Vertical Aerospace (EVTL) 6-K 3 Aug 23 2023 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2023
Entity Addresses [Line Items]
Entity Registrant Name	Vertical Aerospace Ltd.
Entity Central Index Key	0001867102
Document Type	6-K
Document Period End Date	Jun. 30, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Interim Statements of Income and Comprehensive Income - GBP (£) £ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Unaudited Condensed Consolidated Interim Statements of Income and Comprehensive Income
Research and development expenses	£ (27,500)	£ (19,396)
Administrative expenses	(24,266)	(23,466)
Related party administrative expenses	(42)
Other operating income	15,845	3,407
Operating loss	(35,963)	(39,455)
Finance income	32,333	42,497
Finance costs	(8,140)	(20,063)
Total net finance income	24,193	22,434
Loss before tax	(11,770)	(17,021)
Net loss for the period	(11,770)	(17,021)
Translation differences	(6,922)	9,482
Total comprehensive loss for the period	£ (18,692)	£ (7,539)
Basic loss per share	£ (0.06)	£ (0.10)
Diluted loss per share	£ (0.06)	£ (0.10)

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Interim Statements of Financial Position - GBP (£)	Jun. 30, 2023	Dec. 31, 2022
Non-current assets
Property, plant and equipment	£ 3,336,000	£ 2,690,000
Right of use assets	2,784,000	3,121,000
Intangible assets	1,529,000	2,048,000
Non-current assets	7,649,000	7,859,000
Current assets
Trade and other receivables	19,727,000	18,864,000
Financial assets at amortized cost		59,886,000
Restricted cash	1,700,000	1,700,000
Cash and cash equivalents	89,693,000	62,927,000
Current assets	111,120,000	143,377,000
Total assets	118,769,000	151,236,000
Equity
Share capital	16,517	15,952
Other reserves	91,168,000	94,857,000
Share premium	257,838,000	257,197,000
Accumulated deficit	(352,648,000)	(344,752,000)
Total equity	(3,625,000)	7,318,000
Non-current liabilities
Lease liabilities	2,259,000	2,645,000
Provisions	317,000	365,000
Derivative financial liabilities	100,834,000	115,247,000
Trade and other payables	3,933,000	4,153,000
Non-current liabilities	107,343,000	122,410,000
Current liabilities
Lease liabilities	676,000	516,000
Warrant liabilities	2,727,000	4,961,000
Trade and other payables	11,648,000	16,031,000
Current liabilities	15,051,000	21,508,000
Total liabilities	122,394,000	143,918,000
Total equity and liabilities	£ 118,769,000	£ 151,236,000

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Interim Statements of Cash Flows - GBP (£) £ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities
Net loss for the period	£ (11,770)	£ (17,021)
Adjustments to cash flows from non-cash items
Depreciation and amortization	990	832
Depreciation on right of use assets	327	189
Finance (income)/costs	(24,193)	(22,434)
Share based payment transactions	7,056	7,294
Before working capital adjustments	(27,590)	(31,140)
Increase in trade and other receivables	(863)	(1,499)
Decrease in trade and other payables	(4,603)	(30,442)
Net cash (outflow) from operating activities	(33,056)	(63,081)
Cash flows from investing activities
Decrease in financial assets at amortized cost	59,886
Acquisitions of property plant and equipment	(1,304)	(167)
Acquisition of intangible assets	(73)	(393)
Interest income on deposits	2,337
Net cash inflow/(outflow) from investing activities	60,846	(560)
Cash flows from financing activities
Proceeds from issue of shares	180
Payments to lease creditors	(349)	(235)
Net cash (outflow) from financing activities	(169)	(235)
Net increase/(decrease) in cash at bank	27,621	(63,876)
Cash at bank, beginning of the period	62,927	212,660
Effect of foreign exchange rate changes	(855)	8,768
Cash at bank, end of the period	£ 89,693	£ 157,552

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Interim Statements of Changes in Equity - GBP (£) £ in Thousands	Share capital	Share premium.	Other reserves	Accumulated deficit	Total
Equity at beginning of period at Dec. 31, 2021	£ 16	£ 248,354	£ 63,314	£ (250,123)	£ 61,561
Loss for the period				(17,021)	(17,021)
Translation differences			9,482		9,482
Total comprehensive loss			9,482	(17,021)	(7,539)
Share based payment transactions		749	6,465	80	7,294
Reclassification of warrants			1,010		1,010
Equity at end of period at Jun. 30, 2022	16	249,103	80,271	(267,064)	62,326
Equity at beginning of period at Dec. 31, 2022	16	257,197	94,857	(344,752)	7,318
Loss for the period				(11,770)	(11,770)
Translation differences			(6,922)		(6,922)
Total comprehensive loss			(6,922)	(11,770)	(18,692)
Share based payment transactions			7,107		7,107
Exercise of Share Options	1	641			642
Transfer of reserves			(3,874)	3,874
Equity at end of period at Jun. 30, 2023	£ 17	£ 257,838	£ 91,168	£ (352,648)	£ (3,625)

General information

General information	6 Months Ended
	Jun. 30, 2023
General information
General information	1 General information Vertical Aerospace Ltd (the “Company”, or the “Group” if together with its subsidiaries) is incorporated under the Companies Law (as amended) of the Cayman Islands. The address of its principal executive office is: Unit 1 Camwal Court, Bristol, United Kingdom. The Company’s shares are listed on the New York Stock Exchange. The ultimate controlling party is Stephen Fitzpatrick. These financial statements are presented in pounds sterling and all values are rounded to the nearest thousand (£’000) except when otherwise indicated. These financial statements were approved by the board of directors on July 27, 2023. Principal activities The principal activity of the Company and its wholly owned subsidiary, Vertical Aerospace Group Ltd (“VAGL”), is the development and commercialization of vertical take-off and landing electrically powered aircraft (“eVTOL”). The Group’s main operations are in the United Kingdom.

