament for use in 3D printing
which is designed to be suitable for most commercially available
fused filament or fused deposition (FDM/FFF) 3D printers with a
heated print bed and adjustable temperature settings.
Of most significance is the continued interest that exists in
our graphene inks and powders where we already have received
multiple global enquiries. These will take time to develop but
demonstrate the importance of graphene in a wide variety of future
global markets.
The purchase of AAC Cyroma provided a further and significant
opportunity to harness Versarien's existing graphene manufacturing
capabilities. AAC Cyroma's plastics expertise and plant and
equipment will provide the Group with the ability to produce
graphene enhanced plastics products.
Thermal and Hard Wear Products
It has been a challenging year for our Hard Wear Products
business as it completed its factory move from Princes Risborough
to a new facility near Aylesbury. It is now fully operational in a
modern environment. We are seeing a gradual upturn in orders and
the first two months of the new financial year have seen it return
to profitability.
Our copper foam continues to generate some interest but will
require further development. Our strategy is to concentrate on the
larger opportunities available in graphene whilst still ensuring
that we can produce and supply copper foam as required. To this end
we have now developed our own copper foam production processes so
that we no longer have to rely on the licenced technology that
originally formed the basis of development.
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:
2017 2016
GBP'000 GBP'000
------------------------------------------ --------- ---------
Revenue 5,928 4,401
------------------------------------------ --------- ---------
Gross margin percentage 24% 24%
------------------------------------------ --------- ---------
Loss before interest, tax, depreciation,
amortisation, exceptional costs and
share based charges (1,243) (1,310)
------------------------------------------ --------- ---------
Cash generated/(used) by Graphene and
Plastic Products 55 (493)
------------------------------------------ --------- ---------
Cash used by Thermal and Hard Wear
Products (851) (742)
------------------------------------------ --------- ---------
Cash raised/(utilised) by parent (before
loans to/from subsidiaries) 515 (648)
------------------------------------------ --------- ---------
Net Cash used by the Group (281) (1,883)
------------------------------------------ --------- ---------
Current trading and outlook
The current financial year has started positively, in particular
marketing the graphene products in Europe, Mexico, Japan and South
Korea. Contacts have been established with global companies in each
of these regions and work with those companies is on-going.
Developing these contacts will require continued investment and
continued collaboration with the University of Manchester and
Cambridge University but are expected to be transformational for
our graphene business.
We look forward with real optimism and confidence to the year
ahead.
Neill Ricketts
Chief Executive Officer
Financial Review
Versarien's revenue for the year ended 31 March 2017 was GBP5.9
million (2016: GBP4.40 million) with operating losses before
exceptional costs, depreciation, amortisation and share based
payment charges of GBP1.2 million (2016: GBP1.3 million).
Exceptional costs were GBP0.26 million (2016: GBP0.15 million)
including GBP0.1 million of acquisition and potential acquisition
costs (2016: GBP0.06 million) GBP0.15 million of restructuring
costs (2016: GBP0.05 million) and GBP0.01 million of other costs
(2016: GBP0.04 million). The loss before tax for the year was
GBP2.2 million (2016: GBP1.8 million).
Group net assets at 31 March 2017 were GBP6.5 million (2016:
GBP5.5 million) including cash of GBP1.37 million (2016: GBP1.65
million) with GBP0.7m of headroom on our invoice finance facilities
(2016: 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.
Borrowings in the year increased by GBP1.4 million as a result
of acquiring AAC Cyroma Limited where net assets acquired included
GBP0.3 million of borrowings and GBP0.7 million of those assets
were leveraged to support the cash consideration payable. In
addition financed plant and machinery additions included in the
Hard Wear Products factory move amounted to GBP0.4 million.
Cash outflow from operating activities was GBP1.3 million (2016:
GBP1.3 million) including the positive effect of working capital
management of GBP0.2 million (2016: GBP0.1 million). The Group
invested GBP1.3m, net of cash, in acquisitions (2016: GBPnil),
GBP0.05 million (2016: GBP0.6 million) in capitalised development
costs and GBP1.0 million (2016: 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 which are being increased by its
bankers.
