Vertical Aerospace has announced its financial results for the first half of the year ended June 30, 2024.
Vertical has also issued a shareholder letter in conjunction with the filing of its first half-year results, which is posted to its investor relations website at investor.vertical-aerospace.com.
Vertical reported an H1 2024 operating loss of UKP20 million (USD25 million). “The operating loss for the period primarily reflects the spend to successfully complete Vertical’s second full-scale prototype aircraft,” said the report.
“In May 2024, Vertical mutually agreed to exit Rolls-Royce’s contract to design an Electric Propulsion Unit (EPU). Under the agreement, Vertical received USD34 million 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.”
“Over the half, Vertical was awarded an UKP8 million (USD10 million) UK Government grant from the Aerospace Technology Institute (ATI) for its next-generation propeller development. Vertical also received a cash amount of USD25 million 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 USD25 million tranche of the investment committed under the Investment Agreement.”
“As of June 30, 2024, Vertical had cash and cash equivalents of UK67m / USD84m. 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 UKP40m to USD45m. 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 UKP48m / USD63m of cash and cash equivalents on hand. 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.”
Recent programme milestones include:
- 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 has 60% of its technology from tier-one aerospace partners, up from 10% 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.
- 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, the UK Ministry of Defence (MOD) accepted Vertical’s application to join their Uncrewed Air Systems Heavy Lift Challenge framework. The aim of this UKP95m 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.
For more information
https://vertical-aerospace.com/wp-content/uploads/2024/09/Vertical-Aerospace-Announces-First-Half-Year-2024-Financial-Results.pdf
