Vertical Aerospace Announces First Half-Year 2024 Financial Results
Vertical Aerospace (NYSE: EVTL) has released its financial results for the first half of 2024 and issued a shareholder letter. Key highlights include:
1. Completion of Phase 1 piloted flight tests for the new VX4 prototype
2. Expanded Design Organisation Approval from the UK Civil Aviation Authority
3. Acceptance into the UK Ministry of Defence's Uncrewed Air Systems Heavy Lift Challenge framework
4. H1 2024 operating loss of £20 million ($25 million)
5. Cash and cash equivalents of £67m / $84m as of June 30, 2024
6. Anticipated net cash outflows of £40m to £45m in H2 2024
7. Plans for a 1-for-10 reverse share split effective September 20, 2024
The company is in discussions for potential third-party investment to extend its cash runway.
Vertical Aerospace (NYSE: EVTL) ha pubblicato i suoi risultati finanziari per il primo semestre del 2024 e ha emesso una lettera agli azionisti. I punti salienti includono:
1. Completamento dei test di volo piloti della Fase 1 per il nuovo prototipo VX4
2. Approvazione dell'Organizzazione di Progettazione ampliata da parte dell'Autorità per l'Aviazione Civile del Regno Unito
3. Accettazione nel programma Uncrewed Air Systems Heavy Lift Challenge del Ministero della Difesa del Regno Unito
4. Perdite operative di £20 milioni ($25 milioni) nel primo semestre 2024
5. Liquidità e disponibilità liquide di £67 milioni / $84 milioni al 30 giugno 2024
6. Uscite di cassa nette previste di £40 milioni a £45 milioni nel secondo semestre 2024
7. Piani per un'operazione di reverse split delle azioni 1 per 10 a partire dal 20 settembre 2024
L'azienda è in discussione per un potenziale investimento di terzi per estendere la sua liquidità.
Vertical Aerospace (NYSE: EVTL) ha publicado sus resultados financieros para la primera mitad de 2024 y ha emitido una carta a los accionistas. Los puntos destacados incluyen:
1. Finalización de las pruebas de vuelo piloto de la Fase 1 para el nuevo prototipo VX4
2. Expansión de la Aprobación de Organización de Diseño por parte de la Autoridad de Aviación Civil del Reino Unido
3. Aceptación en el marco del Desafío de Carga Pesada de Sistemas Aéreos No Tripulados del Ministerio de Defensa del Reino Unido
4. Pérdida operativa de £20 millones ($25 millones) en la primera mitad de 2024
5. Efectivo y equivalentes de efectivo de £67 millones / $84 millones al 30 de junio de 2024
6. Flujos de efectivo netos previstos de £40 millones a £45 millones en la segunda mitad de 2024
7. Planes para una división de acciones inversa de 1 por 10 que entrará en vigor el 20 de septiembre de 2024
La empresa está en discusiones para una posible inversión de terceros para extender su liquidez.
Vertical Aerospace (NYSE: EVTL)는 2024년 상반기 재무 결과를 발표하고 주주 서한을 발송했습니다. 주요 하이라이트는 다음과 같습니다:
1. 새로운 VX4 프로토타입에 대한 1단계 조종 비행 테스트 완료
2. 영국 민간 항공국으로부터의 설계 조직 승인 확대
3. 영국 국방부의 무인 항공 시스템 중량 화물 도전 프레임워크에 수용됨
4. 2024년 상반기 운영 손실 £20백만 ($25백만)
5. 2024년 6월 30일 기준 현금 및 현금성 자산 £67백만 / $84백만
6. 2024년 하반기 예상 순 현금 유출 £40백만에서 £45백만
7. 2024년 9월 20일부터 1대10 역주식 분할 계획
회사는 현금 유동성을 연장하기 위한 잠재적 제3자 투자 논의를 진행 중입니다.
