(Alliance News) - Versarien PLC on Wednesday said it expects to report decreased revenue in its latest financial year and a reduced cash balance.
As a result, the Cheltenham, England-based engineering materials company said it is seeking shareholder approval to issue new equity, and plans to raise around GBP450,000.
Shares in Versarien were down 41% at 0.19 pence on Wednesday morning in London, giving the company a market capitalisation of just GBP1.1 million.
Versarien has been trying to sell some of its assets to raise cash, but said on Wednesday that these disposals have not progressed as expected, particularly regarding interest in mature businesses.
Versarien did report "continued interest" in its South Korean assets and intellectual property, but the company said it does not expect any sale to complete until next year. Additionally, it is "likely to raise less cash, at least initially, than was first anticipated."
Versarien, which in 2022 moved its year-end date, expects to release its results for the financial year that ended September 30 in early February.
The company said its audit is still taking place, but it expects to report revenue of GBP5.5 million for financial 2023. It booked GBP11.1 million in revenue in the 18 months to September 30, 2022, and GBP5.7 million in the 12 months that ended on March 31, 2021.
Versarien expects to report an adjusted loss before interest, tax, depreciation and amortisation of GBP3.0 million for financial 2023, compared with its GBP2.4 million loss for the 18 months.
Versarien had cash at bank of approximately GBP600,000 at September 30, down from GBP1.4 million at the same time a year prior.
By Emma Curzon, Alliance News reporter
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Versarien (VRS)