Velocys PLC says losses halved last year as results delayed

Velocys PLC (LON:VLS) said it almost halved losses last year despite lower revenues, while its commercial work on developing sustainable aviation fuel has continued in 2020 despite the coronavirus pandemic.  

The AIM-listed company put out an unaudited trading statement for the past calendar year after receiving permission from financial authorities to delay its results, saying logistical difficulties involved in completing the audit under lockdown restrictions meant it was not going to make the 30 June reporting deadline. 

Revenue for the past year, it said, fell to £0.3mln from £0.7mln, with underlying operating losses cut to £9.8mln from £18.6mln the year before as admin expenses were slashed to £10mln from £19.1mln.

December ended with £4.mln cash in the bank.

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As for more recent work, the company expects to complete manufacturing and delivery of all four reactors for Red Rock Biofuels by the end of June and noted that its joint development agreement with British Airways and Shell had been extended. 

“We have received grants and subsidised payroll protection loans from the UK and US governments respectively in recognition of our continued commercial progress and absence of redundancies or furlough of any employees,” the company said.

Shares dropped 13% at 12.8p after the first hour of trading on Friday.