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Versarien PLC (VRS)

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Thursday 19 July, 2018

Versarien PLC

Preliminary Results

RNS Number : 0915V
Versarien PLC
19 July 2018
 

 

 

 

19 July 2018

 

Versarien plc

 

("Versarien" or the "Company" or the "Group")

 

Preliminary Results for the year ended 31 March 2018

 

Versarien Plc (AIM:VRS), the advanced engineering materials group, is pleased to  announce its unaudited results for the year ended 31 March 2018.

 

Financial highlights

 

·    

Group revenues increased by 52% to £9.02 million (2017: £5.93 million)

·    

LBITDA* decreased by 33% to £0.8 million (2017: £1.2 million)

·    

Loss before tax decreased by 27% £1.6 million (2017: £2.2 million)

·    

Cash at 31 March 2018 of £2.3 million (2017: £1.4 million)

·    

Net assets increased by 23% to £8.0 million (2017: £6.5 million)

·    

Successful fundraising of £2.9 million gross in November 2017

 

* LBITDA (Loss before interest, tax, depreciation and amortisation) excludes exceptional items and share based payment charges.

 

Operational highlights

 

 

·     Eight graphene application collaboration agreements secured during the year, with a further five entered into post period, with more in the pipeline

·     Asian graphene expansion targeted through incorporation of intermediate Hong Kong holding company

·   Continued investment in graphene manufacturing capability to support collaborative application agreements and increase maximum capacity to almost 3 tonnes

·   Graphene interest in China on-going with 24 potential partners now identified. Joint ventures will be determined by funding levels and IP protection

·   US expansion targeted through a local sales office in Palo Alto and appointment as inaugural Council Member of the US National Graphene Association

·   UK Government support provided through the secondment of its Head of Outward Direct Investment

·    Hexotene TM and Graphinks TM launched to further strengthen the Group's range of commercially available two dimensional materials

·     Mature businesses showing much improved financial performance

 

Commenting on the results, Neill Ricketts, Chief Executive Officer of Versarien, said: "The year to 31 March 2018 was one of considerable progress for Versarien in both our emerging technologies and more mature businesses.  The graphene businesses have had a very exciting year having entered into a number of collaborations to incorporate our high quality NaneneTM and GraphinksTM in a variety of different uses such as packaging, aerospace and sports equipment.  We continue to work towards collaborations with one or more Chinese partners to enable us to manufacture and promote our high quality products in China.  New production equipment is on order for scale up in the UK, we have substantially strengthened our team and I consider Versarien to be extremely well placed to produce the quantities needed for the commercialisation of these collaborations when required.

 

"Our hard wear business has shown much improvement increasing its sales and returning to profitability.  Our plastics business is focusing on efficiency improvements to further increase its returns and cash generation whilst also moving towards the incorporation of graphene into moulded parts.

 

"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

 

 

 

 

 

Arden & Partners(Nominated Adviser)

 

Chris Hardie / Dan Gee-Summons

+44 (0)20 7614 5900

 

 

 

 

IFC Advisory (Financial PR and IR) 

www.investor-focus.co.uk

Tim Metcalfe / Graham Herring / Heather Armstrong

+44 (0) 20 3934 6630

 

 

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:

 

Graphene and Plastics

2-DTech Limited, which specialises in the supply, characterisation and early stage development of graphene products. www.2-dtech.com  

AAC Cyroma Limited, 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  

Cambridge Graphene Ltd, supplies novel inks based on graphene and related materials, using patented processes to develop graphene materials technology.

www.cambridgegraphene.com  

 

Hard Wear and Metallic Products

Versarien Technologies Limited has developed an additive process for creating advanced micro-porous metals targeting the thermal management industry and supplies extruded aluminium. www.versarien-technologies.co.uk 

Total Carbide Limited, a leading manufacturer in sintered tungsten carbide for applications in arduous environments such as the oil and gas industry. www.totalcarbide.com 

 

 

 

Chief Executive's statement

 

Versarien consists of two main business segments; Graphene and Plastic Products focussed on delivering graphene solutions through plastics and carbon fibre composites and Hard Wear and Metallic products focussed on delivering aluminium and tungsten carbide products.

