Vertical Aerospace Announces First Half-Year
2024 Financial Results
Vertical Issues Shareholder Letter
London, UK & New York, USA | 17 September 2024
Vertical Aerospace Ltd. (“Vertical” or the “Company”) (NYSE: EVTL; EVTLW), a global aerospace and technology
company that is pioneering zero emission aviation, announces its financial results for the first half of the year
ended June 30, 2024. Vertical has also issued a shareholder letter in conjunction with the filing of its firsthalf-year results, which is posted to its investor relations website at investor.vertical-aerospace.com.
Stuart Simpson, CEO at Vertical, said:“During the past few months we have delivered our most advanced full-scale VX4 prototype, have gonefrom first powered ground test to ‘wheels up’ in just one week and completed the first phase of our piloted
test flight programme. Every day I continue to be deeply impressed by the phenomenal engineers we haveand the progress we are making here in Bristol as we build a new generation of aviation. This could not be amore exciting time to follow Vertical as we accelerate through our piloted flight tests and work closely with
the UK Civil Aviation Authority, our home regulator, on the path to certification.”First Half-Year 2024 and Recent Operational Updates• Flight tests of new VX4 prototype: Vertical unveiled its next full-scale VX4 prototype in July and began
piloted flight tests days later, following the UK Civil Aviation Authority (CAA) issuing a Permit to Fly. This
more advanced aircraft has 60% of its technology from tier-one aerospace partners, up from 10% on theprevious prototype, marking a significant step towards the final certification aircraft. This is also the first useof Vertical’s proprietary batteries, designed and developed at the Vertical Energy Centre, in a piloted aircraft.
Vertical’s new proprietary propellers designed specifically for eVTOLs are optimised for low noise and madeof carbon fibre composite using a single-shot cure process to maximise integrity.

Press Release 17 September 2024

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The VX4 recently completed Phase 1 of the piloted test flight programme. During Phase 1, the VX4
prototype conducted multiple piloted tethered flights and ground runs, across 20 piloted test sorties,
completing a total of 70 individual test points, measuring 35,000 flight and system parameters. Vertical is
now preparing to progress to piloted untethered thrustborne testing, as soon as it receives permission
from the CAA. The flight tests have already shown the aircraft’s incredible stability – particularly inground effect, typically one of the most challenging flight conditions.
• Certification Progress: The CAA expanded the scope of Vertical’s Design Organisation Approval (DOA),
which is a requirement for the Type Certification of the VX4 and its entry into service. At the same time,
there has been strong regulatory collaboration, with the European Union Aviation Safety Agency (EASA)
and the CAA agreeing how they will work together on the certification of the VX4.
• Go To Market: At the Farnborough International Airshow, the team met existing and prospective
customers, investors, suppliers, regulators and government agencies, who were able to explore the newprototype using a unique Apple Vision Pro experience. Vertical also brought its customers together inLondon for their Pioneers event in Q2 to bring them up to speed on the latest developments and hear
their feedback.
In August, the UK Ministry of Defence (MOD) accepted Vertical’s application to join their Uncrewed
Air Systems Heavy Lift Challenge framework. The aim of this £95m framework is to define capabilities
and test solutions for the Royal Navy for non-weaponised cargo drone operations, with a special
focus on ship-to-shore and ship-to-ship missions. Acceptance onto this framework means Vertical
can participate in tenders issued by the Royal Navy, facilitating Vertical’s access to R&D funding,development support and in particular, the collaboration across the Uncrewed Air System communitythat membership of Defence Equipment & Support’s Heavy Lift Capability Framework provides.
• Our People: Vertical continues to attract world-class aerospace professionals, including, Martyn Ashford,
Head of Aircraft Programmes Development from Leonardo. It also appointed Ben Story to the Boardof Directors as an independent non-executive director and Charlotte Cowley as Director of Strategic
Finance responsible for executing Vertical’s fundraising strategy. Ben was formerly Strategic Marketing
Director at FTSE 100 Rolls-Royce plc and, before that, Managing Director at Citi. Charlotte has previously
led Investor Relations for the FTSE100 Burberry Group plc, and FTSE250 Aston Martin Lagonda plc, whereshe supported successful capital raises. In May 2024, Stuart Simpson, formerly Vertical’s CFO and aseasoned FTSE100 executive, was appointed as CEO to lead the company through the pivotal phase ofcertifying and commercializing its VX4 aircraft. Stephen Fitzpatrick, founder, majority shareholder andformer CEO of Vertical, remains on Vertical’s board of directors as a non-executive director, focusing on
business strategy and the delivery of the company’s vision.
In September 2024, Vincent Casey was appointed to rejoin the Vertical Board as a Non-Executive Director,having previously served as a member of the board of directors from May 2021 to August 2023 and as
Vertical’s Chief Financial Officer from November 2020 to February 2023. Vincent is currently the Chief
Financial Officer at Ovo Energy, a leading energy supply group that includes one of Europe’s largest
independent energy retailers, a company he joined in 2013.

