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Velocity Composites Reports Positive EBITDA Amid Strategic Growth

Story Highlights
  • Velocity Composites achieved a positive adjusted EBITDA and reduced pre-tax loss despite slight revenue decline.
  • The company is poised for growth with new contracts and strategic management changes, aiming for profitability in H2 FY25.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Velocity Composites Reports Positive EBITDA Amid Strategic Growth

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Velocity Composites Plc ( (GB:VEL) ) has shared an announcement.

Velocity Composites plc reported its unaudited half-year results for the six months ending April 30, 2025, showing a positive adjusted EBITDA of £0.3m and a reduced pre-tax loss of £0.6m. The company has managed to sustain margin improvements and control overheads despite a slight revenue dip to £10.4m. The renewal of a contract with a key UK defense contractor and the appointment of a new Chief Operations Officer are notable highlights. The company is optimistic about achieving profitability and being cash generative in the second half of FY25, with significant growth opportunities anticipated in both the defense and civil aerospace sectors.

Spark’s Take on GB:VEL Stock

According to Spark, TipRanks’ AI Analyst, GB:VEL is a Neutral.

The stock score is driven by corporate events indicating strategic growth and improved operational efficiencies. However, significant profitability and cash flow challenges weigh heavily, with valuation concerns due to the negative P/E ratio. Technical indicators show bullish momentum, but overbought signals suggest caution.

To see Spark’s full report on GB:VEL stock, click here.

More about Velocity Composites Plc

Velocity Composites plc, based in Burnley, UK, is a leading supplier of composite material kits primarily to the aerospace industry. The company focuses on reducing costs and improving sustainability for its clients, which include major players like Airbus, Boeing, and GKN. Velocity leverages proprietary technology to allow manufacturers to focus on their core business, with potential expansion into markets such as wind energy, urban air mobility, and electric vehicles.

Average Trading Volume: 64,133

Technical Sentiment Signal: Buy

Current Market Cap: £16.22M

For an in-depth examination of VEL stock, go to TipRanks’ Overview page.

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