Velocity Composites plc, distinguished supplier of advanced composite material kits to the aerospace and high-performance manufacturing sectors headquartered in Burnley, Lancashire, has announced the successful renewal of its long-standing contract with BAE Systems, the UK’s premier defence contractor. This three-year extension is a significant development, reaffirming Velocity’s role in critical defence programmes and supporting the company’s existing revenue forecasts for FY25.
Velocity’s core business is centred on providing specialised composite material kits, a service designed to enhance efficiency, reduce internal costs, and free up resources for its manufacturing customers. The company achieves this by meticulously managing the entire raw material supply chain. Leveraging proprietary process knowledge and cutting-edge software, Velocity’s approach minimises material waste and optimises the amount of material needed during the production of complex aircraft components. Their comprehensive offering includes both Structural material kits and Engineered vacuum bag material kits, catering to diverse manufacturing requirements. Digital traceability is integrated throughout their processes for high-value materials.
The relationship with BAE Systems is substantial, dating back to 2010. Under the terms of the renewed contract, Velocity will continue its vital role in supplying process material kits for major defence projects, specifically the F35 and Typhoon programmes. This close collaboration involves Velocity teams working directly at BAE Systems’ Samlesbury site in Lancashire, UK, undertaking essential inventory management and contributing to continuous improvement initiatives stipulated within the contract. The agreement also reflects current economic realities, incorporating a necessary price adjustment to account for increased operational costs, including labour, energy, and finance, since the previous renewal.
Jon Bridges, Chief Executive Officer at Velocity Composites, highlighted the importance of the enduring partnership. He commented, “BAE Systems has been a key partner for many years, and we are delighted to continue our relationship”. Emphasising the tangible benefits Velocity delivers, Mr Bridges added that their work with BAE Systems “helps to reduce the cost of manufacture”.
Bridges also provided insight into Velocity’s broader strategic direction within the defence sector. He noted, “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”. This proactive approach positions Velocity to capitalise on the increasing global defence expenditure, which Bridges pointed out is currently rising.
Undoubtedly, the versatility of Velocity’s service model has been one of the major order winning criteria; “Our services are identical for defence customers who share similar issues to civil aircraft, underscoring Velocity’s ability to apply its specialised kitting and supply chain management expertise across different aerospace segments” he explains.
This renewal and strategic focus align with Velocity’s recent expansion efforts, including the establishment and Nadcap accreditation of their first US facility in Alabama. This US site is also dedicated to supplying composite material kits, initially for GKN Aerospace.
Recent financial results further support this growth trajectory, showing a significant increase in revenue, particularly driven by US sales following the onboarding of a major manufacturer.
The continued partnership with BAE Systems, alongside strategic investments and expansions, solidifies Velocity Composites’ position as a critical supplier in the advanced manufacturing and defence aerospace supply chains, poised for further growth in key global markets.
