Vertical Aerospace Announces First Half-Year 2023 Financial Results
- Vertical Aerospace has seen momentum in testing, certification, and commercial efforts, including the first untethered flights of its full-scale VX4 and the addition of South Korea as a launch market. The company reported a net operating loss of £36m for the first half of 2023, compared to £39.5m for the same period in 2022. Vertical expects to spend approximately £80m over the next year. Vertical has partnered with Kakao Mobility to develop urban air mobility travel solutions in South Korea.
- None.
Company Issues Shareholder Letter
Stephen Fitzpatrick, Vertical Founder and CEO, said:
“We have seen fantastic momentum at Vertical in the first half of 2023 across our testing, certification, and commercial efforts. We have conducted our first untethered flights of our full-scale VX4, been granted a Design Organisation Approval from the CAA, and brought
We are maintaining our disciplined spend with a
First Half-Year 2023 and Recent Operational Highlights
- Vertical has continued to advance its flight test activities with progress in its thrustborne flight test campaign (including lifting, hovering, flying and landing vertically, by the thrust of the aircraft’s propulsion system). The flight tests have included numerous hovers, both tethered and untethered, as well as expanding the low-speed flight envelope with the Company’s full-scale VX4 prototype aircraft under remotely piloted conditions and powered by our proprietary battery systems.
- Vertical is progressing the build of its second prototype VX4, which will incorporate learnings from tests conducted to date and advancements in its partners’, and its own in-house technology.
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Vertical has continued to make progress with its certification activities for the VX4 aircraft, including a detailed familiarisation session with the CAA on the aircraft design and certification basis. Further technical discussions are being advanced with the CAA, and technical familiarisation sessions with EASA, the FAA and the Japan Civil Aviation Bureau are expected before the end of 2023. Additionally, in June 2023, Brazil’s National Civil Aviation Agency informed the CAA that it has accepted Vertical’s application for validation of its type certificate in
Brazil , which will enable the Company’s operations inBrazil . - In July 2023, Vertical announced the appointment of Stuart Simpson as Chief Financial Officer, joining in September 2023. Stuart is a seasoned leader, most recently serving as the Group Chief Financial Officer of Avast, a FTSE 100 company. Previously, Mr. Simpson held the roles of Interim Chief Executive Officer, Chief Financial Officer and Chief Operating Officer at Royal Mail, also a FTSE 100 company. Mr. Simpson has a long history in the automotive industry, working for General Motors and Rolls Royce and Bentley Motor Car Company.
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In May 2023, Vertical announced that it is partnering with South Korean mobility-as-a-service company, Kakao Mobility, to evaluate and advance commercially sustainable urban air mobility travel solutions in
South Korea . Kakao Mobility has agreed to pre-order, subject to certain conditions, up to 50 VX4 aircraft. The parties agreed to establish a joint working group with Kakao Mobility to drive the commercialization of AAM services inSouth Korea , including the exploration of network and fleet planning, infrastructure requirements, regulatory development, and consumer awareness of eVTOL mobility solutions.
First Half-Year 2023 and Recent Financial Highlights
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Vertical reported a net operating loss of
£36.0m for the six months ended June 30, 2023, compared to a net operating loss of£39.5m for the six months ended June 30, 2022. - The net operating loss for the period primarily includes the continued investment in the development of Vertical’s second full-scale prototype aircraft, and costs supporting our thrustborne flight campaign.
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As of June 30, 2023, Vertical had cash and cash equivalents of
£89.7m .
Financial Outlook
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The 2023 capital plan continues to remain on track, with net cash outflows to be used in operating activities in the second half of the year expected to be between
£40m and£45m . - Net cash outflows incurred in the third quarter of the year will be in relation to the advancement of our airborne flight test programme and further investment in our second full scale prototype aircraft.
- As previously announced, to support our ongoing capital requirements, fund our future operations and remain as a going concern, Vertical intends to raise additional capital during 2023.
The above forward-looking statements reflect our expectations for the six months ending December 31, 2023 as of August [3], 2023, and are subject to substantial uncertainty. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.”
About Vertical Aerospace
Vertical Aerospace is pioneering electric aviation. The company was founded in 2016 by Stephen Fitzpatrick, an established entrepreneur best known as the founder of the OVO Group, a leading energy and technology group and Europe’s largest independent energy retailer. Vertical has focused on building the most experienced and senior team in the eVTOL industry, who have previously certified and supported over 30 different civil and military aircraft and propulsion systems. Vertical has forged strong relationships with industry-leading players to develop the various components of its aircraft and build a sophisticated eVTOL ecosystem, creating efficiencies across the manufacturing processes, aircraft operations and maintenance.
