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28 Sep 2023 12:53
28 September 2023
VELOCITY COMPOSITES PLC
("Velocity, the "Company" or the "Group")
Share Premium Reduction Effective
Velocity Composites plc (AIM: VEL), the leading supplier of composite material kits to aerospace and other high-performance manufacturers, is pleased to provide the following update.
At a general meeting of the Company held on 29 August 2023 (the "General Meeting"), a resolution was passed by shareholders to resolve that the Company's Share Premium Account was cancelled ("Cancellation"), in order to eliminate the Company's accumulated losses and also create positive distributable reserves equal to the amount by which the Share Premium Account cancelled exceeds the accumulated deficit.
To be effective, the Cancellation required Court approval and the Company is pleased to announce that Court approval has now been obtained and the Cancellation is now effective. This follows the Court order approving the reduction of capital which was registered with Companies House on 25 September 2023.
Whilst the Board and management remain focussed on the continued execution of the Company's stated growth strategy as the primary means of delivering shareholder value in the near term and has no current intention of declaring dividends, the proposed Cancellation would provide greater scope to do so in the future if the Board determined that the declaration of dividends were appropriate.
Application will be made to the London Stock Exchange for the admission of the EIS/VCT Placing Shares to trading on AIM. Admission of the EIS/VCT Placing Shares is expected to occur at 8.00 a.m. on 6 October 2023 ("Admission").
Following Admission, the total number of Ordinary Shares in the capital of the Company in issue will be 53,393,368 with each Ordinary Share carrying the right to one vote. There are no Ordinary Shares held in treasury and therefore the total number of voting rights in the Company will be 53,393,368. The above figure may be used by Shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure, Guidance and Transparency Rules.
Unless otherwise defined, capitalised terms within this announcement shall have the same meaning as those contained within the announcement dated 9 August 2023 under RNS number 7242I.
Change of Name of Nominated Adviser and Broker
The Company also announces that its nominated adviser and broker has changed its name to Cavendish Securities plc (formerly Cenkos Securities plc) following completion of its own corporate merger.
Enquiries:
Velocity | Tel: +44 (0) 1282 577577 |
Andy Beaden, Chairman Jon Bridges, Chief Executive Officer
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Cavendish Securities (Nominated Adviser and Broker) | Tel: +44 (0)20 7220 0500 |
Katy Birkin Ben Jeynes George Lawson
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SEC Newgate (Financial Communications) Robin Tozer George Esmond Harry Handyside | Tel: +44 (0)7540 106 366 Email: velocity@secnewgate.co.uk |
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About Velocity Composites
Based in Burnley, UK, Velocity Composites is the leading supplier of composite material kits to aerospace and other high-performance manufacturers, that reduce costs and improve sustainability. Customers include Airbus, Boeing, and GKN.
By using Velocity's proprietary technology, manufacturers can also free up internal resources to focus on their core business. Velocity has significant potential for expansion, both in the UK and abroad, including into new market areas, such as wind energy, urban air mobility and electric vehicles, where the demand for composites is expected to grow.
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