Final Results

RNS Number : 0591P

Versarien PLC

27 September 2013

 



Press Release

27 September 2013

Versarien plc

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

Final Results

Versarien plc (AIM: VRS), the advanced engineering materials group, today announces, in accordance with regulatory requirements, the non-statutory audited results of Versarien Technologies Limited ("VTL") for the year ending 31 March 2013.  Shareholders should note that these accounts refer to only one of the Group's operating subsidiaries for a period prior to the acquisition of Total Carbide Limited, the successful raising of £3 million of new capital and the admission of Versarien to trading on AIM.  Therefore, they do not give an indication of the current financial position or trading of Versarien Plc.

Post period end Highlights

·	Successful Admission of Versarien to AIM on 12 June 2013 raising £3.0 million before expenses
·	Acquisition of Total Carbide Limited, a manufacturer of sintered tungsten carbide components, from Elektron Technology plc for a total consideration of £2.28 million satisfied as to £1.58 million in cash and the balance in Ordinary Shares.
·	Secured TSB grant for disruptive technology in the automotive industry
·	Appointment of Chris Leigh as Chief Financial Officer
·	Henderson Global Investors becomes a major shareholder

Commenting on the results, Neill Ricketts, Chief Executive Officer of Versarien , said:  

"The results of VTL reflect the continuing development of VersarienCu, our porous metal technology.  The Board continues to be confident in moving to commercial production and has now capitalised the development costs of the technology in the light of the developing sales pipeline.

"Since our flotation onto AIM, the integration of Total Carbide has proceeded in line with management expectations and significant sales opportunities have been identified.

"We view the future with confidence and look forward to updating the market further when we publish our Interim Results for the Group on 3 December 2013."

Versarien Technologies Limited

Income Statement and statement of comprehensive income

for the year ended 31 March 2013

		Audited	Unaudited
	Notes	Year ended 31 March 2013 £	Period 21 December 2010 to 31 March 2012 £
CONTINUING OPERATIONS
Revenue	3	-	-
Cost of sales		-	-
GROSS PROFIT			-
Other operating income	4	73,767	-
Administrative expenses		(478,057)	(64,031)
OPERATING LOSS		(404,290)	(64,031)
Finance costs	6	(10,377)	(5,065)
LOSS BEFORE INCOME TAX	7	(414,667)	(69,096)
Income tax	8	-	-
Loss and total comprehensive income for the year		(414,667)	(69,096)
Loss per share expressed in pounds per share:
Basic and diluted	9	(37.03)	(17.82)

Versarien Technologies Limited

Statement of Financial Position

31 March 2013

		Audited	Unaudited
	Notes	31 March 2013 £	31 March 2012 £
Assets
Non-current assets
Intangible assets	10	133,304	104,500
Property, plant and equipment	11	68,815	73,755
		202,119	178,275
Current Assets
Inventories	12	2,500	-
Trade and other receivables	13	109,980	40,007
Cash and cash equivalents	14	32,472	24,713
		144,952	64,720
Total Assets		347,071	242,995
Equity
Shareholders' equity
Called up share capital	15	13,218	10,600
Share premium		568,532	74,400
Accumulated losses		(483,763)	(69,096)
Total Equity		97,987	15,904
Liabilities
Non-current liabilities
Trade and other payables	16	133,382	96,565
Current liabilities
Trade and other payables	16	115,702	130,526
Total liabilities		249,084	227,091
Total equities and liabilities		347,071	242,995

Versarien Technologies Limited

Statement of changes in equity

for the year ended 31 March 2013

	Called up share capital £	Retained earnings £	Share Premium £	Total Equity £
Changes in equity
Issue of shared capital	10,600	-	74,400	85,000
Loss and total comprehensive income	-	(69,096)	-	(69,096)
Balance at 31 March 2012	10,600	(69,096)	74,400	15,904
Changes in Equity
Issue of Share Capital	2,618	-	494,132	496,750
Loss of total comprehensive income	-	(414,667)	-	(414,667)
Balance at 31 March 2013	13,218	(483,763)	568,532	97,987

Versarien Technologies Limited

Statement of cash flows

for the year ended 31 March 2013

		Audited	Unaudited
	Note	Year ended 31 March 2013 £	Period 21 December 2010 to 31 March 2012 £
Cash flows from operating activities
Cash generated from operations	1	(373,908)	140,153
Interest paid		(10,377)	(5,065)
Net cash from operating activities		(384,285)	135,088
Cash flows from investing activities
Purchase of intangible fixed assets		(51,604	(114,000)
Purchase of tangible fixed assets		(14,075)	(73,775)
Sale of tangible fixed assets		9,000	-
Net cash from investing activities		(56,679)	(187,775)
Cash flows from financing activities
Amount introduced by Directors		16,973	-
Amount withdrawn by Directors		-	(7,600)
Amount advanced to parent company		(65,000)	-
Share issue		2,618	10,600
Share premium		494,132	74,400
Net cash from financing activities		448,723	74,400
Increase in cash and cash equivalents		7,759	24,713
Cash and cash equivalents at the beginning of year		24,713	-
Cash and cash equivalents at the end of year		32,472	24,713

1. Basis of preparation

The financial information in this statement does not constitute full statutory financial statements within the meaning of Section 435 of the Companies Act 2006.  The financial information has been prepared from the Company's 31 March 2013 UK GAAP statutory financial statements on which the auditor expressed an unqualified opinion (2012: unaudited) and did not include a statement under Section 498(2) and Section 498(3) of the Companies Act 2006.  A copy of the 2013 statutory accounts is in the process of being filed with the Registrar of Companies.

