REG - Velocity Composites - Final Results to the 31 October 2025
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260127:nRSa4410Qa&default-theme=true
RNS Number : 4410Q Velocity Composites PLC 27 January 2026
27 January 2026
VELOCITY COMPOSITES PLC
("Velocity Composites" or the "Company")
Audited Final Results for the twelve months ended 31 October 2025
Adjusted EBITDA for the year more than double prior year
Velocity Composites plc (AIM: VEL), the leading supplier of composite material
kits to aerospace, is pleased to announce the Company's audited results for
the twelve months ended 31 October 2025 ("FY2025").
Highlights:
● Total revenue in line with guidance of £20.7m (FY2024: £23.0m)
● Gross margin up 360 bps to 29.5% (FY2024: 25.9%) due to a better sales mix and
improved operational efficiencies
● Adjusted EBITDA* profit of £1.0m (FY2024: £0.4m)
● Cash at bank £0.4m (FY2024: £1.7m)
● Net debt position of £0.1m at 31 October 2025 (FY2024: £0.7m net cash) and
the Group was undrawn on its £3.1m invoice discounting facility; net cash at
22 January was £0.3m
Market Update:
● A350 programme production rates are expected to increase as the OEM strives to
fulfil its order backlog
● Working to secure new business in Europe that can be serviced from UK
production facilities as delays in production ramps have resulted in one UK
customer off-shoring production during 2026 and another in-housing legacy
programmes
● Boeing's re-acquisition of Spirit expected to unblock supply chain issues seen
during 2024 and 2025
● Delayed final contracted programme from previously announced US agreement now
expected to transfer in FY26
● Additional programmes at US customer being evaluated
● Anticipated near-term growth supports the Board's key targets:
· 25% plus gross margin
· 10% adjusted EBITDA* margin
· 25% return on capital
*Adjusted EBITDA is defined as Earnings before interest, tax, depreciation,
amortisation, exceptional items and adjusted for share-based payments.
Jon Bridges, CEO. Velocity Composites plc said: "As global demand for advanced
composites continues to rise, our vision is to become the supplier of choice
to all high value composite manufacturers globally for value engineered raw
materials. The long-term outlook for Velocity and the industry is positive
given the projected significant growth in passenger traffic over the next
decade and beyond.
"The timing of when aircraft production rates will increase is difficult to
predict, however we are focused on ensuring that Velocity is ready to deliver
when the global aerospace industry ramps back up to pre-pandemic production
levels and further.
"Our partnerships with our customers are long term, built on our commitment,
quality, and delivery. As some of our legacy programmes end, we continue to
secure new programmes and are bidding for new opportunities that will provide
long-term growth and value to shareholders."
Investor Presentation
Chief Executive Officer Jon Bridges, and Chief Financial Officer Rob Smith
will provide a live investor presentation for the Company's results via the
Investor Meet Company platform at 09:00am on Wednesday 28 January 2026.
The presentation is open to all existing and potential shareholders. Questions
can be submitted in advance via the Investor Meet Company dashboard, or at any
time during the live presentation. Investors can sign up to Investor Meet
Company and add to meet Velocity Composites plc via:
https://www.investormeetcompany.com/velocity-composites-plc/register-investor
(https://www.investormeetcompany.com/velocity-composites-plc/register-investor)
Enquiries:
Velocity Composites Tel: +44 (0) 1282 577577
Andy Beaden, Chairman
Jon Bridges, Chief Executive Officer
Rob Smith, Chief Financial Officer
Canaccord Genuity Limited (Nominated Adviser and Broker) Tel: +44 (0)20 7523 8000
Max Hartley
George Grainger
Dowgate Capital Limited (Joint Broker) Tel: +44 (0)20 3903 7715
Russell Cook
Nicolas Chambers
SEC Newgate (Financial Communications) Tel: +44 (0)7540 106 366
Robin Tozer Email: velocity@secnewgate.co.uk (mailto:velocity@secnewgate.co.uk)
George Esmond
Harry Handyside
About Velocity Composites
Based in Burnley, UK, Velocity is the leading supplier of composite material
kits to aerospace, that reduce costs and improve sustainability. Customers
include BAE Systems. Hamble Aerostructures, Safran Nacelles and GKN, who
supply to the major OEMs including Airbus, Boeing, GE, Rolls Royce and
Lockheed Martin.
By using Velocity's proprietary technology, manufacturers can also free up
internal resources to focus on their core business. Velocity has significant
potential for expansion, both in the UK and abroad, including into new market
areas, such as wind energy, urban air mobility and electric vehicles, where
the demand for composites is expected to grow.
Chairman's Report
Introduction
In the last financial year, the Company improved its profitability, despite
the challenges in the global aerospace supply chain, primarily caused by
events at Boeing and Airbus. After several years of averaging 40% per annum
growth, the wider industry headwinds of the past year led to a year of sales
consolidation while we restructured our operations generating significant
operational efficiencies.
Revenue fell to £20.7m in FY2025 from £23.0m in FY2024, however our greater
efficiencies, and the completion of our US production facility, led to a
margin improvement and an adjusted EBITDA of £1.0m, up from £0.4m. The next
step is achieving profitability before and after tax and while onboarding
further new business programmes.
We expect to return to higher levels of growth again, when external factors,
including delays in some key technical approvals on new programmes, especially
in the US are resolved. Velocity operates in the highly regulated aerospace
and defence markets, which sometimes move at a slower pace than we would like
in terms of approvals, in part because of the absolute (and correct) focus on
safety and manufacturing excellence.
Our experience over the last 12 months while frustrating has been useful and
will improve how we approach new business opportunities in the future.
While we did win new business and extended existing programmes in FY2025, we
also experienced reductions in our customers' production in the UK. There is a
trend among some customers to consolidate production in mainland Europe. We
are working to secure new business in Europe that can be serviced from our UK
production facilities. Europe and the US are our key future growth markets for
both current and new customers.
Environmental
Velocity is committed to supporting the aerospace industry's environmental
objectives, including reducing emissions and waste, and promoting efficient
resource use. Carbon fibre, as a key material, offers significant potential to
lower environmental impact, the unit cost and oil-based inputs make waste
reduction essential. Velocity's services focus on minimising material waste,
contributing to a net positive environmental outcome. We have a full section
in this report on sustainability which is a key part of our own service
offerings to the supply chain we serve in.
We are equally proud of fostering a safe and secure manufacturing environment,
maintaining world-class employee safety standards.
Innovation
Our proprietary Velocity Resource Planning(®) (VRP) technology continues to
deliver operational excellence.
This year, VRP was fully implemented at our new US facility, transforming it
into a world-class advanced manufacturing site. This innovation enhances
efficiency and raises service levels for our customers, reinforcing our
leadership in advanced material resource planning.
We have been developing our service offering, especially around procurement
and inventory management solutions for our customers. Our ability to operate
over a wider regional footprint, to align with our customers' needs, will
enable us to better utilise our established manufacturing investments in the
UK and USA, across the whole of Europe and North America.
People
Our lean, technology-enabled back-office structure is a key advantage for
Velocity. Centralised teams in the UK support multiple factories across
R&D, Engineering, Sales, and Finance, enabling scalability and
cost-efficiency.
To support growth, we invested over a number of years in hiring and training a
significant number of new employees, incurring upfront costs. This investment
will deliver long-term commercial benefits, as well as adding expertise in
Finance, Operations, and the US market. We are already seeing improved
operational excellence and increased resource to pitch to customers for
additional business.
I would like to thank all the staff for their support and hard work.
Board and Governance
We have an experienced Board, with the right balance of skills in terms of
composites and aerospace manufacturing, supported by a focused executive
management team. Within the Annual Report and Accounts, we explain how the
Board and Executive operate together to achieve the strategic goals. The
Report also provides a detailed analysis of our Corporate Governance
structures, and as a member of the Quoted Company's Alliance ("QCA") we follow
its guidance for a listed business of our size.
Conclusion
At this stage in Velocity's development our primary focus must be to win more
new business, which can provide longer term growth and drive profitability.
On behalf of the Board, I extend my heartfelt thanks to all stakeholders,
including our investors, for their continued support.
Andrew Beaden
Chairman
26 January 2026
Chief Executive Officer's Report
Overview
Overall, the global aerospace industry is seeing growing orders, alongside
planning rate increases in the defence sector, but with production backlogs
across all civil aviation platforms.
As a result, aircraft build rates in 2025 remained at a similar level to the
previous year, despite the expectation that these would increase across the
key platforms, including the Airbus A350. To be prudent, our financial
forecasting is now based on flat production rates in FY2026. However, when the
Company sees sustained changes in customer demand, we will revise these.
Ahead of the anticipated ramp up, the Company has made progress in terms of
driving further efficiencies and improving operating margins across the
business. This has meant increased gross margin and reduced overheads.
Sales revenue for the year was £20.7m (FY2024: £23.0m) at an improved 29.5%
gross margin (FY2024: 25.9%). The gross margin resulted from an improved sales
mix and operational efficiency gains made during the year. Administrative
expenses reduced to £6.9m (FY2024: £7.0m) as we implemented a number of cost
control measures to mitigate the lower sales revenue. This resulted in an
improved adjusted EBITDA of £1.0m (FY2024: £0.4m).
Customers
In May 2025, we secured a contract renewal and extension with an existing
defence customer that we have served since 2010, extending a major
relationship with a global OEM. Furthermore, we agreed the expansion of an
existing agreement with a key A350 customer to cover a wider scope of work, to
include all products on a customer site for a period of ten years. The
transfer of this additional work will begin in early 2026 and is covered by
existing customer and OEM approvals.
