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.

Target	Promise	Said	Status
2024
31 Oct 2024	Profitable, cash generative with operating profit in H2 FY24	23 Jan 2024	✓ Kept
	“expects to be profitable and cash generative in H2 FY24” Also stated 22 May 2024 · 9 Jul 2024 Result FY24 adjusted EBITDA was £0.4m, with H1 a £0.2m loss, implying H2 profit; cash inflow from operations was £0.4m. “The Group had cash-inflows from operating activities for FY24 of £0.4m (FY23: outflows £1.8m)”12 Dec 2024 · Trading Update & Notice of Results
31 Oct 2024	Complete first article inspection for all US programme blocks by end FY24	11 Mar 2024	✗ Missed
	“Velocity expects the FAI process to be fully complete for all the programme blocks by the end of FY2024” Also stated 9 Jul 2024 Result Approvals were still incomplete in 2025; additional US programmes still awaiting approval and transfer in FY26. “Due to a technical issue between our US customer and the OEM (unrelated to Velocity), we have been unable to complete the full transfer of work as expected, with the current level of transferred business at around 40% of the total project value.”27 Jan 2026 · Final Results
2025
30 Apr 2025	US aero engine kits revenue by second quarter of FY25	18 Sep 2024	◐ Partly kept
	“Velocity therefore now expects revenue to be generated from these Kits by or before the second quarter of FY25” Result US sales grew, but later reports cite US programme delays and approvals still pending into FY26. “In the US, the Company continues to progress the transfer of the remaining programmes to Velocity with its initial major US customer. Velocity is working with the US Customer and its ultimate OEM customer, to finalise, what is a complex qualification process, in the aero-engine sector. This involves a highly technical qualification process and revenue from the additional programmes is expected to accelerate once the approvals process is complete.”22 May 2025 · Trading Update & Notice of Results
31 Oct 2025	Contracted revenues of £27m in FY24 growing to £33m in FY25	23 Jan 2024	✗ Missed
	“Company expects to be profitable and cash generative in H2 FY24 underpinned by contracted revenues for FY24 of £27m (FY23: £16.4m) growing to £33m in FY25” Also stated 9 Jul 2024 Result FY24 revenue was £23.0m and FY25 revenue fell to £20.7m, below contracted levels. “Company expects to be profitable and cash generative in H2 FY24 underpinned by contracted revenues for FY24 of £27m (FY23: £16.4m) growing to £33m in FY25.”9 Jul 2024 · Half-year Results “Revenue was up 40% to £23.0m (FY23: £16.4m), driven by growing US sales”12 Dec 2024 · Trading Update & Notice of Results
31 Oct 2025	Substantial revenue growth in FY25 over FY24	11 Mar 2024	✗ Missed
	“This programme block is expected to account for 39% of the full year US revenue in FY2025, enabling the growth we forecasted in 2025” Also stated 18 Sep 2024 Result FY25 revenue fell 10% to £20.7m from £23.0m. “Unaudited revenue for FY25 of £20.7m (FY24: £23.0m), lower than FY24 due to lower-than-expected A350 production rates and delays in programme transfers from the US customer”5 Nov 2025 · Trading Update “As a result, unaudited revenue is expected to be £20.7m (FY24: £23.0m), below market expectations and approximately 10% lower than the prior year.”5 Nov 2025 · Trading Update
31 Oct 2025	Positive adjusted EBITDA and cash generation in H2 FY25	25 Jun 2025	✗ Missed · target changed
	“Company expects to achieve positive adjusted EBITDA and be cash generative in H2 FY25 - in line with current market expectations” Also stated 25 Jun 2025 Result November 2025 update said revenue was below market expectations; FY25 EBITDA was £1.0m but net cash fell to nil/net debt. “FY25 Adjusted EBITDA impacted by lower revenue but expected to be more than double FY24 (FY24: £0.4m)”5 Nov 2025 · Trading Update “Adjusted EBITDA* profit of £1.0m (FY2024: £0.4m)”27 Jan 2026 · Final Results
Today · 10 Oct 2026
2026
31 Oct 2026	FY26 adjusted EBITDA to improve on FY25	5 Nov 2025	✗ Missed · target changed
	“adjusted EBITDA is expected to show a further improvement on FY25” Result June 2026 guidance cut to about £0.5m, below FY25's £1.0m. “the Board now expects adjusted EBITDA to be approximately £0.5 million for the full year”24 Jun 2026 · Half-year Results “Adjusted EBITDA profit of £0.1m (H1 2025: £0.3m)”24 Jun 2026 · Half-year Results
31 Oct 2026	Overhead reduction saving about £0.6m annualised in FY26	5 Nov 2025	… In progress
	“The overhead reduction activities are likely to yield further annualised savings of approximately £0.6m” Status so far Not yet due.
31 Oct 2026	Begin transfer of final US work programme in H2 FY26	26 May 2026	… In progress
	“the process is now committed to begin in H2 26, with completion anticipated as the Group enters FY27” Status so far Not yet due.
31 Oct 2026	FY26 adjusted EBITDA about £0.5m with positive year-end cash	24 Jun 2026	… In progress
	“the Board now expects adjusted EBITDA to be approximately £0.5 million for the full year” Status so far Not yet due.
2029
9 Jul 2029	Five-year contracted revenue of £100m with 10% EBITDA margin	9 Jul 2024	… In progress
	“The Board have set a five-year target of achieving a contracted revenue of £100m and 10% EBITDA margin” Status so far Not yet due.