 

Graphene and Plastic Products

 

It has been a year of noteworthy progress for the graphene business both commercially and developmentally. Our strategy remains the same, which is to be a supplier of high quality graphene through our Nanene TM and Graphinks TM branded products and to continue to enter into application collaborations to maximize the opportunity for exponential growth as the market understands the advantages that graphene can be bring. This is being accelerated through UK Government support by the secondment of the Head of Outward Direct Investment, which gives us access to a global corporate audience.

 

The introduction of ISO/TS 80004-13: 2017 last year was a welcome development as it defined the vocabulary for graphene and two dimensional related materials. We are confident that our products meet the criteria.

 

In line with our strategy, we are pleased to have announced the following collaborations/agreements during the period and post the year end, and can provide an update on their current status as follows:

 

Date

Description

Current status

October 2017

Collaboration with Israel Aerospace Industries

Test panels have been produced and tested with additional surfactants now being added.

November 2017

Collaboration with Global Consumer Goods Company

Plastic bottles have been produced using graphene enhanced polymers which are currently undergoing physical testing.  Blown film trials are being conducted with results expected in the next two months.

December 2017

Agreement with Global Chemical Major

Blown film trials have been conducted. Performance results and film material has been analysed. A second round of trials are underway with results expected in the next two months.

January 2018

Agreement with Global Apparel Manufacturer

Fabric samples enhanced with graphene have been delivered which show a significant improvement in thermal conductivity of the fabric. Larger scale trials are underway which will include the required production process.

February 2018

Medical Technology collaboration at Addenbrooke's hospital

Electronics and printing for a medical bandage have developed to produce demonstration devices.  The electronics will be available for other medical, sports or clothing related applications.

February 2018

Agreement with the shoemaker Vivobarefoot

Initial testing concluded and further testing now being carried out with various graphene loadings.  Results expected shortly.

March 2018

Collaboration with Team Sky for cycling equipment

Applications and potential benefits have been reviewed and specific applications are being developed.

March 2018

Collaboration with world leading aerospace group

Applications of graphene into a propeller have been reviewed and a schedule of initial works with a total value of £0.2 million has been defined.

April 2018

Agreement with Luxus

Graphene enhanced polymers and recycled polymers being are evaluated for customer projects. Initial results are expected shortly.

May 2018

Consumer goods collaboration for polymer structures in plastics

Polymers compounded with graphene have been shipped to customer with test results expected shortly.

June 2018

Agreement with Arrow Green Tech

Samples have been shipped to the customer who has conducted tests.

June 2018

Commercial agreement with MediaDevil

Earphones have been tested, demonstrating significant benefits. The product is now ready for production.  Prototype phone accessories are being produced at AAC Cyroma and production units under development.

July 2018

Collaboration with ZapGo Ltd

Development of supercapacitors by the addition of Nanene to improve electrical conductivity of supercapacitor cells.   

 

Initial quantities of our high quality graphene (Nanene TM) have been supplied to support these collaborations, in some cases supplemented by other Versarien two dimensional materials. In line with the broader market, our graphene related sales are still at an embryonic stage, with the prospect for exponential growth from existing and new collaborations in place.

 

We have continued to invest in our graphene manufacturing capability to support collaborative application agreements and have also ordered additional equipment that will see our graphene capacity reach a maximum of almost 3 tonnes. Shareholders will be aware that we take a prudent view on capital commitments and scale-up as and when demand dictates we do so. Our European equipment supplier is aware that market-take up will require either significant quantities of standard equipment or custom designed equipment and we intend to enter into a collaboration with them at the earliest opportunity.