Significant accounting policies

Significant accounting policies	6 Months Ended
	Jun. 30, 2023
Significant accounting policies
Significant accounting policies	2 Basis of preparation This unaudited condensed consolidated interim financial report for the half-year reporting period ended 30 June 2022 has been prepared in accordance with International Financial Reporting Standards (IFRS) applicable to the preparation of interim financial statements, IAS 34 Interim Financial Reporting. The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2022. The accounting policies adopted are consistent with those of the previous financial year. The unaudited condensed consolidated interim financial report has been prepared on a historical cost basis, as modified by the revaluation of certain financial assets and liabilities (including derivative financial instruments) which are recognized at fair value through profit and loss. Items included in the unaudited condensed consolidated interim financial report are measured using the currency of the primary economic environment in which the entity and its subsidiaries operate (‘the functional currency’). The financial information is presented in pounds sterling (‘£’ or ‘GBP’), which is the Group’s functional and presentation currency, and all amounts are presented in and rounded to the nearest thousand unless otherwise indicated. ​ 2 Significant accounting policies (continued) Basis of consolidation Vertical Aerospace Ltd is the parent of the Group. Details of the material subsidiaries are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Name of subsidiary Principal activity Registered office Proportion of ownership interest and voting rights held 2023 2022 ​ Vertical Aerospace Group Limited (“VAGL”) ​ Development and commercialisation of eVTOL technologies. ​ Unit 1, Camwal Court, Bristol, United Kingdom BS2 0UW ​ 100 % 100 % ​ All intercompany balances and transactions have been eliminated in consolidation. Significant accounting policies and key accounting estimates The accounting policies adopted are consistent with those of the previous financial year, with the exception of newly adopted policies as discussed below. Revision to comparative period for correction of immaterial error In connection with the preparation of the Group's condensed consolidated financial information for the six months period ended June 30, 2023, an error was identified in relation to the classification of foreign exchange rate changes in the statement of cash flows presented in the condensed consolidated financial information for the six months period ended June 30, 2022. An item of £4.6 million was incorrectly reported in the condensed consolidated statement of cash flows within adjustments to cash flows from non-cash items under Cash flows from operating activities instead of presenting it as effect of foreign exchange rate changes to reconcile the net increase or decrease in cash balances during the period. The correction of this matter will result in an increase in net cash flows used in operating activities of £4.6 million and an increase in effect of foreign exchange rate changes by £4.6 million. The revision has no impact on the condensed consolidated statement of financial position, statement of income and comprehensive income and statement of changes in equity. The Group has evaluated these amounts and has concluded that they should be corrected by revising the previously reported financial information when such amounts are presented for comparative purposes for the six months period ended June 30, 2023. Going concern Management has prepared a cashflow forecast for the Group and has considered the ability for the Group to continue as a going concern for the foreseeable future, being at least 12 months after approving this financial information. The Group is currently in the research and development phase of its journey to commercialize eVTOL technology. Commensurate with being in the development phase, the Group has invested heavily in research to support the development of its aircraft. The Group is not currently generating revenue and has incurred net losses and net cash outflows from operating activities since inception. As of June 30, 2023, the Group had £ 89.7 million of cash and cash equivalents held by the Company. Within the next 12 months following the date of this report, management expects the funding requirements to be approximately £80 million, which will be used primarily to fund the creation and testing of prototype aircraft. ​ 2 Significant accounting policies (continued) The Group will need to raise additional capital to fund its future operations and remain as a going concern, before the Group uses all of its existing resources. There can be no assurance that the Group will be able to obtain additional funding on acceptable terms and thus have sufficient funds to meet Group’s funding requirements. As a result, the timely completion of financing is important for the Group’s ability to continue as a going concern. The dependency on raising additional capital indicates that a material uncertainty exists that may cast significant doubt (or raise substantial doubt as contemplated by PCAOB standards) on the Group’s ability to continue as a going concern and therefore the Group may be unable to realise the assets and discharge the liabilities in the normal course of business. The consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the continuity of operations, realisation of assets and the satisfaction of liabilities in the ordinary course of business and do not include any adjustments that would result if the Group were unable to continue as a going concern. Changes in accounting policy A number of amended standards became applicable for the current reporting period. The group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards: 1. 2. 3. 4.

Critical accounting judgements

Critical accounting judgements and key sources of estimation uncertainty	6 Months Ended
	Jun. 30, 2023
Critical accounting judgements and key sources of estimation uncertainty
Critical accounting judgements and key sources of estimation uncertainty	3 The preparation of the unaudited condensed consolidated interim financial information in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial information and the reported amounts of expenses during the reporting period. The Company’s most significant estimates and judgments involve valuation of the Company’s stock-based compensation or consideration, including the fair value of common stock and market-based restricted stock units, in addition to the fair valuation of derivative liabilities. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Such estimates often require the selection of appropriate valuation methodologies and models and may involve significant judgment in evaluating ranges of assumptions and financial inputs. Actual results may differ from those estimates under different assumptions, financial inputs, or circumstances. In preparing these unaudited condensed consolidated interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation were the same as those that applied to the consolidated financial statements as at and for the year ended 31 December 2022.

Other operating income

Other operating income	6 Months Ended
	Jun. 30, 2023
Other operating income
Other operating income	4 The analysis of the Group’s other operating income for the period is as follows: ​ ​ ​ ​ ​ ​ ​ 6 months ended 6 months ended ​ ​ June 30, ​ June 30, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Government grants 1,874 1,214 R&D tax relief 13,971 2,193 ​ 15,845 3,407 ​ Government grants The group receives government grants relating to specific research and development activities relating to eVTOL technologies and is recognised in the period to which the expense it is intended to fund relates. The grant is made to fund research and development expenditure and is recognised in profit or loss in the period to which the expense it is intended to fund relates. R&D tax relief The R&D tax relief relates to the research and development tax reliefs provided by the UK Government in support of UK companies working on innovative projects in science and technology.

Expenses by nature

Expenses by nature	6 Months Ended
	Jun. 30, 2023
Expenses by nature
Expenses by nature	5 Included within administrative expenses, research and development expenses and related party administrative expenses are the following expenses. ​ ​ ​ ​ ​ ​ ​ 6 months ended 6 months ended ​ ​ June 30, ​ June 30, ​ 2023 2022 ​ ​ £ 000 ​ £ 000 Research and development staff costs (excluding share-based payment expenses) ​ 11,882 ​ 6,689 Research and development consultancy ​ 7,449 ​ 7,936 Research and development components, parts and tooling 8,169 4,771 Total Research and Development expenses ​ 27,500 ​ 19,396 Administrative staff costs (excluding share-based payment expenses) ​ 5,547 ​ 5,736 Share based payment expenses ​ 7,056 ​ 7,294 Consultancy costs 1,340 990 Legal and financial advisory costs 1,125 1,476 IT hardware and Software costs 3,085 1,665 Related party administrative expenses 42 — Insurance and premises expenses 1,913 2,119 Other administrative expenses 2,883 3,157 Expense on short term leases — 8 Depreciation expense 412 260 Amortisation expense 578 572 Depreciation on right of use property assets ​ 327 ​ 189 Total administrative expenses ​ 24,308 ​ 23,466 Total administrative and research and development expenses 51,808 42,862 ​ 5 Expenses by nature (continued) ​ Staff costs excluding share-based payment expenses relates primarily to salary and salary related expenses, including social security and pension contributions.

Finance income

Finance income	6 Months Ended
	Jun. 30, 2023
Finance Income.
Finance income	6 ​ ​ ​ ​ ​ ​ ​ 6 months ended 6 months ended ​ ​ June 30, ​ June 30, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 In-kind interest on convertible loan notes (7,964) (7,005) Foreign exchange loss — (12,981) Interest expense on leases (109) (67) Other (67) (10) Total finance costs (8,140) (20,063) ​ ​ ​ ​ ​ Interest income on deposits ​ 1,704 ​ — Foreign exchange gain ​ 12,089 ​ — Fair value movements on convertible loan notes (note 13) ​ 16,510 ​ 38,124 Fair value movements on warrant liabilities (note 11) ​ 2,030 ​ 4,373 Total finance income ​ 32,333 ​ 42,497 ​ ​ ​ ​ ​ Total net finance income 24,193 22,434 ​

Loss per share

Loss per share	6 Months Ended
	Jun. 30, 2023
Loss per share
Loss per share	7 Basic earnings per share, in this case a loss per share, is calculated by dividing the loss for the period attributable to ordinary equity holders of the parent by the number of ordinary shares outstanding. Because a net loss for all period presented has been reported, diluted loss per share is the same as basic loss per share. Therefore, all potentially dilutive common stock equivalents are antidilutive and have been excluded from the calculation of net loss per share. The calculation of loss per share is based on the following data: ​ ​ ​ ​ ​ ​ ​ 6 months ended 6 months ended ​ ​ June 30, ​ June 30, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Net loss for the period (11,770) (17,021) ​ £ ​ £ Basic and diluted loss per share (0.06) (0.10) ​ No. of shares No. of shares Weighted average issued shares 185,639,462 178,329,218 ​

Trade and other receivables

Trade and other receivables	6 Months Ended
	Jun. 30, 2023
Trade and other receivables
Trade and other receivables	8 ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Government receivables 10,247 10,905 Prepayments 7,669 7,169 Other receivables 1,811 790 ​ 19,727 18,864 ​ Included within Government receivables is £6,422 thousand for the R&D tax credit receivable (December 31, 2022: £7,212 thousand).