The financial information has been prepared in accordance with International Financial Reporting Standards (IFRSs) and International Financial Reporting Interpretation Committee (IFRIC) interpretations and with those parts of the Companies Act 2006 applicable if the Company was presenting statutory accounts in accordance with IFRSs.  The financial statements have been prepared under the historical cost convention.

The Company is in its development stage and relies on its parent company for financial support.  On the basis of this support the Directors consider it appropriate to prepare the accounts on a going concern basis.  The validity of this assumption depends on the parent company continuing its support in the forthcoming financial year.  The parent company, Versarien plc, has agreed to support the Company for at least 12 months from the date the financial statements are signed.

If the Company were unable to continue in operational existence for the foreseeable future, adjustments would have to be made to reduce the balance sheet values of assets to their recoverable amounts, to provide for further liabilities that might arise and to reclassify fixed assets and long term liabilities and current assets and liabilities.

2. Other operating income

	Audited	Unaudited
	Year ended 31 March 2013 £	Period 21 December 2010 to 31 March 2012 £
Grant income	70,595	-
Other income	3,172	-
	73,767	-

3. Finance costs

	Audited	Unaudited
	Year ended 31 March 2013 £	Period 21 December 2010 to 31 March 2012 £
Finance costs:
Interest on licence - using effective rate method	10,377	5,065

4. Income tax

In the financial period under review, the Company incurred a trading loss.  The trading loss to be carried forward against future trading profits for corporation tax purposes was £509,565 (2012: £182,540).  These losses will reduce the tax charge of future years until they are utilised. No deferred tax asset in respect of these losses, which would amount to approximately £101,913 (2012: £36,508), has been recognised as there is currently insufficient certainty as to the precise timing of when the asset will be reversed.

5. Trade and other receivables

	Audited	Unaudited
	31 March 2013 £	Period 31 March 2012 £
Current:
Trade receivables	191	-
Other receivables	19,252	10,000
Directors' current accounts	-	7,600
Due from parent company	65,000	-
VAT	22,760	19,857
Prepayments	2,777	2,550
	109,980	40,007

All trade and other receivables are held at original invoice amount.

Other receivables consist of a deposit made on the lease and use of the business premises amounting to £2,125 and grant income due of £17,127 which is comprised of a development agreement to provide a series of product samples, £3,000, and the completion of the next phase with the development grant agreement of £14,127.

The Directors have considered the risk that the above balances may not be recoverable and the effect this would hold on the Company's liquidity risk.  However they consider all of the above balances receivable in full within one year of the financial period end and are not past due and, as such, consider no provision is required against any amount.  With this the Directors feel the Company's exposure to liquidity risk is manageable and holds no material effect on the presentation of the financial statements.

6. Ultimate parent company

Versarien plc is the 100% shareholder of Versarien Technologies Limited.

Copies of the full report and accounts for Versarien Technologies Limited for the year ended 31 March 2013 have today been posted to shareholders and are available to download from the Versarien plc website at www.versarien.com.

For further information:

Versarien plc
Neill Ricketts, Chief Executive Officer	Tel: [phone]
	www.versarien.com

Northland Capital Partners Limited (Nomad and Joint Broker)
William Vandyk / Lauren Kettle	Tel: [phone]
	www.northlandcp.co.uk
Westhouse Securities Limited (Joint Broker)
Tom Griffiths / Rob Sanders	Tel: [phone]
	www.westhousesecurities.com

Media enquiries:

Abchurch Communications Limited
Henry Harrison-Topham /  Alistair de Kare Silver	Tel: [phone]
	www.abchurch-group.com

Notes to Editors

The original research project that has led to the emergence of the VersarienCu™ product was conducted at the University of Liverpool's Department of Engineering, funded by a £700,000 grant from the Technology Strategy Board. Versarien has exclusive rights to market the technology around the world.

·           Versarien Technologies was formed in December 2010 with the express purpose of commercialising the LCS process, developed initially by Dr. Yuyuan Zhao of the University of Liverpool over the preceding four years.

·           In February 2011, C-Tech awarded a letter of intent to Versarien Technologies for global manufacturing rights to the process for porous copper production.

·           Versarien plc was incorporated on 25 February 2013 to act as the holding company for the Group.

·           On 21 March 2013 Versarien plc acquired the entire issued share capital of Versarien Technologies.

·           On 12 June 2013 Versarien plc floated on the AIM market and at the same time purchased Total Carbide Limited to provide its manufacturing base.

·           Versarien is a finalist in the following seven national awards:

·     Growing Business of the Year: 'Made in Britain' Award & 'Innovator of the  Year'  Award

·     Gloucestershire Business Awards: 'Young Company of the Year'

·     Elektra Awards: 'Passive & Electromechanical product of the Year' Award for 'VersarienCu' & 'New company of the Year' Award

·     British Engineering Excellence Awards (BEEA's): 'Materials Application of the Year' Award & 'Start Up of the Year' Award    

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