Vertical Aerospace (NYSE: EVTL) a publié ses résultats financiers pour le premier semestre 2024 et a émis une lettre aux actionnaires. Les points clés incluent :
1. Achèvement des tests de vol avec pilote de la phase 1 pour le nouveau prototype VX4
2. Approbation élargie de l'Organisation de Conception par l'Autorité de l'Aviation Civile du Royaume-Uni
3. Acceptation dans le cadre de la Défi de Levage Lourds des Systèmes Aériens Sans Pilote du Ministère de la Défense britannique
4. Perte opérationnelle de 20 millions de £ ($25 millions) au premier semestre 2024
5. Liquidités et équivalents de liquidités de 67 millions de £ / 84 millions de $ au 30 juin 2024
6. Flux de trésorerie nets anticipés de 40 millions à 45 millions de £ au deuxième semestre 2024
7. Prévisions pour un regroupement d'actions 1 pour 10 effectif le 20 septembre 2024
L'entreprise est en discussion pour un éventuel investissement de tiers afin d’étendre sa marge de liquidité.
Vertical Aerospace (NYSE: EVTL) hat seine Finanz Ergebnisse für das erste Halbjahr 2024 veröffentlicht und einen Aktionärsbrief herausgegeben. Die wichtigsten Punkte umfassen:
1. Abschluss der pilotierten Flugtests der Phase 1 für den neuen VX4-Prototyp
2. Erweiterte Genehmigung der Entwurfsorganisation durch die britische Zivilluftfahrtbehörde
3. Aufnahme in den Rahmen des Uncrewed Air Systems Heavy Lift Challenge des britischen Verteidigungsministeriums
4. Betrieblicher Verlust von £20 Millionen ($25 Millionen) im ersten Halbjahr 2024
5. Flüssige Mittel in Höhe von £67 Millionen / $84 Millionen zum 30. Juni 2024
6. Erwartete Nettocashflows von £40 Millionen bis £45 Millionen im zweiten Halbjahr 2024
7. Pläne für einen 1 für 10 Aktienteilungsplan, der am 20. September 2024 wirksam wird
Das Unternehmen führt Gespräche über mögliche Investitionen von Dritten, um seine finanzielle Liquidität zu verlängern.
- Successful completion of Phase 1 piloted flight tests for the new VX4 prototype
- Expanded Design Organisation Approval from the UK Civil Aviation Authority
- Acceptance into the UK Ministry of Defence's £95m Uncrewed Air Systems Heavy Lift Challenge framework
- Received $34 million from Rolls-Royce for exiting the Electric Propulsion Unit contract
- Awarded £8 million ($10 million) UK Government grant for next-generation propeller development
- Received $25 million investment from Imagination Aero Investments
- H1 2024 operating loss of £20 million ($25 million)
- Cash and cash equivalents reduced to £67m / $84m as of June 30, 2024
- Anticipated net cash outflows of £40m to £45m in H2 2024
- Need to raise capital to fund future operations and remain a going concern
- Projected cash runway only extends to Q2 or Q3 2025, depending on additional investment
- Implementing a 1-for-10 reverse share split, potentially indicating stock price concerns
Insights
Vertical Aerospace's H1 2024 results show promising progress in aircraft development but highlight ongoing financial challenges. The company reported an operating loss of
The
The upcoming 1-for-10 reverse stock split suggests an attempt to maintain NYSE listing requirements, which could be indicative of share price pressures. Investors should closely monitor Vertical's fundraising efforts, as successful capital raising is critical for the company's survival and progress towards certification.
Vertical Aerospace has made significant strides in their VX4 eVTOL development. The completion of Phase 1 piloted flight tests with the new prototype, featuring 60
The aircraft's stability, particularly in challenging ground effect conditions, is promising. However, the transition to untethered thrustborne testing is a critical next phase that will truly test the VX4's capabilities. The expanded Design Organisation Approval (DOA) from the CAA is a positive step towards certification, but the path remains long and complex.
The acceptance into the UK MOD's Uncrewed Air Systems Heavy Lift Challenge framework opens potential military applications, diversifying Vertical's market opportunities. However, investors should note that eVTOL certification for civilian use remains the primary hurdle and focus for the company's success.
Vertical Aerospace's market position shows both promise and challenges. The company's presence at the Farnborough International Airshow and the Pioneers event demonstrates active engagement with potential customers and stakeholders. The unique Apple Vision Pro experience for the new prototype indicates innovative marketing approaches.