As outlined above, our civil aerospace customers, existing and in-bid, did not
see the production rate and revenue increases expected in the year. It is
these rate increases beyond pre-2020 levels that drives the need for
outsourcing of non-core activities at their sites. The delays mean customers
are looking to fill their manufacturing areas by any means necessary in order
to cover fixed overheads, which can mean work packages being moved
internationally between customer facilities, where possible.
In FY2025, one customer in the UK has begun to transfer production to a sister
plant in mainland Europe; this process is expected to continue through FY2026.
Until we understand the longer-term plan of the customer, we have removed any
forecasted sales for FY2027 onward from our internal budgets, as matter of
prudency.
We have other long-term customers, involved in legacy programmes, which are
coming to a natural end, and are not being replaced by new programmes. To
mitigate this, these customers are looking at in-loading all outsourced
activities (including the services provided by Velocity) to support their site
overheads. Again, a prudent approach to our internal forecasting will be
applied for FY2027 onwards.
Velocity will adapt to these industry changes and use our "forward stock
location" way of working to manufacture kits and products at our existing
sites and distribute via a small service location close to customers. New
business will come from new programmes and customers that are in growth
platforms and have a stable operational plan, with sites that are planned to
become constrained as production rates grow. This will help to ensure
long-term, strategic partnerships are formed.
With our US launch customer, we have continued to deliver our products and
services for the transferred programmes. In early FY2025, we commissioned our
large freezer facility at our Alabama site for the storage of raw materials
and finished goods.
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. To offset the effect on Velocity of the delays,
additional business with this customer has been identified for FY2026.
Market
Civil Aerospace
After several years of delays to the forecasted production ramp ups, customers
are being cautious in forecasting corresponding increases in demand to
suppliers like Velocity.
The production delays are particularly evident in key civil aerospace
platforms, such as the A350 and the B737. The reasons for the delays are
varied, with Airbus citing "supply chain issues" with the A350, and Boeing
impacted by continued FAA oversight, after the widely reported issues in 2019
and 2023.
In addition, the protracted acquisition of Spirit AeroSystems by Boeing and
the corresponding acquisition of the Airbus supply chain of Spirit AeroSystems
by Airbus has been an unwelcome distraction for the industry. As these issues
are resolved, production ramp ups are expected to begin.
Defence
Our defence customers, both existing and potential, are starting to plan for
production rate increases. Alongside the established defence platforms, new
defence contractors are entering the market, bringing innovative products into
volume production. These products align to the growing need for lower cost,
high volume, and readily adaptable defence systems to meet the new threats
identified.
As these programmes scale up, along with the new eVTOL aircraft platforms that
are starting volume production, we will look to work with OEMs and
manufacturing customers who are establishing their supply chains from scratch
and assist in creating these in a lean and scalable way from day one.
Progress has been made in achieving AUKUS accreditation, which is seen as
assisting in the export control compliance between companies in the US, UK,
and Australia as more defence programmes are worked on between these
countries. We progressed specific export control compliance requirements for
programmes not covered by the project or geographical areas of AUKUS.
Operations
Velocity exists to revolutionise aerospace composites manufacturing. Our
mission is to empower customers to reduce waste and costs while meeting the
growing global demand for advanced composites.
By creating a lean, scalable supply chain tailored for a 'more-for-less' era,
we deliver real, measurable value to all stakeholders - customers, suppliers,
employees, and shareholders alike. This is not just about efficiency; it is
about shaping the future of aerospace manufacturing through smarter processes
and sustainable practices.
We progressed this mission in FY2025 through the successful implementation and
migration of our UK sites to our Odoo-based Velocity Resource Planning® (VRP)
system, following successful deployment in the US. Velocity now has one
unified and live system across all business areas and is helping to drive
further efficiencies for customers by delivering real time control and
automation of repeat tasks.
In 2025, we welcomed Oliver Smalley as Chief Operations Officer to build on
the previous improvements made to our manufacturing efficiency and cost base,
which has helped see gross margin improve from 25.9% to 29.5% between FY2024
and FY2025. This appointment completed the leaner executive management team
with more focused areas of responsibility.
Regulatory Approvals
All our sites maintained their industry and OEM approvals, including UK sites
which maintained Merit 24 status for NADCAP special processes. Our US site
successfully completed its second NADCAP audit with zero findings, which as a
new site is an amazing testament to the hard work and diligence of our teams.
This means our Tallassee site is well on the way to joining our UK sites in
Merit 24 status. In FY2026, we will look to add to these industry approvals
with robust physical and cyber security accreditations to address the
increasing threats and to allow us to operate to the required civil and
defence customer requirements.
Strategy
As we prepare for the expected production ramp, our strategy is clear and
designed to build on the progress to date, namely:
• To develop innovative products and solutions to drive cost reductions and
improvements in our customers sites
• Drive internal efficiencies and quality performance to enable us to offer the
most competitive services to customers at a sustainable margin
• Implement enhanced ways of working which drive faster and easier adoption of
our services (VAMOS(®))
• Build long term, strategic relationships with global customers with growing,
diverse and stable portfolios wherever they operate
• Utilise existing manufacturing capacity to manufacture current and future kits
and products and distribute to efficient forward stock locations
• Grow in Europe and North America to drive value for shareholders
Outlook
As global demand for advanced composites continues to rise, our vision is to
become the supplier of choice to all high value composite manufacturers
globally for value engineered raw materials. The long-term outlook for
Velocity and the industry is positive given the projected significant growth
in passenger traffic over the next decade and beyond.
The timing of when aircraft production rates will increase is difficult to
predict, however we are focused on ensuring that Velocity is ready to deliver
when the global aerospace industry ramps back up to pre-pandemic production
levels and further.
Our partnerships with our customers are long term, built on our commitment,
quality, and delivery. As some of our legacy programmes end, we continue to
secure new programmes and are bidding for new opportunities that will provide
long-term growth and value to shareholders.
Jon Bridges
Chief Executive Officer
26 January 2026
Financial Review
Statement of Income
Group revenue for FY2025 decreased 10.0% to £20.7m (FY2024: £23.0m). The
principal reasons for the decline were:
• Expected production rate increases for A350 were not achieved, this led to
de-stocking and reduced production levels at two of our UK customers resulting
in reduced demand from those customers
• Lower than expected revenues from our US customer as work package transfers
were delayed due to technical issues between our customer and the OEM
• A decay in revenue from older programmes that we support and are towards the
end of their production life
Gross profit improved to £6.1m (FY2024: £6.0m) as a result of an improved
sales mix and production efficiencies, particularly in the US, being realised.
As a consequence, an improved gross margin percentage of 29.5% (FY2024: 25.9%)
was achieved.
Administrative expenses in FY2025 were flat year on year at £7.0m (FY2024:
£7.0m). Cost control measures introduced through the year offset inflationary
increases and an increased, non-cash, share-based payment charge, as
management took proactive steps to mitigate the lower sales revenue. The
improved gross profit margins and lower underlying administrative expenses
more than offset the reduced sales revenue with adjusted EBITDA increasing to
£1.0m (FY2024: £0.4m).
( ) 31 October 31 October
2025 2024
Reconciliation from operating loss £'000 £'000
Operating loss (718) (931)
Add back:
Share-based payments 386 143
Depreciation and amortisation 690 622
Depreciation on right of use assets under IFRS 16 632 540
Adjusted EBITDA 990 (1,606)
The delays in transferring programmes, as noted in the CEO's report, coupled
with lower demand from customers on the A350 programme and legacy programmes
coming to their natural conclusion suppressed revenues during the year.
However, the significant effort made on improving operational efficiency and
reducing administrative expenses enabled us to deliver a considerably better
adjusted EBITDA and a reduced operating loss of £(0.7)m (FY2024: £(0.9)m).
There is considerable further potential growth through OEM production rate
increases on existing programmes as well as opportunities on other programmes
with new and existing customers. Velocity has built an excellent capability to
deliver this growth without a linear increase to its overhead base or
installed manufacturing capacity. Near-term growth is expected to be delivered
from existing sites giving the opportunity for further operational
efficiencies without increasing administrative expenses.
Losses after tax for the year for the Group amounted to £1.1m (FY2024:
£0.8m). Changes made to the UK research and development regime have resulted
in a lower tax benefit from these activities and this income being fully
recognised as other operating income.
Cashflow and Capital Investment
The cash and cash equivalents balance as at 31 October 2025 was £0.4m
(FY2025: £1.7m).
Operating cash inflow before working capital movements for FY2025 was £0.8m
(FY2024: £0.3m inflow), this being attributable to increased gross profit and
lower administrative expenses. The movements in working capital netted to
£nil in FY2025 (FY2024: £0.4m outflow), and after other adjustments for
taxation received, the final cash inflow from operations was £1.0m (FY2024:
£0.4m inflow).
Working capital movements can be further analysed as follows. There was a
negative working capital movement through a £1.3m decrease in trade and other
payables from suppliers (FY2024: decrease of £0.7m). Inventory decreased by
£0.4m (FY2024: decrease of £0.2m), largely due to the reduced sales revenue
and improvements in operational efficiencies. Trade receivables decreased by
£0.9m (FY2024: £0.2m increase) driven by the reduced sales. Overall trade
receivable days were 44 days, compared to 53 days at the end of FY2024.
Cash outflow from investment activities was £0.7m (FY2024: £0.6m).
Investment activities mainly resulted from capitalisation of research and
development expenditure of £0.4m (FY2024: £0.4) and capital expenditure of
£0.3m (FY2024: £0.2m).
