Versarien has appointed a new chief executive to lead the troubled graphene manufacturer.
The Gloucestershire engineering firm, which makes products using the nanomaterial for the automotive, clothing, biomedical and aerospace sectors, has promoted chief technology officer Stephen Hodge to the role with immediate effect.
The AIM-listed company, which has previously secured partnerships with fashion label Superdry and kit suppliers of the England rugby team Umbro, also confirmed that former chief executive Neill Ricketts - who resigned from the role in March - has now stepped down from the company’s board of directors, but will continue on gardening leave.
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Earlier this year Versarien posted a marginally widened loss of £8.4m for the 18 months to the end of September 2022, with bosses saying the tough economic conditions had delayed the commercialisation of its products.
Its financial struggles have continued into its current financial year, with the business reporting a widened £3.4m pre-tax loss last month in its half-year results.
The company, which had employed between 100 and 120 people across its global operations, including 10 at its factory in the Forest of Dean, is currently looking to sell off some of its assets as part of a turnaround strategy.
Mr Hodge joined Versarien in 2017 and was appointed head of research in July 2018, before being made chief technology officer in January 2021. Prior to this, he was employed as a Principal Engineer at Cambridge Graphene Limited, a supplier of graphene inks and other graphene materials, and a subsidiary of Versarien.
Stephen Hodge () has been announced as our new Chief Executive Officer. Read the RNS here:
— Versarien® plc (@versarien)
Diane Savory, non-executive chair of Versarien, said: "Stephen has been with Versarien for the past six years during which time he has been instrumental in the development of the company's advanced materials technology and progressing our commercial relationships.
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“I believe he is ideally placed to lead the company as we continue to progress our turnaround strategy and focus on the development and commercialisation of Cementene and Graphene-Wear.”
Ms Savory also thanked Mr Ricketts for his contribution to the company, adding that the board “wish him well in his future endeavours”.
Versarien is currently pursuing a sale of equipment and intellectual property it acquired from South Korean firm Hanwha Aerospace in 2020 in a bid to cut costs, which it said had attracted “a number of interested parties”, though the timing of any sale and the amount of funding it would generate remained “uncertain”.
The engineering firm recently said it had raised £650,000 through its third stock market share placing in recent months. Bosses said the funds would be used for working capital purposes and as bridge finance to extend its cash runway.
As part of its recovery plan, Versarien has streamlined its focus on the construction and textile sectors. The company’s graphene-enhanced concrete has been selected for a number of global trials, while it continues to supply Umbro and other sports equipment clients.
The company said in March its workforce had been reduced. It added that non-executive directors had also agreed “to waive any remuneration from the company indefinitely”, while executive directors' pay was also being reviewed.
Ms Savory said in June, based on certain asset sale assumptions, projections suggested Versarien would have “sufficient resources for a further period of 24 months”, though “nothing is certain in this respect”.
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