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.”