-- As at 31 March 2017, the Group had bank balances totalling
GBP1.4million with GBP0.7 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).
-- The projections contain growth assumptions about the sales
performance of its technological products and the state of the oil
and gas sectors. There is therefore a risk that trading performance
could be below expectation which could lead to a requirement to
take mitigating action. Such actions could include raising more
cash via an equity placing (there is a track record of successful
placings) or, in the absence of a funding round, cost reduction in
the Group. The Directors have prepared sensitized projections for
these scenarios which indicate that sufficient cash reserves for
the foreseeable future (at least twelve months) would exist.
-- Other factors that have been taken into account in the
Directors' assessment of going concern include:
- The Directors expect to renew the authority to place a minimum
of 10% of the existing share capital for cash without pre-emption
rights;
- The accuracy of forecasts;
- The continuation and adequacy of bank facilities; and
- There are a number of mitigating actions that the Group could
implement, such as reducing the funds spent on development of its
technologies and overheads.
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 2017
2017 2016
Notes GBP'000 GBP'000
------------------------------------------ ----- -------- --------
Continuing operations
Revenue 2 5,928 4,401
Cost of sales (4,531) (3,340)
------------------------------------------ ----- -------- --------
Gross profit 1,397 1,061
Other operating income 180 57
Operating expenses (including exceptional
items) (3,769) (2,932)
------------------------------------------ ----- -------- --------
Loss from operations before exceptional
items (1,929) (1,666)
Exceptional items 3 (263) (148)
------------------------------------------ ----- -------- --------
Loss from operations (2,192) (1,814)
Finance charge (10) (7)
------------------------------------------ ----- -------- --------
Loss before income tax (2,202) (1,821)
Income tax - 31
------------------------------------------ ----- -------- --------
Loss for the year (2,202) (1,790)
------------------------------------------ ----- -------- --------
Loss attributable to:
- Owners of the parent company (2,132) (1,745)
- Non-controlling interest (70) (45)
------------------------------------------ ----- -------- --------
(2,202) (1,790)
------------------------------------------ ----- -------- --------
Loss per share attributable to the
equity holders of the Company:
Basic and diluted loss per share 5 (1.85)p (1.65)p
------------------------------------------ ----- -------- --------
There were no comprehensive gains or losses in the year other
than those included in the Comprehensive Income Statement.
Group statement of financial position (unaudited)
As at 31 March 2017
2017 2016
Notes GBP'000 GBP'000
---------------------------------------- ----- -------- --------
Assets
Non-current assets
Intangible assets 6 2,923 1,910
Property, plant and equipment 7 3,106 1,487
Deferred taxation 25 25
---------------------------------------- ----- -------- --------
6,054 3,422
---------------------------------------- ----- -------- --------
Current assets
Inventory 1,888 1,472
Trade and other receivables 1.945 816
Cash and cash equivalents 1,367 1,648
---------------------------------------- ----- -------- --------
5,200 3,936
---------------------------------------- ----- -------- --------
Total assets 11,254 7,358
---------------------------------------- ----- -------- --------
Equity
Called up share capital 8 1,313 1,056
Share premium account 8 9,762 7,163
Merger reserve 1,256 1,017
Share-based payment reserve 115 91
Retained losses (5,844) (3,712)
---------------------------------------- ----- -------- --------
Equity attributable to owners of the
parent company 6,602 5,615
Non-controlling interest (137) (67)
---------------------------------------- ----- -------- --------
Total equity 6,465 5,548
---------------------------------------- ----- -------- --------
Liabilities
Non-current liabilities
Trade and other payables 271 376
Provisions 80 -
Deferred tax 64 -
Long-term borrowings 657 58
---------------------------------------- ----- -------- --------
1,072 434
---------------------------------------- ----- -------- --------
Current liabilities
Trade and other payables 2,726 1,005
Provisions - 208
Invoice discounting advances 735 116