Financing activities cash outflow was £1.5m in the year (FY2024: £1.4m). The
outflow included repayment of loans taken out during the Covid-19 pandemic of
£0.5m (FY2024: £0.5m) and repayment of finance lease capital £0.7m (FY2024:
£0.5m).
The Company was in a Net Debt position at the end of the year, of £0.1m
(FY2024: £0.7m). This includes Cash at Bank, offset by the outstanding CBILs
balance. The Company's invoice discounting facility was undrawn at the 31
October 2025 (FY2024: undrawn).
( ) 31 October 31 October
2025 2024
£'000 £'000
Cash 392 1,663
CBILS loan (497) (971)
Net (debt) / cash (105) 692
Going Concern
The financial statements have been prepared on a going concern basis as the
directors believe that the Group has access to sufficient resources to
continue in business for the foreseeable future. This is discussed more fully
in the Directors' Report of the FY2025 Annual Report and Accounts.
Rob Smith
Chief Financial Officer
26 January 2026
Consolidated Statement of Income Year ended Year ended
31 October 31 October
2025 2024
Note £'000 £'000
Revenue 4 20,701 23,006
Cost of sales (14,595) (17,045)
Gross profit 6,106 5,961
Administrative expenses (6,972) (6,978)
Other Operating Income 148 86
Operating loss 5 (718) (931)
Operating loss analysed as:
Adjusted EBITDA profit/(loss) 31 990 374
Depreciation of property, plant and equipment (380) (382)
Amortisation (310) (240)
Depreciation of right-of-use assets under IFRS 16 (632) (540)
Share-based payments (386) (143)
Finance income and expense 8 (340) (413)
Loss before tax from continuing operations (1,058) (1,344)
Corporation tax (payable) / recoverable 9 (26) 499
Loss for the year and total comprehensive loss (1,084) (845)
Loss per share - basic from continuing operations 10 (2.00p) (1.58p)
Loss per share - diluted from continuing operations 10 (2.00p) (1.58p)
Consolidated Statement of Other Comprehensive Income
Year ended Year ended
31 October 31 October
2025 2024
£'000 £'000
Loss for the year (1,084) (845)
Other comprehensive income
Items that are or may be subsequently reclassified to profit and loss:
Currency translation movement arising on consolidation (51) -
Total comprehensive loss for the year (1,135) (845)
Consolidated Statement of Financial Position 31 October 31 October
2025 2024
Note £'000 £'000
Non-current assets
Intangible assets 11 1,072 987
Property, plant and equipment 12 1,764 1,854
Right-of-use assets 19 1,952 1,826
Total non-current assets 4,788 4,667
Current assets
Inventories 14 2,099 2,500
Trade and other receivables 15 3,025 3,977
Cash and cash equivalents 16 392 3,663
Total current assets 5,516 8,140
Total assets 10,304 12,807
Current liabilities
Loans 18 402 503
Trade and other payables 17 2,515 3,933
Obligations under lease liabilities 19 703 561
Provisions 25 79 -
Total current liabilities 3,699 4,997
Non-current liabilities
Loans 18 95 468
Obligations under lease liabilities 19 1,192 1,258
Provisions 25 177 218
Total non-current liabilities 1,464 1,944
Total liabilities 5,163 6,941
Net assets 5,141 5,866
Equity attributable to equity holders of the company
Share capital 22 137 134
Share premium account 23 4,891 4,870
Share-based payments reserve 24 573 517
Translation reserve 51 -
Retained earnings (409) 345
Total equity 5,141 5,866
The Company has taken advantage of the exemption allowed under section 408 of
the Companies Act 2006 and not presented its own statement of profit and loss
in these financial statements. The loss for the year was £1,111,000. The
financial statements were approved and authorised for issue by the Board of
Directors on 26 January 2026 and were signed on its behalf by:
Rob Smith Director
Co No: 06389233
Consolidated statement of changes in equity
Share Share premium Retained Share-based payments Total
Translation
capital account earnings Reserve reserve equity
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 November 2023 133 4,870 1,087 - 478 6,568
Loss for the year - - (845) - - (845)
133 4,870 242 - 478 5,723
Transactions with owner:
Share-based payments (note 24) - - - - 143 143
Transfer of share option reserve on vesting of options and issue of equity 1 - 103 (104) -
-
Balance at 31 October 2024 134 4,870 345 - 517 5,866
Balance at 1 November 2024 134 4,870 345 - 517 5,866
Loss for the year - - (1,084) (51) - (1,025)
134 4,870 (739) (51) 517 4,841
Transactions with owners:
Share-based payments (note 24) - - - - 386 386
Transfer of share option reserve on vesting of options and issue of equity 3 21 330 (330) 24
-
Balance at 31 October 2025 137 4,891 (409) (51) 573 5,141
Consolidated Statement of Cash Flows
Year Year
ended ended
31 October 31 October
2025 2024
£'000 £'000
Operating activities
Loss for the year (1,084) (845)
Taxation (137) (528)
Finance costs 340 413
Amortisation of intangible assets 310 240
Depreciation of property, plant and equipment 380 382
Depreciation of right-of-use assets 632 540
Share-based payments 386 143
Operating cash flows before movements in working capital 827 345
Increase in trade and other receivables 933 (180))
Decrease/(Increase) in inventories 401 243
(Decrease)/Increase in trade and other payables (1,339) (654)
Increase/(Decrease) in provisions 38 218
Cash (outflow)/inflow from operations 860 (28)
Tax received 130 398
Net cash inflow from operating activities 990 370
Investing activities
Purchase of property, plant and equipment net of intercompany transfers (334) (212)
Purchase of development expenditure (409) (372)
Proceeds from the sale of property, plant and equipment 14 -
Net cash used in investing activities (729) (584)
Financing activities
Finance costs paid (340) (413)
Loan repayment (474) (502)
Repayment of lease liabilities capital (684) (497)
Net cash used in financing activities (1,498) (1,412)
Net (Decrease) in cash and cash equivalents (1,237) (1,626)
Cash and cash equivalents at 01 November 1,663 3,178
Effect of foreign exchange rate changes (34) 111
Cash and cash equivalents at 31 October 392 1,663
Notes to Financial Statements
1. General information
Velocity Composites plc (the 'Company') is a public limited company
incorporated and domiciled in England and Wales. The registered office of the
Company is AMS Technology Park, Billington Road, Burnley, Lancashire, BB11
5UB, United Kingdom. The registered company number is 06389233.
In order to prepare for future expansion in the Asia region, the Company
established a wholly owned subsidiary company, Velocity Composites Sendirian
Berhad, which is domiciled in Malaysia. The subsidiary company commenced
trading on 18 April 2018. The Company also established a wholly owned
subsidiary company, Velocity Composites Aerospace Inc. to prepare for future
expansion in the United States of America. These subsidiaries, together with
Velocity Composites plc, now form the Velocity Composites Group ('the Group').
The Group's principal activity is that of the sale of kits of composite
material and related products to the aerospace industry.
2. Accounting policies
Basis of preparation
The consolidated financial statements of Velocity Composites plc have been
prepared in accordance with UK-adopted international accounting standards and
International Financial Reporting Interpretations Committee (IFRIC)
interpretations.
These financial statements have been prepared on a going concern basis and
using the historical cost convention, as modified by the revaluation of
certain items, as stated in the accounting policies. These policies have been
consistently applied to all years presented, unless otherwise stated. The
financial statements are presented in sterling and have been rounded to the
nearest thousand (£'000). References to "FY2025" refer to the year ended 31
October 2025, whilst references to "FY2024" are in respect of the year ended
31 October 2024.
The Company has taken advantage of the exemption allowed under section 408 of
the Companies Act 2006 and not presented its own statement of profit and loss
in these financial statements.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and its' subsidiary undertakings and are made up to 31 October
2025. Subsidiaries are consolidated from the date of acquisition, using the
purchase method.
Where necessary, adjustments are made to the financial statements of
subsidiaries to bring the accounting policies used into line with those used
by the Group. The Group's subsidiaries have prepared their statutory financial
statements in accordance with IFRS standards.
Subsidiaries are entities controlled by the Group. The Group controls an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns
through its power over the entity. In assessing control, the Group takes into
consideration potential voting rights. The acquisition date is the date on
which control is transferred to the acquirer. The financial statements of
subsidiaries are included in the consolidated financial statements from the
date that control commences until the date that control ceases.
Intra-group balances and transactions, and any unrealised income and expenses
arising from intra-group transactions, are eliminated. Unrealised losses are
eliminated in the same way as unrealised gains, but only to the extent that
there is no evidence of impairment.
The accounting policies set out below have, unless otherwise stated, been
applied consistently to all years presented in the consolidated financial
statements.
There are no new accounting standards or interpretations that are not yet
fully effective that could be expected to have a material impact on the Group.
Going concern
The financial statements have been prepared on a going concern basis as the
directors believe that the Group has access to sufficient resources to
continue in business for the foreseeable future.
The key business risks and conditions that may impact the Group's ability to
continue as a going concern are the utilisation of existing resources and
borrowing facilities to finance growth, investment and expenditure; rates of
growth and cash generated by Group revenues; the timing of breakeven and
positive cash-flow generation and ability to secure additional debt or equity
financing in the future if this became necessary. The primary area of
judgement that the Board considered, in the going concern assessment, related
to revenue expectations.
Whilst recognising that all forecasts carry inherent uncertainty, the Board
has endeavoured to establish cash forecasts and projections that are
sufficiently robust to allow them to be relied on when making short and
medium-term forecasting decisions. The Board's forecasting process only
includes sales revenue from ongoing, contracted, or new business where there
is a high degree of certainty that it will be contracted in the forecast
period. The Board concluded that its base cash model provides a reliable basis
upon which a going concern review can be undertaken.