Share capital and reserves

Share capital and reserves	6 Months Ended
	Jun. 30, 2023
Share capital and reserves
Share capital and reserves	9 Allotted, called up and fully paid shares ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2023 ​ 2022 ​ No. £ No. £ Ordinary of $0.0001 each 221,211,021 16,517 214,211,021 15,952 ​ 221,211,021 16,517 214,211,021 15,952 ​ Ordinary shares have full voting rights, full dividend rights. The Company is authorised to issue 500,000,000 ordinary shares. Other reserves During the period other reserves increased by £7,107 thousand as a result of share based payment transactions and decreased by £3,874 thousand following exercise of options and other awards to staff. Other reserves also decreased by £6,922 thousand reflecting cumulative translation differences. Nature and purpose of other reserves The share-based payments reserve is used to recognise the grant date fair value of options issued to employees but not exercised. The translation reserve arises as a result of the retranslation of overseas subsidiaries in consolidated financial statements. The warrant reserve is used to recognise the fair value of warrants issued in exchange for a fixed amount of cash or another financial asset for a fixed number of the Company’s ordinary shares (‘fixed-for-fixed condition’). Share Premium On May 3, 2023 a total of 7,000,000 shares were issued, including 6,989,140 shares issued on exercise of options and other awards to staff. Resulting proceeds due totalled of £641 thousand, of which £464 thousand remained unpaid as at June 30, 2023.

Trade and other payables

Trade and other payables	6 Months Ended
	Jun. 30, 2023
Trade and other payables
Trade and other payables	10 Amounts falling due within one year: ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Trade payables 4,645 4,454 Accrued expenses 5,325 10,500 Social security and other taxes 1,399 857 Outstanding defined contribution pension costs 279 220 ​ 11,648 16,031 ​ Amounts falling due after more than one year: ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Deferred fees and charges 3,933 4,153 ​ The Group’s exposure to market and liquidity risks, including maturity analysis, related to trade and other payables is disclosed in note 15 Financial risk management and impairment of financial assets.

Warrant Liability

Warrant Liability	6 Months Ended
	Jun. 30, 2023
Warrant Liability
Warrant Liability	11 The following warrants are in issue but not exercised: ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ Number ​ Number Public Warrants 15,264,935 15,264,935 Mudrick Warrants 4,000,000 4,000,000 Outstanding, end of period 19,264,935 19,264,935 ​ Recorded as a liability, the following shows the change in fair value during the period ended June 30, 2023: ​ ​ ​ ​ £ 000 December 31, 2022 4,961 Change in fair value (2,030) Exchange differences on translation ​ (204) June 30, 2023 2,727 ​ Each public warrant entitles the registered holder to purchase one share of common stock at a price of $11.50 per share. Once the public warrants become exercisable, the Company may redeem the public warrants at a price of $0.01 per public warrant if the closing price of the common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period. The public warrants expire on December 15, 2026 or earlier upon redemption or liquidation.

Share-based payments

Share-based payments	6 Months Ended
	Jun. 30, 2023
Share-based payments
Share-based payments	12 The Group has established two employee option plans. The EMI Scheme was closed to employees during 2021, and the 2021 Incentive Plan was implemented in 2022. For more information about the option plans, please refer to the Group’s annual financial statements for the year ended December 31, 2022. The total expense recognised by the company during the year in respect of these plans is shown below: ​ ​ ​ ​ ​ ​ ​ June 30, 2023 June 30, 2022 ​ ​ £’000 ​ £’000 EMI Scheme 487 6,475 2021 Incentive plan 6,513 — Non-Executive Director awards 56 — Suppliers and partners — 819 Total Expense Recognised 7,056 7,294 ​ The summary of options granted under the plans were as follows: EMI Scheme ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ December 31, 2022 ​ ​ ​ ​ Average ​ ​ ​ Average ​ ​ ​ ​ exercise price ​ ​ ​ exercise price ​ ​ Number ​ (£) ​ Number ​ (£) Outstanding, start of period 21,011,084 ​ 0.19 ​ 19,670 308.06 Granted during the period — ​ — ​ — — Grant arising due to scheme modification — ​ — ​ 23,213,933 0.23 Exercised during the period ​ (6,642,385) ​ 0.09 ​ (645,571) ​ 0.17 Forfeited during the period (7,875) ​ 0.18 ​ (1,576,948) 0.83 Outstanding, end of period 14,360,824 ​ 0.24 ​ 21,011,084 0.19 ​ The number of options which were exercisable at June 30, 2023 was 12,463,199 (December 31, 2022: 11,317,247) with exercise prices ranging from £0.04 to £1.15. The expected average remaining vesting period has been determined 2.09 years (December 31, 2022: 2.59 years). 2021 Incentive Plan ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ December 31, 2022 ​ ​ ​ ​ Average ​ ​ ​ Average ​ ​ ​ ​ exercise price ​ ​ ​ exercise price ​ ​ Number ​ (£) ​ Number ​ (£) Outstanding, start of period 4,355,669 ​ 6.63 ​ — — Granted during the period 500,000 ​ — ​ 5,012,495 6.63 Grant arising due to scheme modification — ​ — ​ — — Exercised during the period ​ (346,755) ​ — ​ — ​ — Forfeited during the period (132,693) ​ 6.63 ​ (656,826) 6.63 Outstanding, end of period 4,376,221 ​ 6.63 ​ 4,355,669 6.63 ​ ​ 12 Share-based payments (continued) The number of options which were exercisable at June 30, 2023 was 1,993,248 (December 31, 2022: 1,073,560) with exercise prices ranging of £nil or £6.63. Options exercised during the period related solely to nil-cost options. The expected average remaining vesting period for nil cost options has been determined as 2.59 years and for CSOP options has been determined as 3.21 years. The average exercise price presented above relates to CSOP options only. All options granted during the year were immediately vesting nil cost options. In addition to the above, a total of 18,750 nil cost options were awarded to non-executive directors during the period. The fair value of all options granted during the period has been determined with reference to the share price at grant date.

Derivative financial liabilitie

Derivative financial liabilities	6 Months Ended
	Jun. 30, 2023
Derivative financial liabilities
Derivative financial liabilities	13 Convertible Senior Secured Notes consists of the following: ​ ​ ​ ​ ​ Mudrick ​ ​ £ 000 As at December 31, 2022 115,247 Fair value movements (16,510) In-kind interest paid 7,963 Exchange differences on translation (5,866) As at June 30, 2023 100,834 ​ On December 16, 2021 Mudrick Capital Management purchased Convertible Senior Secured Notes of an aggregate principal amount of £151,000 thousand ($200,000 thousand) for an aggregate purchase price of £145,000 thousand ($192,000 thousand). The Convertible Senior Secured Notes are initially convertible into up to 18,181,820 ordinary shares at an initial conversion rate of 90.9091 ordinary shares per £824 ($1,000). In accordance with IFRS 9, this is treated as a hybrid instrument and is designated it in entirety as fair value through profit or loss. The valuation methods and assumptions are shown in note 14. The Company has elected to pay interest in-kind at 9% per annum. Interest is paid semi-annually in arrears and on June 15, 2023 the Company authorised the payment of interest by increasing the nominal amount of the outstanding Convertible Senior Secured Notes by £7,963 thousand ($9,826 thousand). Several covenants exist including retention of $10 million cash. Accordingly, cash at bank includes £7,865 thousand retained for this purpose as at June 30, 2023.

