Revenue falls short but profitability improves for Velocity Composites
By Josh White
Date: Wednesday 05 Nov 2025
(Sharecast News) - Velocity Composites said in an update on Wednesday that annual revenue fell short of expectations due to delays in key aerospace programmes, although profitability improved as operational efficiencies boosted margins and cut costs.
The AIM-traded supplier of composite material kits to the aerospace industry reported unaudited revenue of £20.7m for the year ended 31 October, down from £23m in 2024, reflecting lower-than-expected Airbus A350 production rates and delays in programme transfers from a tier one US customer.
Adjusted EBITDA, however, was expected to more than double from last year's £0.4m, supported by stronger gross margins and tighter overhead control.
Velocity said its liquidity position remained solid, with £0.4m in cash at year-end and a £3m invoice discounting facility from NatWest still unused.
Net cash was broadly neutral compared with £0.7 million a year earlier.
"We are positive about the long-term outlook for Velocity and the industry, given the projected significant increases in passenger traffic over the next decade and beyond," said chief executive Jon Bridges.
"This optimism is in the face of the continued delays we have experienced in the US and the slower than expected ramp up of existing civil aircraft programmes."
Bridges added that demand for civil aerospace and defence programmes was positive, with the company working on new opportunities on ascending programmes in the UK, EU and US that use its technology and digital supply chain manufacturing services that could be fulfilled from existing facilities.
"We remain focused on cash generation and improving operational efficiencies further to ensure that we will be in a strong position to return to top line growth when production rates increase."
Velocity said it expected further improvement in adjusted EBITDA in the 2026 financial year despite anticipating lower revenue, as additional cost savings of about £0.6m were achieved on top of those delivered in 2025.
The company's full-year results would be published on 27 January.
At Wednesday's close, shares in Velocity Composites were down 16.36% at 18.4p.
Reporting by Josh White for Sharecast.com.
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