The acceptance into the UK MOD's
The appointment of experienced aerospace professionals and FTSE executives to key positions strengthens Vertical's leadership team. This could enhance investor confidence and industry relationships. However, the frequent changes in top management, including the CEO position, might raise concerns about long-term stability and strategy execution. Investors should monitor how these leadership changes impact the company's direction and operational efficiency.
Vertical Issues Shareholder Letter
The new VX4 prototype, which has completed Phase 1 of piloted flight tests. (Photo: Business Wire)
Stuart Simpson, CEO at Vertical, said:
“During the past few months we have delivered our most advanced full-scale VX4 prototype, have gone from first powered ground test to 'wheels up’ in just one week and completed the first phase of our piloted test flight programme. Every day I continue to be deeply impressed by the phenomenal engineers we have and the progress we are making here in
First Half-Year 2024 and Recent Operational Updates
-
Flight tests of new VX4 prototype: Vertical unveiled its next full-scale VX4 prototype in July and began piloted flight tests days later, following the
UK Civil Aviation Authority (CAA) issuing a Permit to Fly. This more advanced aircraft has60% of its technology from tier-one aerospace partners, up from10% on the previous prototype, marking a significant step towards the final certification aircraft. This is also the first use of Vertical’s proprietary batteries, designed and developed at the Vertical Energy Centre, in a piloted aircraft. Vertical’s new proprietary propellers designed specifically for eVTOLs are optimised for low noise and made of carbon fibre composite using a single-shot cure process to maximise integrity. - The VX4 recently completed Phase 1 of the piloted test flight programme. During Phase 1, the VX4 prototype conducted multiple piloted tethered flights and ground runs, across 20 piloted test sorties, completing a total of 70 individual test points, measuring 35,000 flight and system parameters. Vertical is now preparing to progress to piloted untethered thrustborne testing, as soon as it receives permission from the CAA. The flight tests have already shown the aircraft’s incredible stability – particularly in ground effect, typically one of the most challenging flight conditions.
- Certification Progress: The CAA expanded the scope of Vertical’s Design Organisation Approval (DOA), which is a requirement for the Type Certification of the VX4 and its entry into service. At the same time, there has been strong regulatory collaboration, with the European Union Aviation Safety Agency (EASA) and the CAA agreeing how they will work together on the certification of the VX4.
-
Go To Market: At the Farnborough International Airshow, the team met existing and prospective customers, investors, suppliers, regulators and government agencies, who were able to explore the new prototype using a unique Apple Vision Pro experience. Vertical also brought its customers together in
London for their Pioneers event in Q2 to bring them up to speed on the latest developments and hear their feedback.
In August, theUK Ministry of Defence (MOD) accepted Vertical’s application to join their Uncrewed Air Systems Heavy Lift Challenge framework. The aim of this£95m framework is to define capabilities and test solutions for the Royal Navy for non-weaponised cargo drone operations, with a special focus on ship-to-shore and ship-to-ship missions. Acceptance onto this framework means Vertical can participate in tenders issued by the Royal Navy, facilitating Vertical’s access to R&D funding, development support and in particular, the collaboration across the Uncrewed Air System community that membership of Defence Equipment & Support’s Heavy Lift Capability Framework provides. -
Our People: Vertical continues to attract world-class aerospace professionals, including, Martyn Ashford, Head of Aircraft Programmes Development from Leonardo. It also appointed Ben Story to the Board of Directors as an independent non-executive director and Charlotte Cowley as Director of Strategic Finance responsible for executing Vertical’s fundraising strategy. Ben was formerly Strategic Marketing Director at FTSE 100 Rolls-Royce plc and, before that, Managing Director at Citi. Charlotte has previously led Investor Relations for the FTSE100 Burberry Group plc, and FTSE250 Aston Martin Lagonda plc, where she supported successful capital raises. In May 2024, Stuart Simpson, formerly Vertical’s CFO and a seasoned FTSE100 executive, was appointed as CEO to lead the company through the pivotal phase of certifying and commercializing its VX4 aircraft. Stephen Fitzpatrick, founder, majority shareholder and former CEO of Vertical, remains on Vertical’s board of directors as a non-executive director, focusing on business strategy and the delivery of the company’s vision.
