Business
Half Year Results
Half Year Results.
About this update from Velocity Composites Plc
[{"type":"text","content":"\n\n11 July 2023\nVELOCITY COMPOSITES PLC\n(\"Velocity\", the \"Company\", the \"Group\")\n \nUnaudited Half Year Results for the six months ended 30 April 2023\n \nVelocity Composites plc (AIM: VEL), the leading supplier of composite material kits to aerospace and other high-performance manufacturers, is pleased to announce the Company's unaudited results for the six months to 30 April 2023.\nFinancial Highlights:\n· Revenue increased 19% to £7.0m (2022: £5.9m) as aerospace sales volumes continued to recover post Covid-19, with improved UK demand.\n· Gross margin of 21.8% (2022: 23.5%), reduced slightly due to a lag in the pass through of inflation to customers, with price increases now agreed and due to provide a greater recovery of costs in the second half.\n· EBITDA loss of £0.9m (2022: loss of £0.2m), including £0.5m of upfront costs to setup the US site and new contract engineering costs.\n· Loss before tax of £1.4m (2022: loss of £0.7m).\n· Cash at bank as at 30 April 2023 of £1.2m (30 April 2022: £2.0m).\n \nOperating Highlights:\n· In April 2023, the US facility manufactured the first production kits to support the five-year Work Package Agreement announced in December 2022 with GKN Aerospace.\n· The agreement with GKN Aerospace is expected to be worth in excess of US$100 million in revenue over five years.\n· UK production has scaled to meet increased customer demand.\n· Strong pipeline of new business in both the US and Europe.\n· Longer-term, carbon fibre composite material usage is expected to grow significantly in civil aircraft and other transportation modes.\n· Continued investment and development of the Company's technology.\n· Remain on track to achieve profitability in FY 2024, as a result of a ramp up of existing contracts.\nOutlook:\n· The commercial value of contracted business is currently estimated to be worth between £30m to £36m per annum at OEM planned production rates.\nAndy Beaden, Chairman, Velocity, s...