Press Release 17 September 20242

First Half-Year 2024 and Recent Financial Updates• Vertical maintained its industry-leading capital efficiency with an H1 2024 operating loss of £20 million($25 million). The operating loss for the period primarily reflects the spend to successfully complete
Vertical’s second full-scale prototype aircraft.
• In May 2024, Vertical mutually agreed to exit Rolls-Royce’s contract to design an Electric Propulsion Unit
(EPU). Under the agreement, Vertical received $34 million from Rolls-Royce which is expected to cover
the anticipated costs of an alternative EPU design contract and provided an extension to the cash runway.
This followed Rolls-Royce’s announcement in November 2023 of its intention to seek a partner or buyer
for its advanced air mobility activities. Vertical is already working with other EPU suppliers and does not
anticipate this having any impact on the completion of their prototypes.
• Over the half, Vertical was awarded an £8 million ($10 million) UK Government grant from the Aerospace
Technology Institute (ATI) for its next-generation propeller development. Vertical also received a cash
amount of $25 million from Imagination Aero Investments Ltd., a company owned by Vertical founder,Stephen Fitzpatrick, in connection with an investment agreement dated February 22, 2024 (the “InvestmentAgreement”). Vertical is in discussion with regards to the second $25 million tranche of the investmentcommitted under the Investment Agreement.
Financial Outlook• As of June 30, 2024, Vertical had cash and cash equivalents of £67m / $84m.
• The 2024 capital plan continues to remain on track, with net cash outflows from operations in the second
half of the year expected to be between £40m to £45m.
• Net cash outflows incurred in the second half of the year will be in relation to the advancement ofVertical’s piloted flight test programme.
• As of the date of this report, Vertical had approximately £48m / $63m of cash and cash equivalents on hand.
• As previously announced, Vertical will need to raise capital to fund its future operations and remain
as a going concern. Vertical intends to do so and are in discussions regarding potential third party
investment. The timely receipt of an amount equal or equivalent to the second tranche committed underthe Investment Agreement is required to extend its projected cash runway into the third quarter of 2025
(from the second quarter of 2025).
• On September 16, 2024, following the requisite shareholder approvals at Vertical’s Annual General
Meeting earlier on the same day, Vertical’s Board of Directors authorised the implementation of a reverse
share split at a ratio of 1 for 10, with an effective date of September 20, 2024.
The above forward-looking statements reflect our expectations for the six months ending June 30, 2024,
as of September 17, 2024, and are subject to substantial uncertainty. Our results are based on assumptions
that we believe to be reasonable as of this date, but may be materially affected by many factors, asdiscussed below in “Forward-Looking Statements.”

