23rd Jan 2024 12:54
(Alliance News) - Velocity Composites PLC on Tuesday reported higher revenue in financial 2023, but its loss widened on higher costs and expenses.
Velocity Composites is a Burnley, England-based supplier of composite material kits to aerospace and other high-performance manufacturers.
In its financial year ended October 31, revenue jumped 31% to GBP16.4 million from GBP12.0 million a year earlier. It said that this is in line with market expectations.
However, its pretax loss widened to GBP3.1 million from GBP1.5 million.
The company's full year earnings before interest, tax, depreciation and amortisation widened to GBP1.6 million from GBP500,000.
Cost of sales in the year jumped to GBP13.3 million from GBP9.2 million. Administrative expenses rose to GBP5.7 million from GBP4.1 million.
In July, Velocity Composites said it expects revenue for financial 2024 to be between GBP30 million and GBP36 million, with an Ebitda profit of between GBP1.7 million to GBP2.5 million.
On Tuesday, the company said Ebitda guidance remains in line with previous guidance, with additional engineering income and lower costs offsetting a revenue shift. It now expects revenue for financial 2024 to be between GBP27 million and GBP30 million.
Chief Executive Jon Bridges said: "2023 was the year when customers started to plan for aircraft production rate increases. Across the global industry, aircraft order books are strengthening as air travel recovers from lockdowns. For the first time, we are expecting simultaneous production rate increases across most aircraft platforms over the next three years albeit from the historically low numbers caused by the pandemic."
Shares in Velocity Composites were up 1.2% to 34.90 pence each in London on Tuesday afternoon.
By Sophie Rose, Alliance News senior reporter
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