Here is a summary of the trading update and notice of results for Velocity Composites Plc as of May 22, 2025
Velocity Composites Plc, a leading supplier of advanced composite material kits to the aerospace market, has released its trading update for the six months ended April 30, 2025 ("H1 25").
The company expects to report unaudited H1 25 results on June 25, 2025, with a revenue of £10.4 million and an adjusted EBITDA of £0.3 million, indicating a positive financial turn since before the pandemic.
Velocity attributes the improved financial performance to pricing alignment with previous inflationary pressures and ongoing operational efficiency improvements.
The companys balance sheet remains robust, with a cash balance of £1.2 million as of April 30, 2025, and an unused UK invoice discount facility of £3.0 million.
In the US, Velocity is progressing with the transfer of remaining programs to its initial major US customer, involving a complex qualification process in the aero-engine sector.
The company has secured a contract extension with a major UK Defence contractor and expects new contracts to offset the phasing out of older programs.
Despite short-term uncertainties and delays in planned production rate increases, the Board assumes a similar sales revenue level in FY25 as FY24 but expects improved profitability due to efficiencies and the removal of inflationary price pressures.
Overall, the long-term outlook for the company and the industry is positive, with expected production rate increases and strong end-demand dynamics.