(Alliance News) - Velocity Composites PLC on Wednesday reported a rise in revenue in the first half of its financial year as the aerospace composite material kits supplier expects further progress going forward.
The Lancashire, England-based firm said revenue rose by 34% to GBP5.9 million for the six months to April 30, as aerospace sales volumes stabilised post Covid-19. This is compared to GBP4.4 million during the same period a year ago.
Pretax loss narrowed to GBP710,000 from GBP1.1 million, down 33%. Administrative expenses slightly dipped to GBP2.0 million, compared to GBP2.1 million in the same time last year.
The company also reported that its gross margin dipped slightly to 24% compared to 25% as a result of certain production inefficiencies and labour cost pressures.
Chair Andy Beaden said: "Over the last six months, we have seen signs of recovery in the global aerospace industry, which is starting to reflect in our manufacturing sales volumes. Further growth is expected over the next 12-18 months. We have continued our expansion efforts in Europe and North America and expect to see progress in H2 2022 through rolling out our solutions to support more customer facilities."
Velocity did not declare an interim dividend for the period.
The company added that it has a strong pipeline of new business lined up, especially in North America. It said it looks forward to the rest of the year and beyond with confidence.
Velocity shares were up 5.0% at 19.87 pence each on Wednesday afternoon in London.
By Xindi Wei; xindiwei@alliancenews.com
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Velocity Comp (VEL)