Vertical Aerospace has reported its financial results for the six months ended 30 June, 2022.

Founder and CEO Stephen Fitzpatrick says: “I am delighted to share that we have reached a critical engineering milestone by completing the build of our full scale VX4 prototype, and we have now begun putting it through its paces for an intensive, multi-month flight test programme. I am grateful for the efforts of our amazing team and for our outstanding partners that have got us to this point as we continue to leverage their deep sector expertise to build, fly and industrialise our aircraft to revolutionise the way we travel.

"In the last quarter, we have expanded our pre-order book to more than 1,400 and announced new VX4 applications in emergency medical services, cargo and business aviation with Babcock and FlyingGroup. We have also secured an industry first with American Airlines' commitment to place a pre-delivery payment for the delivery slots of their first 50 VX4s, out of a possible 350. The outlook for eVTOLs and Vertical has never looked better, and we look forward to providing our shareholders with more news on our piloted flight."

First half-year 2022 and recent operational highlights:

- Completed the build of the full scale VX4 prototype; as part of its intensive flight test programme a series of ground tests has been conducted and it is expected to begin flying over the summer.

- Enhanced its collaborative industrial partnership ecosystem by entering into a strategic partnership with lithium-ion cell manufacturer Molicel for the supply of high-power, low-impedance, cylindrical battery cells for the VX4 battery pack.

- Strengthened the leadership team by welcoming former chief executive officer of McLaren Automotive and VP manufacturing of Ford Europe Mike Flewitt to the board of directors as an independent non-executive director.

- Secured 50 new pre-orders for the VX4 from business aviation operator FlyingGroup; announced a new partnership with Babcock for emergency medical services and logistics application of the VX4 and received a commitment from American Airlines to make a pre-delivery payment to secure delivery slots for the first 50 VX4s of its conditional pre-order of up to 250 aircraft, with an option to purchase an additional 100 aircraft.

- Secured concurrent validation of the VX4 between EASA and the UK's CAA on the same SC-VTOL certification basis, which Vertical believes will enable rapid deployment of the VX4 across multiple markets.

First half-year 2022 and recent financial highlights:

- During the first half of 2022 Vertical invested in the build of the VX4 prototype, the development of its test and certification activities and in the people, systems and processes to support the company.

- The company reported a net operating loss of £39 million for the six months ended 30 June, 2022, compared to a net loss of £22 million for the six months ended 30 June, 2021.

- As of 30 June, 2022, Vertical had cash and cash equivalents of £158 million. The company expects that its existing cash and cash equivalents will enable it to fund its operating expenses and capital expenditure requirements for at least the next 12 months.

- In August 2022, to support ongoing capital requirements, Vertical established an equity subscription line with Nomura, which will allow it to issue up to $100 million in new ordinary shares. This facility is intended to provide flexibility around the timing of issuing new stock to minimise dilution.

Financial Outlook:

The 2022 capital plan continues to remain on track, with net cash outflows to be used in operating activities in the second half of the year expected to be between £40 million and £50 million.

The above forward-looking statements reflect Vertical's expectations for the six months ending 31 December, 2022 as of 8 August, 2022 and are subject to substantial uncertainty. Its results are based on assumptions that it believes to be reasonable as of this date, but may be materially affected by many factors.