- Advanced materials supplier Velocity Composites posted a deeper annual loss, owing to shrinking margins and higher expansion and restructuring costs.

Pre-tax losses for the year through October amounted to £1.2m, compared to losses of around £0.6m on-year, even as revenue rose 14% to £24.5m.

Gross margin had improved in the second half of the year, to 21% from 18%, following recovery from weakness arising from unforeseen customer changes and onboarding multiple programmes, Velocity Composites said.

Executive chairman Mark Mills said underlying profitability was disappointing compared to the company's plans for the year.

'The board is confident that once the current dialogue with the founding shareholders has been concluded, the group will be able to refocus on its long-term strategic growth,' Mills said.

Velocity had in November received demands for changes from founders Jonathan Karl Bridges, Gerard Johnson and Christopher Banks.

On Tuesday, it said its board had engaged in talks with the trio to resolve the issues raised.

'The discussions have focused on the future long-term success of the company and on ensuring that the necessary personnel and structures are in place to allow the company to achieve its long-term growth objectives,' Velocity said.

'These discussions are progressing positively, and the company hopes to be able to provide a comprehensive and conclusive update in the near future.'

At 8:16am: [LON:VEL] Velocity Composites Plc share price was -0.5p at 21.5p

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