Velocity Composites warns on slow revenues and low margins
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Aerospace engineering materials manufacturer Velocity Composites (LON:VEL) has warned that full-year revenues will not meet expectations due to a number of factors, including delayed and cancelled projects. As a result, the guidance for full year revenues has been cut to £24 million, which still represents a 16% improvement over the prior year.
There has been some recovery in gross margins, but the company still believes that it will announce a low single figure EBITDA margin loss for the year ending 31st October.
Management said that there are visible revenues of more than £23 million for each of the next two years based on contracts that are already in place and that the pipeline of future opportunities was expanding, leading them to be confident in securing further growth in the future.
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