Velocity Composites PLC Contract (6088Y)
May 14 2021 - 01:00AM
UK Regulatory
TIDMVEL
RNS Number : 6088Y
Velocity Composites PLC
14 May 2021
14 May 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 new three-year contract (the
"Contract") with a major Tier 1 aerostructures manufacturer based
in Hampshire (the "Customer"). The Contract includes both an
extension in the term of an existing five-year agreement entered in
August 2016 and the award of new business covering the remaining
additional programmes in production at the Customer site, starting
immediately.
The Contract term, applying retroactively, is valid from 1 March
2021 until 31 August 2024 and expands the long-standing
relationship between the Customer and Velocity to supply a fully
managed structural material and kitting service for existing and
new aerostructure work packages. Services provided by Velocity to
the Customer under the Contract have an expected annual value of
GBP4.1m, including the awarded GBP1.4m of new business on the A350,
A400M and Eurofighter Typhoon aircraft platforms, based upon the
latest COVID-19 impacted build rate guidance, and will continue as
a major contributor to revenues through to 2024.
Jon Bridges, Chief Executive Officer of Velocity, said:
"Execution of this Contract extension and new business award
with the Customer is an important milestone for Velocity, with our
key customer reaffirming and strengthening our relationship.
Together we have been successful in leveraging our material
efficiency technologies and excellent service history to provide
the Customer with a more competitive and compelling offering,
enabling a full offload of composite management and kitting
services from the Customer to our Fareham facility.
The signature of this Contract will directly protect existing
jobs and enable new opportunities at our manufacturing site as we
look to grow further and fully recover from the Covid-19 impacts to
our business. The Customer and Velocity have committed to a future
partnership together in the UK and we look forward to further
expanding this relationship with their other Group manufacturing
sites in Europe and internationally."
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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END
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