Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, is pleased to announce its results for the year ended 31 October 2018.
Highlights
- Year on year revenue growth from new and existing customers of 14% to £24.5m (FY17: £21.4m)
- Gross margin of 18% for FY18 (FY17: 18%) with an increased second half margin of 21% following recovery from lower first half margins arising from unforeseen customer changes and onboarding multiple programmes
- Operating loss for FY18 of £1.1m (FY17: £0.5m), with an operating profit of £0.1m in second half FY18 (before exceptional costs of £0.3m) arising from the continued investment in growth and the above improvements to gross margin in H2 FY18
- Net cash at 31st October 2018 of £4.1m (FY17: £4.3m) (after invoice discounting) including £3.8m of EIS funds
- The Group is no longer able to employ the EIS funds by the May 2019 deadline
- Contracted business of over £67m for the FY19-FY21 period, subject to customer demand fluctuations (including £17m of contract renewals)
- International NADCAP accreditation awarded for kitting service provider to all aerospace primes
- Award of three-year contract to supply complex design consumable kits to Boeing 737 Max programme (£3m)
- Award from a new customer in continental Europe to supply composite material kits for a two-year period for the component parts for the Leading Edge Aviation Propulsion (“LEAP”) engines used on the Airbus A320 NEO and Boeing 737 Max ($6m)
- Twelve month contract extension awarded providing composite material kits across the Airbus range of aircraft and regional business jets (£10m)
- Appointment of two new Independent Non-Executive Directors, Meera Parmar and Brian Tenner
- The Board expects the revenue and gross margin ratio to be at similar levels in FY19
A full copy of the interim report can be downloaded on our Reports & Presentations page.