Press Release 17 September 2024

3About Vertical Aerospace
Vertical Aerospace is a global aerospace and technology company pioneering electric aviation. Vertical is creatinga safer, cleaner and quieter way to travel. Vertical’s VX4 is a piloted, four passenger, Electric Vertical Take-Off andLanding (eVTOL) aircraft, with zero operating emissions. Vertical combines partnering with leading aerospacecompanies, including GKN, Honeywell and Leonardo, with developing its own proprietary battery and propeller
technology to create the world’s most advanced and safest eVTOL.
Vertical has 1,500 pre-orders of the VX4 worth $6bn, with customers across four continents, including Virgin
Atlantic, American Airlines, Japan Airlines, GOL and Bristow. Headquartered in Bristol, the epicentre of the UK’s
aerospace industry, Vertical was founded in 2016 by Stephen Fitzpatrick, founder of the OVO Group, Europe’s
largest independent energy retailer.
Vertical’s experienced leadership team comes from top tier automotive and aerospace companies such asRolls-Royce, Airbus, GM and Leonardo. Together they have previously certified and supported over 30 different
civil and military aircraft and propulsion systems.
For more information:
Justin Bates, Head of Communications

Samuel Emden, Head of Investor Affairs

justin.bates@vertical-aerospace.com

samuel.emden@vertical-aerospace.com+44 7878 357 463+44 7816 459 904

Vertical Media Kit
Available here

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Unaudited Condensed Consolidated Interim Statements of Income and Comprehensive Income

H1’2024

H1’2023

£ 000

£ 000

Research and development expenses(31,951)(27,500)

Administrative expenses(20,710)(24,266)

(42)

(42)

32,763

2,861

Operating loss

(19,940)(48,947)

Finance income

7,397

32,333Finance cost

(11,026)(8,140)Net finance income/(costs)(3,629)24,193

Loss before tax(23,569)(24,754)

6,448

12,984(17,121)(11,770)

Foreign exchange translation differences

1,162(6,922)

Total comprehensive loss for the period(15,959)(18,692)

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Related party administrative expenses
Other operating income

Income tax expense
Net loss for the periodUnaudited Condensed Consolidated Interim Statement of Cashflows

H1’2024

H1’2023£ 000£ 000(17,121)(11,770)

1,094

990

Cash flows from operating activities
Net loss for the period
Adjustments to cash flows from non-cash items:
Depreciation and amortization
Depreciation on right of use assets

326

327

Finance costs/(income)

3,629(24,193)

Share based payment transactions

4,785

7,056

(6,448)(12,984)(803)-(14,538)(40,574)

Income tax credit
Non-cash gain (settled in treasury shares)

Working capital adjustments:(Decrease)/increase in trade and other receivables(3,035)802

84(4,603)

Income taxes received

15,838

11,319Net cash outflow from operating activities(1,651)(33,056)

Decrease in financial assets at amortized cost-

59,886

Acquisitions of property plant and equipment(391)(1,304)-(73)

Interest income on deposits

1,168

2,337

Net cash inflow from operating activities

777

60,846

Increase/(decrease) in trade and other payables

Cash flows from investing activities

Acquisition of intangible assets

Cash flows from financing activities
Proceeds from issues of shares-180

Proceeds from issue of shares to related party

15,629-Proceeds from issue of warrants to related party

3,907

-

Payments to lease creditors

(396)

(349)

Net cash (outflow) from financing activities

19,140(169)

Net increase/(decrease) in cash at bank

18,266

27,621

Cash at bank as at January 1

48,68062,927

(160)

(855)

66,786

89,693Press Release 17 September 2024

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Effect of foreign exchange rate changes
Cash at bank as at June 30

Unaudited Condensed Consolidated Interim Statement of Financial Position

H1’2024

H1’2023£ 000£ 000AssetsNon-current assets
Property, plant and equipment

3,653

3,821

Right of use assets

2,128

2,453

Intangible assets

481

1,018

6,262

7,292

20,05826,413

1,700

1,700

66,786

48,68088,544

76,793

94,80684,085

Share capital

1717

Other reserve

97,25486,757

Treasury share reserve(803)-Current assets
Trade and other receivables
Restricted cash
Cash and cash equivalents

