Versarien hails 'significant progress' since annual results

Engineering firm Versarien said on Tuesday that it had made "significant progress" since the release of its annual results in July.

In a statement ahead of its annual meeting, Versarien said it had seen particularly strong momentum with a number of its collaborations and activities in China after signing a letter of intent with its Asian-based textile partner.

The AIM-listed group, which set up a wholly foreign-owned enterprise with the Beijing Institute of Graphene Technology in April, has secured the endorsement and support of provincial Chinese governments for the project, including the China International Industry Graphene Union.

However, while the BIGT continued to work towards taking as much a 15% stake in Versarien, the group was also looking to offer shares to institutions and private investors.

"Whilst the Versarien board wishes to conclude a deal in China as soon as reasonably possible, it re-iterates its position that it will only do so if it is in the best interests of the company's shareholders," said chief executive Neill Ricketts.

"The negotiations, whilst protracted, are with the objective of establishing a long-term and significant partnership between Versarien and BIGT in China."

In addition to its Asian operations, the company has wrapped up a year-long trial of a new graphene delivery method into textiles at Leeds University, with results showing "significant improvements" in tensile strength and thermal conductivity when using Versarien's graphene.

"This development will allow us to expedite further commercial trials in both consumer and industrial textile applications with our current partners in these sectors," said Ricketts.

As of 1020 BST, Versarien shares had dropped 1.94% to 101p.