Earnings Release • Jul 19, 2016
Earnings Release
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RNS Number : 5311E
Versarien PLC
19 July 2016
| Press Release | ##### 19 July 2016 |
Versarien plc
("Versarien" or the "Company" or the "Group")
Final Results
Versarien Plc (AIM:VRS), the advanced engineering materials group, today announces its unaudited final results for the year ended 31 March 2016.
Operational highlights
| ● | Progress made across all three divisions in line with Group's stated strategy. |
| ● | Thermal product sales of £1.3 million (2015: £0.4 million), benefiting from a full year contribution from the heat sink business acquired in February 2015. |
| ● | Strong enquiry pipeline following significant investment in last 24 months and first OEM contract negotiated for low profile copper foam heat sinks in consumer devices. |
| ● | Hard Wear products sales of £3.1m (2015: £4.6 million) affected by continued adverse conditions in oil & gas market; new opportunities emerging in defence and aerospace markets. |
| ● | Significant advances in graphene with commercial production of three graphene types in progress: production process now patented in UK, Europe and USA with China expected soon. |
| ● | Four partnerships formed post-year end to expedite adoption of graphene into key markets: batteries, carbon fibre products and enhanced composites for 3D printing and aerospace industry. |
Financial highlights
| ● | Group revenues of £4.40 million (2015: £4.98 million) |
| ● | Net assets of £5.5 million (2015: £7.3 million) |
| ● | Cash at 31 March 2016 of £1.6 million (2015: £3.5 million) |
| ● | *LBITDA of £1.3 million (2015: £0.3 million) |
| ● | Loss before tax £1.8 million (2015: £0.9 million) |
* LBITDA excludes exceptional items and share based payment charges.
Commenting on the final results, Neill Ricketts, Chief Executive Officer of Versarien, said: "Versarien has made considerable progress this year moving its disruptive technologies towards production and commercialisation. We can now offer five types of graphene out of our manufacturing facilities in Cheltenham and we are in the process of securing the IP surrounding the production processes in all key territories. Since the year end we have formed partnerships that will allow us to accelerate our entry into markets that we believe will significantly benefit from the unique properties that graphene offers. In our thermal products division, we have negotiated our first commercial order for low profile copper foam heat sinks which validates our technology. Opportunities are emerging in new markets for our Hard Wear products which has maintained profitability despite the continued down turn in the oil and gas market. Overall, I am very pleased with what we achieved last year and the Board remains confident that we are well placed to capitalise on the opportunities available to us.
"We would like to take this opportunity to thank our continually supportive investor base and our employees for their hard work."
For further information please contact:
| Versarien plc | www.versarien.com |
| Neill Ricketts - Chief Executive Officer | +44 (0) 1594 888 622 |
| Chris Leigh - Chief Financial Officer | |
| WH Ireland (Nominated Adviser) | www.wh-ireland.co.uk |
| John Wakefield / Ed Allsopp | +44 (0) 117 945 3470 |
| IFC Advisory (Financial PR and IR) | www.investor-focus.co.uk |
| Tim Metcalfe / Graham Herring / Heather Armstrong | +44 (0) 20 3053 8671 |
Notes to Editors:
Versarien(TM) plc (AIM:VRS), is an advanced engineering materials group. Leveraging proprietary technology, the Group creates innovative engineering solutions for its clients in a diverse range of industries. Versarien has three subsidiaries:
Versarien Technologies Ltd. which owns the exclusive rights to a patent-protected additive process for creating advanced micro-porous metals targeting the thermal management industry and manufactures extruded aluminium heat sinks for the electronics and computing industries. www.versarien-technologies.co.uk
Total Carbide Ltd, a leading manufacturer in sintered tungsten carbide for applications in arduous environments such as the oil and gas industry. www.totalcarbide.com
2-DTech Ltd., which specialises in the supply, characterisation and early stage development of graphene products. www.2-dtech.com
Chairman's Statement
The Group has made considerable progress in its stated strategy of capitalising on innovative IP and transforming it into commercially viable products that can tackle the technology challenges faced by modern manufacturers.
Development of our core graphene and porous copper foam production technologies has now been completed. As such, the financial results reflect a year of transition as the Group moves away from its reliance on the Hard Wear division to provide the cash backbone for product development towards the commercialisation of our disruptive technologies.
Versarien is now well positioned to become a leader in commercial applications for graphene and has validated its Versarien Cu copper foam product having negotiated its first commercial order for use in consumer devices.
