13th Nov 2019 11:29
(Alliance News) - Velocity Composites PLC on Wednesday said its annual results are expected to be in line with market forecasts, with a slight slip in revenue.
The supplier of advanced composite material kits said revenue for the year to the end of October was GBP24.2 million, down 1.2% from GBP24.5 million it generated a year ago.
Velocity said it has integrated a new business plan, with target-based incentivised remuneration for all staff. It has renewed its focus on operational excellence, margin improvements and return on capital.
Looking ahead, the AIM-listed firm said it intends to expand its pipeline of global opportunities for existing and new tier 1 customers, with the first US facility targeted to be operational in 2020.
"The company is focused upon supporting and developing its key customer relationships, while at the same time capturing specific, targeted market opportunities within the UK, but more specifically involving our partners in Europe and across North America," said Chair Andy Beaden.
"Revenues are stable and we are already achieving some gains in operating efficiencies and therefore margin improvement. There is much further to go in this direction, and we will be able to report further progress through 2020 and beyond. The prospects for Velocity Composites are very exciting," added Beaden.
Velocity shares were trading 2.6% higher in London on Wednesday at 26.79 pence each.
By Evelina Grecenko; [email protected]
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