Velocity Composites PLC Contract Renewal (3475Z)
January 09 2020 - 9:47AM
UK Regulatory
TIDMVEL
RNS Number : 3475Z
Velocity Composites PLC
09 January 2020
9 January 2020
VELOCITY COMPOSITES PLC
("Velocity Composites" or the "Company")
Contract Renewal
Velocity Composites plc (AIM: VEL.L), the leading supplier of
advanced composite material kits to the aerospace market is pleased
to announce that it has agreed in principle the terms for a renewal
to the current Long-Term Supply Agreement with an existing UK
supplier to a number of major OEMs and Tier 1 aircraft
manufacturers. The Long-Term Supply Agreement provided specifically
for the period to the end of December 2019, and the Company has
received, and is continuing to process, purchase orders together
with the customer's communicated demand for 2020 placed under this
original Long-Term Supply Agreement, to ensure the customer has
continuity of supply whist the minor contractual details are
finalised. The Board anticipates that the formal renewal to the
Long-Term Supply Agreement will be signed in the next few
weeks.
The customer's scheduled demand generated revenue of
approximately GBP9M in the last financial year and the Company
anticipates that such revenues shall be maintained at a similar
level for 2020. The aircraft platforms concerned are the Airbus
A320, A330, A380 and other regional business jets, together with
the supply on any future programmes which this customer might
win.
Velocity has provided the customer with a full clean-room
service for a number of years together with support in managing
changes in component production programmes across their portfolio,
which will continue under the terms of the existing agreement and
proposed contract renewal.
The Company also announces that it will be publishing its Final
Results for the year ended 31 October 2018 on 28 January 2020.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Enquiries:
Velocity Composites plc Tel: 01282577577
Andrew Beaden, Chairman
Jon Bridges, CEO
Cenkos Securities plc Tel: 020 7397 4000
(Nominated Adviser and Broker)
Russell Cook
Ben Jeynes
Camarco Tel: 020 3757 4980
(Financial PR)
Ed Gascoigne Pees
James Crothers
About Velocity Composites
Velocity Composites manufactures advanced carbon fibre and
ancillary material kits for use in the production of aircraft. The
Company uses its process knowledge, business processes and
proprietary software to reduce the amount of material required by
its customers and also reduce the associated material waste when
making aircraft parts. In turn, this reduces the aircraft
manufacturer's costs, with the kits delivered on time and in the
required form to allow its customers to more readily meet the
significant increases in build rates.
The Company trades under the name "Velocity Composites"
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
CNTBSGDBLSGDGGC
(END) Dow Jones Newswires
January 09, 2020 09:47 ET (14:47 GMT)
Velocity Composites (LSE:VEL)
Historical Stock Chart
From Apr 2024 to May 2024
Velocity Composites (LSE:VEL)
Historical Stock Chart
From May 2023 to May 2024