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Composite material kit supplier Velocity Composites posted a full-year loss as the pandemic continued to hurt demand from the airline sector.
Pre-tax losses for the year through October amounted to £1.55 million, compared to year-on-year losses of £3.25 million. Revenue dropped 28% to £9.8 million.
On a positive note, gross margin improved 8.9% to 26%, 'due to proactive management of previously written down stock, and investment in Velocity's nesting technology'.
Chairman Andy Beaden said the company believed it would take time for civil aircraft build rates to recover fully 'potentially three to four years before we return to, or exceed, the long-term growth trends'.
'However, new aircraft as they are built (including those designed to be electrically powered) will be more composite intensive,' he said.
'Velocity's growth will come from new business and the recovery in our current contracted business volumes. That recovery will start in 2022 and we expect it to accelerate into 2023.'