|Background||Velocity Composites is a SME originally set up by 3 composite engineers specialising in the production of layered materials like fibreglass and carbon fibre, to produce and supply formable materials into larger manufacturers. Focussing on the aircraft industry, Velocity Composites identified an opportunity in the market whereby traditionally formable materials, used in the production of external parts like flight controls on airplanes, were only available in large quantities and for many of these materials, had a very limited shelf-life before becoming unusable resulting in large amounts of waste of unused materials.
The business was born out of understanding aircraft manufacturer requirements including exactly what materials was used, the production patterns involved, the types of layers of material required and more. The founders decided to set up a factory so that they could purchase the materials needed, store it correctly. They then developed specific kits of material for aircraft manufacturers which allowed them to order just what they needed for the parts required, at the time that they required it, thus eliminating excessive waste of product, cutting down the amount of storage space required and building productive, more efficient, manufacturing processes (JIT).
They were looking to grow the business exponentially, in order to build a production unit next to particular aircraft manufacturing bases. To enable the growth to be achieved, they decided to float the business on the London Stock Exchange AIM.
|Issues||Their objective was to grow as quickly as possible so that they could service as many manufacturers as possible. Understanding that they didn’t have the necessary in-house skill within their own finance team, Velocity Composites sought out specialists with the experience of the IPO process, and who could provide the company’s short form historical financial information (HFI), which includes 3 years of detailed accounting reporting as required for the IPO process. The challenge was to deliver this within a very short turnaround period. That’s when they asked CFPro to get involved.|
|Approach||When you’ve been through this process before, you know what to expect. Because CFPro had provided this type of service numerous times before, approaching this project and delivering what was required within the timeframe agreed, required the right amount of up-front preparation and knowledge. As CFPro have undertaken the process on numerous occasions, the team set up all the necessary documentation and analysis structures as required before the listing project kicked off. Reviewing all necessary data meant that the critical pre-work was done and the IPO documentation could be finalised quicker.|
|Results||The team delivered what was required, when it was needed. Detailed analysis of the businesses UKGAAP accounts was conducted in order to make the necessary adjustments to the required IPO reporting documents. Once the results and company figures were agreed with the auditors involved in the process, CFPro was able to deliver an accurate, detailed set of IFRS accounts which is a mandatory requirement for the company to list.
Velocity Composites listed successfully in May 2017 and since that time, have continued to see business growth.