Velocity Comp Share News (VEL)

(Sharecast News) - Advanced composite kitting supplier Velocity Composites has secured a three-year contract extension with an unnamed client.
Velocity said on Thursday that the term of the contract with its existing customer was valid from 1 March to 29 February 2024, continuing the "long-standing relationship" with the firm and its Burnley-based client.

The AIM-listed group will supply a fully managed material and kitting service for engine nacelles on the A320neo, A330neo and C919 aircraft platforms, amongst others in the commercial and business jet markets.

Velocity stated the total annual value of the contract to the group in 2021 was expected to be £3.7m, excluding any new business, based upon the latest Covid-19 impacted build rate guidance provided by the customer and will continue as a major contributor to revenues through to 2024.

Chief executive Jon Bridges said: "We look forward to developing new opportunities to expand our business with the customer within their manufacturing sites in mainland Europe and North Africa.

"During these challenging times, we see this deal as further endorsement to deliver our efficient technologies and processes to our customers, as the industry recovers from the impact of Covid-19.

As of 1010 GMT, Velocity shares were up 3.37% at 19.64p.