The Board was mindful of the guidance surrounding a severe but plausible
assessment and, accordingly, considered a number of scenarios in revenue
reduction against the original plans. A reverse stress test was constructed to
identify at which point the Group might run out of available cash and
facilities. The test was designed specifically to understand how far revenue
would need to fall short of the base case forecast and does not represent the
directors' view on current or projected trading. The test was modelled over a
24-month period from the commencement of FY2026 to the end of FY2027 and was
based on budgeted trading that took into account contracted orderbook,
existing revenue streams from current customers and expected revenue based on
management's judgement of the likelihood of converting current sales
opportunities. The sales revenue in the budgeted model was reduced evenly
across the Group to the point where projected month-end cash was equal to zero
at any point during the test period, In the model, zero month-end cash was
reached in October 2027 when projected sales revenue was reduced to 75.7% of
budget. For the reverse stress test, the Board specifically excluded any
upsides to this scenario. This is despite strong incremental upside potential
at both existing and new customers. This most severe scenario also excludes
any mitigating reduction in the cost base that the Board would undertake in
this event. In all scenarios modelled the Group has sufficient resources to
operate and meet its liabilities throughout the going concern review period,
up to the point where reverse stress test is reached, without the inclusion of
the impact of mitigating actions.
At 31 October 2025, the Group had a cash balance of £392,000, was undrawn on
its invoice discounting facility and had outstanding CBILs of £497,000. As at
22 January 2026, the Group had a cash balance of £821,000, had drawn down
£152,000 from its invoice discounting facility and had outstanding CBILs of
£417,000.
As a result of this review, which incorporated sensitivities and risk
analysis, the Directors believe that the Group has sufficient resources and
working capital to meet their present and foreseeable obligations for a period
of at least 12-months from the approval of these financial statements.
Revenue recognition
Revenue is recognised as performance obligations are satisfied as control of
the goods and services are transferred to the customer. Contracts are
satisfied over a period of time, with the dispatch of goods at a point in
time. Revenue is therefore recognised when control is transferred to the
customer, which is usually when legal title passes to the customer and the
business has the right to payment, for example, on delivery.
The Group generates revenue from the sale of structural and consumable
materials for use within the aerospace industry. This is the sole revenue
stream of the Group.
At contract inception (which is upon receipt of a purchase order from a
customer), an assessment is completed to identify the performance obligations
in each contract. Performance obligations in a contract are the goods that are
distinct.
At contract inception, the transaction price is determined, being the amount
that the Group expects to receive for transferring the promised goods - this
is a fixed price with no variable consideration. The transaction price is
allocated to the performance obligations in the contract based on their
relative standalone selling prices - this reflects the agreed price as per
purchase order for each product. The Group has determined that the
contractually stated price represents the standalone selling price for each
performance obligation.
Revenue from sale of goods and services is recognised when a performance
obligation has been satisfied by transferring the promised product to the
customer at a point in time, usually when legal title passes to the customer
and the business has the right to payment, for example, on delivery. Standard
payment terms are in place for each customer.
Inventory
Inventory is stated at the lower of costs incurred in bringing each product to
its present location and condition compared to net realisable value as
follows:
• Raw materials, consumables and goods for resale - purchase cost on a
first-in/first-out basis.
• Work in progress and finished goods - costs of direct materials and labour
plus attributable overheads based on a normal level of activity.
Net realisable value is based on an estimated selling price less any further
costs expected to be incurred for completion and disposal.
Expenditure
Expenditure is recognised in respect of goods and services received when
supplied in accordance with contractual terms. Goods or services supplied in a
foreign currency are recognised at the exchange rate ruling at the time of
accounting for this expenditure.
Provisions
A provision is made when an obligation exists for a future liability relating
to a past event and where the amount of the obligation can be reliably
estimated.
Retirement benefits: defined contribution schemes
Contributions to defined contribution pension schemes are charged to the
statement of comprehensive income in the year to which they relate.
Short-term employee benefits
A liability is recognised for benefits accruing to employees in respect of
wages and salaries, annual leave and sick leave in the year the related
service is rendered at the undiscounted amount of the benefits expected to be
paid in exchange for that service.
Research and development expenditure
Research expenditure - expenditure on research activities is recognised as an
expense in the year in which it is incurred.
Development expenditure - An internally generated intangible asset arising
from the Group's own development activity is recognised only if all of the
following conditions are met:
• an asset is created that can be identified and is technically and commercially
feasible;
• it is probable that the asset created will generate future economic benefits
and the Group has available sufficient resources to complete the development
and to subsequently sell and/or use the asset created; and
• the development cost of the asset can be measured reliably.
The amount recognised for development expenditure is the sum of all incurred
expenditure from the date when the intangible asset first meets the
recognition criteria listed above. This occurs when future sales are expected
to flow from the work performed. Incurred expenditure largely relates to
internal staff costs incurred by the Group.
Subsequent to initial recognition, internally generated intangible assets are
reported at cost less accumulated amortisation and impairment.
Amortisation
Amortisation is calculated to write off the cost of intangible assets less
their estimated residual values using the straight-line method over their
estimated useful lives and is generally recognised in the statement of total
comprehensive income. The estimated useful lives are based on the average life
of a project as follows:
Development costs 5 years
Property, plant and equipment
Items of property, plant and equipment are initially recognised at cost. As
well as the purchase price, cost includes directly attributable costs.
Depreciation is provided on all items of property, plant and equipment so as
to write off their carrying value over the expected useful economic lives. It
is provided at the following methods and rates:
Land and buildings (right-of-use) Over the term of the lease
Plant and machinery 15% straight line
Motor vehicles 25% straight line
Fixtures and fittings 15% straight line
Leasehold improvements Over the term of the lease unless there is reasonable certainty the lease will
be renewed, in which case,10% straight line
Foreign currency translation
Items included in the financial statements of each of the Group's entities are
measured using the currency of the primary economic environment in which the
entity operates ('its functional currency'). The consolidated financial
statements are presented in sterling, which is Velocity Composites plc's
functional and presentation currency.
Foreign currency transactions are translated into the functional currency
using the exchange rates at the dates the transactions occur. Foreign exchange
gains and losses resulting from the settlement of such transactions and from
the translation of monetary assets and liabilities denominated in foreign
currencies at year end exchange rates are recognised in the consolidated
comprehensive statement of income.
The results and financial position of foreign operations that have a
functional currency different from the presentation currency are translated
into the presentation currency, on consolidation, as follows:
· assets and liabilities for each statement of financial position presented are
translated at the closing rate at the date of the statement of financial
position;
· income and expenses for each statement of profit or loss and statement of
comprehensive income are translated at average exchange rates; and
· all resulting exchange differences are recognised immediately in the
Consolidated comprehensive statement of income.
Impairment of non-financial assets
The carrying values of non-financial assets are reviewed for impairment when
there is an indication that assets might be impaired, and at the end of each
reporting year. When the carrying value of an asset exceeds its recoverable
amount, the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual
asset, the impairment test is carried out on the asset's cash generating unit
(i.e. the smallest grouping of assets in which the asset belongs for which
there are separately identifiable cash flows).
Impairment charges are included in the income statement, except to the extent
where they reverse previous gains recognised in the statement of comprehensive
income.
Financial instruments
All funding requirements and financial risks are managed based on policies and
procedures adopted by the Board of Directors encapsulating the normal day to
day trading of the Group. The Group does not use derivative financial
instruments such as forward currency contracts, or similar instruments. The
Group does not issue or use financial instruments of a speculative nature.
Bank borrowings
Interest-bearing loans are recorded initially at their fair value, net of
direct transaction costs. Such instruments are subsequently carried at their
amortised cost and finance charges are recognised in the statement of
comprehensive income over the term of the instrument using an effective rate
of interest. Finance charges are accounted for on an accrual's basis to the
statement of comprehensive income.
The Group has current borrowings of CBIL loans and can utilise its invoice
discounting facility in support of its working capital requirements.
Financial assets
The Group classifies its financial assets into the categories discussed below
and based upon the purpose for which the asset was acquired. The Group has not
classified any of its financial assets as held to maturity.
Trade and other receivables
These assets are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise principally
through the sale of goods to customers (e.g. trade receivables) but also
incorporate other types of contractual monetary asset. They are initially
recognised at fair value plus transactions costs that are directly
attributable to their acquisition or issue and are subsequently carried at
amortised cost using the effective interest method, less provision for
impairment.
The Group's loans and receivables comprise trade and other receivables
included within the statement of financial position.
Cash and cash equivalents
Cash and cash equivalents include cash held at bank, bank overdrafts and
marketable securities of very short-term maturity (typically three months or
less) which are not expected to deteriorate significantly in value until
maturity. Bank overdrafts are shown within loans and borrowings in current
liabilities in the statement of financial position.
Impairment of financial assets
Impairment provisions are recognised through the expected credit losses model
(ECL). IFRS 9's impairment requirements use forward-looking information to
recognise expected credit losses - the 'expected credit loss (ECL) model'.
The Group considers a broader range of information when assessing credit risk
and measuring expected credit losses, including past events, current
conditions, reasonable and supportable forecasts that affect the expected
collectability of the future cash flows of the instrument.
Trade and other payables
The Group classifies its financial liabilities as comprising trade payables
and other short-term monetary liabilities, which are initially recognised at
fair value and subsequently carried at amortised cost using the effective
interest method.
