Bristol Electric ‘flying taxi’ firm gets £39m cash lifeline

A new electric aircraft manufacturer has announced a major new investment, ensuring its survival.

Bristol-based Vertical Aerospace is testing a so-called electric flying taxi that can carry four passengers up to 100 miles (161 km).

The firm has been struggling financially, but has secured a $50m (£39m) investment from US investor Mudric Capital.

Vertical’s chief executive Stuart Simpson called it “a really exciting, important day for the company”.

Vertical is a company that is trying to develop an all-electric vertical take-off aircraft, or eVTOL, around the world.

The aim is to create an aircraft that is as simple as a helicopter but is cheaper to operate and does not emit carbon and contribute to climate change.

Vertical was founded in 2016 by British businessman Stephen Fitzpatrick, who also founded energy firm Ovo.

Mr Fitzpatrick claims the company’s VX4 aircraft will be “100 times safer and quieter” than a helicopter, at a fifth of the cost.

Earlier this month the firm’s engineers achieved a new milestone at Cotswold Airport in Gloucestershire.

For the first time, they flew the aircraft “untethered” to the ground without a safety line.

This marks the next stage of their testing programme, which is overseen by the Civil Aviation Authority.

Mr Simpson said: “We are one of only two flying taxis in the world with a tilt rotor to do this, and we are doing it in the south west of England.

“This is an extraordinary achievement.”

Delivering zero-emission flights is a holy grail for the aerospace industry.

Airbus, GKN and other major aircraft manufacturers are experimenting with hydrogen-powered aircraft.

Another small startup company is testing. Hydrogen fuel cells On a small propeller-driven aircraft.

A vertical take-off aircraft requires some very sophisticated engineering.

Eight small rotors mounted on small wings initially lift the aircraft off the tarmac like a helicopter.

They then bend to propel the vehicle forward, offering greater stability and greater engineering risk.

But finance is more difficult than physics.

Persuading investors to dig deep enough for the company to undergo prolonged scrutiny and regulation has proven difficult.

Many firms Already connected.

Mr Simpson believes a $50m (£39) injection from Jason Mudrick will keep the vertical running until the end of 2025.

Vertical had raised £260 million in debt and half of that debt has been converted into equity under the new deal, which is owned by distressed debt investor Mudric Capital.

This means Jason Mudrick will now own 70% of Vertical’s shares, replacing founder Stephen Fitzpatrick, who is left with the remaining 20%.

Mr Fitzpatrick will remain on the board, providing “strategic direction”.

Mudrick Capital has already been involved for three years, and both sides denied talk of a takeover.

Mr Madrick said: “This agreement underscores Vertical Aerospace’s position in the EVTOL sector and our appreciation of a team that has demonstrated its ability to deliver key solutions for the future of sustainable aviation. demonstrated.”

Mr Fitzpatrick said: “The additional equity and strong balance sheet will enable us to fund the next phase of our development program and deliver on our mission to deliver this amazing electric aircraft to the skies.”

The company has already sold the first 1,500 aircraft to blue-chip aerospace firms and plans to achieve full CAA certification by 2028 – allowing its aircraft to fly.