 

We have launched another two-dimensional product during the year, Hexotene TM, which is a few layer hexagonal boron nitride (h-Bn) nanoplatelet powder, also known as "white graphene". With the introduction of this product, it widens the focus of Versarien in delivering innovative solutions for industry.

 

Our focus is now on continuing to win further collaborations and orders, increasing production for those wishing to use and evaluate the benefits of using our products, both in the UK and globally, and in particular with partners in China. We entered into a letter of intent earlier in the year with Jinan, the capital of Shangdong Province and have been in discussions since. Interestingly, the announcement of this has resulted in possible links with another 23 cities or companies in China and we are therefore evaluating the best options for international expansion. We are conscious that in doing so we should seek to protect, as far as possible, the IP as well as conclude the best deal for Versarien and its shareholders.

 

The appointment of a secondee from the UK Government's Department for International Trade (DIT) in May 2018 is a significant step for our international development and we are confident that we will successfully progress our overseas investment ambitions.

 

We purchased AAC in 2016 as a strategic move to enable us to use graphene in moulded plastics. This is now progressing following the announcement of the commercial agreement with Media Devil where we are looking to incorporate Nanene into mobile phone accessories produced by AAC for the consumer market.  AAC's existing business is also providing a useful contribution to the Group's revenues.

 

Hard Wear and Metallic Products

 

Our hard wear parts business has had a successful year, returning to profitability and increasing revenues. It has continued to receive orders from the aerospace industry and, is continuing to seek contracts in other sectors

 

We have taken the strategic decision to concentrate on graphene opportunities so are no longer looking to actively develop thermal copper foam, albeit that interest for it is still being shown in some sectors.  Sales of traditional thermal and other aluminium products, have remained steady but are not expected to form a core part of the business moving forwards.

 

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:

 

 

2018

£'000

2017

£'000

Revenue

9,024

5,928

Gross margin percentage

28%

24%

Loss before interest, tax, depreciation, amortisation, exceptional costs and share based charges

(801)

(1,243)

Cash (used)/generated by Graphene and Plastic Products

(1,736)

55

Cash generated/(used) by Hard Wear and Metallic Products

43

(851)

Cash raised/(utilised) by parent (before loans to/from subsidiaries)

2,622

515

Net Cash raised and generated/(used) by the Group

929

(281)

 

Current trading and outlook

 

The current financial year has started positively, with the graphene business having entered into five significant collaborations since the year end, including an agreement with MediaDevil to launch a new range of earphones and audio equipment which will utilise our Nanene brand. This is the first time it has been used with consumer goods, and will see Versarien receive a royalty on each product sold.

 

We have also received initial purchase orders for Nanene both in the UK and China. We anticipate this trend of new collaboration agreements being secured, continuing. We therefore 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 2018 was £9.0 million (2017: £5.9 million) with operating losses before exceptional costs, depreciation, amortisation and share based payment charges of £0.8 million (2017: £1.2 million).

 

Net exceptional costs were minimal at £0.03 million (2017: £0.26 million) and the loss before tax for the year was £1.6 million (2017: £2.2 million).

 

We have seen the value that AAC Cyroma has brought to the Group, having owned it for the whole financial year, with revenues of £4.6 million (2017: £2.5 million; 6 months to 31 March 2017) and EBITDA of £0.4 million (2017: £0.1 million; 6 months to 31 March 2017).

 

Total Carbide returned to profitability with revenues up 45% to £3.2 million (2017: £2.2million) returning EBITDA of £0.5 million (2017: LBITDA of £0.1 million) and Versarien Technologies revenues of £1.2 million (2017: £1.1 million) and LBITDA of £0.1 million (2017 £0.3 million).

