Aerospace parts manufacturer to raise £15m in flotation
A Burnley headquartered aerospace products manufacturer has said it expects to raise £14.4m when it floats on the AIM market later this week.
Velocity Composites, which has a turnover of around £15m, operates from a 26,000 sq ft facility at AMS Technology Park in Burnley, as well as having a base at Fareham in Hampshire.
The placing comprises 12,270,739 new and 4,705,885 existing ordinary shares at 85p each to raise gross proceeds of £14.4m, giving it a market capitalisation of £30.4m.
The company, which employs 97 staff, manufactures advanced carbon fibre and ancillary material kits for use in the production of aircraft.
Velocity was founded in October 2007 by three career composite engineers to manufacture kits of raw materials to be used in composite aircraft parts.
It had a turnover of £14.6m, with adjusted pre-tax profits of £300,000 in the year to the end of October 2016.
Jon Bridges, chief executive and co-founder of Velocity, said: “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.
“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.”