Financial instruments

Financial instruments	6 Months Ended
	Jun. 30, 2023
Financial instruments
Financial instruments	14 To provide an indication about the reliability of the inputs used in determining fair value, the Company classifies its financial instruments into the three levels prescribed under the accounting standards. Financial liabilities at fair value through profit and loss: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ December 31, 2022 ​ ​ £000 ​ £000 ​ Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Convertible Senior Secured Notes — — 100,834 — — 115,247 Warrant liabilities 2,727 — — 4,961 — — ​ 2,727 — 100,834 4,961 — 115,247 ​ The fair value of financial instruments is deemed to be equivalent to the carrying value. Level 1: The fair value of financial instruments traded in active is based on quoted market prices at the end of the reporting period. As such, warrants issued but not exercised are valued with reference to the observable market price as at the period end date ($0.18 per warrant). Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for the issued Convertible Senior Secured Notes. The fair value of the convertible senior secured notes has been estimated using an option pricing model, in accordance with the International Valuation Standards definition of “market value”. The following inputs have been used: ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 December 31, 2022 Risk-free rate (%) 4.4 ​ 4.1 ​ Dividend yield (%) — ​ — ​ Volatility (%) 80.0 ​ 65.0 ​ Credit spread (%) 27.50 ​ 26.38 ​ ​ No changes were made during the period ended June 30, 2023 to the valuation techniques applied as at December 31, 2022. For more information about the convertible senior secured notes, please refer to the Group’s annual financial statements for the year ended December 31, 2022.

Financial risk management and i

Financial risk management and impairment of financial assets	6 Months Ended
	Jun. 30, 2023
Financial risk management and impairment of financial assets
Financial risk management and impairment of financial assets	15 The Group’s activities expose it to a variety of financial risks including market risk, credit risk, foreign exchange risk and liquidity risk. Credit risk Credit risk is the risk of financial loss to the Group if a counterparty to a financial instrument fails to meet its contractual obligations, arising principally from prepayments to suppliers and deposits with the Group’s bank. Also included in Cash at bank is £7,865 thousand deemed to be restricted as at June 30, 2023. ​ 15 The carrying amount of financial assets represents the maximum credit exposure. Therefore, the maximum exposure to credit risk at the balance sheet date was £1,811 thousand (December 31, 2022: £790 thousand) being the total of the carrying amount of financial assets, including contractual receivables but excluding R&D tax credits receivables and cash. The allowance account of trade receivables is used to record impairment losses unless the Group is satisfied that no recovery of the amount owing is possible; at that point the amounts considered irrecoverable are written off against the trade receivables directly. The Group provides for impairment losses based on estimated irrecoverable amounts determined by reference to specific circumstances and the experience of management of debtor default in the industry. On that basis, the loss allowance as at June 30, 2023 and December 31, 2022 was determined as £nil for trade receivables. Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s financial position. The Group’s principal exposure to market risk is exposure to foreign exchange rate fluctuations. There are currently no currency forwards, options, or swaps to hedge this exposure. Foreign exchange risk The Group is exposed to foreign exchange risk arising from exposure to various currencies in the ordinary course of business. The Group received funding in USD, and subsequently holds cash in both USD and GBP. The majority of the Group’s trading costs are in GBP. The Group also has supply contracts denominated in USD and EUR. The Group holds sufficient cash in both USD and GBP to satisfy its trading costs in each of these currencies. The Company may be exposed to material foreign exchange risk in subsequent period as a result of the significance of the USD denominated Convertible Senior Secured Notes in particular relative to USD cash deposits held (which were $24,963 thousand at June 30, 2023) and which are expected to decline as expenses are incurred until future funding is secured. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Group’s management uses short and long-term cash flow forecasts to manage liquidity risk. Forecasts are supplemented by sensitivity analysis which is used to assess funding adequacy for at least a 12-month period. The Company manages its cash resources to ensure it has sufficient funds to meet all expected demands as they fall due. ​ 15 Maturity analysis ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Between 2 and 5 After more than ​ ​ ​ Within 1 year ​ years ​ 5 years ​ Total 30 June 2023 ​ £ 000 ​ £ 000 ​ £ 000 ​ £ 000 Trade and other payables 11,648 3,933 — 15,581 Lease liabilities 676 1,604 655 2,935 Convertible senior secured notes — 100,834 — 100,834 ​ 12,324 106,371 655 119,350 ​ ​ ​ ​ ​ ​ ​ ​ ​ 31 December 2022 Trade and other payables 16,031 4,153 — 20,184 Lease liabilities 516 1,871 774 3,161 Convertible senior secured notes — 115,247 — 115,247 ​ 16,547 121,271 774 138,592 ​ Capital management The Group’s objective when managing capital is to ensure the Group continues as a going concern; and grows in a sustainable manner. Given the ongoing development of eVTOL aircraft with minimal revenues, the Group relies on funding raised from the Business Combination transaction and other equity investors. Cash flow forecasting is performed on a regular basis which includes rolling forecasts of the Group’s liquidity requirements to ensure that the Group has sufficient cash to meet operational needs.

Related party transactions

Related party transactions	6 Months Ended
	Jun. 30, 2023
Related party transactions
Related party transactions	16 Key management personnel compensation Key management personnel are the members of the Board. ​ ​ ​ ​ ​ ​ ​ June 30, June 30, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Salaries and other short term employee benefits 460 629 Payments to defined contribution pension schemes 7 8 Share-based payments 56 79 ​ 523 716 ​ Aggregate gains made on the exercise of share options for the Directors during the period totalled £8,156 thousand (June 30, 2022: £nil) Summary of transactions with other related parties During the period ending June 30, 2023 Imagination Industries Ltd, a company wholly and solely controlled by Stephen Fitzpatrick, charged the Group management fees of £42 thousand (2022: £nil) in relation to the provision of flexible desk and office space in London, of which £42 thousand was outstanding as at June 30, 2023 (2022: £nil). ​ 16 Related party transactions (continued) On April 21, 2023, the Board agreed to a succession plan, transitioning the chairperson of the Board during the course of 2023. Dómhnal Slattery has served as the Board’s chairperson since shortly following the Company’s listing on the New York Stock Exchange. As previously disclosed, in January 2022, the Company and Stephen Fitzpatrick entered into an option agreement with Mr. Slattery, pursuant to which Mr. Fitzpatrick granted Mr. Slattery an option to purchase up to an aggregate of 1,175,000 ordinary shares of the Company for an exercise price of $0.0001 per share. To date, Mr. Slattery has not exercised the Call Option. On April 21, 2023, Mr. Slattery, Mr. Fitzpatrick and the Company entered into an option termination agreement, pursuant to which the parties have agreed to terminate the Call Option in consideration for specified payments of up to an aggregate of $2.5 million to be paid by Mr. Fitzpatrick to Mr. Slattery, subject to certain conditions, including the Company raising additional funds during 2023, Mr. Slattery remaining in the role of chairperson through the Transition Date and the Company maintaining a minimum pre-order book. Following the termination of the Call Option, Mr. Fitzpatrick will continue to own the ordinary shares underlying the Call Option. A total of 18,750 immediately vesting nil cost options were granted to Non-Executive Directors during the period. Accordingly, share based payment charge of £55 thousand has been recognised (June 30, 2022: £nil) based on the prevailing share price on the date of issuance. During the period, Non-Executive Directors exercised a total of 5,613,287 options. On January 23, 2023, Michael Cervenka resigned from the Board of Directors.

Events occurring after the repo

Events occurring after the reporting period	6 Months Ended
	Jun. 30, 2023
Events occurring after the reporting period
Events occurring after the reporting period	17 Events occurring after the reporting period On August 2, 2023 Mr. Slattery resigned as chairperson and director, and Mr. Flewitt was appointed as chairperson, in each case effective as of August 3, 2023. In connection with this, the option termination agreement referred to in note 16 was amended with effect from August 2, 2023, as a result of which the remaining payment is conditional only on the Company’s maintenance of a minimum pre-order book. Also as previously disclosed on July 3, 2023, the Company appointed Stuart Simpson as its new Chief Financial Officer, effective September 11, 2023. On August 2, 2023, Vincent Casey, who previously served as the Company’s CFO between November 2020 and February 2023 and who remained a director on the Board following his resignation as CFO, notified the Board of his resignation as a member of the Board, effective as of August 3, 2023.

