28th Jan 2020 11:18
(Alliance News) - Velocity Composites PLC on Tuesday reported a mixed performance in its most recent financial year, but said it intends to focus on new sales options in 2020.
The stock was trading 4.9% higher in London in late morning trade at 43.00 pence a share.
The supplier of kits to the aerospace market reported a pretax loss of GBP652,000 for the year to the end of October, narrowed from a GBP1.2 million loss reported the year earlier, despite revenue slipping to GBP24.3 million from GBP24.5 million.
The company said the majority of revenue during the financial year was delivered from contracts that were in place at the start of the year.
Velocity said it swung to adjusted earnings before interest, tax, depreciation and amortization of GBP613,000 from an Ebitda loss of GBP238,000 the year ago, thanks to improvement in gross margin combined with cost management.
Looking ahead, the company said its new financial year has started "well", with milestones being achieved around contract renewals and new aerospace qualifications.
"Our focus in 2020 is firmly on the development of new sales opportunities, which will benefit the top line in future years and establishing a strong foothold in the US civil aerospace market, as well as growing our sales in Europe," said Chair Andy Beaden.
By Evelina Grecenko; [email protected]
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