Board
We were very pleased to welcome Iain Gray CBE to the Board as a non-executive director following the retirement of Jeremy Veasey. With a lengthy career in aerospace and technology, Iain brings with him a wealth of technical and Board level experience and is well placed to help Versarien accelerate the commercialisation of its technology, especially in 2 dimensional products.
After 5 years with Versarien as Chief Technology Officer, Will Battrick resigned as a Director to pursue other interests. As the Company has evolved, the Board concluded that each business division would be best served by a dedicated technical lead at senior management level, reporting to the subsidiary Board. These appointments are in the process of being made and once completed, we believe we will have a Board and management team that is appropriate to the size and Group structure at this present time.
Post year-end developments
Since the year end a number of important initiatives have crystalised following significant groundwork carried out last year.
We have signed four MOUs to form partnerships with organisations that will allow us to accelerate the adoption of graphene into markets where this material is expected to be a game-changer: 3D printing, batteries, carbon fibre composites and aerospace. Each of these partnerships brings specialist scientific, manufacturing or target sector knowledge and will help us to penetrate these markets quicker whilst sharing development costs and knowledge.
In the Thermal Products business we have negotiated our first OEM order for low profile copper foam heat sinks for use in consumer devices, validating our product and allowing us to leverage other opportunities. Manufacturing will commence out of our new premises in Westcott alongside our Hard Wear products.
Acquisitions
The Group continues to look for appropriate acquisition opportunities to complement organic growth, especially for graphene applications.
Outlook
The Board remains confident that the Company is on track to capitalise from the progress it has made. With graphene we are moving rapidly towards commercial applications and our thermal products have gone from development into commercial production. There remains demand and opportunities from global markets and the growth prospects for our transformative products remain strong.
Ian Balchin
Non-executive Chairman
Chief Executive's statement
Versarien plc comprises an exciting combination of advanced materials with high growth potential allied to a manufacturing base with not only its own revenue streams but also the plant and equipment to manufacture its technology products.
I am pleased with the progress made in the last year across all three segments of the business, which comprise of:
| · | Thermal Products, which develops, manufactures and supplies heat sinks and other products made from porous copper and aluminium; |
| · | Hard Wear Products, which manufactures tungsten carbide hard wearing parts, and |
| · | Graphene Products, which is developing applications for Graphene based upon proprietary technology for manufacturing Graphene. |
Thermal products
During the year the business has matured from pre-production to a scalable manufacturing stage. We have successfully relocated to an industrial premises in Cheltenham sitting alongside and using capacity in our Hard Wear plant. Demand is being driven by consumer markets focused on TV/ Display, wearables, set top boxes and Internet of Things.
Our low profile heat sinks are marketed through a number of distribution channels and sales worldwide are gradually gaining traction. We gained 83 new customers via our US distributor, Mouser, who were appointed at the start of the year following the launch of our standard range of low profile heat sinks. In order to support sales efforts further, we have also expanded our European sales channels.
The copper foam product is now gaining market validation with its first contract win for use in consumer devices now negotiated. This will enable us to aggressively market the product and make further sales progress. We are able to scale the manufacture of this product with the capacity available at our Hard Wear plant.
Revenue for the year was £1.3 million (2015: £0.4 million) which benefitted from a full year contribution from the heat sink business acquired in February 2015. Operating losses before exceptional items were £1.0 million (2015: £0.7 million). Investment in the business continued with £184,000 capitalised on development costs (2015: £250,000).
Work has continued in securing the intellectual property around our products and production processes. At present we are progressing three patent applications including our heat sinks and the production method for copper foam.
Hard Wear Products
Our strategy with Hard Wear products is to target new markets where there is less competition and to utilise existing manufacturing capacity for the production of copper foam which requires similar engineering equipment and has long term growth prospects.
Even before the sharp decline in market conditions, sales of tungsten carbide in the oil and gas industries were already facing intense competition from the Far East. Against this backdrop and period of transition, Hard Wear products delivered a creditable performance. Revenue for the year was £3.1 million (2015: £4.6 million) with an EBITDA of £0.3 million (2015 £1.1 million), generating cash of £0.2 million (2015: £0.5 million).
We are developing new market opportunities and products aimed at the defence and aerospace industries, and during the year secured our first supply agreement in the latter.
The division is relocating from Princes Risborough to a new facility in Buckinghamshire which will allow us to scale production of copper foam as required.