Significant accounting polici_2

Significant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2023
Significant accounting policies
Basis of preparation	Basis of preparation This unaudited condensed consolidated interim financial report for the half-year reporting period ended 30 June 2022 has been prepared in accordance with International Financial Reporting Standards (IFRS) applicable to the preparation of interim financial statements, IAS 34 Interim Financial Reporting. The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2022. The accounting policies adopted are consistent with those of the previous financial year. The unaudited condensed consolidated interim financial report has been prepared on a historical cost basis, as modified by the revaluation of certain financial assets and liabilities (including derivative financial instruments) which are recognized at fair value through profit and loss. Items included in the unaudited condensed consolidated interim financial report are measured using the currency of the primary economic environment in which the entity and its subsidiaries operate (‘the functional currency’). The financial information is presented in pounds sterling (‘£’ or ‘GBP’), which is the Group’s functional and presentation currency, and all amounts are presented in and rounded to the nearest thousand unless otherwise indicated.
Basis of consolidation	Basis of consolidation Vertical Aerospace Ltd is the parent of the Group. Details of the material subsidiaries are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Name of subsidiary Principal activity Registered office Proportion of ownership interest and voting rights held 2023 2022 ​ Vertical Aerospace Group Limited (“VAGL”) ​ Development and commercialisation of eVTOL technologies. ​ Unit 1, Camwal Court, Bristol, United Kingdom BS2 0UW ​ 100 % 100 % ​ All intercompany balances and transactions have been eliminated in consolidation.
Revision to comparative period for correction of immaterial error	Revision to comparative period for correction of immaterial error In connection with the preparation of the Group's condensed consolidated financial information for the six months period ended June 30, 2023, an error was identified in relation to the classification of foreign exchange rate changes in the statement of cash flows presented in the condensed consolidated financial information for the six months period ended June 30, 2022. An item of £4.6 million was incorrectly reported in the condensed consolidated statement of cash flows within adjustments to cash flows from non-cash items under Cash flows from operating activities instead of presenting it as effect of foreign exchange rate changes to reconcile the net increase or decrease in cash balances during the period. The correction of this matter will result in an increase in net cash flows used in operating activities of £4.6 million and an increase in effect of foreign exchange rate changes by £4.6 million. The revision has no impact on the condensed consolidated statement of financial position, statement of income and comprehensive income and statement of changes in equity. The Group has evaluated these amounts and has concluded that they should be corrected by revising the previously reported financial information when such amounts are presented for comparative purposes for the six months period ended June 30, 2023.
Going concern	Going concern Management has prepared a cashflow forecast for the Group and has considered the ability for the Group to continue as a going concern for the foreseeable future, being at least 12 months after approving this financial information. The Group is currently in the research and development phase of its journey to commercialize eVTOL technology. Commensurate with being in the development phase, the Group has invested heavily in research to support the development of its aircraft. The Group is not currently generating revenue and has incurred net losses and net cash outflows from operating activities since inception. As of June 30, 2023, the Group had £ 89.7 million of cash and cash equivalents held by the Company. Within the next 12 months following the date of this report, management expects the funding requirements to be approximately £80 million, which will be used primarily to fund the creation and testing of prototype aircraft. ​ 2 Significant accounting policies (continued) The Group will need to raise additional capital to fund its future operations and remain as a going concern, before the Group uses all of its existing resources. There can be no assurance that the Group will be able to obtain additional funding on acceptable terms and thus have sufficient funds to meet Group’s funding requirements. As a result, the timely completion of financing is important for the Group’s ability to continue as a going concern. The dependency on raising additional capital indicates that a material uncertainty exists that may cast significant doubt (or raise substantial doubt as contemplated by PCAOB standards) on the Group’s ability to continue as a going concern and therefore the Group may be unable to realise the assets and discharge the liabilities in the normal course of business. The consolidated financial statements have been prepared assuming that the Group will continue as a going concern, which contemplates the continuity of operations, realisation of assets and the satisfaction of liabilities in the ordinary course of business and do not include any adjustments that would result if the Group were unable to continue as a going concern.
Changes in accounting policy	Changes in accounting policy A number of amended standards became applicable for the current reporting period. The group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards: 1. 2. 3. 4.

Significant accounting polici_3

Significant accounting policies (Tables)	6 Months Ended
	Jun. 30, 2023
Significant accounting policies
Summary of details of subsidiaries	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Name of subsidiary Principal activity Registered office Proportion of ownership interest and voting rights held 2023 2022 ​ Vertical Aerospace Group Limited (“VAGL”) ​ Development and commercialisation of eVTOL technologies. ​ Unit 1, Camwal Court, Bristol, United Kingdom BS2 0UW ​ 100 % 100 %

Other operating income (Tables)

Other operating income (Tables)	6 Months Ended
	Jun. 30, 2023
Other operating income
Summary of analysis of the group's other operating income for the year	​ ​ ​ ​ ​ ​ ​ 6 months ended 6 months ended ​ ​ June 30, ​ June 30, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Government grants 1,874 1,214 R&D tax relief 13,971 2,193 ​ 15,845 3,407

Expenses by nature (Tables)

Expenses by nature (Tables)	6 Months Ended
	Jun. 30, 2023
Expenses by nature
Summary of administrative, research and development expenses	​ ​ ​ ​ ​ ​ ​ 6 months ended 6 months ended ​ ​ June 30, ​ June 30, ​ 2023 2022 ​ ​ £ 000 ​ £ 000 Research and development staff costs (excluding share-based payment expenses) ​ 11,882 ​ 6,689 Research and development consultancy ​ 7,449 ​ 7,936 Research and development components, parts and tooling 8,169 4,771 Total Research and Development expenses ​ 27,500 ​ 19,396 Administrative staff costs (excluding share-based payment expenses) ​ 5,547 ​ 5,736 Share based payment expenses ​ 7,056 ​ 7,294 Consultancy costs 1,340 990 Legal and financial advisory costs 1,125 1,476 IT hardware and Software costs 3,085 1,665 Related party administrative expenses 42 — Insurance and premises expenses 1,913 2,119 Other administrative expenses 2,883 3,157 Expense on short term leases — 8 Depreciation expense 412 260 Amortisation expense 578 572 Depreciation on right of use property assets ​ 327 ​ 189 Total administrative expenses ​ 24,308 ​ 23,466 Total administrative and research and development expenses 51,808 42,862

Finance income (Tables)

Finance income (Tables)	6 Months Ended
	Jun. 30, 2023
Finance Income.
Schedule of finance income	​ ​ ​ ​ ​ ​ ​ 6 months ended 6 months ended ​ ​ June 30, ​ June 30, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 In-kind interest on convertible loan notes (7,964) (7,005) Foreign exchange loss — (12,981) Interest expense on leases (109) (67) Other (67) (10) Total finance costs (8,140) (20,063) ​ ​ ​ ​ ​ Interest income on deposits ​ 1,704 ​ — Foreign exchange gain ​ 12,089 ​ — Fair value movements on convertible loan notes (note 13) ​ 16,510 ​ 38,124 Fair value movements on warrant liabilities (note 11) ​ 2,030 ​ 4,373 Total finance income ​ 32,333 ​ 42,497 ​ ​ ​ ​ ​ Total net finance income 24,193 22,434

Loss per share (Tables)

Loss per share (Tables)	6 Months Ended
	Jun. 30, 2023
Loss per share
Summary of loss per share	​ ​ ​ ​ ​ ​ ​ 6 months ended 6 months ended ​ ​ June 30, ​ June 30, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Net loss for the period (11,770) (17,021) ​ £ ​ £ Basic and diluted loss per share (0.06) (0.10) ​ No. of shares No. of shares Weighted average issued shares 185,639,462 178,329,218

Trade and other receivables (Ta

Trade and other receivables (Tables)	6 Months Ended
	Jun. 30, 2023
Trade and other receivables
Summary of trade and other receivables	​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Government receivables 10,247 10,905 Prepayments 7,669 7,169 Other receivables 1,811 790 ​ 19,727 18,864

