Gloucestershire-based advanced engineering materials group Versarien is looking to bounce back after a "challenging" period.

The Forest of Dean-headquartered firm saw revenues fall and losses rise sharply in the six months to the end of March.

Group revenues were £2.62 million (2022: £3.89 million), graphene revenues were £0.09 million (2022: £0.97 million) and loss before tax was £3.40 million (2022: £2.16 million).

Diane Savory, non‐executive chair of Versarien, said: "The period under review was extremely challenging from a financial perspective, both from a balance sheet point of view and with the decline in graphene revenues reflecting the ending of the DSTL development contract."

Following the resignation of founder and chief executive Neill Ricketts in March, Versarien has engaged strategy and turnaround specialist David Stone and his firm Prompt Business Strategies Ltd to aid the company in developing its strategic plans.

These include maintaining and strengthening the group's scientific teams supported by grant funding applications and using the group's internally generated know‐how in the areas of construction and textiles to be a manufacturing light operation.

The company is also looking to divest non‐core activities and Asian assets to reduce the requirement for funding from the capital markets

Ms Savory added: "Following the annual general meeting we have, with the assistance of David Stone and his team, been developing a strategy that focuses on maintaining appropriate IP to support our core end‐sectors of construction and textiles whilst reducing cash‐outflows to a level that can be supported by proposed asset sales, marketing of which is in process.

"We believe this strategy will ensure a brighter future for Versarien."