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."