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Velocity Composites Plc
(LSE:VEL)
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Rating:50Neutral
Price Target:
18.50 p
▲(1.37% Upside)
Action:Reiterated
Date:08/27/26
The score is driven primarily by improving (but still loss-making) financial performance, with positive EBITDA and free cash flow offset by negative net/operating results and a 2025 revenue decline. Technicals add support via a strong uptrend, but extremely overbought momentum tempers the outlook. Valuation is constrained by the negative P/E and lack of dividend yield data.
Positive Factors
Margin and EBITDA Recovery
Improving gross margin and positive EBITDA indicate that the kitting and support-services model is moving toward better operating economics. If maintained, this recovery can strengthen internal funding capacity and provide a clearer path toward sustainable profitability over the next several quarters.
Negative Factors
Recent Revenue Contraction
The 2025 revenue decline interrupts the company’s earlier expansion and highlights exposure to aerospace production volumes and program timing. Prolonged contraction could reduce operating leverage, slow margin improvement, and make it harder for the business to convert its growth strategy into durable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin and EBITDA Recovery
Improving gross margin and positive EBITDA indicate that the kitting and support-services model is moving toward better operating economics. If maintained, this recovery can strengthen internal funding capacity and provide a clearer path toward sustainable profitability over the next several quarters.
Read all positive factors
Velocity Composites Plc (VEL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£10.11M
Dividend YieldN/A
Average Volume (3M)41.86K
Price to Earnings (P/E)―
Beta (1Y)0.23
Revenue Growth-17.64%
EPS Growth-106.57%
CountryUK
Employees101
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)-0.03
Shares Outstanding54,669,373
10 Day Avg. Volume47,087
30 Day Avg. Volume41,859
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 Upside119.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.03
Revenue Forecast (FY)£19.40M
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 primarily makes money by selling composite kitting and associated manufacturing/logistics services to aerospace customers. Its core revenue stream is the provision of engineered material kits: the company sources composite raw ...
Velocity Composites Plc Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
55
Neutral
Cash Flow
47
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.70M | 20.70M | 23.01M | 16.41M | 11.96M | 9.77M |
| Gross Profit | 5.44M | 6.11M | 5.96M | 3.09M | 2.75M | 2.54M |
| EBITDA | 285.00K | 604.00K | 231.00K | -1.93M | -622.00K | -638.00K |
| Net Income | -1.54M | -1.08M | -845.00K | -3.14M | -1.34M | -1.21M |
Balance Sheet | ||||||
| Total Assets | 9.44M | 10.30M | 12.81M | 14.70M | 9.81M | 9.69M |
| Cash, Cash Equivalents and Short-Term Investments | 656.00K | 392.00K | 1.66M | 3.18M | 2.34M | 3.48M |
| Total Debt | 1.74M | 3.58M | 2.79M | 3.55M | 4.21M | 4.06M |
| Total Liabilities | 5.20M | 5.16M | 6.94M | 8.13M | 6.41M | 5.12M |
| Stockholders Equity | 4.24M | 5.14M | 5.87M | 6.57M | 3.40M | 4.57M |
Cash Flow | ||||||
| Free Cash Flow | 1.05M | 316.00K | -214.00K | -3.96M | -118.00K | 261.00K |
| Operating Cash Flow | 1.23M | 650.00K | 370.00K | -1.83M | 280.00K | 325.00K |
| Investing Cash Flow | -317.00K | -729.00K | -584.00K | -2.12M | -356.00K | -51.00K |
| Financing Cash Flow | -1.22M | -1.16M | -1.41M | 4.79M | -1.06M | -66.00K |
Velocity Composites Plc Technical Analysis
Positive
18.25
Price Trends
14.96
Positive
14.41
Positive
15.07
Positive
Market Momentum
1.14
Negative
86.96
Negative
74.56
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 18.25 is above the 20-day moving average (MA) of 16.76, above the 50-day MA of 14.96, and above the 200-day MA of 15.07, indicating a bullish trend. The MACD of 1.14 indicates Negative momentum. The RSI at 86.96 is Negative, neither overbought nor oversold. The STOCH value of 74.56 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | £272.55M | 35.38 | 6.13% | 0.68% | 3.36% | 63.32% | |
67 Neutral | £1.61B | 27.90 | 9.30% | 2.43% | 1.68% | 111.96% | |
66 Neutral | £534.65M | 22.71 | 13.59% | 1.54% | 13.46% | 15.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £1.22B | -255.65 | -1.30% | 1.02% | -10.52% | -110.02% | |
61 Neutral | £682.74M | 37.09 | 5.79% | 4.93% | -5.58% | -32.73% | |
50 Neutral | £10.11M | -6.54 | -32.89% | ― | -17.64% | -106.57% |
* Industrials Sector Average
GB:VEL
Velocity Composites Plc
19.00
-2.30
-10.80%
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Velocity Composites Plc Corporate Events
Business Operations and StrategyExecutive/Board Changes
Velocity Composites names new CFO to support international growth push
Positive
Jul 23, 2026
Velocity Composites has appointed Matthew Fowler as Group Chief Financial Officer, effective 1 September 2026, as the company reshapes its senior leadership to support its next phase of growth. Fowler, a chartered accountant with extensive UK publ...
Business Operations and StrategyFinancial Disclosures
Velocity Composites narrows outlook as H1 sales slip but cash position strengthens
Negative
Jun 24, 2026
Velocity Composites reported first-half revenue of £8.4m, down from £10.4m a year earlier, as delayed programme transfers in the US and customer order phasing weighed on sales, though the group delivered a third consecutive half of posit...
Business Operations and StrategyFinancial Disclosures
Velocity Composites schedules online investor presentation alongside interim results
Positive
Jun 18, 2026
Velocity Composites will publish its interim results for the six months to 30 April 2026 on 24 June and will host a live online investor presentation the following day via the Investor Meet Company platform. The session, led by chief executive Jon...
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.