Velocity Composites Plc (GB:VEL)
LSE:VEL
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Velocity Composites Plc
(LSE:VEL)
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Rating:53Neutral
Price Target:
13.50 p
▼(-36.92% Downside)
Action:ReiteratedDate:01/29/26
The score is driven primarily by improving financial performance (better margins, positive EBITDA, and positive free cash flow) but tempered by continued net losses and a 2025 revenue decline. Technicals add support in the near term with positive momentum, while valuation remains a headwind given the negative P/E and no dividend yield data.
Positive Factors
Margin Improvement
A sustained rise in gross margin to ~29.5% indicates structural improvements in cost control, pricing, or product mix. Higher gross margins support long-term profitability potential, improve resilience to input cost swings, and increase the chance of the business reaching operating breakeven as volumes normalize.
Negative Factors
Ongoing Net Losses
Despite margin and EBITDA improvement, persistent operating and net losses (net margin around -5.2%) are a structural concern. Continued losses can erode equity, limit ability to fund growth or absorb shocks, and mean the company must sustain margin gains and revenue stability to achieve durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Improvement
A sustained rise in gross margin to ~29.5% indicates structural improvements in cost control, pricing, or product mix. Higher gross margins support long-term profitability potential, improve resilience to input cost swings, and increase the chance of the business reaching operating breakeven as volumes normalize.
Read all positive factors
Velocity Composites Plc (VEL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.38M
Dividend YieldN/A
Average Volume (3M)67.41K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth12.52%
EPS Growth75.23%
CountryUK
Employees102
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)>-0.01
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, together with its subsidiaries, provides engineered composite material kits to the aerospace industry in the United Kingdom, Europe, and internationally. It offers structural material kits, such as ply generation, shape ma...
How the Company Makes Money
Velocity Composites primarily generates revenue by providing outsourced composite material preparation and “kitting” services to aerospace customers. Under this model, the company receives purchase orders or contract-driven demand to deliver pre-p...
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
Negative
21.40
Price Trends
16.30
Negative
16.18
Negative
20.04
Negative
Market Momentum
-0.48
Positive
7.75
Positive
19.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VEL, the sentiment is Negative. The current price of 21.4 is above the 20-day moving average (MA) of 15.25, above the 50-day MA of 16.30, and above the 200-day MA of 20.04, indicating a bearish trend. The MACD of -0.48 indicates Positive momentum. The RSI at 7.75 is Positive, neither overbought nor oversold. The STOCH value of 19.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | £528.64M | 24.99 | 11.27% | 1.58% | 23.91% | -14.66% | |
70 Outperform | £177.16M | 10.69 | 6.13% | 1.02% | 14.49% | 76.33% | |
65 Neutral | £1.16B | 27.39 | 7.31% | 1.06% | -13.81% | 13.86% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £1.04B | 22.48 | 8.58% | 3.30% | -6.95% | -52.08% | |
62 Neutral | £544.69M | 28.89 | 8.04% | 4.87% | -7.30% | -59.71% | |
53 Neutral | £7.38M | -5.71 | -13.02% | ― | 12.52% | 75.23% |
* Industrials Sector Average
GB:VEL
Velocity Composites Plc
13.50
-10.70
-44.21%
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Velocity Composites Plc Corporate Events
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...
Business Operations and Strategy
Velocity Composites Adds Singer Capital Markets as Joint Broker After Team Transfer
Positive
Feb 9, 2026
Velocity Composites plc, a UK-based specialist in composite material kits for the aerospace industry, supports major customers including Airbus, Boeing and GKN with technology that aims to lower costs and enhance sustainability. The company also s...
Business Operations and StrategyFinancial Disclosures
Velocity Composites Doubles Adjusted EBITDA Despite Aerospace Headwinds
Positive
Jan 27, 2026
Velocity Composites reported audited results for the year to 31 October 2025 showing revenue down to £20.7m from £23.0m, but with a 360-basis-point improvement in gross margin to 29.5% and adjusted EBITDA more than doubling to £1.0m...
Business Operations and StrategyFinancial Disclosures
Velocity Composites Doubles EBITDA as Margins Improve Despite Softer Sales
Positive
Jan 27, 2026
Velocity Composites reported audited results for the year to 31 October 2025 showing revenue down to £20.7m from £23.0m but with gross margin improving by 360 basis points to 29.5% and adjusted EBITDA more than doubling to £1.0m, re...
Business Operations and StrategyFinancial Disclosures
Velocity Composites Sets Date for Full-Year Results and Investor Presentation
Positive
Jan 13, 2026
Velocity Composites plc has corrected an earlier notice regarding its upcoming investor presentation and confirmed it will publish results for the year to 31 October 2025 on 27 January 2026, followed by a live results presentation via the Investor...
Business Operations and StrategyFinancial Disclosures
Velocity Composites Schedules Full-Year Results and Investor Presentation
Neutral
Jan 8, 2026
Velocity Composites will publish its results for the twelve months to 31 October 2025 on 27 January 2026 and will host a live online investor presentation the following day via the Investor Meet Company platform. The session, led by CEO Jon Bridge...
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.