(Alliance News) - Velocity Composites PLC on Tuesday said it expects higher revenue for the 2022 financial year on the recovery of the UK civil aerospace market, while profit is set to be flat due to cost increases caused by inflation.
For the financial year to October 31, 2022, the Burnley, England-based aerospace composite material kits supplier expected revenue to grow about 22% annually to GBP12.0 million from GBP9.8 million a year prior.
Pretax profit is set to be mostly unchanged at GBP1.5 million. Meanwhile, net cash as at October 31 fell to GBP160,000 from GBP962,000 a year ago.
Looking ahead, Velocity anticipates business growth due to cost management and targeted investment, Chief Executive Officer Jon Bridges said. He expects "significant new business opportunities in the UK and the US. Our scalable and digital business model will open up opportunities in the global industry at a scale much higher than historic programmes."
Chair Andy Beaden said: "As a result of our investments, we expect the business to grow very significantly in the next two years. This growth is largely expected to come in the North American region, and we have designed our new facility in Alabama so it can expand to manage this expected expansion."
Velocity Composites shares fell 6.8% to 59.62 pence each on Tuesday afternoon in London.
By Tom Budszus, Alliance News reporter
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Velocity Comp (VEL)