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Velocity Composites to take maiden flight on Thursday

Last updated: 22:24 15 May 2017 AEST, First published: 22:03 15 May 2017 AEST

Aeroplane
Clients include multi-national aerospace manufacturers of composite parts and assemblies

Velocity Composites PLC (LON:VEL), which makes composites that keep the parts of an aeroplane together, is to list on Aim.

The company said it expects trading in its shares will commence on Thursday, coinciding with a placing of 12.27mln new shares and 4.71mln existing shares at 85p each that will raise around £14.4mln.

Based on the placing price, the company will start life with a market capitalisation of around £30.4mln,.

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Started in 2007 by three engineers who specialise in composites, the company operates out of its headquarters in Burnley and a facility in Fareham.

Its clients include multi-national aerospace manufacturers of composite parts and assemblies, who in turn deliver to the world's leading civil and military aircraft manufacturers.

The company banged out £14.6mln of revenue in 2016, up a shade from £14.5mln the year before, while adjusted profit before tax fell by two-thirds to £0.3mln.

The company said current trading is in line with management’s expectations, with around 85% of forecast revenue for the year to end-October 2017 already contracted.

"Velocity was founded in 2007 based on the simple premise of deploying our industry knowledge and expertise to make the supply chain more efficient and less expensive for our customers within the aerospace composites industry. Velocity has grown significantly since our inception and we are delighted to be pursuing a potential IPO to enable our UK based business to become a manufacturing leader,” said Jon Bridges, chief executive officer of Velocity.

"We believe that Velocity's IPO will enhance our public profile and provide the company with the platform to expand into new territories and invest into new product development to ensure we are able to take advantage of the strong market dynamics and our established position. We are confident that we have the right team, expertise and strategy to grow the company and deliver value to customers and shareholders," he added.

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