Share capital
Financial instruments issued by the Group are treated as equity only to the
extent that they do not meet the definition of a financial liability. The
Group's ordinary shares are classified as equity instruments.
Share premium
Share premium represents the excess of the issue price over the par value on
shares issued less costs relating to the capital transaction arising on the
issue.
Share-based payment
The Group operates an equity-settled share-based compensation plan in which
the Group receives services from Directors and certain employees as
consideration for share options. The fair value of the services is recognised
as an expense over the vesting period, determined by reference to the fair
value of the options granted.
Leased assets
Leases
At lease commencement date, the Group recognises a right-of-use asset and a
lease liability in its consolidated statement of financial position. The
right-of-use asset is measured at cost, which is made up of the initial
measurement of the lease liability, any initial direct costs incurred by the
Group, and any lease payments made in advance of the lease commencement date.
The Group depreciates the right-of-use asset on a straight-line basis from the
lease commencement date to the earlier of the end of the useful life of the
right-of-use asset or the end of the lease term. The Group also assesses the
right-of-use asset for impairment when such indicators exist.
At the commencement date, the Group measures the lease liability at the
present value of the lease payments unpaid at that date, discounted using the
Group's incremental borrowing rate because as the lease contracts are
negotiated with third parties it is not possible to determine the interest
rate that is implicit in the lease.
The incremental borrowing rate is the estimated rate that the Group would have
to pay to borrow the same amount over a similar term, and with similar
security to obtain an asset of equivalent value. This rate is adjusted should
the lessee entity have a different risk profile to that of the Group.
Subsequent to initial measurement, the liability will be reduced by lease
payments that are allocated between repayments of principal and finance costs.
The finance cost is the amount that produces a constant periodic rate of
interest on the remaining balance of the lease liability.
The lease liability is reassessed when there is a change in the lease
payments. Changes in lease payments arising from a change in the lease term or
a change in the assessment of an option to purchase a leased asset. The
revised lease payments are discounted using the Group's incremental borrowing
rate at the date of reassessment when the rate implicit in the lease cannot be
readily determined. The amount of the remeasurement of the lease liability is
reflected as an adjustment to the carrying amount of the right-of-use asset.
The exception being when the carrying amount of the right-of-use asset has
been reduced to zero then any excess is recognised in profit or loss.
Payments under leases can also change when there is either a change in the
amounts expected to be paid under residual value guarantees or when future
payments change through an index or a rate used to determine those payments,
including changes in market rental rates following a market rent review. The
lease liability is remeasured only when the adjustment to lease payments takes
effect and the revised contractual payments for the remainder of the lease
term are discounted using an unchanged discount rate. Except for where the
change in lease payments results from a change in floating interest rates, in
which case the discount rate is amended to reflect the change in interest
rates.
The remeasurement of the lease liability is dealt with by a reduction in the
carrying amount of the right-of-use asset to reflect the full or partial
termination of the lease for lease modifications that reduce the scope of the
lease. Any gain or loss relating to the partial or full termination of the
lease is recognised in profit or loss. The right-of-use asset is adjusted for
all other lease modifications.
The Group has elected to account for short-term leases and leases of low-value
assets using the practical expedients. These leases relate to property
security. Instead of recognising a right-of-use asset and lease liability, the
payments in relation to these are recognised as an expense in profit or loss
on a straight-line basis over the lease term.
See the accounting policy on Property plant and equipment for the depreciation
methods and useful lives for assets held under lease.
Current taxation
The tax currently payable is based on the taxable profit of the year. Taxable
profit differs from profit as reported in the Consolidated statement of
comprehensive income because it excludes items of income and expense that are
taxable or deductible in other years and it further excludes items that are
never taxable or deductible. The Group's liability for current tax is
calculated using rates that have been enacted or substantively enacted by the
statement of financial position date.
Merged scheme research and development expenditure credit (RDEC)
RDECs are recognised at the point when claims have been quantified relating to
expenditure within current or previous years and recovery of the asset is
virtually certain, these tax credits relating to R&D are recognised as
other operating income.
Deferred taxation
Deferred tax assets and liabilities are recognised where the carrying amount
of an asset or liability in the statement of financial position differs from
its tax base, except for differences arising on the initial recognition of
goodwill.
Recognition of deferred tax assets is restricted to those instances where it
is probable that taxable profit will be available against which the difference
can be utilised. The amount of the asset or liability is determined using tax
rates that have been enacted or substantially enacted by the balance sheet
date and are expected to apply when the deferred tax liabilities or assets are
settled or recovered. Deferred tax balances are not discounted.
Deferred tax assets and liabilities are offset when the Group has a legally
enforceable right to offset current tax assets and liabilities and the
deferred tax assets and liabilities relate to taxes levied by the same tax
authority on either the same taxable Company; or different Company entities
which intend either to settle current tax assets and liabilities on a net
basis, or to realise the assets and settle the liabilities simultaneously, in
each future period in which significant amounts of deferred tax assets and
liabilities are expected to be settled or recovered.
Operating segments
Operating segments are reported in a manner consistent with the internal
reporting provided to the executive directors. The Chief Operating Decision
Makers have been identified as the Chief Executive Officer and the Chief
Financial Officer. The Group supplies a single type of product into a single
industry and so has a single operating segment. Additional information is
given regarding the revenue receivable based on geographical location of the
customer.
No differences exist between the basis of preparation of the performance
measures used by management and the figures in the Group financial
information.
Critical accounting estimates and judgements
The Group makes certain estimates and assumptions regarding the future.
Estimates and judgements are continually evaluated based on historical
experience and other factors, including the expectations of future events that
are believed to be reasonable under the circumstances. In the future, actual
experience may differ from these estimates and assumptions. The estimates and
assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year
are discussed below.
Provisions for inventory
Provisions are made for obsolete, out of life and slow-moving stock items. In
estimating the provisions, the group makes use of key management experience,
precedents and specific contract and customer issues to assess the likelihood
and quantity. Stock is accounted for on a first in, first out basis.
The provision percentage is applied to various aging categories dependent on
stock type, this is a key estimate made by management based on judgement and
if change is applied to the percentage for the aged stock, then the outcome of
the value of the provision would differ.
Sensitivity analysis
A 5% increase in the levels of the current stock provision would lead to and
finance impact of an increase in stock provision of £16,000.
Provisions for building dilapidations
As part of the Group's property leasing arrangements there is an obligation to
return properties to their original condition at the end of the lease. The
cost is charged to profit and loss as the obligation arises. The provision is
expected to be utilised between 2026 and 2029 as the leases terminate.
The provision has been calculated using one years' worth of rental over
estimated lease termination dates prorated to the term the lease has been
occupied.
Sensitivity analysis
A 5% increase in the levels of the current dilapidations provision would lead
to and finance impact of an increase in stock provision of £13,000.
3. Financial instruments and risk management
The Board has overall responsibility for the determination of the Group's risk
management objectives and policies. The overall objective of the Board is to
set policies that seek to reduce risk as far as possible without unduly
affecting the Group's competitiveness and flexibility. The Group reports in
Sterling. All funding requirements and financial risks are managed based on
policies and procedures adopted by the Board of Directors. The Group does not
use derivative financial instruments such as forward currency contracts, or
similar instruments. The Group does not currently issue or use financial
instruments of a speculative nature but as described in the strategic report,
management may consider the potential utilisation of such instruments in the
future. The Group utilises an invoice discounting facility with its bankers to
assist in its cash flow management. In accordance with the terms of the
current facility (which is available on demand) the risk and management of
trade debtors is retained by the Group.
Financial instruments
31 October 31 October
2025 2024
£'000 £'000
Current assets
Trade and other receivables 2,480 3,447
Trade and other receivables - prepayments 434 400
2,914 3,847
Cash and cash equivalents - loans and receivables 392 1,663
Total loans and receivables 3,306 5,510
Current liabilities
Trade and other payables 2,162 3,567
Trade and other payables - accruals 432 366
2,594 3,933
Loans 402 503
Obligations under lease liabilities 703 561
Total current liabilities 3,699 4,997
For non-current liabilities please see notes 17, 18 & 25.
Risk management
The Group's activities expose it to a variety of financial risks: market risk
(primarily foreign exchange risk and interest rate risk), credit risk and
liquidity risk. The Group's overall risk management programme focuses on the
unpredictability of financial markets and seeks to minimise potential adverse
effects on the Group's financial performance. Risk management is carried out
by the Board and their policies are outlined below.
a) Market risk
Foreign exchange risk
The Group is exposed to transaction foreign exchange risk in its operations
both within the UK and overseas. Transactions are denominated in Sterling, US
Dollars and Euros. The Group has commercial agreements in place which allow it
to transact with its customers in the currency of the material purchase,
thereby allowing a large element of the transactional currency risk to pass
through the Group.
The Group is also exposed to translation foreign exchange risk on
consolidation of US operations, which are translated into Sterling from US
dollars. This can impact the consolidated income statement and also create a
movement in reserves from movements in the US balance sheet items.
The carrying value of the Group's foreign currency denominated assets and
liabilities comprise the trade receivables in note 15, cash in note 16 and
trade payables in note 17.
The Group's financial assets are held in both Sterling and US dollars, the
assets are converted to the presentation currency Sterling assets held in US
dollars are in relation to the US subsidiary, movements in the exchange rate
of the US Dollar or Euro against Sterling do have an impact on both the result
for the year and equity. The Group's assets and liabilities that are held in
US Dollar or Euro are held in those currencies for normal trading activity in
order to recover funds from customers or to pay funds to suppliers.
The Group's exposure to foreign currency risk is as follows. This is based on
the carrying amount of monetary financial instruments.
