Trading Statement

Velocity Composites PLC

26 May 2026

 

26 May 2026

Velocity Composites plc

("Velocity" or the "Company")

Trading Update and Notice of Results

Velocity Composites plc (AIM: VEL), the leading supplier of advanced composite material kits to the aerospace market, announces the following trading update for the six months ended 30 April 2026 ("H1 26"). The Company expects to report its unaudited H1 26 results on 24 June 2026.

Highlights

•	Expected revenue of £8.4 million (H1 25: £10.4 million)
•	Adjusted EBITDA for H1 26 expected to be £0.1 million, being the third consecutive half year of positive adjusted EBITDA (H1 25: adjusted EBITDA of £0.3 million)
•	Cash at bank as at 30 April 2026 of £0.6 million (31 October 2025: £0.4 million)
•	Net cash as at 30 April 2026 of £0.4 million (31 October 2025: net debt £0.1 million)
•	Continue to trade in line with full year expectation
•	Delayed major programme with first US customer proceeding with the transfer process expected to commence in FY26
•	Higher than expected demand from legacy UK customers
•	Satellite facility at Fareham closed with all production transferred to Burnley, allowing for a reduction in overheads and improvements in operational efficiencies

Financial

For H1 26, Velocity expects to report revenue of £8.4m, compared to £10.4m in the same period last year due primarily to phasing of shipments from H1 to H2, while maintaining stable gross margin and lower overheads.

The Company continues to achieve its gross margin targets while controlling overhead expenditure, with expected adjusted EBITDA of £0.1m for H1 26 (H1 25: £0.3m).

Management's full year revenue expectations remain unchanged as the phasing of shipments is weighted to the second half, reflecting the receipt of work from Velocity's lead US customer and higher demand from legacy UK customers. While H1 26 saw lower sales than the prior year, this resulted from the timing of the receipt of orders from UK customers (with delivery scheduled for H2 26) as well as material supply delays that affected our US operations. This supply has recommenced and we expect to recover lost sales associated with this material during H2 26.

The balance sheet has sufficient headroom. At 30 April 2026, excluding lease obligations, the net cash balance was £0.4m (31 October 2025: net debt £0.1m). The Company continues to be undrawn on its £3m invoice discounting facility and its outstanding CBIL loan balance had reduced to £0.2m (31 October 2025: £0.5m).

Market and Business Development

US

Velocity is working to secure additional US customers and is currently in advanced discussions with prospective clients. A US Sales Executive has been appointed to focus on this key market. It is envisaged that new US programmes will be served from the Company's existing facility in Alabama, which has successfully completed its NADCAP audit, achieving merit status.

While the transfer of the final work programme from the Company's first US customer has experienced delays, the process is now committed to begin in H2 26, with completion anticipated as the Group enters FY27. The rates on this programme are likely to be significantly higher than previously expected as end customer demand has increased. In addition, further work packages outside the original contract scope, including process materials, are being transferred and have started to contribute revenues.

UK

In the UK, sales to legacy customers have been higher than management originally expected and will contribute continuing revenue through H2 26, and potentially beyond. A previously announced programme with an existing customer has successfully completed First Article Inspection and ramped to full production in Burnley.

The Group has also secured a number of smaller customer wins across a diverse range of programmes, with new engagements from other customers, including at former Spirit AeroSystems sites in the UK.

Velocity's satellite facility at Fareham has closed with all production transferred to Burnley allowing for a reduction in overheads and improvements in operational efficiencies, utilising a forward stock location model where needed.

Outlook

Production rates across major civil aerospace programmes are improving as both Airbus and Boeing work to fulfil substantial orderbooks. Current trends in civil aircraft production remain positive, particularly across platforms such as the A350, B737 and B787. While there has been no short-term impact from the Iran conflict, we are monitoring any potential effects on airline traffic, customer demand, and supply chain dynamics, particularly given that a significant proportion of materials are oil-based.

We continue to pursue defence sector opportunities across the UK, Europe and the US, supported by increasing defence spending in the US and an anticipated uplift in UK and European investment. Encouragingly, we are seeing a strong pipeline of engagements in both the US and UK. In the short term, higher demand from legacy UK customers is offsetting the delayed onboarding of the final US programmes at our lead customer.

Jon Bridges, CEO, Velocity, commented: "We have made further progress in the first half, delivering a third consecutive half year of positive adjusted EBITDA and strengthening our balance sheet, while taking action to streamline operations and improve efficiency. While revenues reflect the phasing of shipments, our full-year expectations remain unchanged, with a tone of cautious optimism supported by the now-confirmed transfer of the final work programme from our first US customer.

"Encouragingly, production rates across the global civil aerospace market continue to improve. We are seeing a growing pipeline of opportunities in both the civil and defence sectors across the US, UK and Europe, positioning Velocity well for the second half and beyond."

Enquiries:

Velocity Composites plc Jon Bridges, Chief Executive Officer Rob Smith, Group Chief Financial Officer	[phone]
Canaccord Genuity Limited Nominated Adviser and Joint Broker Max Hartley George Grainger	[phone]
Singer Capital Markets Joint Broker Russell Cook Dan Ingram	[phone]
SEC Newgate Financial Communications Robin Tozer George Esmond Harry Handyside	[phone] [e-mail]

About Velocity Composites plc

Based in Burnley, UK, Velocity is the leading supplier of composite material kits to aerospace, that reduce costs and improve sustainability.  Customers include Airbus, Boeing, and GKN.

By using Velocity's proprietary technology, manufacturers can also free up internal resources to focus on their core business.  Velocity has significant potential for expansion, both in the UK and abroad, including into new market areas, such as wind energy, urban air mobility and electric vehicles, where the demand for composites is expected to grow.

 

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