Velocity Composites shares rise as it reports double-digit growth

Wed, 29th Jan 2025 16:37

(Alliance News) - Velocity Composites PLC on Wednesday said it was confident in delivering further growth as it noted the long-term outlook for the industry is "strong".

The Burnley, England-based supplier of composite materials kits to high-performance manufacturers said it narrowed its loss before tax from continuing operations to GBP1.3 million in the 12 months to October 31 from GBP3.1 million the prior year.

Revenue leapt 40% to GBP23.0 million from GBP16.4 million, driven by growing US sales, which multiplied to GBP7.9 million from GBP2.0 million. This follows the onboarding work from an unnamed leading US manufacturer at its site in Alabama.

Shares in Velocity climbed 13% to 32.29 pence on Wednesday afternoon in London.

Velocity said its growth underscored the "considerable potential" within its existing contracts, which it expects will progress further as anticipated increases in build rates come to fruition in the coming years.

The firm expressed confidence in the new financial year, expecting to deliver further growth that is underpinned by its contractual business base.

Chief Executive Jon Bridges commented: "The board expects further revenue growth in FY25 and into the future, while the company retains a focus on investing in operating efficiency and service delivery excellence on behalf of all of our key customers.

"The long-term outlook for the industry is strong and shareholders will benefit as production rates increase for both existing and new business. We are confident that our services and business model will deliver the expected growth."

By Christopher Ward, Alliance News reporter

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Velocity Comp