Velocity Composites Releases Half Yearly Unaudited Results

June 29 2020

Velocity Composites plc, the leading supplier of advanced composite material kits to the aerospace market, releases its unaudited half-year results for the six months ended April 30, 2020.

Andy Beaden, Non-Executive Chairman, said, “The effects of the COVID-19 pandemic and resulting lockdowns on the aerospace industry have been dramatic and unprecedented. Whilst we are not where we expected to be right now, our vision and strategy for Velocity’s growth are unchanged. The increased challenges facing our industry provide an even more meaningful commercial rationale for Velocity’s technology and services, as the industry drives for even greater efficiencies in their production programs.”

Key financials
• Revenue of GBP 9.5 million (H1 FY19: GBP 12.2 million)
• Gross margin of 20.5% (H1 FY19: 20.9%)
• Operating loss of GBP 0.7 million (H1 FY19: loss GBP 0.4 million after exceptional administrative expenses of GBP 0.4 million)
• Adjusted EBITDA (1) loss of GBP 0.3 million (H1 FY19: profit of GBP 0.2 million)
• Loss per ordinary share of 1.7p (H1 FY19: loss 1.2p)
• Cash at Bank at April 30, 2020 of GBP 2.8 million including GBP 1.2 million of EIS funds (2)

Operating highlights
• Approval from Boeing in January 2020 to supply structural composite material kits for its single aisle aircraft platform. Whilst production on 737 Max is currently frozen, this remains a strategically important step for the Company when it returns to service.
• NADCAP Merit approval now achieved for all special processes at all Velocity production facilities.
• Margaret Amos appointed to the Board as Independent Non-executive Director bringing extensive world class aerospace engineering, strategic finance, and supply chain experience.
• Business development and customer program management team reorganized, strengthened with more senior aerospace expertise and over GBP 30 million pipeline of tangible opportunities being developed.

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