Signing of Long Term Supply Agreement

RNS Number : 9358P

Velocity Composites PLC

01 June 2018

 

1 June 2018                                                                                                                                 

VELOCITY COMPOSITES plc

("Velocity" or the "Company")

Signing of Boeing 737 Max Long Term Supply Agreement

Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, is pleased to announce that it has agreed a Long Term Agreement to secure the supply of complex design consumable kits for the Boeing 737 Max programme. In addition, this contract encapsulates the finalisation of the agreement for the provision of complex vacuum bags on this programme. The agreement extends to 31 December 2021 with a contract value of £3m. These composite material kits will be produced in Velocity's Fareham site starting immediately and used by Velocity's customer for the wing construction on the Boeing 737 Max.

This contract signals a new agreement with an existing customer who is a Tier 1 supplier in the Aerospace industry, and a significant first for Velocity on the Boeing 737 Max programme which is a high growth Boeing platform.

Jon Bridges, Chief Executive Officer of Velocity Composites said:

"This latest signing of a Long Term Agreement with one of our existing customers is a significant and positive step for Velocity, and importantly is our first contracted Boeing platform, which continues the trading momentum that the Company has experienced in the year so far. We are confident that the added value the Company brings through lowering waste and cost in the aerospace industry will lead to the continued growth of Velocity's role in the aerospace manufacturing supply chain. I am also hopeful that these two packages of work will, in turn, lead to further contract awards."

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 regulatory news service this inside information is now considered to be in the public domain.

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CONTACT DETAILS:

Velocity Jon Bridges, CEO Alan Kershaw, CFO	c/o Camarco Tel: [phone]
finnCap (Nominated Adviser and Broker) Adrian Hargrave / Scott Mathieson / Kate Bannatyne (Corporate Finance) Tim Redfern (Corporate Broking)	Tel: [phone]
Camarco (Financial PR) Georgia Edmonds / Owen Roberts / James Crothers	Tel: [phone]

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, Denmark, France and Belgium.

 

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