Velocity Composites PLC Three Year Contract Extension (4150T)
March 25 2021 - 02:00AM
UK Regulatory
TIDMVEL
RNS Number : 4150T
Velocity Composites PLC
25 March 2021
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as amended by
Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations
2019/310. Upon the publication of this announcement via Regulatory
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25 March 2021
Velocity Composites plc
("Velocity")
Three year contract extension
Velocity Composites plc (AIM: VEL) , the leading supplier of
advanced composite kitting solutions and material management
services to the aerospace composites industry, is pleased to
announce that it has signed a three year contract extension with an
existing Customer, with manufacturing facilities based in Burnley,
UK (the "Customer").
The Contract term is valid from 1 March 2021 until 29 February
2024 and continues the long-standing relationship between the
Customer and Velocity to supply a fully managed material and
kitting service for engine nacelles on the A320neo, A330neo and
C919 aircraft platforms, amongst others in the commercial and
business jet markets. The total annual value of the contract to
Velocity in FY21 is expected to be GBP3.7m, excluding any new
business, based upon the latest COVID-19 impacted build rate
guidance provided by the Customer and will continue as a major
contributor to revenues through to 2024.
Jon Bridges, Chief Executive Officer of Velocity, said:
"The Customer continues to be a key strategic relationship for
Velocity and we are especially pleased to continue our future
together. The market-leading products and services we have
developed in collaboration over the last 13 years are very much at
the heart of our technology portfolio and continue to drive the key
efficiencies and excellent service that have enabled Velocity to
expand and provide value for our other Customers in the UK and
Europe.
We look forward to developing new opportunities to expand our
business with the Customer within their manufacturing sites in
mainland Europe and North Africa. During these challenging times,
we see this deal as further endorsement to deliver our efficient
technologies and processes to our customers, as the industry
recovers from the impact of Covid-19."
Enquiries:
Velocity Composites plc
Andy Beaden, Chairman
Jon Bridges, Chief Executive Officer
Chris Williams, Finance Director +44 (0)1282 577577
Cenkos Securities
(Nominated Adviser and Broker)
Russell Cook
Ben Jeynes +44 (0)20 7397 8900
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