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:
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Velocity Composites plc |
+44 (0) 1282 577577 |
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Andy Beaden, Chairman |
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Jon Bridges, CEO |
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Rob Smith, Chief Financial Officer |
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Canaccord Genuity Limited |
+44 (0) 20 7523 8000 |
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Nominated Adviser and Joint Broker |
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Max Hartley |
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George Grainger |
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Dowgate Capital Limited |
+44 (0) 20 3909 7715 |
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Joint Broker |
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Russell Cook |
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Nick Chambers |
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SEC Newgate |
+44 (0)7540 106 366 |
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Financial Communications |
velocity@secnewgate.co.uk |
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Robin Tozer |
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George Esmond |
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Harry Handyside |
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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.