Pioneering South West graphene firm warns of looming funding problems

South West advanced engineering materials group Versarien, which is aiming to harness the power of graphene, today said it is in financial talks to stave off a financial crisis.

The firm, based in Longhope, Gloucestershire, said unless further external financing was received it would “cease to be able to pay its liabilities as they fall due by mid-May 2025”.

The firm, which makes products using graphene for the automotive, clothing, biomedical and aerospace sectors, has been struggling for some time and has been undertaking a major cost-cutting drive for more than a year.

Two years ago it was rocked by the departure of founder and former chief executive Neill Ricketts amid a boardroom reshuffle.

Today’s comments, accompanying its annual results, are the starkest yet of its financial problems.

In the statement the firm said: “As at 25 March 2025 the group has a current bank balance of £0.90m and headroom on its invoice discounting facilities of £0.05m totalling £0.95m, which includes £0.6m relating to specific grant funding to be used over the next two years.

“The board is currently in advanced discussions with a third party with a view to raising equity funding of £0.5m before mid-May 2025 at a premium to the current share price, which if completed, will equate to approximately 15% of the company’s enlarged share capital.

“In the general meeting held on 24 March 2025, shareholders approved resolutions to give the directors the authority to allot 2.99bn shares without pre-emption-rights.

“If the anticipated investment does not complete, then the board will seek to use the granted authority to issue new shares to raise further equity capital in order to ensure that the company has sufficient working capital to carry on its business.”

The company’s shares, which in January 2021 were trading as high as 66.7p, fell to 0.027p in early trading this morning.

Versarien CEO Dr Stephen Hodge said today: “I am confident that our strategic direction, combined with our focus on commercialising intellectual property and securing strong partnerships, will help us navigate challenges and deliver robust growth.

“Our diverse portfolio of technologies is setting the stage for continued success, and we look forward to reporting further progress through 2025.”

Today’s results for the 12 months to the end of last September show the group narrowed its pre-tax loss to £4.3m from £14.1m in the previous year on sales down from £3m to £2.4m.

During the period it raised £2m via equity placings, down from £3.4m in the prior year.

A spin-out from the University of Manchester, the birthplace of graphene, Versarien is an IP-led advanced engineering materials group that utilises proprietary technology to create innovative engineering solutions.

It holds more than 130 patents covering areas including the manufacture and use of graphene and related materials (GRMs) in diverse applications.

It develops and manufactures advanced materials and products globally through a number of subsidiaries and has the widest portfolio of high-quality verified products.

Last September Versarien sold its specialist plastics manufacturing business AAC Cyroma for £550,000 as it increasingly put a greater focus on monetising its IP linked to graphene through licensing,

Earlier this month it completed the drawn-out £600,000 sale of plant and equipment in South Korea after it received a final delayed payment.

Versarien had granted an exclusive, five-year licence to South Korean firm MCK Tech to use five patents in its business in the country.