As at 31 October 2025 US Dollar Euro Total
£'000 £'000 £'000
Trade debtors 2,120 117 2,237
Cash and cash equivalents 276 101 377
Trade payables (1,350) (44) (1,394)
Balance sheet exposure 1,046 174 1,220
As at 31 October 2024 US Dollar Euro Total
£'000 £'000 £'000
Trade debtors 2,763 235 2,998
Cash and cash equivalents 1,097 256 1,353
Trade payables (2,759) (20) (2,779)
Balance sheet exposure 1,101 471 1,572
Sensitivity analysis
A 5% strengthening of the following currencies against the pound sterling at
the balance sheet date would have reduced the loss by the amounts shown below.
This calculation assumes that the change occurred at the balance sheet date
and had to be applied to risk exposures existing at that date.
31 October 31 October
2025 2024
£'000 £'000
US dollar (52) (57)
Euro (9) (24)
This analysis assumes that all other variables, in particular other exchange
rates and interest rates remain constant. A 5% weakening of the above
currencies against pound sterling in any year would have had the equal but
opposite effect to the amounts shown above. Included in the US dollar value is
£20,000 relating to the US Subsidiary (2024: £39,000).
Interest rate risk
The Group carries borrowings from leases and CBILs. Lease borrowings are at a
fixed rate of interest whilst the interest on the CBILs is a combination of
fixed rate and Bank of England base rate plus 3.96%. The Directors do not
consider there to be a significant interest rate risk on the element of loans
linked to movements in the Bank of England base rate. The Group also has
access to an invoicing discounting facility that carries a fixed monthly
charge plus interest at a fixed rate of 4.75%.
b) Credit risk
Credit risk refers to the risk that a counterparty will default on its
contractual obligations resulting in financial loss to the Group. In order to
minimise this risk, the Group endeavours only to deal with companies which are
demonstrably creditworthy and this, together with the aggregate financial
exposure, is continuously monitored. The maximum exposure to credit risk is
the value of the outstanding amount.
Supply of products by the Group results in trade receivables which the
management consider to be of low risk, other receivables are likewise
considered to be low risk. However, four of the customers comprise in excess
of 10% of the revenue earned by the Group (see note 4). Credit risk on cash
and cash equivalents is considered to be small as the counterparties are all
substantial banks with high credit ratings. The maximum exposure is the amount
of the deposit.
c) Liquidity risk
The Group currently holds cash balances in Sterling, US Dollars and Euros to
provide funding for normal trading activity. Trade and other payables are
monitored as part of normal management routine. The Group also has access to
banking facilities including invoice finance which it utilises when needed in
order to manage its liquidity risk.
As at 31 October 2025 Within 1 year One to two years Two to five years Over five years
£'000 £'000 £'000 £'000
Loan 402 95 - -
Obligations under lease liabilities 703 687 505
Provisions 79 134 43 -
Trade payables 1,704 - - -
Accruals 353 - - -
Other payables 29 - - -
As at 31 October 2024 Within 1 year One to two years Two to five years Over five years
£'000 £'000 £'000 £'000
Loan 503 468 - -
Obligations under lease liabilities 561 575 683 -
Provisions - - 218 -
Trade payables 3,251 - - -
Accruals 584 - - -
d) Capital risk management
For the purpose of the Group's capital management, capital includes issued
capital, and all other equity reserves attributable to the equity holders of
the Group. The Group's objectives when managing capital are to safeguard the
Group's ability to continue as a going concern in order to provide returns for
shareholders and benefits for other members. The Group will also seek to
minimise the cost of capital and attempt to optimise the capital structure.
4. Segmental analysis
The Group supplies a single type of product into a single industry and so has
a single reportable segment. Additional information is given regarding the
revenue receivable based on geographical location of the customer. An
analysis of revenue by geographical market is given below:
Year ended Year ended
31 October 31 October
2025 2024
£'000 £'000
Revenue
United Kingdom 14,037 15,058
Europe 20 6
US Subsidiary 6,612 7,915
Rest of the World 32 27
20,701 23,006
During the year four customers accounted for 90.0% (2024: 92.8%) of the
Group's total revenue for the year ended 31 October 2025. This was split as
follows; Customer A - 26.4% (2024: 25.5%), Customer B - 27.2% (2024: 26.8%),
Customer C - 4.9% (2024: 6.1%) and the fourth customer, a customer of Velocity
Composite Aerospace Inc 31.9% (2024: 34.4%).
The majority of revenue arises from the sale of goods. Where engineering
services form a part of revenue it is only in support of the development or
sale of the goods.
During the current and previous year, the Group operated in Asia. No revenue
was generated in Asia during the year ended 31 October 2025 and year ended 31
October 2024 as the site operates as an Engineering Support Office for the
Group. The US subsidiary started to trade in April 2023, revenue of £16,494k
(2024: £9,882k) has been generated since the US subsidiary was incorporated.
5. Operating loss
The operating loss is stated after charging:
Year ended Year ended
31 October 31 October
2025 2024
£'000 £'000
Staff costs (see note 6) 4,840 4,664
Cost of inventories 12,598 14,966
Foreign exchange loss 23 165
Amortisation of development costs 310 240
Depreciation:
Owned assets 380 382
Property, plant and equipment under right-of-use assets 632 540
Profit on disposal of assets 4 -
Auditor's remuneration:
Audit of the accounts of the Group 88 85
Other audit related services (relating to interim review) - 16
6. Staff Costs
Year ended Year ended
31 October 31 October
2025 2024
£'000 £'000
Wages, salaries and bonuses 3,919 4,019
Social security costs 454 406
Defined contribution pension costs 191 96
Share-based payments 386 143
4,950 4,664
The average monthly number of employees including directors, during the year
was as follows:
Year ended Year ended
31 October 31 October
2025 2024
Head count Head count
Manufacturing 53 53
Administration 48 49
101 102
7. Directors' costs
Year ended Year ended
31 October 31 October
2025 2024
£'000 £'000
Directors' remuneration included in staff costs:
Wages, salaries and bonuses 461 387
Defined contribution pension costs 35 27
496 414
Remuneration of the highest paid director(s):
Wages, salaries and bonuses or fees 179 196
Defined contribution pension costs 18 19
197 215
8. Finance income and expenses
Year ended Year ended
31 October 31 October
2025 2024
£'000 £'000
Finance expense
Finance charge from lease liabilities 103 108
Other interest and invoice discounting charges 237 305
340 413
9. Income tax
Company Year ended Year ended
31 October 31 October
2025 2024
£'000 £'000
Current tax (expense) / income
UK corporation tax adjustment in respect of R&D (26) 101
UK corporation tax adjustment in respect of prior years - R&D - 398
Total tax income (26) 499
The reasons for the difference between the actual tax charge for the year and
the standard rate of corporation tax in the United Kingdom applied to the loss
for the year are as follows:
25.00% 25.00%
Tax rate
Loss for the year before tax (1,058) (1,344)
Expected tax credit based on corporation tax rate (265) (336)
Expenses not deductible for tax purposes 35 (84)
Adjustment in respect of prior year - R&D - (398)
Adjustment in respect of current year - R&D (137) (101)
Different tax rates in other countries - 20
Tax losses not recognised 393 400
Total tax income 26 (499)
Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled, or the asset is realised, based on tax
law and the corporation tax rates that have been enacted, or substantively
enacted, at the Statement of Financial Position date. As such, the deferred
tax rate applicable at 31 October 2026 is 25% and deferred tax had been
re-measured at this date.
10. Loss per share
Year ended Year ended
31 October 31 October
2025 2024
£ £
Loss for the year (1,084,000) (845,000)
Shares Shares
Weighted average number of shares in issue 54,157,848 53,454,166
Weighted average number of share options 3,691,785 1,829,734
Weighted average number of shares (diluted) 57,849,633 55,283,900
Loss per share (basic) (2.00p) (1.58p)
Loss per share (diluted) (2.00p) (1.58p)
Share options have not been included in the diluted calculation as they would
be anti-dilutive with a loss being recognised.
11. Intangible assets
Group Development
costs Total
£'000 £'000
Cost
At 31 October 2023 1,408 1,408
Additions 372 372
Exchange adjustments (41) (41)
At 31 October 2024 1,739 1,739
Additions 409 409
Disposals (430) (430)
Exchange adjustments (19) (19)
At 31 October 2025 1,699 1,699
Amortisation
At 31 October 2023 518 518
Charge for the year 240 240
Exchange adjustments (6) (6)
At 31 October 2024 752 752
Charge for the year 310 310
Disposals (430) (430)
Exchange adjustments (5) (5)
At 31 October 2025 627 627
Net book value
At 31 October 2023 890 890
At 31 October 2024 987 987
At 31 October 2025 1,072 1,072
Impairment
The Group reviews the Development costs at each reporting year for indicators
of impairment. An indication of impairment can be generated from the loss of a
customer, or contracted sales. No impairment was judged to be required for
either year.