Share capital and other reserve

Share capital and other reserves (Tables)	6 Months Ended
	Jun. 30, 2023
Share capital and reserves
Summary of allotted, called up and fully paid shares	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ ​ 2023 ​ 2022 ​ No. £ No. £ Ordinary of $0.0001 each 221,211,021 16,517 214,211,021 15,952 ​ 221,211,021 16,517 214,211,021 15,952

Trade and other payables (Table

Trade and other payables (Tables)	6 Months Ended
	Jun. 30, 2023
Trade and other payables
Summary of trade and other payables	Amounts falling due within one year: ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Trade payables 4,645 4,454 Accrued expenses 5,325 10,500 Social security and other taxes 1,399 857 Outstanding defined contribution pension costs 279 220 ​ 11,648 16,031 ​ Amounts falling due after more than one year: ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Deferred fees and charges 3,933 4,153 ​

Warrant Liability (Tables)

Warrant Liability (Tables)	6 Months Ended
	Jun. 30, 2023
Warrant Liability
Schedule of warrants issued but not exercised	​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2023 ​ 2022 ​ ​ Number ​ Number Public Warrants 15,264,935 15,264,935 Mudrick Warrants 4,000,000 4,000,000 Outstanding, end of period 19,264,935 19,264,935
Schedule of change in fair value of warrants	Recorded as a liability, the following shows the change in fair value during the period ended June 30, 2023: ​ ​ ​ ​ £ 000 December 31, 2022 4,961 Change in fair value (2,030) Exchange differences on translation ​ (204) June 30, 2023 2,727

Share-based payments (Tables)

Share-based payments (Tables)	6 Months Ended
	Jun. 30, 2023
Share-based payments
Schedule of share-based payment transactions	​ ​ ​ ​ ​ ​ ​ June 30, 2023 June 30, 2022 ​ ​ £’000 ​ £’000 EMI Scheme 487 6,475 2021 Incentive plan 6,513 — Non-Executive Director awards 56 — Suppliers and partners — 819 Total Expense Recognised 7,056 7,294
Two Thousand And Twenty One Incentive Award Plan
Share-based payments
Schedule of movements in the number of share options	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ December 31, 2022 ​ ​ ​ ​ Average ​ ​ ​ Average ​ ​ ​ ​ exercise price ​ ​ ​ exercise price ​ ​ Number ​ (£) ​ Number ​ (£) Outstanding, start of period 4,355,669 ​ 6.63 ​ — — Granted during the period 500,000 ​ — ​ 5,012,495 6.63 Grant arising due to scheme modification — ​ — ​ — — Exercised during the period ​ (346,755) ​ — ​ — ​ — Forfeited during the period (132,693) ​ 6.63 ​ (656,826) 6.63 Outstanding, end of period 4,376,221 ​ 6.63 ​ 4,355,669 6.63
EMI Scheme
Share-based payments
Schedule of movements in the number of share options	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ December 31, 2022 ​ ​ ​ ​ Average ​ ​ ​ Average ​ ​ ​ ​ exercise price ​ ​ ​ exercise price ​ ​ Number ​ (£) ​ Number ​ (£) Outstanding, start of period 21,011,084 ​ 0.19 ​ 19,670 308.06 Granted during the period — ​ — ​ — — Grant arising due to scheme modification — ​ — ​ 23,213,933 0.23 Exercised during the period ​ (6,642,385) ​ 0.09 ​ (645,571) ​ 0.17 Forfeited during the period (7,875) ​ 0.18 ​ (1,576,948) 0.83 Outstanding, end of period 14,360,824 ​ 0.24 ​ 21,011,084 0.19

Derivative financial liabilit_2

Derivative financial liabilities (Tables)	6 Months Ended
	Jun. 30, 2023
Derivative financial liabilities
Schedule of convertible senior secured notes	​ ​ ​ ​ ​ Mudrick ​ ​ £ 000 As at December 31, 2022 115,247 Fair value movements (16,510) In-kind interest paid 7,963 Exchange differences on translation (5,866) As at June 30, 2023 100,834

Financial instruments (Tables)

Financial instruments (Tables)	6 Months Ended
	Jun. 30, 2023
Financial instruments
Financial liabilities at fair value through profit and loss:	Financial liabilities at fair value through profit and loss: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 ​ December 31, 2022 ​ ​ £000 ​ £000 ​ Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Convertible Senior Secured Notes — — 100,834 — — 115,247 Warrant liabilities 2,727 — — 4,961 — — ​ 2,727 — 100,834 4,961 — 115,247
Schedule of fair value measurement inputs for valuation of convertible loan notes	​ ​ ​ ​ ​ ​ ​ ​ June 30, 2023 December 31, 2022 Risk-free rate (%) 4.4 ​ 4.1 ​ Dividend yield (%) — ​ — ​ Volatility (%) 80.0 ​ 65.0 ​ Credit spread (%) 27.50 ​ 26.38 ​

Financial risk management and_2

Financial risk management and impairment of financial assets (Tables)	6 Months Ended
	Jun. 30, 2023
Financial risk management and impairment of financial assets
Maturity analysis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Between 2 and 5 After more than ​ ​ ​ Within 1 year ​ years ​ 5 years ​ Total 30 June 2023 ​ £ 000 ​ £ 000 ​ £ 000 ​ £ 000 Trade and other payables 11,648 3,933 — 15,581 Lease liabilities 676 1,604 655 2,935 Convertible senior secured notes — 100,834 — 100,834 ​ 12,324 106,371 655 119,350 ​ ​ ​ ​ ​ ​ ​ ​ ​ 31 December 2022 Trade and other payables 16,031 4,153 — 20,184 Lease liabilities 516 1,871 774 3,161 Convertible senior secured notes — 115,247 — 115,247 ​ 16,547 121,271 774 138,592

Related party transactions (Tab

Related party transactions (Tables)	6 Months Ended
	Jun. 30, 2023
Key management personnel
Related party transactions
Key management personnel compensation	​ ​ ​ ​ ​ ​ ​ June 30, June 30, ​ ​ 2023 ​ 2022 ​ ​ £ 000 ​ £ 000 Salaries and other short term employee benefits 460 629 Payments to defined contribution pension schemes 7 8 Share-based payments 56 79 ​ 523 716

Significant accounting polici_4

Significant accounting policies - Basis of consolidation (Details) - GBP (£) £ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Significant accounting policies
Increase in net cash flows used in operating activities	£ (33,056)	£ (63,081)
Effect of foreign exchange rate changes	£ (855)	8,768
Correction of immaterial error
Significant accounting policies
Adjustments to cash flows from non-cash items		(4,600)
Increase in net cash flows used in operating activities		(4,600)
Effect of foreign exchange rate changes		£ 4,600
VAGL
Significant accounting policies
Name of subsidiary	Vertical Aerospace Group Limited (“VAGL”)
Proportion of ownership interest and voting rights held	100%		100%

Significant accounting polici_5

Significant accounting policies - Going concern (Details) - GBP (£) £ in Thousands	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Dec. 31, 2021
Significant accounting policies
Cash and cash equivalents	£ 89,693	£ 62,927	£ 157,552	£ 212,660
Expected funding requirements over next 12-month period	£ 80,000

Other operating income (Details

Other operating income (Details) - GBP (£) £ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Other operating income
Government grants	£ 1,874	£ 1,214
R&D tax relief	13,971	2,193
Other operating income	£ 15,845	£ 3,407

Expenses by nature (Details)

