Shares in Velocity Composites slide as warns of lower than hoped sales
Velocity Composites PLC on Wednesday warned revenue will be below forecast due to lower-than-expected A350 production rates and delays in programme transfers from a US customer.
The Burnley, England-based supplier of composite material kits to aerospace and other high-performance manufacturers expects full-year adjusted earnings before interest, tax, depreciation and amortisation to be more than double last year’s £400,000, despite a drop in revenue.
But revenue is forecast to drop to £20.7 million from £23.0 million the year prior, below market expectations.
In response, shares in Velocity Composites slumped 3.60 pence, or 16%, to 18.40 pence each in London on Wednesday.
The company said it is working closely with its US customer to help them ‘unblock’ the causes of the delays and are in constructive discussions to complete the transfer process.
Nonetheless, the delays are likely to weigh on financial 2026 where the firm anticipates revenue will also be lower than current market expectations.
More positively, adjusted Ebitda is expected to show a further improvement on financial 2025 as the company continues to benefit from a combination of further operational improvements and overhead restructuring.
The overhead reduction activities are likely to yield further annualised savings of £600,000 in addition to the £600,000 achieved in financial 2025.
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