Velocity Composites
VEL · AIM · Industrial Goods and Services · mcap £8.9m · 16.2p
Velocity Composites cuts and packs composite materials into ready-to-use kits for aircraft makers, mainly for Airbus A350 wings, military programmes and US engine work. It operates from the UK and a US facility.
The case for
- Gross margin has risen from 18.8% in FY23 to 29.5% in FY25, and adjusted EBITDA has been positive for two years. 23 Jan 2024 27 Jan 2026
- A 10-year A350 renewal worth up to $54m and a three-year BAE Systems renewal with a price increase support future volumes. 8 Oct 2025 12 May 2025
- Airbus plans to double A350 production by 2028, and further US programme transfers are expected in FY26. 25 Jun 2025 24 Jun 2026
- The company reported net cash of £0.5m at the H1 FY26 half year with a £3m undrawn facility. 24 Jun 2026
The case against
- Revenue has fallen from £23.0m in FY24 to £20.7m in FY25, and H1 FY26 was down to £8.4m. 5 Nov 2025 24 Jun 2026
- Guidance was cut in June 2026 to about £0.5m EBITDA, below market expectations. Loss before tax widened to £1.0m. 24 Jun 2026
- The Board's targets of 10% EBITDA margin and 25% return on capital remain unmet; FY25 margin was about 5%. 27 Jan 2026
- Insiders and holders have sold: the CEO's wife sold shares at 15p and Rathbones cut its stake to about 5%. Cash is thin. 27 Nov 2025 6 May 2026 27 Jan 2026
Both sides use only facts from the company's announcements · not investment advice
Company filings. Not investment advice.