REG - Velocity Composites - Pre-Close Trading Update

Velocity CompositesAnnouncement

13/11/2019 07:05

RNS Number : 1916T
Velocity Composites PLC
13 November 2019
 


13 November 2019
 
VELOCITY COMPOSITES PLC
("Velocity Composites" or the "Company")
 
Pre-Close Trading Update
 
Velocity Composites plc (AIM: VEL.L), the leading supplier of advanced composite material kits to the aerospace market, provides an update on its trading performance for the year to 31 October 2019 ahead of release of its preliminary results statement in January 2020.
 
Financial
 
-  Revenue for the year approximately £24.2m (FY 2018: £24.5m)
 
-  Gross margin improvement over FY 2018 (18.3%) and H1 2019 (20.9%)
 
-  Results for the year to October 2019 are expected to be in line with market expectations
 
-  Net cash (before finance leases) £3.4m as at 31 October 2019
 
Operational
 
-  New integrated business plan now being implemented with target-based incentivised remuneration for all staff
 
-  Renewed focus on operational excellence, margin improvements and return on capital
 
-  Expanding pipeline of global opportunities for existing and new Tier 1 customers
 
-  First US facility targeted to be operational in 2020 and now working on bids with several major customers to support launch
 
-  Developing a new investment model to be applied at new sites across US and Europe, requiring limited capital to maximise ROCE and generate further margin improvements
 
-  New Board structure with effect from July 2019 with Jon Bridges reappointed as CEO.  Andy Beaden and Rob Soen appointed as NEDs, bringing significant industry experience.  Search process underway for additional board members for an independent audit chair and permanent CFO.
 
 
Andy Beaden, Velocity Composites Chairman, commented:
 
"Since joining the Board three months ago I have been impressed by the drive, dynamism and professionalism of the management and staff throughout the Company. 
 
The Company is focused upon supporting and developing its key customer relationships, while at the same time capturing specific, targeted market opportunities within the UK, but more specifically involving our partners in Europe and across North America.
 
Revenues are stable and we are already achieving some gains in operating efficiencies and therefore margin improvement. There is much further to go in this direction, and we will be able to report further progress through 2020 and beyond. The prospects for Velocity Composites are very exciting."
 
The Company will be meeting with certain institutional shareholders over the coming days.  A copy of the investor presentation prepared for these meetings will be available for all investors on the company's website https://www.velocity-composites.com/
 
 
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
 
 
Enquiries:
 



Velocity Composites plc
Andrew Beaden, Chairman
Jon Bridges, CEO
 
 


Tel: 01282577577
 




Cenkos Securities plc
(Nominated Adviser and Broker)
Russell Cook
Ben Jeynes
 


Tel: 020 7397 4000




Camarco
(Financial PR)
Ed Gascoigne Pees
James Crothers


Tel: 020 3757 4980



 
 
About Velocity Composites
 
Velocity Composites manufactures advanced carbon fibre and ancillary material kits for use in the production of aircraft.  The Company uses its process knowledge, business processes and proprietary software to reduce the amount of material required by its customers and also reduce the associated material waste when making aircraft parts.  In turn, this reduces the aircraft manufacturer's costs, with the kits delivered on time and in the required form to allow its customers to more readily meet the significant increases in build rates.
 
The Company trades under the name "Velocity Composites".
 




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