Interim Report - For the six months ended 30 April 2017
Velocity Composites plc, the leading supplier of advanced composite material kits to the aerospace industry, is pleased to announce its first set of interim results published as a public limited company for the six months ended 30 April 2017.
- Strong revenue growth up 31% to £9.3m (H1 2016: £7.1m).
- Gross profit increased by 19% to £1.9m (H1 2016: £1.6m).
- Operating profit of £56k (2016: £131k) and profit before tax of £(35)k (2016: £97k), lower following the Company’s investment in its preparation for the IPO and new facility at Fareham.
- Net assets strengthened from £603k (October 2016) to £629k.
- On 18 May 2017, the Company successfully listed on the AIM market of the London Stock Exchange attracting total investment of £14.4m including net cash proceeds into the business of £9.2m.
- Production commenced at the new facility in Fareham following approvals from AS9100 and Airbus.
- Management team further strengthened through the appointment of Matthew Archer as Chief Commercial Officer.
- Board remains confident of meeting the market’s full year expectations.
- Customer and programme pipeline remains strong.
- Proceeds from the IPO to be deployed to accelerate the Company’s growth strategy to augment the Business Development Team alongside New Product Development, open a Research & Development Centre and additional satellite facilities in close proximity to new customers.
Jon Bridges, CEO of Velocity Composites said: "The six months ended 30 April 2017 have been a transformational period for the Company as we continued to successfully execute our growth strategy through the opening of our second manufacturing facility in Fareham, Hampshire, delivering new contract wins and working towards the listing on the AIM market of the London Stock Exchange in May 2017 raising net cash proceeds of £9.2million via a significantly over-subscribed placing.
"The second half of the year has started strongly and we continue to see demand for our services as the aerospace composites industry enters a clear "make more for less" period, and our customers look for new ways to reduce the cost of manufacture, both in the supply chain and their own manufacturing areas. Velocity has a clear strategy to capitalise on this growth opportunity and as such, the Board remains confident of meeting the market’s full year expectations."