Velocity Composites PLC Interim Trading Update (4410Y)
09 May 2019 - 4:00PM
UK Regulatory
TIDMVEL
RNS Number : 4410Y
Velocity Composites PLC
09 May 2019
Velocity Composites PLC
9 May 2019
VELOCITY COMPOSITES PLC
("Velocity", the "Company" or the "Group")
Interim Trading Update
Velocity Composites plc, the leading supplier of advanced
composite material kits, providing engineering value-solutions for
the global aerospace industry, provides the following trading
update for the six months ended 30 April 2019 (the "Period" or "H1
FY19").
Overall trading for the Period has been ahead of Board
expectations with revenue approximately 5% ahead of the same period
last year at just over GBP12.0m (H1 FY18: GBP11.6m). Gross margin
ratio is significantly improved at over 20.0% (H1 FY18: 15.8%).
This result is at the upper end of margins achieved in the second
half of FY18 and delivers just under a 40% increase in gross profit
for the Period. Adjusted Profit before tax(1) is marginally ahead
of breakeven compared to an equivalent adjusted loss before tax (1)
of GBP0.7m in the comparative period.
Net cash (excluding lease obligations) as at 30 April 2019 was
broadly in line with the GBP4.1m as at 31 October 2018, with net
cash flow effectively neutral over the Period. The Company also has
access to a pre-agreed invoice discounting facility of up to
approximately GBP5.0m (of which GBP0.2m was drawn as at 30 April
2019).
Board update
Further to the announcement on 25 March 2019 the Board has now
appointed independent search consultants to assist in the process
to identify a new independent Non-Executive Chairman who can
represent the views of all shareholders. The Board, being cognisant
of recent events, have invited the Founder Shareholders to
participate in various stages of this recruitment process including
the opportunity to meet with a shortlist of Non-Executive Chairman
candidates should they wish to do so. As previously announced,
following the appointment of a Non-Executive Chairman, the enlarged
Board will then be responsible for the processes to identify a
permanent CEO, permanent CFO, and an additional new independent
Non-Executive Director. Jonathan Bridges and Andrew Hebb continue
in their respective non-Board roles of interim CEO and interim CFO
and Company Secretary.
(1) Adjusted Profit (loss) before tax is defined as earnings
before tax and excludes the impact of future growth expenditure
relating to UK and overseas, non-recurring exceptional items and
exceptional share based payments.
CONTACT DETAILS:
Velocity c/o Camarco
Brian Tenner, Senior Independent Director Tel: 020 3757
4980
finnCap (Nominated Adviser and Broker) Tel: 020 7220
Ed Frisby / Scott Mathieson / Hannah Boros 0500
(Corporate Finance)
Tim Redfern (ECM)
Camarco (Financial PR) Tel: 020 3757
Ed Gascoigne Pees / James Crothers 4980
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014. Upon the publication of this
announcement via a regulatory news service this inside information
will be considered to be in the public domain.
About Velocity Composites
Velocity Composites is a manufacturer of advanced composite
material kits for the aerospace industry disrupting the composites
supply chain to deliver engineered waste reduction solutions for
its customers to build aircraft components using less time and
material. The Company's customers include multi-national
manufacturers of composite parts and assemblies, who in turn
deliver to the world's leading civil and military aircraft
manufacturers. The Airbus A320, A330, A350, A380, Eurofighter
Typhoon, F35 Joint Strike Fighter and Boeing 737, 787 and V22
Osprey are all constructed using parts manufactured from Velocity's
kits. The Company's business model reduces the operating costs of
preparing composite materials ahead of their usage in the
construction of an aircraft part and as such, its offering is
disposed to being self-financing for aircraft parts' manufacturers.
Velocity's services are seeing increased demand as the global
aircraft industry enters a more-for-less era. Velocity currently
has customers in the UK and Continental Europe.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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