Velocity Composites PLC Contract (7551N)
February 02 2021 - 9:30AM
UK Regulatory
TIDMVEL
RNS Number : 7551N
Velocity Composites PLC
02 February 2021
2 February 2021
Velocity Composites plc
("Velocity")
Contract Extension Signed
Velocity Composites plc (AIM: VEL) , the leading supplier of
advanced composite kitting solutions and material management
services to the composites industry, is pleased to announce that it
has signed a five-year contract extension with an existing global
Tier 1 customer (the "Customer") in the aerospace industry (the
"Contract").
The Contract term is retroactively valid from 1(st) January 2021
until 31(st) December 2025 and sets out the work packages of
business to be managed between the Customer and Velocity over the
same period. The Contract includes a fully managed material and
kitting service for one of the Customer's main UK sites
manufacturing primary structures for the A350 aircraft platform, at
a total annual value to Velocity of approximately GBP1.3m, based
upon the latest COVID-19 impacted build rate guidance provided by
the Customer. This will support management forecast for the current
year and will continue as a major contributor to revenues through
to 2025.
Jon Bridges, Chief Executive Officer of Velocity, said:
"Velocity is extremely pleased to conclude an extension of our
current agreement with our Customer, to continue delivering our
efficient products and services. In what has been a challenging
time for the industry, this Contract validates how our technology
and service offering means Velocity can remain highly competitive
and provide Customers with increased value in terms of material
efficiencies, supply chain management and cost reduction.
This is an important contract for Velocity, and we look forward
to continuing to work with our Customer for at least the next five
years and developing new opportunities to expand our business
together in the UK and their other manufacturing sites in mainland
Europe and North America."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the EU Market Abuse Regulation (2014/596) which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended and supplemented from time to time.
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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