In September 2024, Vincent Casey was appointed to rejoin the Vertical Board as a Non-Executive Director, having previously served as a member of the board of directors from May 2021 to August 2023 and as Vertical’s Chief Financial Officer from November 2020 to February 2023. Vincent is currently the Chief Financial Officer at Ovo Energy, a leading energy supply group that includes one of Europe’s largest independent energy retailers, a company he joined in 2013.
First Half-Year 2024 and Recent Financial Updates
-
Vertical maintained its industry-leading capital efficiency with an H1 2024 operating loss of
£20 million ( ). The operating loss for the period primarily reflects the spend to successfully complete Vertical’s second full-scale prototype aircraft.$25 million -
In May 2024, Vertical mutually agreed to exit Rolls-Royce's contract to design an Electric Propulsion Unit (EPU). Under the agreement, Vertical received
from Rolls-Royce which is expected to cover the anticipated costs of an alternative EPU design contract and provided an extension to the cash runway. This followed Rolls-Royce's announcement in November 2023 of its intention to seek a partner or buyer for its advanced air mobility activities. Vertical is already working with other EPU suppliers and does not anticipate this having any impact on the completion of their prototypes.$34 million -
Over the half, Vertical was awarded an
£8 million ( )$10 million UK Government grant from the Aerospace Technology Institute (ATI) for its next-generation propeller development. Vertical also received a cash amount of from Imagination Aero Investments Ltd., a company owned by Vertical founder, Stephen Fitzpatrick, in connection with an investment agreement dated February 22, 2024 (the “Investment Agreement”). Vertical is in discussion with regards to the second$25 million tranche of the investment committed under the Investment Agreement, which remains outstanding.$25 million
Financial Outlook
-
As of June 30, 2024, Vertical had cash and cash equivalents of
£67m / .$84m -
The 2024 capital plan continues to remain on track, with net cash outflows from operations in the second half of the year expected to be between
£40m to£45m . - Net cash outflows incurred in the second half of the year will be in relation to the advancement of Vertical’s piloted flight test programme.
-
As of the date of this report, Vertical had approximately
£48m / of cash and cash equivalents on hand.$63m - As previously announced, Vertical will need to raise capital to fund its future operations and remain as a going concern. Vertical intends to do so and are in discussions regarding potential third party investment. The timely receipt of an amount equal or equivalent to the second tranche committed under the Investment Agreement is required to extend its projected cash runway into the third quarter of 2025 (from the second quarter of 2025).
- On September 16, 2024, following the requisite shareholder approvals at Vertical’s Annual General Meeting earlier on the same day, Vertical’s Board of Directors authorised the implementation of a reverse share split at a ratio of 1 for 10, with an effective date of September 20, 2024.
The above forward-looking statements reflect our expectations for the six months ending June 30, 2024, as of September 17, 2024, 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 a global aerospace and technology company pioneering electric aviation.
Vertical is creating a safer, cleaner and quieter way to travel. Vertical's VX4 is a piloted, four passenger, Electric Vertical Take-Off and Landing (eVTOL) aircraft, with zero operating emissions. Vertical combines partnering with leading aerospace companies, including GKN, Honeywell and Leonardo, with developing its own proprietary battery and propeller technology to create the world’s most advanced and safest eVTOL.
Vertical has 1,500 pre-orders of the VX4 worth
Vertical's experienced leadership team comes from top tier automotive and aerospace companies such as Rolls-Royce, Airbus, GM and Leonardo. Together they have previously certified and supported over 30 different civil and military aircraft and propulsion systems.
