Business
Trading Update, Bank Facility & Notice of Results
Trading Update, Bank Facility & Notice of Results.
About this update from Velocity Composites Plc
[{"type":"text","content":"\n \n \n RNS Number : 5018N\n Velocity Composites PLC\n 20 May 2020\n \n \n \n \n 20 May 2020\n \n \n \n \n \n VELOCITY COMPOSITES PLC\n \n \n (\"Velocity\" or the \"Company\")\n \n \n AIM: VEL.L\n \n \n \n \n \n Trading Update, New Banking Facility and Notice of Results\n \n \n \n \n \n Velocity Composites plc, the leading supplier of advanced composite material kits to the aerospace sector, provides the following trading update on its performance in the six months to 30 April 2020 (\"H1\") and details of its new £2.0 million banking facility in the form of a Coronavirus Business Interruption Loan (\"CBIL\").\n \n \n \n \n \n The Board believes that, whilst there has been an inevitable reduction in near-term demand as aerospace industry production is curtailed by COVID-19, the Company's financial liquidity remains robust. Velocity is in a strong position to support its composite aerospace customers with its unique efficiency-focused supply chain management solutions. \n \n \n \n \n \n Trading update\n \n \n \n \n \n As announced in the Trading and COVID-19 Update on 30 March 2020, the financial year ending 31 October 2020 (\"FY20\") started well, with the Company achieving good strategic progress on new aerospace qualifications and winning long-term new business. Trading to the end of February was in line the Board's expectations with order visibility showing an improving second-half performance. The Company's sales demand was then impacted by the global disruption caused by the measures taken to combat the spread of COVID-19.\n \n \n \n \n \n Production levels across all Velocity's customers have been significantly curtailed since early March 2020, as social distancing and lockdown measures were implemented. Customers have had to reconfigure manufacturing practices to ensure the safety of their employees. Velocity also implemented a rigorous plan to protect employees, whilst maintaining its services to customers. The Company is pleased to announce it has implemented its COVID-19 plans and is working on a daily basis with its customers and suppliers to enable production volumes to be increased. Whilst there is a planned gradual re-opening of customer production facilities and subsequent rise in production levels, demand in the near-t...