Velocity Composites Plc (GB:VEL)
LSE:VEL
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Velocity Composites Plc
(LSE:VEL)
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Rating:45Neutral
Price Target:
16.00 p
▼(-25.23% Downside)
Action:Reiterated
Date:05/27/26
The score is driven primarily by improving fundamentals (margin recovery, positive EBITDA, and positive 2025 free cash flow) but held back by continued net/operating losses and a 2025 revenue decline. Technically, the stock shows short-term support above the 20D/50D averages but remains weak versus longer-term averages with a negative MACD. Valuation is also a headwind given the negative P/E and lack of dividend yield.
Positive Factors
Margin recovery
Gross margin recovery to ~29.5% from ~18.8% is a durable improvement in unit economics. Higher gross margins provide a structural cushion versus input cost swings, support sustained EBITDA expansion, reduce breakeven production rates and improve resilience across aircraft programs.
Negative Factors
Persistent net and operating losses
Operating and net losses persist despite margin improvement, leaving the company short of sustained profitability. Continued losses can erode equity over time, limit self-funded investment, and leave the firm exposed if margins or volumes weaken before break-even is securely established.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin recovery
Gross margin recovery to ~29.5% from ~18.8% is a durable improvement in unit economics. Higher gross margins provide a structural cushion versus input cost swings, support sustained EBITDA expansion, reduce breakeven production rates and improve resilience across aircraft programs.
Read all positive factors
Velocity Composites Plc (VEL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£8.47M
Dividend YieldN/A
Average Volume (3M)67.41K
Price to Earnings (P/E)―
Beta (1Y)0.30
Revenue Growth-10.02%
EPS Growth-26.58%
CountryUK
Employees102
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.02
Shares Outstanding54,669,373
10 Day Avg. Volume37,937
30 Day Avg. Volume67,413
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)2.26
Price to Sales (P/S)0.56
P/FCF Ratio36.85
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£40.00Price Target Upside86.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)£20.00M
Velocity Composites Plc Business Overview & Revenue Model
Company Description
Velocity Composites plc, established in 2007 and headquartered in Burnley, UK, serves as a vital supplier of pre-engineered composite material kits to the aerospace sector across the United Kingdom, Europe, and globally. The company's comprehensiv...
How the Company Makes Money
Velocity Composites makes money primarily by providing ‘ready-to-use’ composite material kits to aerospace manufacturers. Under this model, the company buys composite raw materials and consumables (e.g., prepreg carbon fibre and other specialist i...
Velocity Composites Plc Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
55
Neutral
Cash Flow
47
Neutral
| Breakdown | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.70M | 23.01M | 16.41M | 11.96M | 9.77M |
| Gross Profit | 6.11M | 5.96M | 3.09M | 2.75M | 2.54M |
| EBITDA | 604.00K | 231.00K | -1.93M | -622.00K | -638.00K |
| Net Income | -1.08M | -845.00K | -3.14M | -1.34M | -1.21M |
Balance Sheet | |||||
| Total Assets | 10.30M | 12.81M | 14.70M | 9.81M | 9.69M |
| Cash, Cash Equivalents and Short-Term Investments | 392.00K | 1.66M | 3.18M | 2.34M | 3.48M |
| Total Debt | 3.58M | 2.79M | 3.55M | 4.21M | 4.06M |
| Total Liabilities | 5.16M | 6.94M | 8.13M | 6.41M | 5.12M |
| Stockholders Equity | 5.14M | 5.87M | 6.57M | 3.40M | 4.57M |
Cash Flow | |||||
| Free Cash Flow | 316.00K | -214.00K | -3.96M | -118.00K | 261.00K |
| Operating Cash Flow | 650.00K | 370.00K | -1.83M | 280.00K | 325.00K |
| Investing Cash Flow | -729.00K | -584.00K | -2.12M | -356.00K | -51.00K |
| Financing Cash Flow | -1.16M | -1.41M | 4.79M | -1.06M | -66.00K |
Velocity Composites Plc Technical Analysis
Positive
21.40
Price Trends
13.51
Positive
15.01
Positive
17.04
Negative
Market Momentum
0.79
Negative
66.17
Neutral
55.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VEL, the sentiment is Positive. The current price of 21.4 is above the 20-day moving average (MA) of 14.15, above the 50-day MA of 13.51, and above the 200-day MA of 17.04, indicating a neutral trend. The MACD of 0.79 indicates Negative momentum. The RSI at 66.17 is Neutral, neither overbought nor oversold. The STOCH value of 55.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:VEL.
Velocity Composites Plc Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £587.17M | 31.86 | 11.27% | 1.58% | 23.91% | -14.66% | |
67 Neutral | £216.86M | 30.25 | 6.13% | 1.02% | 3.36% | 63.32% | |
65 Neutral | £1.19B | 40.36 | 7.31% | 1.06% | -24.45% | 13.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £1.20B | 22.08 | 8.58% | 3.30% | -3.96% | 192.10% | |
62 Neutral | £616.40M | 29.30 | 6.66% | 4.87% | -9.46% | -57.37% | |
45 Neutral | £8.47M | -7.74 | -13.02% | ― | -10.02% | -26.58% |
* Industrials Sector Average
GB:VEL
Velocity Composites Plc
15.50
-18.00
-53.73%
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Velocity Composites Plc Corporate Events
Business Operations and StrategyFinancial Disclosures
Velocity Composites holds guidance as US ramp-up offsets first-half revenue dip
Positive
May 26, 2026
Velocity Composites, a specialist in composite material kits for aerospace manufacturers, reported that first-half 2026 revenue is expected to fall to £8.4m from £10.4m a year earlier, mainly due to shipment timing and temporary material...
Business Operations and StrategyExecutive/Board Changes
Velocity Composites CFO to Retire While Staying On as Company Secretary
Neutral
Apr 23, 2026
Velocity Composites plc, a UK-based supplier of advanced composite material kits to major aerospace manufacturers, leverages proprietary technology to cut costs, boost sustainability and streamline production for customers, while targeting growth ...
Business Operations and StrategyExecutive/Board Changes
Velocity Composites awards new profit-linked share options to leadership team
Positive
Mar 23, 2026
Velocity Composites has granted 1,360,000 share options to directors, PDMRs and senior managers as part of an incentive scheme linked to the company’s strategic plan and profitability targets. The options, including 200,000 each for CEO Jona...
Business Operations and StrategyShareholder Meetings
Velocity Composites Wins Strong Shareholder Backing at AGM as It Targets Growth in Composite Markets
Positive
Mar 17, 2026
Velocity Composites plc, a Burnley‑based specialist in composite material kits for aerospace and other high‑performance sectors, supplies major manufacturers including Airbus, Boeing and GKN. The company leverages proprietary technolog...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.