Current portion of long-term borrowings 256 47
---------------------------------------- ----- -------- --------
3,717 1,376
---------------------------------------- ----- -------- --------
Total liabilities 4,789 1,810
---------------------------------------- ----- -------- --------
Total equity and liabilities 11,254 7,358
---------------------------------------- ----- -------- --------
Group statement of changes in equity (unaudited)
Year ended 31 March 2017
Share Share-based Non-controlling
Share premium Merger payment Retained Interest Total
capital account reserve reserve earnings GBP'000 equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------- -------- -------- -------- ----------- --------- ---------------- --------
At 1 April 2015 1,055 7,150 1,017 94 (1,967) (22) 7,327
Issue of shares 1 13 - - - - 14
Loss for the
year - - - - (1,745) (45) (1,790)
Share-based
payments - - - (3) - -- (3)
At 31 March
2016 1,056 7,163 1,017 91 (3,712) (67) 5,548
Issue of shares 257 2,599 239 - - - 3,095
Loss for the
year - - - - (2,132) (70) (2,202)
Share-based
payments - - - 24 - - 24
---------------- -------- -------- -------- ----------- --------- ---------------- --------
At 31 March
2017 1,313 9,762 1,256 115 (5,844) (137) 6,465
---------------- -------- -------- -------- ----------- --------- ---------------- --------
Statement of Group cash flows (unaudited)
Year ended 31 March 2017
Group Group
2017 2016
Notes GBP'000 GBP'000
--------------------------------------- ----- -------- --------
Cash flows from operating activities
Cash used in operations 9 (1,250) (1,253)
Interest (paid)/received (10) (7)
--------------------------------------- ----- -------- --------
Net cash used in operating activities (1,260) (1,260)
--------------------------------------- ----- -------- --------
Cash flows from investing activities
Acquisition of subsidiaries (net
of cash acquired) (1,324) -
Purchase of intangible assets (52) (553)
Purchase of property, plant and
equipment (977) (269)
Net cash used in investing activities (2,353) (822)
--------------------------------------- ----- -------- --------
Cash flows from financing activities
Share issue 2,560 14
Share issue costs (67) -
Finance leases (net of repayments) 776 69
Invoice discounting loan proceeds 63 116
--------------------------------------- ----- -------- --------
Net cash generated from financing
activities 3,332 199
--------------------------------------- ----- -------- --------
Decrease in cash and cash equivalents (281) (1,883)
Cash and cash equivalents at beginning
of year 1,648 3,531
--------------------------------------- ----- -------- --------
Cash and cash equivalents at end
of year 1,367 1,648
--------------------------------------- ----- -------- --------
Notes (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 2017 or 31 March 2016. The financial
information for the year ended 31 March 2016 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 2017 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 ("IFRSs").
2. Segmental reporting
At 31 March 2017 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/plastic products and thermal/hard wear 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 2017 is as
follows:
Graphene Thermal and
and Plastic Hard Wear Intra-group
Central Products Products adjustments Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- -------- ------------ ----------- ------------ --------
Revenue - 2,628 3,300 - 5,928
----------------------------- -------- ------------ ----------- ------------ --------
Gross profit - 685 712 - 1,397
Other operating income - 123 57 - 180
Operating expenses (712) (1,360) (1,672) (25) (3,769)
----------------------------- -------- ------------ ----------- ------------ --------
(Loss) from operations (712) (552) (903) (25) (2,192)
Finance income/(charge) 1 (9) (2) - (10)
----------------------------- -------- ------------ ----------- ------------ --------
(Loss) before tax (711) (561) (905) (25) (2,202)
----------------------------- -------- ------------ ----------- ------------ --------
Total assets 7,107 3,907 5,253 (5,013) 11,254
Total liabilities (1,058) (4,058) (4,620) 4,947 (4,789)
----------------------------- -------- ------------ ----------- ------------ --------
Net assets/net (liabilities) 6,049 (151) 633 (66) 6,465
----------------------------- -------- ------------ ----------- ------------ --------
Capital expenditure 4 130 947 - 1,081
Depreciation/amortisation 1 274 362 25 662
