Long Term Agreement Extension Signed

RNS Number : 6795S

Velocity Composites PLC

27 June 2018

 

27 June 2018

VELOCITY COMPOSITES plc

("Velocity" or the "Company")

Long Term Agreement Extension Signed

Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, is delighted to announce that it has secured an extension to a Long Term Agreement (the "Agreement") with an existing UK customer (the "Customer") who supplies OEMs and Tier 1 aircraft manufacturers.

This extension adds a further 12 months to the existing Agreement taking the contract term through to the end of December 2019 and secures existing business with an annualised value in the region of £10M. The aircraft platforms concerned are the Airbus A320, A330, and A380 and other regional business jets which are all strategically important platforms.

The extension comes after Velocity has been providing a full clean-room service for several years and supports the Customer in managing changes in programmes across their portfolio. During this extended period, Velocity and the Customer will enter into discussions over a new Long Term Agreement, subject to commercial competitiveness.

Jon Bridges, Chief Executive Officer of Velocity commented:

"This is a significant Agreement with an important Customer for whom we have provided a full clean-room service for many years.  Both parties cooperate closely and work together to remove inherent waste from the composites supply chain and provide materials in a lean and efficient way. We look forward to working with the Customer through the changes in programme volumes, and progressing our discussions regarding a new Long Term Agreement during 2019."

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.

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CONTACT DETAILS:

Velocity Jon Bridges, CEO Alan Kershaw, CFO	c/o Camarco Tel: [phone]
finnCap (Nominated Adviser and Broker) Adrian Hargrave / Scott Mathieson / Hannah Boros (Corporate Finance) Tim Redfern (ECM)	Tel: [phone]
Camarco (Financial PR) Georgia Edmonds / Owen Roberts / James Crothers	Tel: [phone]

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 and Continental Europe.

 

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