VLS.L Share News (VLS)

(Sharecast News) - Velocys said its projects were on track as the waste-to-fuel company reported a shrinking of its annual loss as administrative costs fell.
secured £1m of funding for its aviation fuel project from British Airways and Royal Dutch Shell in MayThe company delayed the publication of its annual results because of lockdown restrictions but published unaudited figures.

Velocys's operating loss before exceptional items for the year to the end of December narrowed to £9.8m from £18.6m a year earlier. Revenue fell to £0.3m from £0.7m.

The company's shares fell 15% to 12.42p at 11:58 BST. The shares are more than six times higher than their value at the start of 2020.

Admin costs almost halved to £19.1m from £29.1m after Velocys cut jobs, consulting costs and other expenses. Cash at the end of December shrank to £4.8m from £7m before Velocys raised £7m before expenses in July.

Henrik Wareborn, Veloycys's chief executive, said: "Velocys is now within reach of being able to offer a tangible solution to support decarbonisation of air travel; a critical sector supporting the global economy with very stringent fuel criteria and few alternatives to hydrocarbon fuels.

"The aviation sector needs renewable fuels which meet the complex standards of fossil fuels for engine safety and performance reasons. I believe Velocys is well positioned to create significant shareholder value from our unique position at the cutting edge of sustainable aviation."

Velocys secured £1m of funding for its aviation fuel project from British Airways and Royal Dutch Shell in May. It is building a plant in Lincolnshire to turn household and commercial waste into clean burning fuel to power aeroplanes.