12th May 2025 12:48
(Alliance News) - Velocity Composites PLC on Monday said it has won a renewal of its contract with defence contractor BAE Systems PLC for a further three years.
The Burnley, England-based supplier of composite material kits to the aerospace industry said the renewed contract includes a price increase to account for the higher costs of labour, energy and finance since it was last renewed.
It did not provide further financial details of the contract.
Shares in Velocity Composites climbed 11% to 26.00 pence in London on Monday afternoon.
The renewal supports the firm's existing revenue expectations for the 2025 financial year, it said.
Velocity said it will continue to provide process material kits for the F35 and Typhoon programmes under the contract.
"BAE Systems has been a key partner for many years, and we are delighted to continue our relationship. Our work with them helps to improve production standardisation and reduce the cost of composite part manufacture," said Chief Executive Officer Jon Bridges.
"Global defence expenditure is rising, and our services are identical for defence customers who share similar issues to civil aircraft manufacturers in terms of the need to improve fuel and operating efficiencies."
By Michael Hennessey, Alliance News reporter
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