Velocity Composites PLC Board Update (1088D)

TIDMVEL

RNS Number : 1088D

Velocity Composites PLC

24 June 2019

24 June 2019

VELOCITY COMPOSITES PLC

("Velocity", the "Company" or the "Group")

Board Update

Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, today announces an update to the process to re-constitute the Board.

At the AGM, the Board announced a process for the re-constitution of its membership. At that time, it was agreed that Mark Mills would step down from the Board and his role of Executive Chairman. At the same time, Jon Bridges (former CEO and Board member) was appointed as the Interim CEO and Andrew Hebb was confirmed as continuing as the Interim CFO and Company Secretary. Neither of the interim roles are members of the Board and both report directly to the Board.

It was also announced that the remaining members of the Board would appoint independent search consultants to identify a new independent Non-Executive Chairman. Brian Tenner was appointed as the Group's Senior Independent Director to lead this process. The new Chairman would in turn then be charged with leading the Board in identifying a permanent CEO and a permanent CFO to replace the two current interim office holders. An additional Non-Executive Director would also be appointed. Independent search consultants were appointed in early May following a competitive process and the search for a new Chairman then began in earnest.

However, the Founders have made clear that they do not support the Board's process and instead have proposed an alternative approach to re-constituting the Board which involves their two nominees being appointed to the Board before resolving the permanent posts of Chairman, CEO and CFO. The Board had offered to appoint one of the Founder nominees during the search process but this offer was rejected.

While disappointed by this turn of events, the Board had no choice but to engage with the Founders and are currently in active discussion to attempt to resolve matters in the interests of all stakeholders in the short term and in an orderly fashion. In light of those discussions, the independent search for a new Chairman has been temporarily put on hold. The Board hopes to be able to update the market in the very short term with a resolution that will negate the risk of a disorderly transition if it is prevented from being able to re-constitute itself.

Commenting on the discussions, Brian Tenner, Senior Independent Director, said:

"Today the Board announced an encouraging set of interim results that shows the business growing, improving margins and cash flows, while also identifying some attractive investment opportunities that can add significant value to the Group in the medium term. It is clearly in everyone's best interests to agree an orderly Board transition in as short a time frame as possible to allow the Group to focus on those business opportunities. We hope to update shareholders in the very near term on a successful outcome to the current discussions with the Founders."

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CONTACT DETAILS:

 
 Velocity                                                   c/o Camarco 
  Brian Tenner, Senior Independent Director                  Tel: [phone] 
                                                             4980 
 finnCap (Nominated Adviser and Broker)                     Tel: [phone] 
  Scott Mathieson / Hannah Boros (Corporate                  0500 
  Finance) 
  Tim Redfern (ECM) 
 Camarco (Financial PR)                                     Tel: [phone] 
  Ed Gascoigne Pees / James Crothers                         4980 
 

About Velocity Composites

Velocity Composites is a manufacturer of advanced composite material kits for the aerospace industry disrupting the composites supply chain to deliver engineered waste reduction solutions for its customers to build aircraft components using less time and material. The Company's customers include multi-national manufacturers of composite parts and assemblies, who in turn deliver to the world's leading civil and military aircraft manufacturers. The Airbus A320, A330, A350, A380, Eurofighter Typhoon, F35 Joint Strike Fighter and Boeing 737, 787 and V22 Osprey are all constructed using parts manufactured from Velocity's kits. The Company's business model reduces the operating costs of preparing composite materials ahead of their usage in the construction of an aircraft part and as such, its offering is disposed to being self-financing for aircraft parts' manufacturers. Velocity's services are seeing increased demand as the global aircraft industry enters a more-for-less era. Velocity currently has customers in the UK and Continental Europe.

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June 24, 2019 02:01 ET (06:01 GMT)