StockMarketWire.com - Advanced materials supplier to the aerospace market Velocity Composites booked a first-half loss after the Covid-19 crisis hammered airline companies.

Pre-tax losses for the six months through April amounted to £0.69m, compared to losses of £0.43m on-year, as revenue fell 22% to £9.5m.

The company said it had furloughed about 60% of its workforce amid a 75% reduction in near-term customer demand.

Production of personal protective equipment for NHS workers commenced in April, providing additional work for staff.

Velocity last month secured an additional £2m facility via the UK government's Coronavirus Business Interruption Loan scheme.

A lower level of customer demand was expected to continue for at least the duration of the lockdown, and until equipment makers issued longer-term demand schedules, the company said.

At the same time, it said it expected a restructuring in the industry as a result of Covid-19 to present immediate and longer-term opportunities for its cost-reducing service offering.


At 9:47am: [LON:VEL] Velocity Composites Plc share price was +0.25p at 14.25p



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