New Business Award for European Manufacturer

RNS Number : 4777R

Velocity Composites PLC

15 June 2018

 

15 June 2018

VELOCITY COMPOSITES plc

("Velocity" or the "Company")

New Business Award for European Engine Manufacturer

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 been notified of an award to supply its composite material kits to a new customer based in continental Europe.  The customer is a Tier 1 manufacturer of component parts for the Leading Edge Aviation Propulsion ("LEAP") engines used on the latest generation of single aisle aircraft including the Airbus A320 NEO and Boeing 737 Max platforms.

Following receipt of this award manufacturing will now commence, with the finalisation of the Long Term Agreement between the parties, to be concluded shortly, which will run through to December 2020.  It is envisaged that work on LEAP engines under this agreement could contribute up to $6m to Velocity's revenues over this period.

Jon Bridges, Chief Executive Officer of Velocity said:

"This new business award on the largest and fastest growing engine programme in the world is a significant win in its own right.  In addition, with the work being based in continental Europe this further enhances Velocity's growth into this territory, and will be a contributing programme for a new manufacturing site for Velocity in mainland Europe in due course.  Whilst the Company determines the right time and location for this site to be established, the composite material kits will be supplied from Velocity's UK sites."

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 / Kate Bannatyne (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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