Business
Trading Update and COVID-19
Trading Update and COVID-19.
About this update from Velocity Composites Plc
[{"type":"text","content":"\n \n \n RNS Number : 9540H\n Velocity Composites PLC\n 30 March 2020\n \n \n \n \n 30 March 2020\n \n \n \n \n \n Velocity Composites plc\n \n \n (\"Velocity\" or the \"Company\")\n \n \n \n \n \n Trading Update and COVID-19\n \n \n \n \n \n Velocity Composites plc (AIM: VEL.L), the leading supplier of advanced composite material kits to the aerospace market, provides an update to shareholders regarding current and future trading performance of the Company and the immediate and foreseeable impact of the COVID-19 pandemic. \n \n \n \n \n \n As announced in the Company's 2019 Final Results in January 2020, the current financial year ending 31 October 2020 (\"FY20\") had started well with the Group achieving good strategic progress on milestones around contract renewals and new aerospace qualifications. Trading until the end of February was in line with the Board's expectations with order book visibility showing a heavy H2 performance weighting. The Company had announced earlier in the year that it had won new business with a major Boeing parts supplier and has been working closely with several large customers on new business opportunities. \n \n \n \n \n \n The Company continues to operate effectively, with its facilities open, but short-term demand has begun to be significantly impacted by the unprecedented disruption caused by the COVID-19 pandemic. This disruption is affecting the global aerospace industry and other manufacturing businesses across the supply chain. While many of Velocity's customers are still manufacturing, this is now at a much-reduced rate, as necessary action is taken to ensure the wellbeing of employees, a priority throughout the industry. As a result, short term demand for Velocity's products has now decreased significantly and these reduced levels of activity are expected to continue in the short term. The Company's new business development activities in the US, Europe and the UK continue remotely but timings on projects are expected to be delayed by prevailing travel restrictions.\n \n \n \n \n \n The scale and nature of the pandemic is changing constantly and there is, as yet, no clear understanding of the likely duration of the necessary restrictions and the timing of a recovery back to normal production activities. The Boar...