U.K.-based Vertical Aerospace reported a net operating loss of £39 million (US$47 million) in the first six months of 2022 — calling this a reflection of the investment needed to achieve its business objectives.
In a letter to shareholders on Aug. 8, Vertical contends that its 2022 capital plan remains on track, with net cash outflow used in operating activities in the second half of the year expected to be between £40 million and £50 million (US$48 million to US$60 million).
To support its capital requirements, the company established an equity subscription line with Nomura this month, allowing it to issue up to $100 million in new original shares. Vertical said this facility provides flexibility around the timing of issuing new stock to minimize dilution.
As of June 30, 2022, Vertical reported cash and cash equivalents of £158 million (US$191 million) — enough funds to support its operating expenses and capital expenditure requirements for at least the next 12 months, the company said.
The U.K. startup is developing a four-passenger eVTOL aircraft projected to travel distances of more than 100 miles (161 kilometers), at top speeds of more than 200 miles per hour (322 kilometers per hour).
Vertical is aiming for concurrent type certification for its VX4 with the European Union Aviation Safety Agency (EASA) and the U.K. Civil Aviation Authority (CAA), with aerial ridesharing services planned to launch in 2025.
“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 program,” said Stephen Fitzpatrick, founder and CEO of Vertical, in a press release.
The company said it is on schedule to begin flight testing its full-scale VX4 eVTOL prototype this summer.
In the last quarter, Vertical has expanded its pre-order book to more than 1,400 aircraft 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,” Fitzpatrick said. “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.”
