Gloucestershire-based advanced engineering materials group Versarien is streamlining the business after seeing 'successes and challenges' over the past 18 months.

In its results for the 18 months ended 30 September 2022 published today, the company reported a loss of £8.4 million, compared to a loss of £8.1 million for the 12-month period ended 31 March, 2021.

Adjusted LBITDA (loss before interest, tax, depreciation and amortisation for continuing operations) was £2.4 million (2021: £1.9 million)

However, group revenues from continuing operations rose to £11.1 million (2021: £5.7 million) and Graphene revenues were £2.1 million (2021: £0.7 million) .

Highlights of the year included relocation to a new dedicated graphene production facility in Longhope tosignificantly expand capacity.

A 10,000 square foot floor slab was laid for the new Versarien innovation centre using the company's CementeneTM and PolygreneTM enhanced concrete.

Versarien also successfully completed the on-time delivery of the Defence Science and Technology Laboratory ("DSTL") contractwithin specification.

Neill Ricketts, CEO of Versarien, said: "The extended 18-month period has seen both successes and challenges, with the first 12 months seeing thefinancial benefits from the DSTL contract which focussed on understanding the advantages that graphene-loadedmaterials may bring to defence applications.

"In the period we also successfully completed the GSCALE developmentstage of the project despite the macro‑economic challenges faced and the company is now focussing on the mostadvanced Technology Readiness Level stage projects of construction and textiles.

"We remain confident of the environmental and commercial benefits our graphene technology can bring, but thecurrent macro-economic conditions combined with the disruptive nature of our products has delayed thecommercialisation we were anticipating.

"Consequently, we are streamlining the business and focusing on our primaryopportunities in construction and textiles. We will continue to seek grant funding to support our operations, but willalso need the continuing support of investors, either strategic or from the capital markets, to fund the business untilsuch time as the graphene market gains traction and material commercial revenues flow.

"We look forward to updating the market on progress in due course."