 

We have continued to invest heavily in our graphene technology businesses as the level of collaborations has increased. Whilst these have yet to produce revenues of any material amount the quality and size of our collaboration partners gives us more than reasonable expectation that significant future revenues may be achieved. LBITDA for the year was £0.9 million (2017: £0.4 million) 

 

Group net assets at 31 March 2018 were £8.0 million (2017: £6.5 million) including cash of £2.30 million (2017: £1.37 million) with £0.7 million of headroom on our invoice finance facilities (2017: £0.7 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.

 

In November 2017 we successfully raised £2.9 million before expenses, with the issue being oversubscribed. This has allowed the Company to use the proceeds of the fundraising to purchase capital equipment and provide working capital to enable the various existing and prospective graphene related collaborations with global OEMs to be progressed.

 

Cash outflow from operating activities was £1.9 million (2017: £1.3 million) including an increase in working capital of £1.3 million (2017: £0.2 million decrease) arising mainly from increased revenues and the re-financing of plant at AAC. The Group invested £nil, net of cash, in acquisitions (2017: £1.3 million), £0.1 million (2017: £0.05 million) in capitalised development costs, and £0.3 million (2017: £1.0 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.

●    As at 31 March 2018, the Group had bank balances totalling £2.3 million with £0.7 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). These projections assume  modest sales growth in the mature revenue generating businesses.

 

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 2018

Notes

2018

£'000

2017

£'000

Continuing operations

 

 

 

Revenue

2

9,024

5,928

 

   (6,496)  

(4,531)

Gross profit

 

2,528

1,397

Other operating income

 

63

180

 

(4,102)

(3,769)

Loss from operations before exceptional items

 

(1,477)

(1,929)

Exceptional items

3

(34)

(263)

Loss from operations

 

(1,511)

(2,192)

Finance costs

 

(50)

(11)

 

-

1

Loss before income tax

 

(1,561)

(2,202)

 

63

-

 

(1,498)

(2,202)

 

 

 

 

Loss attributable to:

 

 

 

- Owners of the parent company

 

(1,381)

(2,132)

- Non-controlling interest

 

(117)

(70)

 

 

(1,498)

(2,202)

 

 

 

 

Loss per share attributable to the equity holders of the Company:

 

 

 

 

 

 

 

Basic and diluted loss per share

5

(1.00)p

(1.85)p

 

There is no other comprehensive income for the year.

 

 

 

Group statement of financial position (unaudited)

As at 31 March 2018

 

 

Notes

2018

£'000

2017

£'000

Assets

 

 

 

Non-current assets

 

 

 

Intangible assets

6

2,678

2,923

Property, plant and equipment

7

2,980

3,106

 

25

25

 

5,683

6,054

Current assets

 

 

 

Inventory

 

1,961

1,888

Trade and other receivables

 

2,437

1,906

Current tax

 

77

39

 

2,296

1,367

 

6,771

5,200

Total assets

 

12,454

11,254

Equity

 

 

 

Called up share capital

8

1,486

1,313

Share premium account

8

12,529

9,762

Merger reserve

 

1,256

1,256

Share-based payment reserve

 

187

115

 

(7,225)

(5,844)

Equity attributable to owners of the parent company

 

8,233

6,602

 

(254)

(137)

 

7,979

6,465

 

 

 

Liabilities

 

 

 

Non-current liabilities

 

 

 

Trade and other payables

 

167

271

Provisions

 

-

80

Deferred tax

 

64

64

 

456

657

 

 

687

1,072

Current liabilities

 

 

 

Trade and other payables

 

1,849

2,363

Provisions

 

80

-

Current tax

 

284

363

Invoice discounting advances

 

1,117

735

 

458

256

 

3,788

3,717

 

4,475

4,789

Total equity and liabilities

 

12,454

11,254

 

 

 

 

Group statement of changes in equity (unaudited)

Year ended 31 March 2018

 

 

Share

 capital

£'000

Share

premium

account

£'000

Merger

reserve

£'000

Share-based

payment

 reserve

£'000

Accumulated losses

£'000

 

