Last checked at 18 Apr 2019 07:00
18 April 2019
VELOCITY COMPOSITES PLC
("Velocity", the "Company" or the "Group")
EIS/VCT qualifying funds update
Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, provides the following update on the status of the deployment of the EIS/VCT qualifying funds of £5.0m that were raised at the time of the Company's admission to trading on AIM in May 2017.
The Group announced its final results for the year ended 31 October 2018 on 22 January 2019 at which time it was noted that the Group held a net cash balance as at 31 October 2018 of £4.1m which included the remaining £3.8m of EIS/VCT qualifying funds that had not yet been spent. It was further noted that the Board's expectation at that time was that the Group would not fully utilise the entire value of EIS/VCT qualifying funds by the deadline imposed by HMRC, being 19 May 2019.
Since that time the Group has made good progress in deploying further EIS/VCT qualifying funds on a number of important strategic opportunities. The Group has also taken advice from a leading EIS/VCT expert who has been able to establish greater clarity with HMRC around the regime and interpretation of rules in this area of taxation.
At this time, the Group expects to have spent approximately 62% (£3.1m) of the total original EIS/VCT qualifying funds by the deadline of 19 May 2019. While new opportunities for potential deployment of funds are evaluated as they arise on a case by case basis, it is unlikely that the whole of the EIS/VCT qualifying funds will be spent before the deadline. As a result, shareholders who are EIS investors or VCTs should consider their respective tax positions. The underlying driver for the lower spend remains the growth trajectory being lower than at the time of the IPO.
The remaining unspent EIS/VCT funds will remain available for the Group to use in high quality growth investments in the future.
== Ends ==
CONTACT DETAILS:
Velocity Brian Tenner, Senior Independent Director | c/o Camarco Tel: 020 3757 4980 |
finnCap (Nominated Adviser and Broker) Ed Frisby / Scott Mathieson / Hannah Boros (Corporate Finance) Tim Redfern (ECM) |
Tel: 020 7220 0500 |
Camarco (Financial PR) Ed Gascoigne-Pees / James Crothers |
Tel: 020 3757 4980 |
About Velocity Composites
Velocity Composites is a manufacturer of advanced composite material kits for the aerospace industry, delivering 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.
For further information please visit: http://www.velocity-composites.com/