Last checked at 9 Jan 2020 16:24
The following amendment has been made to the announcement released on 9 January 2020 at 2.47pm under RNS No 3475Z
The Company results to be published on 28 January 2020 are for the year to 31 October 2019 rather than 2018.
All other details remain unchanged.
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 £9M 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 announcing its preliminary results for the year ended 31 October 2019 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 Andrew Beaden, Chairman Jon Bridges, CEO
| Tel: 01282577577
|
Cenkos Securities plc (Nominated Adviser and Broker) Russell Cook Ben Jeynes
| Tel: 020 7397 4000 |
Camarco (Financial PR) Ed Gascoigne Pees James Crothers | Tel: 020 3757 4980 |
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"