Velocity Composites PLC BOARD UPDATE (4085H)
November 15 2018 - 2:01AM
UK Regulatory
TIDMVEL
RNS Number : 4085H
Velocity Composites PLC
15 November 2018
VELOCITY COMPOSITES plc
("Velocity" or the "Company")
BOARD UPDATE
Velocity, the leading supplier of advanced composite material
kits, providing engineering value-solutions for the global
aerospace industry, provides the following update further to the
announcement on 5 November 2018 regarding the demand received on 2
November 2018 for one or more Board Member resignations, and a
proposal for the reappointment to the Board of Jonathan (Jon) Karl
Bridges and Peter Turner. The demand also stated that should the
requests not be met by 5.00 p.m. on 5 November 2018 Jon Bridges,
Gerard Johnson and Christopher Banks (together the "Founders")
would requisition a general meeting of the Company to effect these
changes.
The Company and its advisers have attempted to engage in
constructive dialogue with the Founders since that date and have
impressed on the Founders the importance of expediting these
matters towards a resolution as quickly as possible so as to put an
end to this ongoing and damaging period of uncertainty. In response
to these attempts the Founders' advisers have made it clear that
the Founders' position remains unchanged.
At the time of this announcement, and since 2 November 2018, the
Board has not received any clear communication from the Founders
regarding their intentions over and above the initial demand, are
not aware that the Founders have communicated a form of plan or
strategy to any of the Company's stakeholders and have not received
notification of the threatened general meeting requisition. The
Board understands that the Founders are working with certain
advisers and other individuals to put together a plan but there can
be no certainty over the timing of this or whether it will come to
fruition at all. The Founders' advisers have indicated that this
plan will be ready to share with investors and other stakeholders
"as soon as possible".
The Company will continue to attempt to engage with the Founders
to clarify matters and in the meantime the Board will focus its
attention on pursuing the Company's stated growth strategy.
Mark Mills (Chairman), Brian Tenner and Meera Parmar (both
non-executive directors) commented: "While the Company has had some
disappointments over the past 18 months we know that there is a
significant opportunity to deliver considerable revenue growth in
the future and we are absolutely focussed on delivering our plan
and revised strategy to realise this potential. As a Board we are
confident that our plan will deliver value accretion to all of the
Company's shareholders but the current situation is damaging. Given
our focus on this growth opportunity, it is very disappointing and
a considerable distraction to the day-to-day running of the
business that we continue to find ourselves in a state of
uncertainty with regards to the intentions of the Founders 13 days
after the receipt of their initial email and nine days after the
expiry of the deadline that they imposed. In the interests of all
of the Company's stakeholders, we will continue to seek
clarification from the Founders as a matter of urgency. We hope
that the Founders will recognise that their actions to date have
been, and continue to be, detrimental to the success of the Company
and the interests of its various stakeholders."
Ends
CONTACT DETAILS:
Velocity c/o Camarco
Mark Mills, Executive Chairman Tel: 020 3757
4980
finnCap (Nominated Adviser and Broker) Tel: 020 7220
Ed Frisby / Scott Mathieson / Hannah Boros 0500
(Corporate Finance)
Tim Redfern (ECM)
Camarco (Financial PR) Tel: 020 3757
Ed Gascoigne Pees / Georgia Edmonds / James 4980
Crothers
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 a regulatory news service this inside information
will be considered to be in the public domain.
About Velocity Composites
Velocity Composites is a manufacturer of advanced composite
material kits for the aerospace industry disrupting the composites
supply chain to deliver 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 and Continental Europe.
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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