11th Mar 2024 15:32
(Alliance News) - Velocity Composites PLC on Monday reported positive progress on a key US contract.
The Burnley, England-based supplier of composite material kits to aerospace and other high-performance manufacturers said it was on track to complete the four blocks relating to the contract by the end of April.
This would ensure Velocity meets its 2024 forecasts, it said.
The contract is worth USD20 million per annum in revenue over at least the next five years starting from January 1, 2024.
At the end of 2023, the first two blocks of the contract had been completed and ramped up, which accounts for over 50% of its annual value, the company said.
The third block is well underway, and the final block required an additional approval from the original equipment manufacturer, GE Aerospace, which is supplied via the customer, and it is this final approval that has now been obtained, Velocity Composites explained.
Chief Executive Jon Bridges said: "Once ramped up, this programme block is expected to account for 39% of the full year US revenue in 2025, enabling the growth we forecasted in 2025 over the significant growth being achieved in 2024".
He described the approval as "important and valuable" from one of the "world's leading aero-engine manufacturers".
Further, Velocity announced the appointment of Robert Smith as group chief financial officer with effect from June 3.
Smith takes over from Andrew Hebb, who has served as interim CFO since August 2023.
Shares in Velocity Composites eased 2.7% to 33.09 pence in London on Monday.
By Jeremy Cutler, Alliance News reporter
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