----------------------------- -------- ------------ ----------- ------------ --------
The segment analysis for the period ended 31 March 2016 is as
follows:
Graphene Thermal and
and Plastic Hard Wear Intra-group
Central Products Products adjustments Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------- -------- ------------ ----------- ------------ --------
Revenue - 16 4,389 (4) 4,401
----------------------------- -------- ------------ ----------- ------------ --------
Gross (loss)/profit - (4) 1,065 - 1,061
Other operating income - 31 26 - 57
Operating expenses (600) (364) (1,943) (25) (2,932)
----------------------------- -------- ------------ ----------- ------------ --------
(Loss) from operations (600) (337) (852) (25) (1,814)
Finance income/(charge) 5 (2) (10) - (7)
----------------------------- -------- ------------ ----------- ------------ --------
(Loss) before tax (595) (339) (862) (25) (1,821)
----------------------------- -------- ------------ ----------- ------------ --------
Total assets 7,424 637 4,998 (5,701) 7,358
Total liabilities (331) (1,084) (3,460) 3,065 (1,810)
----------------------------- -------- ------------ ----------- ------------ --------
Net assets/net (liabilities) 7,093 (447) 1,538 (2,636) 5,548
----------------------------- -------- ------------ ----------- ------------ --------
Capital expenditure 3 46 220 - 269
Depreciation/amortisation - 13 321 25 359
----------------------------- -------- ------------ ----------- ------------ --------
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
----------------------- --------------------
2017 2016 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000
--------------- ----------- ---------- --------- ---------
United Kingdom 4,823 3,176 6,054 3,422
Rest of Europe 763 877 - -
North America 11 10 - -
Other 331 338 - -
--------------- ----------- ---------- --------- ---------
5,928 4,401 6,054 3,422
--------------- ----------- ---------- --------- ---------
3. Exceptional items
2017 2016
GBP'000 GBP'000
Relocation and restructuring costs 154 52
Acquisition costs 105 60
Other 4 36
----------------------------------- -------- --------
263 148
----------------------------------- -------- --------
4. Dividends
As stated in the 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 2017 and 31 March 2016 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 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 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 2017 there
were 3,819,862 (2016: 3,819,862) potential ordinary shares which
have been disregarded in the calculation of diluted earnings per
share as they were considered non-dilutive at that date.
Loss Weighted
attributable average
to number of Basic loss
shareholders shares per share
GBP'000 '000 pence
------------------------- ------------- ---------- ----------
Year ended 31 March 2017 (2,132) 115,292 (1.85)
Year ended 31 March 2016 (1,745) 105,588 (1.65)
------------------------- ------------- ---------- ----------
6. Intangible assets
Other
Goodwill intangibles Total
GBP'000 GBP'000 GBP'000
----------------------------- -------- ------------ --------------
Cost
At 1 April 2015 1,013 611 1,624
Acquisitions 10 - 10
Additions - 553 553
----------------------------- -------- ------------ --------------
At 1 April 2016 1,023 1,164 2,187
Acquisitions 1,144 179 1,323
Additions - 52 52
----------------------------- -------- ------------ --------------
At 31 March 2017 2,167 1,395 3,562
----------------------------- -------- ------------ --------------
Accumulated amortisation and
impairment
At 1 April 2015 - 122 122
Amortisation charge - 155 155
----------------------------- -------- ------------ --------------
At 1 April 2016 - 277 277
Amortisation charge - 362 362
----------------------------- -------- ------------ --------------
At 31 March 2017 - 639 639
----------------------------- -------- ------------ --------------
Carrying value
At 31 March 2017 2,167 756 2,923
----------------------------- -------- ------------ --------------
At 31 March 2016 1,023 887 1,910
----------------------------- -------- ------------ --------------
On 1 October 2016 the Company completed the acquisition of AAC
Cyroma Limited for an initial cash consideration of GBP1.33 million
and GBP0.27 million in new Versarien shares at a price of 10 pence
per share.
On 19 January 2017 the Company completed the acquisition of
Cambridge Graphene Limited for GBP0.025 million in cash and
GBP0.145 million in new Versarien shares at a price of 10 pence per
share.
