14th May 2021 11:21
(Alliance News) - Velocity Composites PLC on Friday said it has signed a new three-year contract with an aerostructures manufacturer, with an expected annual value of GBP4.1 million.
Shares in the supplier of advanced composite material kits were up 11% at 22.10 pence each in London following the announcement, after reaching a 12-month high of 22% earlier in the day.
The contract with the unnamed Hampshire-based pre-existing client will now run until August 31, 2024. Velocity will supply a "fully managed structural material and kitting service" for the partner as part of the deal.
The contract includes both an extension in the term of an existing five-year agreement entered in August 2016 and the award of new business covering the remaining additional programmes in production at the customer site, starting immediately.
"Execution of this contract extension and new business award with the customer is an important milestone for Velocity, with our key customer reaffirming and strengthening our relationship," said Chief Executive Jon Bridges.
"The signature of this contract will directly protect existing jobs and enable new opportunities at our manufacturing site as we look to grow further and fully recover from the Covid-19 impacts to our business. The customer and Velocity have committed to a future partnership together in the UK and we look forward to further expanding this relationship with their other group manufacturing sites in Europe and internationally."
By Will Paige; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Velocity Comp