Velocity Composites (LSE:VEL) reported that revenue for the six months to 30 April (H1 26) was £8.4m, down from £10.4m a year earlier, while adjusted EBITDA was £0.1m, the third consecutive half with positive adjusted EBITDA.
The decline in H1 sales was attributed to phasing of shipments from H1 into H2 and material supply delays affecting US operations, which the company says have recommenced and will allow lost sales to be recovered in the second half.
"We have made further progress in the first half, delivering a third consecutive half year of positive adjusted EBITDA and strengthening our balance sheet," said Jon Bridges, Chief Executive Officer.
Velocity, the leading supplier of advanced composite material kits to the aerospace market, said full-year revenue expectations remain unchanged as higher demand from legacy UK customers and receipt of work from its lead US customer are weighted to H2.
The transfer of the final work programme from the group’s first US customer is now committed to begin in H2 and complete as the group enters FY27, with programme rates likely to be significantly higher than previously expected.
The group reported cash at bank of £0.6m and net cash of £0.4m at 30 April, remains undrawn on its £3m invoice discounting facility and has reduced its outstanding CBIL loan to £0.2m.
Velocity said it has appointed a US sales executive, its Alabama site achieved NADCAP merit status, and the Fareham satellite facility has closed with production moved to Burnley.
The company expects to publish its unaudited H1 results on 24 June.
