Energy billionaire's flying taxi firm is close to running out of money

Northern Aerospace produces a five-seat flying taxi that can reach speeds of up to 200 mph. Photo: Upper Aerospace

Flying Taxi The company, owned by the billionaire Ovo Energy chief, has warned it will run out of money by September next year.

Vertical Aerospace, founded by Stephen Fitzpatrick, is struggling to raise funds after one of its planes crashed during testing. flying to the Cotswolds four months ago.

Concerns about the Bristol start-up's future were raised in a recent letter to shareholders, with Mr Fitzpatrick saying its current runway would take it «to the end of the third quarter of 2024».

This was followed by another warning, saying that «dependence on the raising of additional capital indicates the existence of material uncertainties that may cast significant doubt» on its ability to continue as a going concern.

Mr Fitzpatrick incorporated Upper Aerospace into his business empire, mainly consisting of Ovo Energy. Photo: REUTERS/Hannah Mackay

Vertical Aerospace, which makes a five-seat flying taxi capable of speeds of up to 200mph, also said it «may have to cut investment» if the group fails to raise money by mid-2024.

The company has made a loss of £42 million this year, compared with £135 million recorded in the same period last year.

Mr Fitzpatrick has brought Vertical Aerospace into his vast business empire, much of which is made up of Ovo Energy, Britain's fourth largest gas and electricity supplier, which serves 4 million customers.

He also recently bought Kensington Roof Gardens, a West London party spot once owned by Sir Richard Branson, which he wants to transform into an exclusive private members' club.

Mr. Fitzpatrick launched Vertical Aerospace. in 2016 and was listed on the New York Stock Exchange two years ago, although it is registered in the Cayman Islands.

The share price has fallen 97% since its flotation and is now valued at around £168 million, down from an initial valuation of £1.74 billion.

Michael Cervenka, CTO, compared the company's growth story to that of Elon Musk's Tesla.

Despite warnings about its finances, Upper Aerospace said it was “working on plans for a high-profile public flight involving an iconic UK landmark”. It also plans to land one of its planes at Heathrow Airport.

The company's flying taxi takes off vertically, like a helicopter, and then tilts its engines forward to act more like a conventional plane.

It received approval for the project from the Civil Aviation Authority, which the company called «important» a step forward.»

Vertical Aerospace has been contacted for comment.