12. Property, plant and equipment
Group Leasehold Plant & Motor Fixtures Total
improvements machinery vehicles & fittings
£'000 £'000 £'000 £'000 £'000
Cost
At 31 October 2023 995 2,383 23 853 4,254
Additions 48 159 - 5 212
Exchange adjustments (33) (26) - (22) (81)
At 31 October 2024 1,010 2,516 23 836 4,385
Additions 173 135 - 26 334
Disposals (27) (310) (7) (285) (629)
Exchange adjustments (13) (13) - (8) (34)
At 31 October 2025 1,143 2,328 16 569 4,056
Depreciation
At 31 October 2023 222 1,532 23 382 2,159
Charge for the year 105 187 - 90 382
Exchange adjustments (1) (7) - (2) (10)
At 31 October 2024 326 1,712 23 470 2,531
Charge for the year 116 190 - 74 380
Disposal (17) (308) (7) (280) (612)
Exchange adjustments (2) (2) - (2) (6)
At 31 October 2025 423 1,592 16 262 2,293
Net book value
At 31 October 2023 773 851 - 471 2,095
At 31 October 2024 684 804 - 366 1,854
At 31 October 2025 720 736 - 307 1,763
13. Investment in subsidiaries
31 October 31 October
2025 2024
£'000 £'000
Subsidiary undertakings - -
- -
A list of all the investment in subsidiaries is as follows:
Name of company Registered office Country of registration Type of shares Proportion of shareholding and voting rights held Nature of business
Directly owned
Velocity Composites SDN. BHD Pentagon Suite, ES-04, Level 3, Wisma Suria, Jalan Teknokrat 6, Cyber 5, Malaysia Ordinary 100% Provider of engineering composite services for the aerospace sector non
63000, Cyberjaya, Selangor trading
Velocity Composites Aerospace, Inc. Corporation Trust Center, 1209 N. Orange St, Wilmington, Delaware 19801 United States of America Ordinary 100% Manufacturer of composite material products for the aerospace sector
14. Inventories
31 October 31 October
2025 2024
£'000 £'000
Raw materials & consumables 1,705 1,698
Finished goods 394 802
2,099 2,500
Inventories totalling £2,099,000 (2024: £2,500,000) are valued at the lower
of cost and net realisable value. The Directors consider that this value
represents the best estimate of the fair value of those inventories net of
costs to sell. The increase of inventories provision during the previous year
amounted to £31,000 Velocity Composites plc and £23,000 for Velocity
Composites Aerospace Inc, in 2024 there was a decrease of £55,000 for
Velocity Composites plc and £47,000 for Velocity Composites Aerospace Inc.
The inventory at 31 October 2025 is after a stock provision of £326,000
(2024: £272,000). The provision reflects the aged stock profile consistent
with FY2024, as well as specific provisions related to slow moving stock as a
result of reduced demand.
Inventories recognised as an expense during the year ended 31 October 2025
amounted to £12,598,000 (2024: £14,966,000), and these were included in cost
of sales.
15. Trade and other receivables
31 October 31 October
2025 2024
£'000 £'000
Trade receivables 2,471 3,349
Prepayments 434 400
Other receivables 9 98
Tax receivable 111 130
Amounts due from subsidiary undertakings - -
3,023 3,977
Trade receivables are amounts due from customers for goods sold or services
performed in the ordinary course of business. They are generally due for
settlement within an average of 44 days (2024: 53 days) and therefore are all
classified as current. Trade receivables are recognised initially at the
amount of consideration that is unconditional unless they contain significant
financing components, when they are recognised at fair value. The Group holds
the trade receivables with the objective to collect the contractual cash flows
and therefore measures them subsequently at amortised cost. Details about the
Group's impairment policies and credit risk are provided in note 3. £71,000
Trade receivables (Group and Company) were overdue by more than three months
at the year-end (2024: £23,000).
The overall expected credit loss is trivial (2024: trivial). There is no
movement in allowance of impairment of trade receivables during each year.
Trade receivables (Group and Company) held in currencies other than sterling
are as follows:
31 October 31 October
2025 2024
£'000 £'000
Euro 117 235
US Dollar 2,120 2,763
2,237 2,998
16. Cash and cash equivalents
31 October 31 October
2025 2024
£'000 £'000
Cash at bank 392 1,663
392 1,663
17. Trade and other payables
31 October 31 October
2025 2024
£'000 £'000
Trade payables 1,704 3,251
Accruals and deferred income 353 366
Other taxes and social security 429 316
Other payables 29 -
2,515 3,933
Book values approximate to fair values.
18. Bank loans
31 October 31 October
2025 2024
£'000 £'000
Not later than one year 402 503
One to two years 95 468
497 971
In FY2020 the Company took out a Coronavirus Business Interruption Loan for
£2.0m and on 19 January 2021 the term of this loan was extended to 6 years.
Repayment by instalment commenced in August 2021, with the final instalment
due in July 2026. The loan was interest free for the initial 12 months,
followed by a fixed interest rate of 4.39%.
During FY2022, the Company took out a further Coronavirus Business
Interruption Loan for £0.45m secured against owned non-current assets. This
is being repaid over 5 years with the first payment made in July 2021 and the
final instalment due in June 2027. The loan was interest free for the initial
12 months, followed by a fixed interest rate of 7.75% per annum.
19. Leases
Right-of-use-assets
Group Land & Plant & Motor Total
buildings machinery vehicles
£'000 £'000 £'000 £'000
Cost
Balance at 31 October 2023 2,665 561 205 3,431
Additions - 165 107 272
Exchange adjustments (38) - - (38)
Balance at 31 October 2024 2,627 726 312 3,665
Additions - 688 86 774
Disposals (121) (2) - (123)
Exchange adjustments - (20) - (20)
Balance at 31 October 2025 2,506 1,392 398 4,296
Depreciation
Balance at 31 October 2023 841 375 86 1,302
Depreciation charge for the year 413 82 45 540
Exchange adjustments (3) - - (3)
Balance at 31 October 2024 1,251 457 131 1,839
Depreciation charge for the year 410 81 141 632
Disposals (121) (2) - (123)
Exchange adjustments (2) (1) (2) (5)
Balance at 31 October 2025 1,538 535 270 2,343
NBV
At 31 October 2023 1,824 186 119 2,129
At 31 October 2024 1,376 269 181 1,826
At 31 October 2025 968 857 128 1,953
The associated right-of-use assets for property leases and other assets were
measured at the amount equal to the lease liability, adjusted by the amount of
any prepaid or accrued lease payments relating to that lease recognised in the
statement of financial position as at 31 October 2025.
Right-of-use lease liabilities
Group
£'000
At 31 October 2024 1,819
Repayment (788)
Additions to right-of-use assets in exchange for increased lease liabilities 774
Interest and other movements 103
Exchange adjustments (13)
At 31 October 2025 1,895
Analysis by length of liability
Group Land & Plant & Motor Total
buildings equipment vehicles
£'000 £,000 £'000 £'000
Current 409 212 82 703
Non-current 498 579 128 1205
Exchange adjustments (13) - - (13)
894 791 210 1895
Number of right-to-use assets leased 4 3 7
Range of remaining term 1-10 years 1-10 years 1-4 years
Reconciliation of minimum lease payments to present value
Group Minimum Interest Present
lease value
payments
£'000 £'000 £'000
31 October 2024
Not later than one year 651 90 561
Later than one year and not later than two years 646 71 575
Later than two years and not later than five years 781 98 683
2,078 258 1,819
31 October 2025
Not later than one year 794 91 703
Later than one year and not later than two years 758 72 686
Later than two years and not later than five years 578 72 506
2,130 235 1,895
Low value leases
The Group leases comprise both office and assembly space, under low value
leases. The total value of the minimum lease payments due is payable is £nil
(2024: £nil).
Low value leases not classed as right-of-use assets due to the minimal value
of the lease, relate to IT and office equipment, all other prior year
operating leases have been classed as right-to-use asset on transition to IFRS
16. Payments made under such leases are expensed on a straight-line basis.
20. Deferred tax
Deferred tax is calculated in full on temporary differences under the
liability method using tax rates appropriate for the year. The movement on the
deferred tax account is as shown below:
The movement on the deferred tax (asset)/liability is shown below:
Company 31 October 31 October
2025 2024
£'000 £'000
Unrecognised deferred tax in respect of losses brought forward (1,668) (1,630)
Corporation tax loss adjustments in respect of prior year 120
Corporation tax losses arising during the year (271) (158)
Unrecognised deferred tax in respect of losses carried forward (1,939) (1,668)
The Group has unused tax losses which were incurred by the parent company. A
deferred tax asset of £1,905,000 (2024: £1,668,000) is not recognised in
these accounts. Corporation tax losses can be carried forward indefinitely and
can be offset against future profits which are subject to UK corporation tax.
21. Reconciliation of liabilities arising from financing
activities
Group Lease Other Lease Other Total
liabilities < short-term liabilities > long-term
one year borrowings one year borrowings
£'000 £'000 £'000 £'000 £'000
At 31 October 2023 487 503 1,587 970 3,547
Cash flows
Repayment (597) (502) - - (1,099)
Non-cash
Other differences - - 70 - 70
Increase to lease liabilities - - 272 - 272
Transfer from long-term to short term borrowings 671 502 (671) (502) -
As at 31 October 2024 561 503 1,258 468 2,790
Cash flows
Repayment (788) (474) - - (1,262)
Non-cash
Other differences - - 91 - 91
Increase to lease liabilities - - 773 - 773
Transfer from long-term to short term borrowings 930 373 (930) (373) -
As at 31 October 2025 703 402 1,192 95 2,392
22. Share capital
31 October 31 October
2025 2024
£ £
Share capital issued and fully paid
54,669,371 (2024: 53,509,706) Ordinary shares of £0.0025 each 136,673 133,774
Ordinary shares have a par value of 0.25p. They entitle the holder to
participate in dividends, and to share in the proceeds of winding up the
Company in proportion to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in
person or by proxy, is entitled to one vote, and upon a poll each share is
entitled to one vote. The Company does not have a limited amount of authorised
capital.
