Vertical Aerospace .(US:EVTL)2025-03-11 12:30Financial Data and Key Metrics Changes - The net cash used in operating activities for the year was approximately $100 million, with an expected increase to between $110 million and $125 million in 2025 [42][43] - A significant non-cash financing cost of £688 million was reported due to the restructuring of convertible loan notes, which is highly volatile and driven by stock price calculations [42][43] Business Line Data and Key Metrics Changes - The company is focused on developing a best-in-class aircraft with a target for certification in 2028, emphasizing safety and capacity for both passengers and luggage [14][43] - The business model includes battery as a service, which is expected to provide high margins and predictable long-term revenue [20][43] Market Data and Key Metrics Changes - The company has a diverse customer base with a third of orders from The Americas, a third from Europe, and a third from Asia, reducing regional concentration risk [108] - The collaboration with the CAA and EASA is expected to streamline the certification process, allowing for concurrent sales in multiple markets [50][112] Company Strategy and Development Direction - The company has relaunched its strategy, Flight Path 02/1930, aiming to lead the sector by the end of the decade with clear operational goals [6][23] - The focus is on maintaining capital efficiency while ramping up spending towards certification, with a commitment to spend significantly less than competitors [22][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the certification timeline due to clear and transparent regulations, which are expected to result in a safer product than competitors [48][49] - The company anticipates a gradual ramp-up in spending as it approaches certification, with a focus on derisking the timeline [70][72] Other Important Information - The company has secured funding through 2025, including £220 million from refinancing activities and $90 million from existing investors [23][24] - A new majority owner, Mudrick Capital, has been established, bringing additional industry experience to the company [24] Q&A Session Summary Question: What is the path to certification and confidence in timelines? - The company is working under SCVTOL regulations with a clear plan, aiming for certification in 2028, which is supported by a collaboration agreement with EASA [47][50] Question: What are the funding needs to get to certification? - The company is fully funded for 2025 and expects to be the most efficient in terms of spending towards certification [51][52] Question: Can you discuss the timing of spending increases? - Spending is expected to ramp up to between $110 million and $125 million, with a focus on derisking the certification timeline [56][57] Question: How does the company address concerns about downwash and outwash? - The company acknowledges industry concerns but is not overly worried, citing real-world experience with their full-scale aircraft [60][62] Question: What is the geographic concentration of the order book? - The order book is evenly distributed across The Americas, Europe, and Asia, reducing regional risk [108] Question: Will the company sell to high net worth individuals post-certification? - Yes, the company plans to sell to high net worth individuals once certification is achieved, with no additional regulatory hurdles [81][103]