Velocity Composites PLC Signing of Long Term Supply Agreement (9358P)
June 01 2018 - 1:00AM
UK Regulatory
TIDMVEL
RNS Number : 9358P
Velocity Composites PLC
01 June 2018
1 June 2018
VELOCITY COMPOSITES plc
("Velocity" or the "Company")
Signing of Boeing 737 Max Long Term Supply Agreement
Velocity Composites plc, the leading supplier of advanced
composite material kits, providing engineering value-solutions for
the global aerospace industry, is pleased to announce that it has
agreed a Long Term Agreement to secure the supply of complex design
consumable kits for the Boeing 737 Max programme. In addition, this
contract encapsulates the finalisation of the agreement for the
provision of complex vacuum bags on this programme. The agreement
extends to 31 December 2021 with a contract value of GBP3m. These
composite material kits will be produced in Velocity's Fareham site
starting immediately and used by Velocity's customer for the wing
construction on the Boeing 737 Max.
This contract signals a new agreement with an existing customer
who is a Tier 1 supplier in the Aerospace industry, and a
significant first for Velocity on the Boeing 737 Max programme
which is a high growth Boeing platform.
Jon Bridges, Chief Executive Officer of Velocity Composites
said:
"This latest signing of a Long Term Agreement with one of our
existing customers is a significant and positive step for Velocity,
and importantly is our first contracted Boeing platform, which
continues the trading momentum that the Company has experienced in
the year so far. We are confident that the added value the Company
brings through lowering waste and cost in the aerospace industry
will lead to the continued growth of Velocity's role in the
aerospace manufacturing supply chain. I am also hopeful that these
two packages of work will, in turn, lead to further contract
awards."
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014. Upon the publication of this
announcement via regulatory news service this inside information is
now considered to be in the public domain.
Ends
CONTACT DETAILS:
Velocity c/o Camarco
Jon Bridges, CEO Tel: 020 3757
Alan Kershaw, CFO 4980
finnCap (Nominated Adviser and Broker) Tel: 020 7220
Adrian Hargrave / Scott Mathieson / Kate Bannatyne 0500
(Corporate Finance)
Tim Redfern (Corporate Broking)
Camarco (Financial PR) Tel: 020 3757
Georgia Edmonds / Owen Roberts / James Crothers 4980
About Velocity Composites
Velocity Composites is a manufacturer of advanced composite
material kits for the aerospace industry, delivering engineered
waste reduction solutions for its customers to build aircraft
components using less time and material. The Company's customers
include multi-national manufacturers of composite parts and
assemblies, who in turn deliver to the world's leading civil and
military aircraft manufacturers. The Airbus A320, A330, A350, A380,
Eurofighter Typhoon, F35 Joint Strike Fighter and Boeing 737, 787
and V22 Osprey are all constructed using parts manufactured from
Velocity's kits. The Company's business model reduces the operating
costs of preparing composite materials ahead of their usage in the
construction of an aircraft part and as such, its offering is
disposed to being self-financing for aircraft parts' manufacturers.
Velocity's services are seeing increased demand as the global
aircraft industry enters a more-for-less era. Velocity currently
has customers in the UK, Denmark, France and Belgium.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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