Unaudited Condensed Consolidated Interim Statements of Income and Comprehensive Income |
H1’2024
|
H1’2023
|
Research and development expenses |
(31,951) |
(27,500) |
Administrative expenses |
(20,710) |
(24,266) |
Related party administrative expenses |
(42) |
(42) |
Other operating income |
32,763 |
2,861 |
Operating loss |
(19,940) |
(48,947) |
Finance income |
7,397 |
32,333 |
Finance costs |
(11,026) |
(8,140) |
Net finance income/(costs) |
(3,629) |
24,193 |
Loss before tax |
(23,569) |
(24,754) |
Income tax expense |
6,448 |
12,984 |
Net loss for the period |
(17,121) |
(11,770) |
Foreign exchange translation differences |
1,162 |
(6,922) |
Total comprehensive loss for the period |
(15,959) |
(18,692) |
Unaudited Condensed Consolidated Interim Statement of Cashflows |
||
|
H1’2024
|
H1’2023
|
Cash flows from operating activities |
|
|
Net loss for the period |
(17,121) |
(11,770) |
Adjustments to cash flows from non-cash items: |
|
|
Depreciation and amortization |
1,094 |
990 |
Depreciation on right of use assets |
326 |
327 |
Finance costs/(income) |
3,629 |
(24,193) |
Share based payment transactions |
4,785 |
7,056 |
Income tax credit |
(6,448) |
(12,984) |
Non-cash gain (settled in treasury shares) |
(803) |
- |
|
(14,538) |
(40,574) |
Working capital adjustments: |
|
|
(Decrease)/increase in trade and other receivables |
(3,035) |
802 |
Increase/(decrease) in trade and other payables |
84 |
(4,603) |
Income taxes received |
15,838 |
11,319 |
Net cash outflow from operating activities |
(1,651) |
(33,056) |
Cash flows from investing activities |
|
|
Decrease in financial assets at amortized cost |
- |
59,886 |
Acquisitions of property plant and equipment |
(391) |
(1,304) |
Acquisition of intangible assets |
- |
(73) |
Interest income on deposits |
1,168 |
2,337 |
Net cash inflow from investing activities |
777 |
60,846 |
Cash flows from financing activities |
|
|
Proceeds from issue of shares |
- |
180 |
Proceeds from issue of shares to related party |
15,629 |
- |
Proceeds from issue of warrants to related party |
3,907 |
- |
Payments to lease creditors |
(396) |
(349) |
Net cash (outflow) from financing activities |
19,140 |
(169) |
Net increase/(decrease) in cash at bank |
18,266 |
27,621 |
Cash at bank as at January 1 |
48,680 |
62,927 |
Effect of foreign exchange rate changes |
(160) |
(855) |
Cash at bank as at June 30 |
66,786 |
89,693 |
Unaudited Condensed Consolidated Interim Statement of Financial Position |
||
|
H1’2024
|
H1’2023
|
Non-current assets |
|
|
Property, plant and equipment |
3,653 |
3,821 |
Right of use assets |
2,128 |
2,453 |
Intangible assets |
481 |
1,018 |
|
6,262 |
7,292 |
Current assets |
|
|
Trade and other receivables |
20,058 |
26,413 |
Restricted cash |
1,700 |
1,700 |
Cash and cash equivalents |
66,786 |
48,680 |
|
88,544 |
76,793 |
Total assets |
94,806 |
84,085 |
Equity |
|
|
Share capital |
17 |
17 |
Other reserve |
97,254 |
86,757 |
Treasury share reserve |
(803) |
- |
Share premium |
273,824 |
257,704 |
Accumulated deficit |
(412,373) |
(394,257) |
Total equity |
(42,081) |
(49,779) |
Non-current liabilities |
|
|
Lease liabilities |
1,748 |
1,977 |
Provisions |
327 |
256 |
Derivative financial liabilities |
112,770 |
109,291 |
Trade and other payables |
3,955 |
3,922 |
|
118,800 |
115,446 |
Current liabilities |
|
|
Lease liabilities |
558 |
643 |
Warrant liabilities |
610 |
907 |
Trade and other payables |
16,919 |
16,868 |
|
18,087 |
18,418 |
Total liabilities |
136,887 |
133,864 |
Total equity and liabilities |
94,806 |
84,085 |
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/20240917135638/en/
For more information:
Justin Bates, Head of Communications
Justin.bates@vertical-aerospace.com
+44 7878357463
Samuel Emden, Head of Investor Affairs
Samuel.emden@vertical-aerospace.com
+447816 459 904
Vertical Media Kit
Available here.
Source: Vertical Aerospace Ltd.
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