Graphene Products
Of most significance is the progress we have made in commercialising the production of graphene having moved out of the laboratory into a scalable production facility in Cheltenham.
We now have the ability to produce graphene using almost all the available techniques and going forward, will concentrate on three. Graphene Nanoplatelets (GNPs), produced by the exfoliation process, are suitable for use in printable electronics, opto electronics, solar cells, plastics, biomedical devices and energy storage. Both Graphene Oxide (GO) and Reduced Graphene Oxide (RGO) are produced using a wet chemistry method and are suitable for use in paints, inks, rubber, lubricants, and printing.
For the immediate future we are focusing on the following applications:
| · | enhancing the properties of polymer composites for use in a wide range of industries including aerospace and 3D printing materials |
| · | strengthening of carbon fibre products, particularly in sports equipment where there is traditionally fast adoption of new high performance materials, improving the charge carrying capacity of batteries for the electronics market |
Our strategy in the short-term is to develop a sustainable business supplying GNPs, GO and RGO into the research and development market, both in the UK and abroad via our e-commerce web-site and direct marketing initiatives. Application development will begin in the polymer composites arena by seeking acquisition opportunities where graphene enhancement can add a number of benefits including increasing strength and introducing electrical conductivity. Dispersion technology will be required and plans are in place to partner with the Warwick Manufacturing Group together with our own scientists.
In the medium term, we will roll out scalable manufacturing when application technology is sufficiently advanced, so that we can take advantage of the other target markets identified above.
We continue to secure important patents in our production methods across all key territories, including China.
We continue to form working relationships with the graphene supply chain including Haydale Graphene Industries where it is appropriate and to supplement our offering as necessary. Our unique relationship with the University of Manchester and the National Graphene Institute ensures we remain at the forefront of scientific discovery.
Key performance indicators
As a Group that consists of mature products supporting the development of early stage technology products, we concentrate on the following financial metrics:
| 2016 £'000 |
2015 £'000 |
|
| Revenue | 4,401 | 4,982 |
| Gross margin percentage | 24% | 38% |
| Loss before interest, tax, depreciation, amortisation, exceptional costs and share based charges | (1,310) | (277) |
| Cash generated from mature businesses after capital investment | 195 | 483 |
| Cash utilised by technology businesses after capital investment | (1,430) | (1,747) |
| Cash (utilised)/raised by parent (including cash acquired and net of loans to technology businesses) | (648) | 4,580 |
| Net Cash (used)/raised by the Group | (1,883) | 3,316 |
Current trading and outlook
The outlook for both our technology products is very promising. Thermal products currently has a pipeline of enquiries of £1.4 million and with capacity available at our Hard Wear plant, we are in a strong position to be able to scale production. The graphene business is experiencing renewed energy after a year of considerable preparation and planning. As anticipated, the depressed oil and gas market continues to affect the tungsten carbide business, but green shoots are emerging with new opportunities. In order to mitigate this period of transition between new and traditional technology, we continue to closely monitor all costs.
It is against this backdrop that we are looking forward with real optimism and increased confidence.
Neill Ricketts
Chief Executive Officer
Financial Review
Versarien's revenue for the year ended 31 March 2016 was £4.40 million (2015: £4.98 million) with operating losses before exceptional costs, depreciation/amortisation and share based payment charges of £1.3 million (2015: £0.3 million).
Exceptional costs were £0.15 million (2015: £0.3 million) including £0.06 million of acquisition and potential acquisition costs (2015: £0.08 million) £0.05 million of restructuring costs (2015: £0.16 million) and £0.04 million of other costs (2015: £0.06 million).
The loss before tax for the year was £1.8 million (2015: £0.9 million).
Group net assets at 31 March 2016 were £5.5 million (2015: £7.3 million) including cash of £1.65 million (2015: £3.5 million) with £0.7m of headroom on its invoice finance facilities (2015: £0.6 million). The directors consider this sufficient for the coming twelve months having made certain assumptions, further details of which are contained below.
Cash outflow from operating activities was £1.3 million (2015: £1.1 million) including working capital decreases of £0.2 million (2015: £0.5 million increase). The Group invested £nil, net of cash, in acquisitions (2015: £0.2 million), £0.6 million (2015: £0.3 million) in capitalised development costs and £0.3 million (2015: £0.3 million) in plant and machinery.
