Vertical losses rise to $17.1m in first half of 2024

Vertical Aerospace announced financial results for the first half of 2024 wherein it reported a net loss of $17.1m, up 45% year-over-year from $11.7m in the same period last year.

However, the company reported a sharp reduction of 59%YoY in operating loss, which clocked in at $19.9m compared to $48.9m in the same period last year as it managed to book $32.7m other operating income (higher by 1045%YoY) during the period under review.

“Vertical maintained its industry-leading capital efficiency with an H1 2024 operating loss of £20m ($25m). The operating loss for the period primarily reflects the spend to successfully complete Vertical’s second full-scale prototype aircraft,” said the company in earnings release.

Further breakdown of operating expenses showed Vertical saw a slight increase in research and development expenses while it curtailed n admin expenses. Moreover, the company also reported lower finance income (down 77%YoY to $7.4m) and higher finance costs (up 35%YoY to $11m) during the period under review.

Overall, the company’s cash spend on operating activities fell to $14.5m from $40.6m in the same period last year.

Lower cash spend and operational efficiencies have helped Vertical maintain its cash position. At the end of 1H24, the company’s cash and cash equivalents stood at $66.7m, up from $48.6m in 1H24.

During the first half of 2024, Vertical also secured an £8m  ($10m) UK Government grant from the Aerospace Technology Institute (ATI) for its next-generation propeller development.

Additionally, the company received a cash injection of $25m from Imagination Aero Investments Ltd., a company owned by Vertical founder, Stephen Fitzpatrick. Vertical is currently in discussions regarding the second $25m tranche of this investment.