Non-controlling

Interest

£'000

Total

equity

£'000

At 1 April 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

Issue of shares

173

2,767

-

-

-

-

          2,940

Loss for the year

-

-

-

-

(1,381)

(117)

(1,498)

Share-based payments

-

-

-

72

-

-

72

At 31 March 2018

1,486

12,529

1,256

187

(7,225)

(254)

7,979

 

 

 

 

Statement of Group cash flows (unaudited)

Year ended 31 March 2018

 

 

 

Notes

 

2018

£'000

 

2017

£'000

Cash flows from operating activities

 

 

 

Cash used in operations

9

(1,907)

(1,250)

Interest paid

 

(50)

(10)

Corporation Tax paid

 

(9)

-

Net cash used in operating activities

 

(1,966)

(1,260)

Cash flows from investing activities

 

 

 

Acquisition of subsidiaries (net of cash acquired)

 

-

(1,324)

Purchase of intangible assets

 

(148)

(52)

Purchase of property, plant and equipment

 

(280)

(977)

Net cash used in investing activities

 

(428)

(2,353)

Cash flows from financing activities

 

 

 

Share issue

 

3,069

2,560

Share issue costs

 

(129)

(67)

Finance leases (net of repayments)

 

1

776

Invoice discounting loan proceeds

 

382

63

Net cash generated from financing activities

 

3,323

3,332

Increase/(decrease) in cash and cash equivalents

 

929

(281)

Cash and cash equivalents at beginning of year

 

1,367

1,648

Cash and cash equivalents at end of year

 

2,296

1,367

 

 

 

 

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 2018 or 31 March 2017.  The financial information for the year ended 31 March 2017 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 2018 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 2018 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 hard wear/metallic 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 2018 is as follows:

 

Central

£'000

Graphene and Plastic

Products

£'000

 Hard Wear and Metallic

 Products

£'000

Intra-group

adjustments

£'000

Total

£'000

Revenue

-

4,643

4,385

(4)

9,024

Gross profit

-

1,198

1,330

-

2,528

Other operating income

-

9

54

-

63

Operating expenses

(695)

(1,918)

(1,437)

(52)

(4,102)

(Loss) from operations

(695)

(711)

(53)

(52)

(1,511)

Finance income/(charge)

-

(21)

(29)

-

(50)

(Loss) before tax

(695)

(732)

(82)

(52)

(1,561)

Total assets

9,264

        4,575

4,911

(6,296)

12,454

 Total liabilities

(897)

(5,358)

(4,345)

6,125

(4,475)

Net assets/(liabilities)

8,367

(783)

566

(171)

7,979

Capital expenditure

2

373

53

-

428

Depreciation/amortisation and impairment

5

227

511

52

795

 

The segment analysis for the period ended 31 March 2017 is as follows:

 

Central

£'000

Graphene and Plastic

Products

£'000

 

 Hard Wear

And Metallic Products

£'000

Intra-group

adjustments

£'000

Total

£'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/(liabilities)

6,049

(151)

633

(66)

6,465

Capital expenditure

4

130

947

1,081

Depreciation/amortisation

1

274

362

25

662

 

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

 

2018

£'000

2017

£'000

 

2018

£'000

2017

£'000

United Kingdom

7,657

4,823

 

5,683

6,054

Rest of Europe

1,002

763

 

-

-

North America

2

11

 

-

-

Other

363

331

 

-

-

 

9,024

5,928

 

5,683

6,054

 

 

3.  Exceptional items

 

 

 

2018

£'000

2017

£'000

Relocation and restructuring costs

31

154

Acquisition costs

-

105

Release of deferred consideration

(80)

-

Impairment of  development costs (note 6) net of deferred grant income release

72

-

Other

11

4

 

34

263

 

 

4.  Dividends

As stated in the Company's 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 2018 and 31 March 2017 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 loss per share is based on the basic loss 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 2018 there were 8,222,830 (2017: 3,819,862) potential ordinary shares which have been disregarded in the calculation of diluted loss per share as they were considered non-dilutive at that date.