Thermal Products
Revenue for the year was £1.3 million (2015: £0.4 million). Operating losses before exceptional items were £1.0 million (2015: £0.7 million).
Hard Wear Products
Revenue for the year was £3.1 million (2015: £4.6 million) and returned an operating profit before exceptional costs of £0.1 million (2015: £1.0 million) representing a 4% (2015: 21%) return on sales.
Graphene Products
Revenue for the year was £0.016 million (2015: £0.033 million) and returned an operating loss before exceptional costs of £0.3 million (2015: £0.2 million).
Going concern
The financial statements have been prepared on a going concern basis, which the Directors believe to be appropriate for the following reasons:
| · | As at 31 March 2016, the Group had bank balances totalling £1.6m with £0.7 million of headroom on its invoice discounting facilities. | |
| · | The Group meets its day-to-day working capital requirements through careful cash management and the use of its invoice discounting facilities. | |
| · | The Directors have prepared detailed projections of expected future cash flows for a period of twelve months from the date of issue of this preliminary statement. These show that the Group is expected to have sufficient cash available to meet its obligations as they fall due. | |
| · | The projections contain assumptions about the sales performance of its technological products and the state of the oil and gas sectors. There is therefore a risk that trading performance could be below expectation which could lead to there being insufficient cash. | |
| · | Other factors that have been taken into account include: | |
| - | The Directors are authorised to place up to 10.5 million shares for cash without pre-emption rights; | |
| - | The accuracy of key assumptions and the achievement of key cash flows; | |
| - | The continuation and adequacy of bank facilities; and | |
| - | There are a number of mitigating actions that the Group could implement, such as reducing the funds spent on development costs and consolidating all of its operations onto one site. | |
After due consideration, the Directors have concluded that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the consolidated financial statements.
Chris Leigh
Chief Financial Officer
Group statement of comprehensive Income (unaudited)
Year ended 31 March 2016
| Notes | 2016 £'000 |
2015 £'000 |
|
| Continuing operations | |||
| Revenue | 2 | 4,401 | 4,982 |
| Cost of sales | (3,340) | (3,089) | |
| Gross profit | 1,061 | 1,893 | |
| Other operating income | 57 | 126 | |
| Operating expenses (including exceptional items) | (2,932) | (2,883) | |
| Loss from operations before exceptional items | (1,666) | (557) | |
| Exceptional items | 3 | (148) | (307) |
| Loss from operations | (1,814) | (864) | |
| Finance charge | (7) | (2) | |
| Loss before income tax | (1,821) | (866) | |
| Income tax | 31 | - | |
| Loss for the year | (1,790) | (866) | |
| Loss attributable to: | |||
| -Owners of the parent company | (1,745) | (830) | |
| - Non-controlling interest | (45) | (36) | |
| (1,790) | (866) | ||
| Loss per share attributable to the equity holders of the Company: | |||
| Basic and diluted loss per share | 5 | (1.65)p | (0.80)p |
There were no comprehensive gains or losses in the year other than those included in the Comprehensive Income Statement.
Group statement of financial position (unaudited)
As at 31 March 2016
| Notes | 2016 £'000 |
2015 £'000 |
|
| Assets | |||
| Non-current assets | |||
| Intangible assets | 6 | 1,910 | 1,502 |
| Property, plant and equipment | 7 | 1,487 | 1,423 |
| Deferred taxation | 25 | 65 | |
| 3,422 | 2,990 | ||
| Current assets | |||
| Inventory | 1,472 | 1,109 | |
| Trade and other receivables | 816 | 1,272 | |
