Vertical Aerospace narrows losses to £20m in 1Q

Electric vertical takeoff and landing (eVTOL) aircraft developer Vertical Aerospace reported a net operating loss of £20m for the first quarter of 2024 compared to £23m loss.

The company attributed its spending to the nearing completion of a more advanced second VX4 prototype.

As of March 31, 2024, Vertical boasts cash and cash equivalents of £49m including a £19.5m investment from founder Stephen Fitzpatrick. The company plans to use the funds to building a second identical VX4 prototype, testing and certification activities and strengthening the company’s infrastructure.

The company’s breakdown of costs showed research and development expenses rose to £14m whereas administrative expenses declined 20% year-over-year to £9.5m compared to £11.7m in the same period last year.

Moreover, the company also reported a 77%YoY increase in other operating income to £3.2m.

“I am delighted to lead this incredibly innovative company and I’m immensely proud of the progress the team has made so far this year,” said Stuart Simpson, CEO, Vertical.

“We are within touching distance of kicking off the robust piloted flight test programme for our significantly more sophisticated second full-scale VX4 aircraft, as we prepare to demonstrate its full potential to the world. This aircraft represents a huge leap forward along our path to certification.”

Vertical is planning a capital raise in 2024 and expects its cash runway to extend into the second half of 2025 due to an agreement with Rolls-Royce.

Vertical and Rolls Royce have agreed to terminate their contract for the design of an electric propulsion unit (EPU). The EVTOL developer will receive a cash payment from Rolls-Royce to cover the costs of an alternative EPU supplier and will pursue new partnerships for certification and production aircraft.

Vertical remains on track for its target of type certification by the end of 2026.