Troubled advanced engineering materials group Versarien has issued a fresh warning over its fragile financial situation.

The Forest of Dean-based firm said that as at June 30, 2025, the group had a current bank balance of £0.65 million and headroom on its invoice discounting facilities of £0.03 million, which includes £0.54 million relating to specific grant funding to be used over the next two years.

But in its interim results for the six months ended March 31, it warned: "If no further external financing is received, with the free cash available of £0.11 million the group will cease to be able to pay its liabilities as they fall due by the start of August 2025 without taking additional restructuring action and raising further funds.

"Whilst the first six months of the year have seen further pipeline progress, this has yet to translate into significant customer orders and sales. Consequently, the company does not now anticipate reaching break‐even at the EBITDA level by the end of this financial year as previously reported in the company's 2024 annual report."

Shares in Versarien slumped by 8% yesterday to their lowest level ever and slipped further this morning to 0.016p.

Versarien, which makes products using graphene for the automotive, clothing, biomedical and aerospace sectors, has staved off a number of financial crises in recent years.

Its interim results show the group's revenues rose to £1.47m (2024: £1.34m) with a loss before tax of £1.49m (2024: £1.61m).

Following a strategic review by the board, Versarien has taken advice from and appointed Leonard Curtis to effect an accelerated sale of certain trade and assets of the group's UK Technology companies whilst minimising the cash outflows from these operations. This includes seeking a strategic joint investment partner for the 3D Construction Printing business where significant progress has been made, supported by funding from Balfour Beatty, in producing and successfully demonstrating the first of the company's optimised printable mortars.

In addition, the trading activities of Versarien Korea Limited will be closed, although the company anticipates ongoing activity with the local South Korean director in a consultancy role. Following this re‐structuring, the group is expected to then consist of the parent company, Versarien Plc and Total Carbide Limited in the UK, and Gnanomat S.L. in Spain.

Whilst continuing to progress its strategic investment, it is Versarien's intention to use its remaining share authorities to raise additional funds and renew those authorities whether it be for strategic investment and/or working capital purposes. The board expects the group's ongoing costs will be reduced with the simplified group structure.

Stephen Hodge, chief executive officer of Versarien, said: "With our planned corporate restructuring, our strategy continues to be to monetise intellectual property including our know‐how by being a manufacturing‐light operation that licences Versarien's technology and brands as commercial traction for graphene develops.

"Our pipeline of commercial opportunities currently stands at £2.1 million, up from the previously announced £1.6 million as at October 2024. Although we remain dependent upon equity funding to continue as a going concern, the growing pipeline gives us optimism for the future growth and sustainability of the business."