REG - Velocity Composites - Contract Renewal and Expansion

Velocity CompositesAnnouncement

Wed 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251008:nRSH4506Ca&default-theme=true

RNS Number : 4506C  Velocity Composites PLC  08 October 2025

8 October 2025

Velocity Composites plc

("Velocity" or the "Company"  )

 

Contract Renewal and Expansion with Tier One Customer

 

Contract is expected to generate approximately $2.5 million in revenue in FY26

 

Velocity Composites plc (AIM: VEL), the leading supplier of composite material
kits to the aerospace sector, is pleased to announce the signing of a 10-year
contract extension, and an increased scope of work ("The Contract"), with a
longstanding Tier One customer ("The Customer"). The Contract is for the
supply of composite material kits parts for the Airbus A350 programme. The
Contract runs to 2035 in line with the Customer's agreement with the OEM to
supply materials to the A350 programme.

 

The Contract renews the supply of structural material kits for the A350-900
wing spars by Velocity. It expands the scope to include kits for the A350-1000
variant for the first time (subject to the necessary approvals) alongside
additional new material kits for both aircraft types. The Contract is expected
to generate approximately $2.5 million in revenue in FY2026, with $1.0 million
representing new business.

 

The new business will replace contracts with other customers that are coming
to a natural end. Based on current market projections for A350 build rates,
the total contract value could be up to $54 million. Pricing within the
contract is subject to annual inflation indexing. This renewal supports the
Company's existing FY26 revenue expectations.

 

All kits will be manufactured at Velocity's advanced facility in Burnley, UK -
in line with the previous programmes since 2017 - with supply of new kits
expected to commence in early 2026 following the completion of the normal
qualification and transfer process.  Velocity already has approvals and a
proven transfer process in place for the A350-900 wing spars, completed in
2017.

 

Jon Bridges, Chief Executive Officer of Velocity, commented: "The renewal and
extension of this major contract is a testament to the strength of our
relationship with this prestigious Customer, and the value they see in our
services. We are delighted that the Contract has been extended to include the
A350-1000 variant for the first time, and that we have been selected to supply
all remaining kitted material for both variants. The expanded scope of work
deepens our engagement with the Customer, and the successful A350 programme
whose build rates are expected to increase in the coming years. The Contract
secures a long-term revenue stream to support our growth."

 

Enquiries:

 

 Velocity Composites plc                    +44 (0) 1282 577577

 Andy Beaden, Chairman

 Jon Bridges, Chief Executive Officer

 Rob Smith, Group 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 3903 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, 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.

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  CNTMRBFTMTJMBIA