Losses widen to £8.4m at troubled manufacturing firm

Troubled advanced engineering firm Versarien saw its losses widen over the last 12 months.

The Gloucestershire business has been going through a restructuring process and has also sold off parts of the business as it looks to deal with its debts.

The company said revenues from continuing operations fell from £11.1m to £5.45m over the last 12 months.

The reported loss for the same period was up from £8.4m to £14.18m.

As part of cost cutting exercises, the research and development team has been slimmed down significantly during 2023, to concentrate on its strategic objectives.

And the company has now ceased USA and China sales operations in order to focus on its European operations whilst maintaining its partnerships in South Korea.

Versarien has also sold its South Korean plant and equipment to MCK Tech for £604,000.

Dr Steve Hodge, chief executive of Versarien, said: “The period was a challenging one for Versarien, but I believe the restructuring and other actions we have undertaken have resulted in a more efficient business, which maintains the skilled people and technology to enable commercial success.

“It is encouraging to report that our pipeline of potential income opportunities is growing , albeit development opportunities are still the largest part, but we are beginning to see signs of more commercial interest, including licensing.

“This, together with our reduced cost base, gives us an increasing level of confidence as we seek to ensure a bright future for Versarien.”