REG - Velocity Composites - Renewal of BAE Systems Contract

Velocity CompositesAnnouncement

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RNS Number : 2325I  Velocity Composites PLC  12 May 2025

12 May 2025

Velocity Composites plc

("Velocity" or the "Company")

 

Renewal of BAE Systems Contract

 

Velocity Composites plc (AIM: VEL.L), the leading supplier of advanced
composite material kits to the aerospace market, is pleased to announce that
it has renewed its relationship with the UK's biggest defence contractor, BAE
Systems for a further three years.

 

In line with the Company's other most recently renewed contracts, this
contract includes a price increase to account for the increased costs of
labour, energy and finance since it was last renewed. This renewal supports
the Company's existing FY25 revenue expectations.

 

Velocity has been working with BAE Systems since 2010 and will continue to
provide process material kits for the F35 and Typhoon programmes. Velocity has
a close working relationship with BAE Systems, with teams regularly working at
BAE Systems' site in Samlesbury, Lancashire, to manage inventory and support
continuous improvement activity, as part of the contract.

 

Jon Bridges, Chief Executive Officer of Velocity, said: "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.

 

As noted in our recent results, our business development teams are building on
existing relationships in defence sector and developing our business case with
other defence OEMs in Europe and the US.

 

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."

 

Enquiries:

 Velocity Composites plc             +44 (0) 1282 577577
 Andy Beaden, Chairman
 Jon Bridges, CEO
 Rob Smith, Chief Financial Officer

 Canaccord Genuity Limited           +44 (0) 20 7523 8000
 Nominated Adviser and Joint Broker
 Max Hartley
 George Grainger

 Dowgate Capital Limited             +44 (0) 20 3909 7715
 Joint Broker
 Russell Cook
 Nick Chambers

 SEC Newgate                         +44 (0)7540 106 366
 Financial Communications            velocity@secnewgate.co.uk
 Robin Tozer
 George Esmond
 Harry Handyside

 

 

About Velocity Composites plc

Based in Burnley, UK, Velocity is the leading supplier of composite material
kits to aerospace and other high-performance manufacturers, that reduce costs
and improve sustainability.  Customers include Airbus, Boeing, and GKN.

 

By using Velocity's proprietary technology, manufacturers can also free up
internal resources to focus on their core business.  Velocity has significant
potential for expansion, both in the UK and abroad, including into new market
areas, such as wind energy, urban air mobility and electric vehicles, where
the demand for composites is expected to grow.

 

 

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