**Summary of Velocity Composites PLCs Final Results for FY2025**
**Financial Performance**
**Revenue** £20.7 million (in line with guidance), down from £23.0 million in FY2024 due to delayed production rate increases, particularly in the A350 program, and lower demand from UK customers.
**Gross Margin** Improved to 29.5% (up 360 bps from 25.9% in FY2024) due to better sales mix and operational efficiencies.
**Adjusted EBITDA** £1.0 million, more than double the £0.4 million in FY2024, driven by cost control measures and efficiency gains.
**Cash Position** Cash at bank was £0.4 million (down from £1.7 million in FY2024), with a net debt position of £0.1 million. The Group remains undrawn on its £3.1 million invoice discounting facility.
**Operational Highlights**
Secured contract renewals and expansions with key customers, including a 10-year agreement with an A350 customer.
Completed the implementation of Velocity Resource Planning® (VRP) across all UK sites, enhancing operational efficiency and customer service.
Appointed Oliver Smalley as Chief Operations Officer, contributing to improved manufacturing efficiency and cost base.
**Market and Strategic Updates**
Anticipated production rate increases for the A350 program as OEMs address order backlogs.
Working to secure new business in Europe to offset UK customer production shifts to mainland Europe.
Benefiting from Boeings re-acquisition of Spirit AeroSystems, expected to resolve supply chain issues.
Evaluating additional programs with US customers and progressing delayed US contracts.
**Sustainability and Innovation**
Committed to reducing environmental impact through waste minimization and efficient resource use.
VRP technology fully implemented at the US facility, transforming it into a world-class manufacturing site.
**Outlook**
Focused on winning new business to drive long-term growth and profitability.
Targeting 25%+ gross margin10% adjusted EBITDA marginand 25% return on capital.
Prepared for the global aerospace industrys recovery to pre-pandemic production levels, with a positive long-term outlook driven by growing demand for advanced composites.
**Correction and Investor Engagement**
Corrected cash and cash equivalents figure for 31 October 2024 to £1,663,000.
Investor presentation scheduled for 28 January 2026 via the Investor Meet Company platform, open to all shareholders.
**Leadership and Governance**
Experienced Board and executive team focused on strategic goals and corporate governance.
Emphasis on fostering a safe manufacturing environment and maintaining world-class safety standards.
**Conclusion**
Velocity Composites PLC demonstrated resilience in FY2025, improving profitability despite industry challenges. The company is well-positioned for growth, leveraging its innovative technologies, strategic partnerships, and focus on sustainability to capitalize on the aerospace industrys recovery and long-term demand for advanced composites.