Expenses by nature (Details) - GBP (£) £ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Expense by nature
Related party administrative expenses	£ 42
Total administrative & research and development expenses
Expense by nature
Total administrative and research and development expenses	51,808	£ 42,862
Research and development expenses
Expense by nature
staff costs (excluding share-based payment expenses)	11,882	6,689
Research and development consultancy	7,449	7,936
Research and development components, parts and tooling	8,169	4,771
Total expenses by nature	27,500	19,396
Administrative expenses
Expense by nature
staff costs (excluding share-based payment expenses)	5,547	5,736
Share based payment expenses	7,056	7,294
Consultancy costs	1,340	990
Legal and financial advisory costs	1,125	1,476
IT hardware and Software costs	3,085	1,665
Related party administrative expenses	42
Insurance and premises expenses	1,913	2,119
Other administrative expenses	2,883	3,157
Expense on short term leases		8
Depreciation expense	412	260
Amortisation expense	578	572
Depreciation on right of use property assets	327	189
Total expenses by nature	£ 24,308	£ 23,466

Finance income (Details)

Finance income (Details) - GBP (£) £ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Finance income
In-kind interest on convertible loan notes	£ (7,964)	£ (7,005)
Foreign exchange loss		(12,981)
Interest expense on leases	(109)	(67)
Other	(67)	(10)
Total finance costs	(8,140)	(20,063)
Interest income on deposits	1,704
Foreign exchange gain	12,089
Fair value movements on convertible loan notes	16,510	38,124
Fair value movements on warrant liabilities	2,030	4,373
Total finance income	32,333	42,497
Total net finance income	£ 24,193	£ 22,434

Loss per share (Details)

Loss per share (Details) - GBP (£) £ / shares in Units, £ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Loss per share
Net loss for the period, basic	£ (11,770)	£ (17,021)
Net loss for the period, diluted	£ (11,770)	£ (17,021)
Basic loss per share	£ (0.06)	£ (0.10)
Diluted loss per share	£ (0.06)	£ (0.10)
Weighted average issued shares, basic	185,639,462	178,329,218
Weighted average issued shares, diluted	185,639,462	178,329,218

Trade and other receivables (De

Trade and other receivables (Details) - GBP (£) £ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Trade and other receivables
Government receivables	£ 10,247	£ 10,905
Prepayments	7,669	7,169
Other receivables	1,811	790
Total trade and other receivables	19,727	18,864
R&D tax credit receivable	£ 6,422	£ 7,212

Share capital and other reser_2

Share capital and other reserves - Allotted, called up and fully paid shares (Details)	May 03, 2023 shares	Jun. 30, 2023 $ / shares	Jun. 30, 2023 GBP (£) shares	Dec. 31, 2022 GBP (£) shares
Share capital and reserves
Number of shares allotted, called up and fully paid shares			221,211,021	214,211,021
Share capital | £			£ 16,517	£ 15,952
Number of shares issued	7,000,000
Ordinary Share
Share capital and reserves
Number of shares authorized			500,000,000
Par value per share | $ / shares		$ 0.0001
Number of shares allotted, called up and fully paid shares			221,211,021	214,211,021
Share capital | £			£ 16,517	£ 15,952

Share capital and other reser_3

Share capital and other reserves - Ordinary shares (Details) £ in Thousands		6 Months Ended
	May 03, 2023 shares	Jun. 30, 2023 GBP (£)	Jun. 30, 2022 GBP (£)	Jun. 30, 2023 $ / shares
Share capital and reserves
Number of shares issued | shares	7,000,000
Increase through share based payment transactions		£ 7,107	£ 7,294
Decrease from reflecting cumulative translation differences		(6,922)	9,482
Shares issued on exercise of options and other awards to staff | shares	6,989,140
Shares issued during the period | shares	7,000,000
Resulting proceeds due		642
Receivables for exercised options		464
Ordinary Share
Share capital and reserves
Par Value Per Share | $ / shares				$ 0.0001
Share capital
Share capital and reserves
Resulting proceeds due		1
Share premium.
Share capital and reserves
Increase through share based payment transactions			749
Resulting proceeds due		641
Other reserves
Share capital and reserves
Increase through share based payment transactions		7,107	6,465
Decrease through exercise of stock options and other awards to staff		3,874
Decrease from reflecting cumulative translation differences		£ (6,922)	£ 9,482

Trade and other payables (Detai

Trade and other payables (Details) - GBP (£) £ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Less than one year
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]
Trade payables	£ 4,645	£ 4,454
Accrued expenses	5,325	10,500
Social security and other taxes	1,399	857
Outstanding defined contribution pension costs	279	220
Total trade and other payables	11,648	16,031
After more than one year
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items]
Deferred fees and charges	£ 3,933	£ 4,153

Warrant Liability - Warrants we

Warrant Liability - Warrants were issued but not exercised (Details) - shares	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Warrants
Outstanding, end of period	19,264,935	19,264,935
Public Warrants
Warrants
Outstanding, end of period	15,264,935	15,264,935
Mudrick Warrants
Warrants
Outstanding, end of period	4,000,000	4,000,000

Warrant Liability - Change in f

Warrant Liability - Change in fair value (Details) £ in Thousands	6 Months Ended
	Jun. 30, 2023 GBP (£)
Warrant Liability
Beginning balance	£ 4,961
Change in fair value	2,030
Exchange differences on translation	(204)
Ending balance	£ 2,727

Warrant Liability - Additional

Warrant Liability - Additional information (Details) - Public Warrants	6 Months Ended
	Jun. 30, 2023 D $ / shares shares
Warrants
Redemption price	$ 0.01
Trigger price	$ 18
Threshold trading days for redemption of warrants | D	20
Threshold consecutive trading days for redemption of warrants | D	30
Number of shares entitled per public warrant | shares	1
Exercise price of warrants	$ 11.50

Share-based payments - Fair val

Share-based payments - Fair value of options granted (Details) - GBP (£) £ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Share-based payments
Total Expense Recognised	£ 7,056	£ 7,294
EMI Scheme
Share-based payments
Total Expense Recognised	487	6,475
2021 Incentive Plan
Share-based payments
Total Expense Recognised	6,513
Non-Executive Director awards
Share-based payments
Total Expense Recognised	£ 56
Suppliers and partners
Share-based payments
Total Expense Recognised		£ 819

Share-based payments - Movement

Share-based payments - Movements in the number and weighted average exercise price of share options (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2023 Options £ / shares	Dec. 31, 2022 Options £ / shares
Two Thousand And Twenty One Incentive Award Plan
Share-based payments
Outstanding, start of period	4,355,669
Granted during the period	500,000	5,012,495
Exercised during the period	(346,755)
Forfeited during the period	(132,693)	(656,826)
Outstanding, end of period	4,376,221	4,355,669
Average Outstanding, start of period | £ / shares	£ 6.63
Average Granted during the period | £ / shares		£ 6.63
Average Forfeited during the period | £ / shares	6.63	6.63
Average Outstanding, end of period | £ / shares	£ 6.63	£ 6.63
EMI Scheme
Share-based payments
Outstanding, start of period	21,011,084	19,670
Grant arising due to scheme modification		23,213,933
Exercised during the period	(6,642,385)	(645,571)
Forfeited during the period	(7,875)	(1,576,948)
Outstanding, end of period	14,360,824	21,011,084
Average Outstanding, start of period | £ / shares	£ 0.19	£ 308.06
Average Granted due to scheme modification | £ / shares		0.23
Average Exercised during the period | £ / shares	0.09	0.17
Average Forfeited during the period | £ / shares	0.18	0.83
Average Outstanding, end of period | £ / shares	£ 0.24	£ 0.19

