Velocity Composites PLC on Tuesday reported higher revenue in financial 2023, but its loss widened on higher costs and expenses.

Velocity Composites is a Burnley, England-based supplier of composite material kits to aerospace and other high-performance manufacturers.

In its financial year ended October 31, revenue jumped 31% to £16.4 million from £12.0 million a year earlier. It said that this is in line with market expectations.

However, its pretax loss widened to £3.1 million from £1.5 million.

The company’s full year earnings before interest, tax, depreciation and amortisation widened to £1.6 million from £500,000.

Cost of sales in the year jumped to £13.3 million from £9.2 million. Administrative expenses rose to £5.7 million from £4.1 million.

In July, Velocity Composites said it expects revenue for financial 2024 to be between £30 million and £36 million, with an Ebitda profit of between £1.7 million to £2.5 million.

On Tuesday, the company said Ebitda guidance remains in line with previous guidance, with additional engineering income and lower costs offsetting a revenue shift. It now expects revenue for financial 2024 to be between £27 million and £30 million.

Chief Executive Jon Bridges said: ‘2023 was the year when customers started to plan for aircraft production rate increases. Across the global industry, aircraft order books are strengthening as air travel recovers from lockdowns. For the first time, we are expecting simultaneous production rate increases across most aircraft platforms over the next three years albeit from the historically low numbers caused by the pandemic.’

Shares in Velocity Composites were up 1.2% to 34.90 pence each in London on Tuesday afternoon.

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