| Cash and cash equivalents | 1,648 | 3,531 | |
| 3,936 | 5,912 | ||
| Total assets | 7,358 | 8,902 | |
| Equity | |||
| Called up share capital | 8 | 1,056 | 1,055 |
| Share premium account | 8 | 7,163 | 7,150 |
| Merger reserve | 1,017 | 1,017 | |
| Share-based payment reserve | 91 | 94 | |
| Retained earnings | (3,712) | (1,967) | |
| Equity attributable to owners of the parent company | 5,615 | 7,349 | |
| Non-controlling interest | (67) | (22) | |
| Total equity | 5,548 | 7,327 | |
| Liabilities | |||
| Non-current liabilities | |||
| Trade and other payables | 376 | 181 | |
| Provisions | - | 203 | |
| Long-term borrowings | 58 | 13 | |
| 434 | 397 | ||
| Current liabilities | |||
| Trade and other payables | 1,005 | 855 | |
| Provisions | 208 | 300 | |
| Invoice discounting advances | 116 | - | |
| Current portion of long-term borrowings | 47 | 23 | |
| 1,376 | 1,178 | ||
| Total liabilities | 1,810 | 1,575 | |
| Total equity and liabilities | 7,358 | 8,902 |
Group statement of changes in equity (unaudited)
Year ended 31 March 2016
| Share capital £'000 |
Share premium account £'000 |
Merger reserve £'000 |
Share-based payment reserve £'000 |
Retained earnings £'000 |
Non-controlling Interest £'000 |
Total equity £'000 |
|
| At 1 April 2014 | 831 | 1,853 | 1,017 | 35 | (1,137) | - | 2,599 |
| Issue of shares | 224 | 5,550 | - | - | - | - | 5,774 |
| Cost of share issue | - | (253) | - | - | - | - | (253) |
| Non controlling interest on acquisition | - | - | - | - | - | 14 | 14 |
| Loss for the year | - | - | - | - | (830) | (36) | (866) |
| Share-based payments | - | - | - | 59 | - | -- | 59 |
| At 31 March 2015 | 1,055 | 7,150 | 1,017 | 94 | (1,967) | (22) | 7,327 |
| Issue of shares | 1 | 13 | - | - | - | - | 14 |
| Loss for the year | - | - | - | - | (1,745) | (45) | (1,790) |
| Share-based payments | - | - | - | (3) | - | -- | (3) |
| At 31 March 2016 | 1,056 | 7,163 | 1,017 | 91 | (3,712) | (67) | 5,548 |
Statement of Group cash flows (unaudited)
Year ended 31 March 2016
| Notes | Group 2016 £'000 |
Group 2015 £'000 |
|
| Cash flows from operating activities | |||
| Cash used in operations | 9 | (1,253) | (1,119) |
| Interest (paid)/received | (7) | (2) | |
| Net cash used in operating activities | (1,260) | (1,121) | |
| Cash flows from investing activities | |||
| Acquisition of subsidiaries (net of cash acquired) | - | (154) | |
| Purchase of intangible assets | (553) | (277) | |
| Purchase of property, plant and equipment | (269) | (255) | |
| Net cash used in investing activities | (822) | (686) | |
| Cash flows from financing activities | |||
| Share issue | 14 | 5,553 | |
| Flotation/share issue costs | - | (252) | |
| Finance leases | 69 | (22) | |
| Invoice discounting loan (repayment)/proceeds | 116 | (156) | |
| Net cash generated from financing activities | 199 | 5,123 | |
| Increase in cash and cash equivalents | (1,883) | 3,316 | |
| Cash and cash equivalents at beginning of year | 3,531 | 215 | |
| Cash and cash equivalents at end of year | 1,648 | 3,531 |
Notes (unaudited)
1. Basis of preparation
The consolidated financial statements consolidate the results of the Company and its subsidiaries (together referred to as the "Group").
The financial information included in this preliminary announcement does not constitute statutory accounts of the Group for the periods ended 31 March 2016 or 31 March 2015. The financial information for the year ended 31 March 2015 is derived from statutory accounts upon which the auditors have reported. Their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
Both the consolidated financial statements and the Company financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU ("IFRSs").