The provisional fair value of the assets and liabilities
acquired were as follows:
Cambridge
AAC Graphene Total
GBP'000 GBP'000 GBP'000
--------------------------------- -------- --------- --------
Non-current assets
Intangible assets 135 44 179
Property, plant and equipment 952 - 952
--------------------------------- -------- --------- --------
1,087 44 1,131
--------------------------------- -------- --------- --------
Current assets
Inventories 353 - 353
Trade and other receivables 997 1 998
Cash and cash equivalents 36 4 40
--------------------------------- -------- --------- --------
1,386 5 1,391
--------------------------------- -------- --------- --------
Total assets 2,473 49 2,522
--------------------------------- -------- --------- --------
Current liabilities
Trade and other payables 1,344 88 1,432
Obligations under finance leases 17 - 17
Invoice finance 255 - 255
Deferred taxation 107 - 107
--------------------------------- -------- --------- --------
Total current liabilities 1,723 88 1,811
--------------------------------- -------- --------- --------
Net assets acquired 750 (39) 711
Goodwill 935 209 1,144
--------------------------------- -------- --------- --------
Consideration 1,685 170 1,855
--------------------------------- -------- --------- --------
Consideration satisfied by:
Shares issued 266 145 411
Cash 1,339 25 1,364
Deferred consideration 80 - 80
--------------------------------- -------- --------- --------
1,685 170 1,855
--------------------------------- -------- --------- --------
Other intangible assets
31 March
31 March 2017 2016
GBP'000 GBP'000
----------------------------- ------------- --------
Customer relationships/order
books 167 68
Development costs 410 647
Licence 42 13
Intellectual property 137 159
----------------------------- ------------- --------
Total 756 887
----------------------------- ------------- --------
7. Property, plant and equipment
Plant and Leasehold
equipment improvements Total
Group GBP'000 GBP'000 GBP'000
------------------------- ---------- ------------- --------
Cost
At 1 April 2015 6,004 - 6,004
Additions 253 16 269
Disposals (14) - (14)
------------------------- ---------- ------------- --------
At 1 April 2016 6,243 16 6,259
Additions 573 456 1,029
Acquisitions 2,891 16 2,907
Disposals (683) - (683)
------------------------- ---------- ------------- --------
At 31 March 2017 9,024 488 9,512
------------------------- ---------- ------------- --------
Accumulated depreciation
At 1 April 2015 4,581 - 4,581
Disposals (13) - (13)
Charge for the year 202 2 204
------------------------- ---------- ------------- --------
At 1 April 2016 4,770 2 4,772
Acquisitions 1,948 6 1,954
Charge for the year 288 12 300
Disposals (620) - (620)
------------------------- ---------- ------------- --------
At 31 March 2017 6,386 20 6,406
------------------------- ---------- ------------- --------
Net book value
At 31 March 2017 2,638 468 3,106
------------------------- ---------- ------------- --------
At 31 March 2016 1,473 14 1,487
------------------------- ---------- ------------- --------
Plant and equipment includes the following amounts where the
Group is a lessee under finance leases and hire purchase
contracts:
Group Group
2017 2016
GBP'000 GBP'000
------------------------- -------- --------
Cost 3,530 232
Accumulated depreciation (2,089) (50)
Net book value 1,441 182
------------------------- -------- --------
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 2015 105,521 1,055 7,150 8,205
Issue of shares 110 1 13 14
At 31 March 2016 105,631 1,056 7,163 8,219
Issue of shares 25,700 257 2,599 2,856
At 31 March 2017 131,331 1,313 9,762 11,075
----------------- ---------- -------- -------- --------
9. Cash flows from operating activities
2017 2016
GBP'000 GBP'000
------------------------------------------ -------- --------
Loss before tax (2,202) (1,821)
Adjustments for:
Share-based payments 24 (3)
Depreciation 300 204
Amortisation 362 155
Disposal of non-current assets 11 1
R&D tax credit repayment - 71
Finance cost 10 7
Decrease in trade and other receivables 169 446
Increase in inventories (63) (363)
Increase in trade and other payables 139 50
------------------------------------------ -------- --------
Cash flows from operating activities (1,250) (1,253)
------------------------------------------ -------- --------
10. Report and accounts
Copies of the 2017 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 2017 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 company news service from the London Stock Exchange
END
FR EAPKEDEFXEFF
(END) Dow Jones Newswires
July 03, 2017 02:00 ET (06:00 GMT)
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