Velocity Composites Plc · LSE:VEL
Velocity Composites — H1 FY22 Earnings Presentation
14 slides from Velocity Composites's earnings presentation, June 2022
Slide 1: Investor Presentation Half Year Results
Investor Presentation Half Year Results For the 6 months ended 30.04.22 © Velocity Composites Plc - JAN 2022
Slide 2: H1 FY22 Highlights
H1 FY22 Highlights © Velocity Composites Plc - JUNE 2022 • Increasingly strong new business pipeline, particularly North America • Recovery in core contracted business • Investment in resource and people through period to support new customer growth and technology development • Implementation of ope
Slide 3: Financial Summary
Financial Summary • Revenue increase of +32% at £5.9m • Cash at Bank £2.0m (H1 2021: £3.5m) (H1 FY21: £4.4m) as sales recover and and £2.5m undrawn IDF headroom, customer demand stabilises movement driven by working capital • Gross margin 23.5% (H1 FY21: 25.1%) investment to support sales recovery.
Slide 4: Market Outlook
Market Outlook © Velocity Composites Plc - JUNE 2022 • Air travel impacted by Covid-19 but Air Travel Recovering now recovering, albeit slower in Asia due to Omicron restrictions • Single aisle (A320/B737) will recover faster than twin aisle travel (A350/ B787) • Knock on effect on airline fleet ren
Slide 5: Market Outlook - Aircraft Deliveries
Market Outlook - Aircraft Deliveries © Velocity Composites Plc - JUNE 2022 YTD figures as at 29.06.22. Source: https://en.wikipedia.org/wiki/Competition_between_Airbus_and_Boeing • Single aisle production down ~25% and also impacted by B737Max issue from 2019 • Twin aisle (composite focussed) produc
Slide 6: Sustainability - key to future aircraft demand
Sustainability - key to future aircraft demand Passenger Aircraft Fleet Renewal - Transition to ‘Net Zero’ • Composites will play an important role in light New Generation Aircraft - 25% lower carbon footprint * weighting all new aircraft 50,000 platforms, civil and 1ST + 2ND + PREVIOUS GENERATION**
Slide 7: Focus of H2
Focus of H2 © Velocity Composites Plc - JUNE 2022 • UK new business expected to move into production as commercial and first article activities progress – improved utilisation of existing facilities • Business development continuation in North America and Europe, with progress expected in H2 2022 •
Slide 8: Summary
Summary © Velocity Composites Plc - JUNE 2022 • Increasingly strong new business pipeline, particularly North America • Encouraging signs of recovery in core contracted business • Investment in resource and people through period to support growth and technology innovation • Implementation of interna
Slide 9: Appendices
Appendices © Velocity Composites Plc - JUNE 2022 9
Slide 10: Financial Highlights
Financial Highlights © Velocity Composites Plc - JUN 2022 HY 2022 HY 2021 FY 2021 £000 £000 £000 Revenue 5,864 4,439 9,767 • Revenue improvement of +32% driven by Cost of sales (4,487) (3,323) (7,228) minimal pandemic impact on customers over the period and demand stabilisation Gross profit 1,377 1,
Slide 11: Balance Sheet
Balance Sheet © Velocity Composites Plc - JUN 2022 HY 2022 HY 2021 FY 2021 £000 £000 £000 • Inventories increase +23% and Receivables Non current assets 2,487 2,683 2,830 +36%. Whilst much of this due to sales Current assets improvement of +32%, Inventories suppressed - Inventories 948 769 877 due t
Slide 12: Cashflow Statement
Cashflow Statement © Velocity Composites Plc - JUN 2022 HY 2022 HY 2021 FY 2021 Net Cash / (Debt) £000 £000 £000 • EIS funding now fully utilised in supporting growth and innovation EIS cash 0 742 0 • Operating cash impacted by financial Operating cash (594) 708 844 performance (-£0.2m) and invested
Slide 13: Revolutionising composite manufacturing
plc revolutionising composite manufacturing © Velocity Composites Plc - JUN 2022
Slide 14: Velocity Disclaimer
Velocity Disclaimer IMPORTANT NOTICE This presentation and any verbal information given (together, the “Presentation”), has been prepared by the Nothing in the Presentation is, or should be relied on as, a promise or representation as to the future. The directors of Velocity Composites plc (the “Com