Graphene manufacturer Versarien has warned it will need “continuing support” from investors after challenging economic conditions “delayed the commercialisation we were anticipating” for its products.
Founded in an engineer's garage, the Gloucestershire-based advanced engineering materials firm creates commercially viable products from graphene, a material made from a single layer of carbon atoms, for the automotive, clothing, biomedical and aerospace sectors.
The AIM-listed company posted a marginally widened loss of £8.4m for the 18 months to the end of September 2022, compared to an £8.1m loss for the year to March 2021.
This was despite group revenues from its continuing operations rising from £5.7m to £11.1m during its latest recorded period, during which it secured clothing partnerships with fashion label Superdry and the kit suppliers of the England rugby team Umbro.
The firm said it had scaled operations at its site in the Forest of Dean with a new 10,000 sq ft laboratory, built using its own graphene-infused concrete, and equipment sourced via its Spanish subsidiary.
Chief executive Neill Ricketts said the firm had seen both “successes and challenges”, with the first 12 months of the period seeing "financial benefits" of a government contract it had won to explore how graphene products could be applied in the defence sector
Mr Ricketts previously told BusinessLive Versarien had secured £7m of government funding, including the £2m defence contract to develop composite structures in military applications, such as bridge building, as well as a £5m innovation loan to explore its potential use in tyres, packaging and construction.
In a statement to investors Mr Ricketts said: "We remain confident of the environmental and commercial benefits our graphene technology can bring, but the current macro-economic conditions combined with the disruptive nature of our products has delayed the commercialisation we were anticipating.
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“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.”
Versarien currently employs between 100 and 120 people across its global operations, of which around 10 are based at its Gloucestershire factory, with other sites in Spain and South Korea.
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