2. Segmental reporting
The Directors regard the Group's reportable segments of business to be the development and manufacture of Thermal Products ("Thermal Products"), manufacturing of tungsten carbide ("Hard Wear Products"), the development and manufacture of graphene ("Graphene Products") and holding company activities ("Central Activities"). The business has no significant geographical aspect. Costs are allocated to the appropriate segment as they arise with central overheads apportioned on the basis of time spent by central staff on subsidiary affairs. This segmentation is consistent with internal reports to the chief operating decision maker for use in assessing business performance and allocating Group resources. The chief operating decision maker is the Chief Executive of the Group and the activity of each segment is explained in the Chief Executive's Statement and Strategic Report
The segment analysis for the period ended 31 March 2016 is as follows:
| Central £'000 |
Graphene Products £'000 |
Thermal Products £'000 |
Hard Wear Products £'000 |
Intra group adjustments £'000 |
Total £'000 |
|
| Revenue from services | - | 16 | 1,288 | 3,101 | (4) | 4,401 |
| Gross (loss)/profit | - | (4) | 88 | 977 | - | 1,061 |
| Other operating income | - | 31 | 21 | 5 | - | 57 |
| Operating expenses | (600) | (364) | (1,227) | (716) | (25) | (2,932) |
| (Loss)/profit from operations | (600) | (337) | (1,118) | 266 | (25) | (1,814) |
| Finance income/(charge) | 5 | (2) | (10) | - | - | (7) |
| (Loss)/profit before tax | (595) | (339) | (1,128) | 266 | (25) | (1,821) |
| Total assets | 7,424 | 637 | 1,368 | 3,630 | (5,701) | 7,358 |
| Total liabilities | (331) | (1,084) | (3,068) | (392) | 3,065 | (1,810) |
| Net assets/net (liabilities) | 7,093 | (447) | (1,700) | 3,238 | (2,636) | 5,548 |
| Capital expenditure | 3 | 46 | 93 | 127 | - | 269 |
| Depreciation/amortisation | - | 13 | 161 | 160 | 25 | 359 |
The segment analysis for the period ended 31 March 2015 is as follows:
| Central £'000 |
Graphene Products £'000 |
Thermal Products £'000 |
Hard Wear Products £'000 |
Intra group adjustments £'000 |
Total £'000 |
|
| Revenue from services | - | 33 | 355 | 4,594 | - | 4,982 |
| Gross (loss)/profit | - | (3) | 60 | 1,841 | (5) | 1,893 |
| Other operating income | - | 120 | 6 | - | - | 126 |
| Operating expenses | (768) | (357) | (773) | (957) | (28) | (2,883) |
| (Loss)/profit from operations | (768) | (240) | (707) | 884 | (33) | (864) |
| Finance charge | 11 | - | (10) | (3) | - | (2) |
| (Loss)/profit before tax | (757) | (240) | (717) | 881 | (33) | (866) |
| Total assets | 8,064 | 228 | 1,150 | 3,688 | (4,228) | 8,902 |
| Total liabilities | (347) | (375) | (1,782) | (679) | 1,608 | (1,575) |
| Net assets/net (liabilities) | 7,717 | (147) | (632) | 3,009 | (2,620) | 7,327 |
| Capital expenditure | 4 | 2 | 27 | 222 | - | 255 |
| Depreciation/amortisation | - | 10 | 29 | 157 | 25 | 221 |
Geographical information
The Group's revenue from external customers and information about its segment assets by geographical location are detailed below:
| Revenue from external customers | Non-current assets | ||||
| 2016 £'000 |
2015 £'000 |
2016 £'000 |
2015 £'000 |
||
| United Kingdom | 3,176 | 3,454 | 3,422 | 2,990 | |
| Rest of Europe | 877 | 818 | - | - | |
| North America | 10 | 11 | - | - | |
| Other | 338 | 699 | - | - | |
| 4,401 | 4,982 | 3,422 | 2,990 |
3. Exceptional items
| 2016 £'000 |
2015 £'000 |
|
| Relocation and restructuring costs | 52 | 162 |
| Acquisition costs | 60 | 76 |
| Associate start up costs | 10 | 69 |
| Other | 26 | - |
| 148 | 307 |
4. Dividends
As stated in the AIM admission document, the Board will not be declaring or proposing any dividends until such time as the commercialisation of its product portfolio has generated sufficient distributable reserves from which to do so.
5. Loss per ordinary share
The calculation of the basic loss per share for the period ended 31 March 2016 and 31 March 2015 is based on the losses attributable to the shareholders of Versarien plc Group divided by the weighted average number of shares in issue during the year. The calculation of diluted earnings per share is based on the basic earnings per share adjusted to allow for the issue of shares on the assumed conversion of all dilutive options. However, in accordance with IAS 33 "Earnings Per Share" potential ordinary shares are only considered dilutive when their conversion would decrease the profit per share or increase the loss per share. As at 31 March 2016 there were 3,819,862 (2015: 5,956,000) potential ordinary shares which have been disregarded in the calculation of diluted earnings per share as they were considered non-dilutive at that date.
