Velocity Composites PLC Board Update (1088D)
June 24 2019 - 2:01AM
UK Regulatory
TIDMVEL
RNS Number : 1088D
Velocity Composites PLC
24 June 2019
24 June 2019
VELOCITY COMPOSITES PLC
("Velocity", the "Company" or the "Group")
Board Update
Velocity Composites plc, the leading supplier of advanced
composite material kits, providing engineering value-solutions for
the global aerospace industry, today announces an update to the
process to re-constitute the Board.
At the AGM, the Board announced a process for the
re-constitution of its membership. At that time, it was agreed that
Mark Mills would step down from the Board and his role of Executive
Chairman. At the same time, Jon Bridges (former CEO and Board
member) was appointed as the Interim CEO and Andrew Hebb was
confirmed as continuing as the Interim CFO and Company Secretary.
Neither of the interim roles are members of the Board and both
report directly to the Board.
It was also announced that the remaining members of the Board
would appoint independent search consultants to identify a new
independent Non-Executive Chairman. Brian Tenner was appointed as
the Group's Senior Independent Director to lead this process. The
new Chairman would in turn then be charged with leading the Board
in identifying a permanent CEO and a permanent CFO to replace the
two current interim office holders. An additional Non-Executive
Director would also be appointed. Independent search consultants
were appointed in early May following a competitive process and the
search for a new Chairman then began in earnest.
However, the Founders have made clear that they do not support
the Board's process and instead have proposed an alternative
approach to re-constituting the Board which involves their two
nominees being appointed to the Board before resolving the
permanent posts of Chairman, CEO and CFO. The Board had offered to
appoint one of the Founder nominees during the search process but
this offer was rejected.
While disappointed by this turn of events, the Board had no
choice but to engage with the Founders and are currently in active
discussion to attempt to resolve matters in the interests of all
stakeholders in the short term and in an orderly fashion. In light
of those discussions, the independent search for a new Chairman has
been temporarily put on hold. The Board hopes to be able to update
the market in the very short term with a resolution that will
negate the risk of a disorderly transition if it is prevented from
being able to re-constitute itself.
Commenting on the discussions, Brian Tenner, Senior Independent
Director, said:
"Today the Board announced an encouraging set of interim results
that shows the business growing, improving margins and cash flows,
while also identifying some attractive investment opportunities
that can add significant value to the Group in the medium term. It
is clearly in everyone's best interests to agree an orderly Board
transition in as short a time frame as possible to allow the Group
to focus on those business opportunities. We hope to update
shareholders in the very near term on a successful outcome to the
current discussions with the Founders."
=== Ends ===
CONTACT DETAILS:
Velocity c/o Camarco
Brian Tenner, Senior Independent Director Tel: 020 3757
4980
finnCap (Nominated Adviser and Broker) Tel: 020 7220
Scott Mathieson / Hannah Boros (Corporate 0500
Finance)
Tim Redfern (ECM)
Camarco (Financial PR) Tel: 020 3757
Ed Gascoigne Pees / James Crothers 4980
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.
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END
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