LONDON (Alliance News) - Shares rose in Velocity Composites PLC on Friday as it secured a contract to supply composite material kits to a undisclosed European aircraft parts manufacturer.
Shares in the aircraft-focused carbon fibre manufacturer were up 12% at 69.95 pence on Friday.
Manufacturing has started, and the finalising of the long term agreement is due to be completed in a short period of time, and run through to December 2020, the company said. It is expected that the work on LEAP engines in the contract with contribute up to USD6 million to revenue over the period.
"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," said Chief Executive Officer Jon Bridges.
Velocity Comp (VEL)