Movements in share capital Nominal Number of
value shares
£
Ordinary shares of £0.0025 each
At the beginning of the year 133,774 53,509,706
Exercising of share options 2,899 1,159,665
Closing share capital at 31 October 2025 136,673 54,669,371
Options
Information relating to the Velocity Composites plc Employee Option Plan,
including details of options issued, exercised and lapsed during the financial
year and options outstanding at the end of the reporting year, is set out in
note 24.
23. Share premium
31 October 31 October
2025 2024
£'000 £'000
At the beginning of the year 4,870 4,870
Shares issued net of transaction costs 21 -
At the end of the year 4,891 4,870
24. Share-based payments
The Group's employees are granted option awards under the Velocity Composites
plc Enterprise Management Incentive and Unapproved Scheme.
The following options were outstanding as at 31 October 2025:
Grant date Exercise price (£) Vesting date Expiry date Vested Not vested Total
13 March 2017 0.0025 13 Mar 2019 13 Mar 2027 20,000 - 20,000
01 April 2021 0.1300 01 Apr 2021 01 Apr 2026 125,000 - 125,000
26 January 2022 0.0025 26 Jan 2023 01 Nov 2027 103,529 - 103,529
28 March 2023 0.0025 28 Mar 2024 28 Mar 2028 267,333 - 267,333
15 July 2024 0.4150 30 Apr 2026 16 July 2034 - 1,040,000 1,040,000
30 January 2025 0.2572 31 Oct 2028 01 Feb 2035 - 1,440,000 1,440,000
30 January 2025 0.0025 01 Nov 2025 30 Jan 2030 - 165,518 165,518
30 January 2025 0.2572 03 Jun 2027 01 Feb 2035 - 125,000 125,000
30 January 2025 0.2572 03 Feb 2028 01 Feb 2035 - 75,000 75,000
515,862 2,845,518 3,361,380
The remaining 20,000 share options dated 13 March 2017 have no attached
performance conditions and have vested as a resulted of continued employment.
The options may be exercised at any point up to the tenth anniversary of the
grant date.
The 125,000 shares options dated 1 April 2021 have no attached performance
conditions and have vested as a result of continued employment. The options
were awarded in relation to senior management employee joining and providing
an equity incentive around the performance of the business. The options may be
exercised at any point up to the tenth anniversary of the grant date.
The 103,529 remaining shares options dated 26 January 2022 have no attached
performance conditions and have been issued in exchange for qualifying staff
agreeing to accept 20% of their basic salary in equity alternatives.
The remaining 267,233 shares options dated 28 March 2023 have no attached
performance conditions and have been issued in exchange for qualifying staff
agreeing to accept 20% of their basic salary in equity alternatives.
The 1,040,000 shares options dated 15 July 2024 were issued under the
Company's Long Term Incentive Plan (LTIP) and have attached performance
conditions linked to profit after tax. They vest after two years, or earlier
if a vesting event occurs in the rules of the Scheme.
The 1,440,000 shares options dated 30 January 2025 were issued under the
Company's LTIP and have attached performance conditions linked to profit after
tax. They vest after two years, or earlier if a vesting event occurs in the
rules of the Scheme.
The 165,518 shares options dated 30 January 2025 have no attached performance
conditions and have been issued in exchange for qualifying staff agreeing to
accept 20% of their basic salary in equity alternatives.
The 125,000 and 75,000 shares options dated 30 January 2025 have no attached
performance conditions and vest subject only to continued employment. They
were awarded in relation to the appointment of Rob Smith as a director of the
company and a senior management employee joining, providing an equity
incentive around the performance of the business. The options vest on the
third anniversary of the employees commencing their roles and options may be
exercised at any point up to the tenth anniversary of the grant date.
Vesting events are defined within the rules of the Scheme as a reorganisation,
takeover, sale, listing (except on AIM), asset sale, or death of the Option
holder. The options may be exercised at any point up to the tenth anniversary
grant date.
There were no cancellations or modifications to the awards in the year.
The Group recognised a cost of £386,000 (2024: £143,000) relating to
share-based payment transactions which are all equity settled, an equivalent
amount being transferred to share-based payment reserve. This reflects the
fair value of the options, which has been derived through use of the
Black-Scholes model.
The cost of share-based payments is included in "Administrative expenses"
within the Statement of total comprehensive income. The share-based payments
reserve is used to recognise the grant date fair value of options issued to
employees but not exercised. The table below sets out the movement to the
share-based payment reserves in the year.
The tables below split the share-based payments according to the terms they
have been awarded.
Share options granted to employees on the Company's listing on AIM:
Grant date Exercise price (£) Vesting date Expiry date Vested Not vested Total
13 March 2017 0.0025 13 Mar 2019 13 Mar 2027 20,000 - 20,000
20,000 - 20,000
Share options granted under the salary sacrifice scheme:
Grant date Exercise price (£) Vesting date Expiry date Vested Not vested Total
26 January 2022 0.0025 26 Jan 2023 01 Nov 2027 103,529 - 103,529
28 March 2023 0.0025 28 Mar 2024 28 Mar 2028 267,333 - 267,333
30 January 2025 0.0025 01 Nov 2025 30 Jan 2030 - 165,518 165,518
370,862 165,518 536,380
Share options granted under the LTIP scheme:
Grant date Exercise price (£) Vesting date Expiry date Vested Not vested Total
15 July 2024 0.4150 30 Apr 2026 15 July 2034 - 1,040,000 1,040,000
30 January 2025 0.2572 31 Oct 2028 30 Jan 2035 - 1,440,000 1,440,000
- 2,480,000 2,480,000
Share options granted to senior managers and directors on joining the
business:
Grant date Exercise price (£) Vesting date Expiry date Vested Not vested Total
01 April 2021 0.1300 01 Apr 2021 01 Apr 2026 125,000 - 125,000
30 January 2025 0.2572 03 Jun 2027 30 Jan 2035 - 125,000 125,000
30 January 2025 0.2572 03 Feb 2028 30 Jan 2035 - 75,000 75,000
125,000 200,000 325,000
Movement in share options
Grant date As at 1 Nov 2024 Granted Lapsed Exercised As at 31 Oct 2025
£'000 £'000 £'000 £'000 £'000
13 March 2017 31 - - (18) 13
17 October 2017 10 - (10) - -
29 October 2019 16 - - (16) -
30 October 2020 24 - - (24) -
01 April 2021 14 - - (4) 10
01 April 2021 8 - - - 8
26 January 2022 46 - - (23) 23
26 January 2022 24 - - (24) -
29 March 2022 4 - - (4) -
28 March 2023 186 - - (96) 90
24 January 2024 54 - - (54) -
24 January 2024 58 - - (58) -
15 July 2024 42 233 (15) - 260
30 January 2025 - 169 - - 169
517 402 (25) (321) 573
25. Provisions
As at 31 October 2025 a provision of £256,000 (2024: £218,000) has been
recognised in relation to dilapidations.
As part of the Group's property leasing arrangements there is an obligation to
return properties to their original condition at the end of the lease. The
cost is charged to profit and loss as the obligation arises. The provision is
expected to be utilised between 2026 and 2029 as the leases terminate.
The dilapidations provision is considered a source of significant estimation
uncertainty. The provision has been calculated using one years' worth of
rental over estimated lease termination dates prorated to the term the lease
has been occupied.
26. Related party transactions
Balances and transactions between the Company and its subsidiary, which are
related parties, have been eliminated on consolidation. However, the key
transactions with other related parties are as follows:
During the year, the Group engaged North West Aerospace Alliance, which
provides membership and subscription services for the Aerospace Industry. One
of the directors of North West Aerospace Alliance Limited is a director of
Velocity Composites plc. The Group paid £1,440 (2024: £809) to North West
Aerospace Alliance during the year and had £nil outstanding at the year-end
(2024: £nil).
27. Ultimate controlling party
The Company's ordinary shares are publicly trade on the AIM market, part of
the London Stock Exchange. There is no single controlling entity.
The Directors do not consider there to be an ultimate controlling party due to
no individual party owning a majority share in the Group.
28. Capital commitments
At 31 October 2025 the Group had £nil (2024: £1,164,144) of capital
commitments relating to the purchase of leasehold improvements, plant and
machinery and fixture and fittings.
29. Pension commitments
The Group makes contributions to defined contribution stakeholder pension schemes. The contributions for the year of £191,000 (2024: £96,000) were charged to the Consolidated Income statement. Contributions outstanding as at 31 October 2025 were £nil (2024: £nil).
30. Contingent liabilities
As at 31 October 2025, National Westminster Bank plc holds a debenture that
provides a fixed and floating charge on the assets of the Company.
31. Adjusted EBITDA
EBITDA is considered by the Board to be a useful alternative performance
measure reflecting the operational profitability of the business. Adjusted
EBITDA is defined as earnings before finance charges, taxation, depreciation,
amortisation and adjusted for share-based payments. Share-based payments are
added back to make the share-based payment charge clear to stakeholders.
Year ended Year ended
31 October 31 October
2025 2024
Reconciliation from operating loss £'000 £'000
Operating loss (718) (931)
Add back:
Depreciation of property, plant and equipment 380 382
Amortisation 310 240
Depreciation of right-of-use assets under IFRS 16 632 540
Share-based payments 386 143
Adjusted EBITDA 990 374
( )
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR KQLFLQFLXBBD
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Velocity Composites
See all newsREG - Velocity Composites - Final Results to the 31 October 2025
AnnouncementRCS - Velocity Composites - Notice of Investor Presentation
AnnouncementREG - Velocity Composites - PDMR/Director shareholding
AnnouncementREG - Velocity Composites - Grant of Share Options to Directors/PDMRs
AnnouncementREG - Velocity Composites - Trading Update
Announcement