04 October 2017
Velocity Composites plc
("Velocity" or the "Company")
Long Term Agreement 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 a long term (Life of Contract) agreement (the "Agreement") with an existing UK customer in the UK composites' sector (the "Customer"). The Customer, which is US owned, supplies OEMs and Tier 1 aircraft manufacturers.
The Agreement secures existing business in the region of £4.1m per annum which includes an additional £0.9m per annum of new business. The aircraft platforms concerned are the A350, A320 and A330 which are strategically important to Velocity.
The contract comes after Velocity has been working with the customer for a period of time under Purchase Order cover whilst the requisite contractual arrangements were agreed. Velocity has developed advanced kits for both structural (carbon fibre pre-preg, glass fibre pre-preg, film adhesives and surface products) and vacuum bag engineered kits for all their major programmes.
Jon Bridges, CEO of Velocity commented:
"This is a significant contract with an important customer for whom we have provided both structural and consumable kits for some time. It is the culmination of a lot of close cooperation from both parties to work together to remove inherent waste from the composites supply chain and provide their materials in a lean and efficient way. We look forward to working with the customer over the life of the programmes to add further value to their business."
As a matter of commercial confidentiality, the Customer's details have not been disclosed.
Ends
CONTACT DETAILS:
Velocity Jon Bridges, CEO Alan Kershaw, CFO |
c/o Camarco Tel: 020 3757 4980 |
finnCap (Nominated Adviser and Broker) Adrian Hargrave / Scott Mathieson / Kate Bannatyne (Corporate Finance) Tim Redfern / Sultan Awan (Corporate Broking) |
Tel: 020 7220 0500 |
Camarco (Financial PR) Georgia Edmonds / James Crothers |
Tel: 020 3757 4980 |
About Velocity Composites
Velocity Composites is a manufacturer of composite material kits for the aerospace industry, delivering engineered kits for its customers to build component parts. The Company's clients 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 A330, A350, A380, Eurofighter Typhoon, F35 Joint Strike Fighter and Bell Boeing 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 Composites also exports to Denmark, France, and Belgium.