Share-based payments - Addition

Share-based payments - Additional information (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2023 Options £ / shares	Dec. 31, 2022 Options £ / shares
Two Thousand And Twenty One Incentive Award Plan
Share-based payments
Number of options exercisable | Options	1,993,248	1,073,560
Options granted | Options	500,000	5,012,495
Two Thousand And Twenty One Incentive Award Plan | Maximum
Share-based payments
Exercise prices | £ / shares	£ 6.63	£ 6.63
Two Thousand And Twenty One Incentive Award Plan | Minimum
Share-based payments
Exercise prices | £ / shares	£ 0	£ 0
EMI Scheme
Share-based payments
Number of options exercisable | Options	12,463,199	11,317,247
Expected weighted average remaining vesting period (years)	2 years 1 month 2 days	2 years 7 months 2 days
EMI Scheme | Maximum
Share-based payments
Exercise prices | £ / shares	£ 1.15	£ 1.15
EMI Scheme | Minimum
Share-based payments
Exercise prices | £ / shares	£ 0.04	£ 0.04
Company share option plan options | Two Thousand And Twenty One Incentive Award Plan
Share-based payments
Expected weighted average remaining vesting period (years)	3 years 2 months 15 days
Nil cost options | Non executive direcotrs
Share-based payments
Options granted | Options	18,750
Nil cost options | Two Thousand And Twenty One Incentive Award Plan
Share-based payments
Expected weighted average remaining vesting period (years)	2 years 7 months 2 days

Derivative financial liabilit_3

Derivative financial liabilities - Convertible Senior Secured Notes (Details) £ in Thousands	6 Months Ended
	Jun. 30, 2023 GBP (£)
Financial liabilities
Beginning balance	£ 143,918
Ending balance	122,394
Convertible Senior Secured Notes | Mudrick
Financial liabilities
Beginning balance	115,247
Fair value movements	(16,510)
In-kind interest paid	7,963
Exchange differences on translation	(5,866)
Ending balance	£ 100,834

Derivative financial liabilit_4

Derivative financial liabilities - Additional Information (Details)					6 Months Ended
	Jun. 15, 2023 GBP (£)	Jun. 15, 2023 USD ($)	Dec. 16, 2021 GBP (£) shares	Dec. 16, 2021 USD ($) shares	Jun. 30, 2023 USD ($)	Jun. 30, 2023 GBP (£)	Dec. 16, 2021 USD ($) shares
Financial liabilities
Restricted cash | £						£ 7,865,000
Mudrick | Convertible Senior Secured Notes [Member]
Financial liabilities
Principal amount			£ 151,000,000				$ 200,000,000
Aggregate purchase price			£ 145,000,000	$ 192,000,000
Convertible shares | shares			18,181,820	18,181,820
Conversion rate | shares			90.9091				90.9091
Convertible senior secured notes principal amount, per instrument			£ 824				$ 1,000
Increase in nominal amount of outstanding Convertible Senior Secured Notes	£ (7,963,000)	$ (9,826,000)
Mandatory cash balance under loan covenants | $					$ 10,000,000
Restricted cash | £						£ 7,865,000
Mudrick | Convertible Senior Secured Notes [Member] | Interest paid in-kind and semi-annually in arrears
Financial liabilities
Interest rate						9%

Financial instruments - Financi

Financial instruments - Financial liabilities at fair value through profit or loss (Details) £ in Thousands	6 Months Ended
	Jun. 30, 2023 GBP (£) $ / shares	Dec. 31, 2022 GBP (£)
Financial instruments
Carrying Value	£ 119,350	£ 138,592
Level 1 | Financial liabilities at fair value through profit and loss category
Financial instruments
Carrying Value	2,727	4,961
Level 3 | Financial liabilities at fair value through profit and loss category
Financial instruments
Carrying Value	100,834	115,247
Convertible Senior Secured Notes
Financial instruments
Carrying Value	100,834	115,247
Convertible Senior Secured Notes | Level 3 | Financial liabilities at fair value through profit and loss category
Financial instruments
Carrying Value	100,834	115,247
Warrant liabilities | Level 1 | Financial liabilities at fair value through profit and loss category
Financial instruments
Carrying Value	£ 2,727	£ 4,961
Value per warrant | $ / shares	£ 0.18

Financial instruments - Fair va

Financial instruments - Fair value of the convertible senior secured notes (Details) - Convertible Senior Secured Notes - Financial liabilities at fair value through profit and loss category - Level 3	Jun. 30, 2023	Dec. 31, 2022
Risk-free rate
Financial instruments
Significant unobservable input liabilities	0.044	0.041
Dividend yield
Financial instruments
Significant unobservable input liabilities	0	0
Volatility
Financial instruments
Significant unobservable input liabilities	80	65
Credit spread
Financial instruments
Significant unobservable input liabilities	27.50	26.38

Financial risk management and_3

Financial risk management and impairment of financial assets - Credit risk and impairment (Details) £ in Thousands, $ in Thousands	Jun. 30, 2023 GBP (£)	Jun. 30, 2023 USD ($)	Dec. 31, 2022 GBP (£)
Financial risk management and impairment of financial assets
Restricted cash	£ 7,865
USD
Financial risk management and impairment of financial assets
Balances with banks | $		$ 24,963
Credit risk
Financial risk management and impairment of financial assets
Maximum exposure to credit risk	1,811		£ 790
Credit risk | Trade receivables
Financial risk management and impairment of financial assets
Allowance account for credit losses of financial assets	£ 0		£ 0

Financial risk management and_4

Financial risk management and impairment of financial assets - Liquidity risk (Details) - GBP (£) £ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Financial risk management and impairment of financial assets
Financial liabilities	£ 119,350	£ 138,592
Less than one year
Financial risk management and impairment of financial assets
Financial liabilities	12,324	16,547
Between 2 and 5 years
Financial risk management and impairment of financial assets
Financial liabilities	106,371	121,271
More than 5 years
Financial risk management and impairment of financial assets
Financial liabilities	655	774
Trade and other payables
Financial risk management and impairment of financial assets
Financial liabilities	15,581	20,184
Trade and other payables | Less than one year
Financial risk management and impairment of financial assets
Financial liabilities	11,648	16,031
Trade and other payables | Between 2 and 5 years
Financial risk management and impairment of financial assets
Financial liabilities	3,933	4,153
Lease liabilities
Financial risk management and impairment of financial assets
Financial liabilities	2,935	3,161
Lease liabilities | Less than one year
Financial risk management and impairment of financial assets
Financial liabilities	676	516
Lease liabilities | Between 2 and 5 years
Financial risk management and impairment of financial assets
Financial liabilities	1,604	1,871
Lease liabilities | More than 5 years
Financial risk management and impairment of financial assets
Financial liabilities	655	774
Convertible Senior Secured Notes
Financial risk management and impairment of financial assets
Financial liabilities	100,834	115,247
Convertible Senior Secured Notes | Between 2 and 5 years
Financial risk management and impairment of financial assets
Financial liabilities	£ 100,834	£ 115,247

Related party transactions - Ke

Related party transactions - Key management personnel compensation (Details) - GBP (£) £ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Related party transactions
Salaries and other short term employee benefits	£ 460	£ 629
Payments to defined contribution pension schemes	7	8
Share-based payments	56	79
Key management compensation	£ 523	£ 716

Related party transactions - Su

Related party transactions - Summary of transactions with other related parties (Details) $ / shares in Units, £ in Thousands, $ in Millions	1 Months Ended	6 Months Ended
	Jan. 31, 2022 $ / shares shares	Jun. 30, 2023 GBP (£) Options	Jun. 30, 2022 GBP (£)	Apr. 21, 2023 USD ($)
Related party transactions
Aggregate gain on directors' exercise of share options		£ 8,156	£ 0
Share based payment charge		7,056	7,294
Imagination Industries Ltd
Related party transactions
Services received, related party transactions		42	0
Amount outstanding		£ 42	0
Mr. Slattery | Mr. Fitzpatrick
Related party transactions
Number of ordinary shares agreed to purchase upon call option | shares	1,175,000
Exercise price | $ / shares	$ 0.0001
Aggregate amount agreed to pay | $				$ 2.5
Non executive directors | Nil cost options
Related party transactions
Options granted | Options		18,750
Share based payment charge		£ 55	£ 0
Options exercised | Options		5,613,287