2nd Feb 2021 15:53
Velocity Composites PLC - Burnley, Lancashire-based composite materials for aerospace - Signs five-year contract extension with an existing global Tier 1 customer in the aerospace industry. Contract retroactively valid from January 1 until end of 2025
"The contract includes a fully managed material and kitting service for one of the customer's main UK sites manufacturing primary structures for the A350 aircraft platform, at a total annual value to Velocity of approximately GBP1.3 million, based upon the latest Covid-19 impacted build rate guidance provided by the customer."
Chief Executive Jon Bridges says this contract is "important" for the company.
He continues: "Velocity is extremely pleased to conclude an extension of our current agreement with our customer, to continue delivering our efficient products and services. In what has been a challenging time for the industry, this contract validates how our technology and service offering means Velocity can remain highly competitive and provide customers with increased value in terms of material efficiencies, supply chain management and cost reduction."
Current stock price: 19.45 pence; up 8.1% on Tuesday
Year-to-date change: down 7.4%
By Paul McGowan; [email protected]
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