News and Announcements
Advanced Materials Provider Disrupting the Aerospace Industry
- Published December 11, 2019 12:00AM UTC
- Publisher Wholesale Investor
- Categories Company Updates
Alvant is a leader in the design and manufacture of Aluminium Matrix Composite (AMC) materials.
With the potential to be utilised across a range of industries, AMCs not only help meet sustainability targets but also substantially enhance product capability.
AMCs offer the stiffness and strength of steel combined with the weight of aluminium.
£11m invested to date in product development.
Alvant is excited about the future and the impact its material solutions can have in helping customers produce sustainable yet highly capable products.
Alvant Investment Highlights
Problem
There is increasing pressure on manufacturers and OEM’s, from both government policy and customer demand, to improve the sustainability of their products while also meeting stringent cost and performance requirements. Alvant’s material technology is perfectly aligned to combat this global issue due to their ability to substantially reduce component mass, increase product capability and extend life.
Key Market
Aerospace is a strong focus area for Alvant as it is one of the industry sectors under the most pressure to mitigate its greenhouse gas emissions. According to the European Commission, direct emissions from aviation account for about 3% of the EU’s total greenhouse gas emissions and more than 2% of global emissions. Alvant has embarked on a number of projects with large aerospace OEMs including working on the design of aircraft landing gears of the future.
Value Proposition
- Value proposition based on a combination of lower raw material costs, reduced opex and lower maintenance/repair costs.Aircraft landing gear made using AMCs can have ~80% lower raw material costs
- Lower weight yields several £millions in annual fuel cost savings
- Longer component fatigue life reduces the need for maintenance, delivering additional £millions in cost savings across an airline fleet
Patent & Technology
Advanced Liquid Pressure Forming process.
- Original UK patent (2004)
- European patent granted (2008)
- Japanese patent granted (2009)
- US patent granted (2014)
Revenue Model
Business model is based on three main activities:
- Engineering services
- Manufacturing
- Licensing
Team
- New management team structure
- Board re-structure in 2018 and new Non Executive Chairman appointed in December 2019 leading a transition from technology development to commercial sales
- Commercial experience is drawn from aerospace, automotive and high-tech engineering
Performance
£1.1m revenue in FY2018/19 from commercial sales and development projects.
Targeting £20m revenue and £8.6m EBITDA within 5 years.
Competitive Advantage
Strong competitive position.
- Patented manufacturing process and proprietary materials
- Limited competition
Not only does Alvant own the proprietary rights to the ALPF AMC manufacturing process, it also provides clients with an end-to-end solution, offering engineering consultancy, concept development and component design through to prototype manufacture, low volume production, and the sale of licensing for higher volume production.
Milestones
- The transition from Composite Metal Technology to ALVANT, the new team, new structure, new business model and a commercial focus.
- Winning commercial business with our global Aerospace & Automotive clients
Investment Offering
Having raised £2.3m in the current funding round (£3.0m) Alvant is looking to close early in 2020.
The next stage of funding will be provided through a market relevant strategic partner where conversations are already underway.
Company Updates
The Index Approach in Early-Stage Venture Capital: Reconsidered
The venture capital (VC) landscape is marked by its dynamism and complexity, especially in early-stage investing. The traditional approach in VC, characterised by a selective and intensive vetting process, often contrasts with the concept of ‘index investing.’ This article revisits the indexing approach in early-stage VC, incorporating insights from recent studies and data, including a […]
The Future Is Now: The Evolution of Dealflow with Wholesale Investor
If you’ve ever thought of investing or expanding your portfolio, there’s no better time than the present. In the fast-paced world of investment, things are changing at a breathtaking speed, and it’s crucial to stay ahead of the game. The Future of Deal Flow is Today Dealflow, the lifeblood of the investment world, is not […]
Investability of a Startup: A Comprehensive Guide for Angels and High-Net Worth Investors
Venturing into the Startup Scene Let’s dive into the intriguing world of startups. It’s a thrilling ride, isn’t it? Like finding a pearl in an ocean, spotting a promising startup amidst a sea of businesses is no easy task. This guide aims to light the way, focusing on the “The Investability of a Startup: 7 […]
Backed By Leading Investment Groups and Family Offices
