Final Results for the year ended 31 October 2018

Published

Final Results for the year ended 31 October 2018

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.

Archive

Our contact for all media enquiries relating to Velocity Composites is Ed Gascoigne-Pees or Georgia Edmonds at Camarco.

  • +44 (0) 203 757 4980