Velocity Comp Regulatory News (VEL)

7 July 2020

VELOCITY COMPOSITES PLC

("Velocity" or the "Group")

AIM: VEL.L

New Framework Agreement

Velocity, the leading supplier of advanced composite material kits to the aerospace sector, is pleased to announce that it has signed a new framework agreement (the "Framework Agreement") with an existing customer, a leading UK prime contractor in the Defence sector (the "Customer").

The Framework Agreement sets out the top-level terms and conditions, which underpin the Group's existing work packages with the Customer, and, importantly, enables additional work packages to be placed. The Company has been operating within the terms of the Framework Agreement since 1 March 2020 and remains in place through to 31 December 2022 with options to extend for two further 12-month periods.

Jon Bridges, Chief Executive Officer of Velocity, said: 

"This is great news for Velocity. The Group is actively developing its Defence sector business, which has not experienced the same headwinds as those being weathered in civil aviation, and this new agreement creates the opportunity to increase sales to this important and influential customer.

"We have a long-standing and very positive relationship with the Customer founded on our ability to deliver innovative technologies and excellent service levels, which help meet strict programme production requirements. We look forward to working with them over the next two years and continuing to demonstrate the benefits and advantages of our product solutions for both existing and new aircraft platforms."

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About Velocity

Velocity Composites is a manufacturer of composite material kits for the aerospace industry, delivering engineered kits for its customers to build component parts. The Company's clients 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, Boeing 737, 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 Composites also exports to Europe and North America.