 

 

Loss

attributable to

shareholders

£'000

Weighted

average

number of

shares

£'000

Basic loss

per share

pence

Year ended 31 March 2018

(1,381)

138,208

(1.00)

Year ended 31 March 2017

(2,132)

115,292

(1.85)

 

 

6.  Intangible assets

 

Goodwill

£'000

Other

intangibles

£'000

Total

£'000

Cost

 

 

 

At 1 April 2016

1,023

1,164

2,187

Acquisitions

1,144

179

1,323

Additions

-

52

52

At 1 April 2017

2,167

1,395

3,562

Additions

-

148

148

At 31 March 2018

2,167

1,543

3,710

Accumulated amortisation and impairment

 

 

 

At 1 April 2016

-

277

277

Amortisation charge

-

362

362

At 1 April 2017

-

639

            639

Amortisation charge

-

202

202

Impairment

-

191

191

At 31 March 2018

-

1,032

         1,032

Carrying value

 

 

 

At 31 March 2018

2,167

511

2,678

At 31 March 2017

2,167

756

2,923

 

The impairment of Other Intangibles relates to development costs in Versarien Technologies Limited as per exceptional items, note 3.

 

 

 

Other intangible assets

 

31 March 2018

£'000

31 March 2017

£'000

Customer relationships/order books

113

167

Development costs

235

410

Licence

33

42

Intellectual property

130

137

Total

511

756

 

 

 

 

 

7.         Property, plant and equipment

Group

Plant and

equipment

£'000

Leasehold

improvements

£'000

Total

£'000

Cost

 

 

 

At 1 April 2016

6,243

16

6,259

Additions

573

456

1,029

Acquisitions

2,891

16

2,907

Disposals

(683)

-

(683)

At 1 April 2017

9,024

488

9,512

Additions

250

30

280

Disposals

(27)

-

(27)

At 31 March 2018

9,247

518

9,765

Accumulated depreciation

 

 

 

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 1 April 2017

6,386

20

6,406

Acquisitions

-

-

-

Charge for the year

372

30

402

Disposals

(23)

-

(23)

At 31 March 2018

6,735

50

6,785

Net book value

 

 

 

At 31 March 2018

2,512

468

2,980

At 31 March 2017

2,638

468

3,106

 

 

Plant and equipment includes the following amounts where the Group is a lessee under finance leases and hire purchase contracts:

 

 

Group

2018

£'000

Group

2017

£'000

Cost

3,889

3,530

Accumulated depreciation

(2,326)

(2,089)

Net book value

1,563

1,441

 

 

 

8.  Called up share capital and share premium

 

 

Number

of shares

'000

Ordinary

shares

£'000

Share

premium

£'000

Total

£'000

At 1 April 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

Issue of shares

17,334

173

2,767

2,940

At 31 March 2018

148,665

1,486

12,529

14,015

 

 

 

9.  Cash used in operations

 

 

 

2018

£'000

2017

£'000

 

Loss before tax

(1,561)

(2,202)

 

Adjustments for:

 

 

 

Share-based payments

72

24

 

Depreciation

402

300

 

Amortisation

202

362

 

Impairment

191

-

 

Disposal of non-current assets

4

11

 

R&D tax credit repayment

72

-

 

Finance cost

50

10

 

(Increase)/decrease in trade and other receivables

(569)

169

 

Increase in inventories

(73)

(63)

 

Increase/(Decrease) in trade and other payables

(697)

139

 

Cash flows from operating activities 

(1,907)

(1,250)

 

 

 

10.  Report and accounts

 

Copies of the 2018 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 2018 Annual Report and Accounts will be available to download from the investor relations section on the Company's website www.versarien.com.

 

 

- Ends -


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