Total assets
EquityShare premium

273,824

257,704

Accumulated deficit(412,373)(394,257)

Total equity(42,081)(49,779)

Lease liabilities

1,7481,977

Provisions

327

256

Derivative financial liabilities

112,770

109,291

Trade and other payables

3,955

3,922

118,800

115,446

558

643

Non-current liabilities

Current liabilities
Lease liabilities
Warrant liabilities

610

907

16,91916,86818,087

18,418

Total liabilities

136,887

133,864

Total equity and liabilities

94,80684,085Trade and other payables

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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 that relate to our current expectations and views of future events. We
intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking
statements as contained in Section 27A of the Securities Act and Section 21E of the Exchange Act. Any
express or implied statements contained in this press release that are not statements of historical fact may
be deemed to be forward-looking statements, including, without limitation, statements regarding the design
and manufacture of the VX4, our future results of operations and financial position and expected financial
performance and operational performance, liquidity, growth and profitability strategies, business strategy
and plans and objectives of management for future operations, including the building and testing of ourprototype aircrafts on timelines projected, selection of suppliers, certification and the commercialization of
the VX4 and our ability to achieve regulatory certification of our aircraft product on any particular timeline
or at all, our ability and plans to raise additional capital to fund our operations, including as a result of any
ongoing or future discussions with potential investors, statements regarding receipt of the committed
funding from Company’s founder and majority owner, our plans to mitigate the risk that we are unable tocontinue as a going concern, our plans for capital expenditures, the expectations surrounding pre-orders
and commitments, the features and capabilities of the VX4, the transition towards a net-zero emissions
economy, as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,”“forecast,” “estimate,” “may,” “should,” “anticipate,” “will,” “aim,” “potential,” “continue,” “are likely to” andsimilar statements of a future or forward-looking nature. Forward-looking statements are neither promises
nor guarantees, but involve known and unknown risks and uncertainties that could cause actual results todiffer materially from those projected, including, without limitation: our limited operating history without
manufactured non-prototype aircraft or completed eVTOL aircraft customer order; our potential inability
to raise additional funds when we need or want them, or at all, to fund our operations; our limited cash andcash equivalents and recurring losses from our operations raise significant doubt (or raise substantial doubt
as contemplated by PCAOB standards) regarding our ability to continue as a going concern; our potential
inability to produce or launch aircraft in the volumes or timelines projected; the potential inability to obtainthe necessary certifications for production and operation within any projected timeline, or at all; the inability
for our aircraft to perform at the level we expect and may have potential defects; our history of losses andthe expectation to incur significant expenses and continuing losses for the foreseeable future; the market
for eVTOL aircraft being in a relatively early stage; any accidents or incidents involving eVTOL aircraft could
harm our business; our dependence on partners and suppliers for the components in our aircraft and for
operational needs; the potential that certain strategic partnerships may not materialize into long-term
partnership arrangements; all of the pre-orders received are conditional and may be terminated at any timeand any pre-delivery payments may be fully refundable upon certain specified dates; any circumstances; any
potential failure to effectively manage our growth; our inability to recruit and retain senior management andother highly skilled personnel; we have previously identified material weaknesses in our internal controls overfinancial reporting which if we fail to properly remediate, could adversely affect our results of operations,investor confidence in us and the market price of our ordinary shares; as a foreign private issuer we follow
certain home country corporate governance rules, are not subject to U.S. proxy rules and are subject toExchange Act reporting obligations that, to some extent, are more lenient and less frequent than thoseof a U.S. domestic public company; and the other important factors discussed under the caption “RiskFactors” in our Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”)
on March 14, 2024, as such factors may be updated from time to time in our other filings with the SEC. Any
forward-looking statements contained in this press release speak only as of the date hereof and accordingly
undue reliance should not be placed on such statements. We disclaim any obligation or undertaking toupdate or revise any forward-looking statements contained in this press release, whether as a result of new
information, future events or otherwise, other than to the extent required by applicable law.

Press Release 17 September 20248