Velocity Comp Regulatory News (VEL)

25 March 2019

Board Composition

Velocity Composites plc ("Velocity" or the "Company"), a provider of highly engineered kits for the aerospace industry, today announces that Mark Mills, Executive Chairman, has resigned from the Board.

Over the last five months the Board and Founding Shareholders (the 'Founders') have made a number of efforts to resolve their differences with respect to the composition of the Board and it has been concluded that Mark will now step away from the Board.

Given the current vacancy with respect to the position of Chairman, Brian Tenner has been formally appointed as the Senior Independent Director ('SID') to ensure that all shareholders have an explicit contact point at the Board and Company. The Board will appoint independent consultants to assist in the process to identify a new independent Chairman who can represent the views of all shareholders. The enlarged Board will then be responsible for the processes to identify a new CEO, permanent CFO, and a new non-executive director.

Andrew Hebb, interim CFO and Company Secretary, who joined in November 2018, has agreed to continue in his role. Jonathan Bridges, current CTO, will in addition be appointed interim CEO, in a non-Board capacity, whilst the search for a permanent CEO continues.

The Board would like to extend its thanks to Mark Mills for his contribution to the Group.

Brian Tenner and Meera Parmar, commented: "Mark oversaw the transition of Velocity from the operating environment and processes of a private business to a publicly listed company. He led the Board with a growth strategy supported by institutional investors that saw revenue increase from £15m annually to £24m during his tenure. He also oversaw a reduction in the Company's cost base that resulted in an improvement in the operating margin in H2 FY18. We wish him well in his future endeavours."

Mark Mills commented: "At the core of Velocity is a great bunch of committed people with the Company's best interests at heart and I enjoyed working with them. I wish the Company and all of its employees well for the future."

AGM Resolutions

As a consequence of Mark Mills' resignation, the Chairperson of today's AGM will not propose resolution 3, to re-appoint Mark Mills as a director. In addition, the Chairperson of the AGM will not propose resolutions 7, 8 or 9, to resolve that the directors be generally and unconditionally authorised to allot shares, to resolve that the directors be given power to allot equity securities for cash otherwise than on a pre-emptive basis respectively and to give the Company authority to purchase is own shares in the market.

- Ends -

CONTACT DETAILS:

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a regulatory news service this inside information will be considered to be in the public domain. 

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.