Versarien PLC (AIM:VRS, OTC:VRSRF) told investors it remains confident of the environmental and commercial benefits of its graphene technologies, as it reported financial results covering an eighteen-month period that saw challenging market conditions which have delayed commercialisation.
"The current macro-economic conditions combined with the disruptive nature of our products has delayed the commercialisation we were anticipating,” said chief executive Neil Ricketts.
"Consequently, we are streamlining the business and focusing on our primary opportunities in construction and textiles.
"We will continue to seek grant funding to support our operations, but will also need the continuing support of investors, either strategic or from the capital markets, to fund the business until such time as the graphene market gains traction and material commercial revenues flow."
Ricketts added: "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."
The advanced engineering materials group today reported a loss before tax of £8.3mln compared to £8.1mln for the 12 months to 31 March 2021.
It generated some £11.1mln of group revenue from continuing operations including £2.1mln of revenue from graphene.
The AIM-listed company ended the period with £1.4mln of cash at the end of September.
Looking ahead, Versarien highlighted upcoming commercialisation milestones including the anticipated 2023 spring/summer release of Umbro's line of training kits using the company's proprietary Graphene-Wear', the separate release of activewear products in South America, and potential further developments in its venture with SuperDry and other garment suppliers.
It is additionally expected to see progress with multiple other ventures entered into previously such as the Cementene trial project in construction, port infrastructure applications, defense related products and adaptive footwear.
The commercial effort is supported by the company's new dedicated graphene production facility in Longhope, Gloucestershire, which significantly expanded capacity.
In London, Versarien shares traded lower, changing hands at 5.5p per share.
--Updated to include further details of commercial pipeline--