| Loss attributable to shareholders £'000 |
Weighted average number of shares '000 |
Basic loss per share pence |
|
| Year ended 31 March 2016 | (1,745) | 105,588 | (1.65) |
| Year ended 31 March 2015 | (830) | 103,583 | (0.80) |
6. Intangible assets
| Goodwill £'000 |
Other intangibles £'000 |
Total £'000 |
|
| Cost | |||
| At 1 April 2014 | 354 | 306 | 660 |
| Acquisitions | 659 | 28 | 687 |
| Additions | - | 277 | 277 |
| At 1 April 2015 | 1,013 | 611 | 1,624 |
| Acquisitions | 10 | - | 10 |
| Additions | - | 553 | 553 |
| At 31 March 2016 | 1,023 | 1,164 | 2,187 |
| Accumulated amortisation and impairment | |||
| At 1 April 2014 | - | 74 | 74 |
| Amortisation charge | - | 48 | 48 |
| At 1 April 2015 | - | 122 | 122 |
| Amortisation charge | - | 155 | 155 |
| At 31 March 2016 | - | 277 | 277 |
| Carrying value | |||
| At 31 March 2016 | 1,023 | 887 | 1,910 |
| At 31 March 2015 | 1,013 | 489 | 1,502 |
Other intangible assets
| 31 March 2016 £'000 |
31 March 2015 £'000 |
|
| Customer relationships/order books | 68 | 108 |
| Development costs | 647 | 346 |
| Licence | 13 | 35 |
| Intellectual property | 159 | - |
| Total | 887 | 489 |
7. Property, plant and equipment
| Group | Plant and equipment £'000 |
Leasehold improvements £'000 |
Total £'000 |
| Cost | |||
| At 1 April 2014 | 5,488 | 13 | 5,501 |
| Acquisitions | 290 | - | 290 |
| Additions | 255 | - | 255 |
| Disposals | (29) | (13) | (42) |
| At 1 April 2015 | 6,004 | - | 6,004 |
| Additions | 253 | 16 | 269 |
| Disposals | (14) | - | (14) |
| At 31 March 2016 | 6,243 | 16 | 6,259 |
| Accumulated depreciation | |||
| At 1 April 2014 | 4,397 | 13 | 4,410 |
| Acquisitions | 37 | - | 37 |
| Disposals | (26) | (13) | (39) |
| Charge for the year | 173 | - | 173 |
| At 1 April 2015 | 4,581 | - | 4,581 |
| Charge for the year | 202 | 2 | 204 |
| Disposals | (13) | - | (13) |
| At 31 March 2016 | 4,770 | 2 | 4,772 |
| Net book value | |||
| At 31 March 2016 | 1,473 | 14 | 1,487 |
| At 31 March 2015 | 1,423 | - | 1,423 |
Plant and equipment includes the following amounts where the Group is a lessee under finance leases and hire purchase contracts:
| Group 2016 £'000 |
Group 2015 £'000 |
|
| Cost | 232 | 122 |
| Accumulated depreciation | (50) | (38) |
| Net book value | 182 | 84 |
8. Called up share capital and share premium
| Number of shares '000 |
Ordinary shares £'000 |
Share premium £'000 |
Total £'000 |
|
| At 1 April 2014 | 83,076 | 831 | 1,853 | 2,684 |
| Issue of shares at 12.25 pence per share | 445 | 4 | 50 | 54 |
| Issue of shares at 26 pence per share | 22,000 | 220 | 5,500 | 5,720 |
| Expenses of share issue | - | - | (253) | (253) |
| At 1 April 2015 | 105,521 | 1,055 | 7,150 | 8,205 |
| Issue of shares at 12.25 pence per share | 110 | 1 | 13 | 14 |
| At 31 March 2016 | 105,631 | 1,056 | 7,163 | 8,219 |
9. Cash flows from operating activities
| 2016 £'000 |
2015 £'000 |
||
| Loss before tax | (1,821) | (866) | |
| Adjustments for: | |||
| Share-based payments | (3) | 59 | |
| Depreciation | 204 | 173 | |
| Amortisation | 155 | 48 | |
| Disposal of non-current assets | 1 | 3 | |
| R&D tax credit repayment | 71 | - | |
| Finance cost | 7 | 2 | |
| Decrease / (Increase) in trade and other receivables | 446 | (275) | |
| Increase in inventories | (363) | (298) | |
| Increase in trade and other payables | 50 | 35 | |
| Cash flows from operating activities | (1,253) | (1,119) |
10. Report and accounts
Copies of the 2016 Annual Report and Accounts will be posted to shareholders in due course. Further copies may be obtained by contacting the Company Secretary at the registered office. In addition, the 2016 Annual Report and Accounts will be available to download from the investor relations section on the Company's website www.versarien.com.
- Ends -
This information is provided by RNS
The company news service from the London Stock Exchange
END
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