Vertical’s ordinary shares listed on the NYSE in December 2021 under the ticker “EVTL”. Find out more: vertical-aerospace.com
About the VX4 eVTOL Aircraft
Vertical’s VX4 eVTOL is projected to be capable of transporting a pilot and up to four passengers, traveling distances of up to 100 miles, and achieving a cruise speed of 150 miles per hour, while producing minimal noise and zero operating emissions. Find out more: vertical-aerospace.com
- ENDS -
Unaudited Condensed Consolidated Interim Statement of Comprehensive Income
|
H1’2023
|
H1’2022
|
||
Research and development expenses |
(27,500) |
(19,396) |
||
Administrative expenses |
(24,266) |
(23,466) |
||
Related party administrative expenses |
(42) |
- |
||
Other operating income |
15,845 |
3,407 |
||
Operating loss |
(35,963) |
(39,455) |
||
Finance income |
32,333 |
42,497 |
||
Finance costs |
(8,140) |
(20,063) |
||
Net finance income/(costs) |
24,193 |
22,434 |
||
Loss before tax |
(11,770) |
(17,021) |
||
Income tax expense |
- |
- |
||
Net loss for the period |
(11,770) |
(17,021) |
||
Foreign exchange translation differences |
(6,922) |
9,482 |
||
Total comprehensive loss for the period |
(18,692) |
(7,539) |
Unaudited Condensed Consolidated Interim Statement of Cashflows
|
H1’2023
|
H1’2022
|
||
Cash flows from operating activities |
|
|
||
Net loss for the period |
(11,770) |
(17,021) |
||
Adjustments to cash flows from non-cash items: |
|
|
||
Depreciation and amortization |
990 |
832 |
||
Depreciation on right of use assets |
327 |
189 |
||
Finance (income)/costs |
(24,193) |
(22,434) |
||
Share based payment transactions |
7,056 |
7,294 |
||
|
(27,590) |
(31,140) |
||
Working capital adjustments: |
|
|
||
(Increase) in trade and other receivables |
(863) |
(1,499) |
||
(Decrease)/increase in trade and other payables |
(4,603) |
(30,442) |
||
Net cash (outflow) from operating activities |
(33,056) |
(63,081) |
||
Cash flows from investing activities |
|
|
||
Decrease in financial assets at amortized cost |
59,886 |
- |
||
Acquisitions of property plant and equipment |
(1,304) |
(167) |
||
Acquisition of intangible assets |
(73) |
(393) |
||
Interest received on deposits |
2,337 |
- |
||
Net cash inflow/(outflow) from investing activities |
60,846 |
(560) |
||
Cash flows from financing activities |
|
|
||
Proceeds from issue of shares |
180 |
- |
||
Payments to lease creditors |
(349) |
(235) |
||
Net cash (outflow) from financing activities |
(169) |
(235) |
||
Net increase/(decrease) in cash at bank |
27,621 |
(63,876) |
||
Cash at bank as at January 1 |
62,927 |
212,660 |
||
Effect of foreign exchange rate changes |
(855) |
8,768 |
||
Cash at bank as at June 30 |
89,693 |
157,552 |
Unaudited Condensed Consolidated Interim Statement of Financial Position
|
30 June 2023
|
31 December 2022
|
||
Non-current assets |
|
|
||
Property, plant and equipment |
3,336 |
2,690 |
||
Right of use assets |
2,784 |
3,121 |
||
Intangible assets |
1,529 |
2,048 |
||
|
7,649 |
7,859 |
||
Current assets |
|
|
||
Trade and other receivables |
19,727 |
18,864 |
||
Financial assets at amortized cost |
- |
59,886 |
||
Restricted cash |
1,700 |
1,700 |
||
Cash and cash equivalents |
89,693 |
62,927 |
||
|
111,120 |
143,377 |
||
Total assets |
118,769 |
151,236 |
||
Equity |
|
|
||
Share capital |
17 |
16 |
||
Other reserve |
91,168 |
94,857 |
||
Share premium |
257,838 |
257,197 |
||
Accumulated deficit |
(352,648) |
(344,752) |
||
Total equity |
(3,625) |
7,318 |
||
Non-current liabilities |
|
|
||
Lease liabilities |
2,259 |
2,645 |
||
Provisions |
317 |
365 |
||
Derivative financial liabilities |
100,834 |
115,247 |
||
Trade and other payables |
3,933 |
4,153 |
||
|
107,343 |
122,410 |
||
Current liabilities |
|
|
||
Lease liabilities |
676 |
516 |
||
Warrant liabilities |
2,727 |
4,961 |
||
Trade and other payables |
11,648 |
16,031 |
||
|
15,051 |
21,508 |
||
Total liabilities |
122,394 |
143,918 |
||
Total equity and liabilities |
118,769 |
151,236 |
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the
View source version on businesswire.com: https://www.businesswire.com/news/home/20230803633160/en/
Vertical Media
Ambika Sharma
nepeanverticalteam@nepean.co.uk
+44 759 647 4020
Vertical Investors
Eduardo Royes
investors@vertical-aerospace.com
+1 (646) 200-8871
Source: Vertical Aerospace Ltd.
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