Ovo founder puts $50m into flying taxi firm
THE billionaire founder of Ovo Energy has been forced to inject $50m (£39m) into his flying taxi firm as he strives to keep the troubled business afloat.
Vertical Aerospace announced Stephen Fitzpatrick’s renewed backing in an update to shareholders yesterday.
The lifeline gives Vertical Aerospace breathing space until 2025, the Bristol-based company said. Founded by Mr Fitzpatrick in 2016, it had been scrambling to raise funds after its share price plummeted by more than 95pc on the New York Stock Exchange.
But a failure to drum up interest has forced the Ovo tycoon to intervene. His investment will be split into two tranches, with the first $25m instalment, expected in March, valuing the business at $10 a share. This is far higher than its current valuation, as it trades at less than a dollar per share.
The second instalment will be paid by July. Vertical Aerospace has ambitions to create a five-seater flying taxi that can reach speeds of up to 200mph, and has achieved “significant technical progress” in the past year which “is not reflected in the share price”, Mr Fitzpatrick said.
After one of its aircraft crashed last year, Vertical Aerospace is now worth just £133m after being valued at £1.74bn on flotation three years ago.
Vertical Aerospace forms part of Mr Fitzpatrick’s sprawling business empire, the bulk of which is made up of Ovo Energy, Britain’s fourth-largest gas and electricity supplier that serves 4m customers. He also owns Kensington Roof Gardens, which was once owned by Sir Richard Branson.
Yesterday, Mr Fitzpatrick said: “Since founding Vertical, I have continued to believe in the enormous potential the company has to pioneer zero carbon aviation. The company has achieved significant technical progress.
“I am more confident than ever in our world-class team, and I am delighted to further support the company with additional funding.”
The taxi takes off vertically like a helicopter before tilting its engines forward to act more like a regular plane.