Engineering firm in Burnley looks set to raise up to £14.4million by floating on the stock market

Bosses at Velocity Composites, based on AMS Technology Park, in Billington Road, plan to begin trading their shares on the Alternative Investment Market on Thursday.

Entrepreneur Mark Mills, the company's non-executive chairman, was also the founder and chief executive of AIM-listed cash machine operator Cardpoint, which he ran from 1999 to 2006.

Velocity Composites, which makes makes advanced composite products for the aerospace industry, has 100 staff across its headquarters in Burnley and a site in Fareham, Hampshire.

Monies raised by selling shares on the stock market will be used open additional facilities around the world.

Mr Mills said: “Velocity is a great business.

"Its model is predicated on helping manufacturers to save time and material costs, and therefore money, while also allowing them to concentrate on their core business to help increase production rates.

“Having helped to identify growth opportunities for Velocity, the team recognises the need to open additional facilities around the world over the next five to 10 years.

“Realising that funding would be required, the suggestion of a flotation accords in this instance with customers and suppliers who appreciate that a market listing offers transparency, access to capital, long-term sustainability and even greater corporate governance."

The company, which was founded in 2007 by Jon Bridges, Chris Banks and Gerard Johnson, achieved revenues of £14.6m in 2016 and adjusted pre-tax profits of £300,000.

Velocity’s market capitalisation on admission to the stock market will be £30.4m.

Mr Mills, who lives in Lytham joined the board of Velocity in 2015, he said: “I am looking forward to my return to the city on the board of a public company. I’ve always enjoyed interacting with the city and particularly the feedback from seasoned investment professionals who can add value as shareholders.

“While in the last few years I have mainly worked with companies seeking a transition of ownership, Velocity required a solution for additional funding and a long-term plan to meet its customers’ demands.

“It was warmly greeted in the city when I introduced it, and the investors all run long-term funds which suits the company, as it will be able to meet any future potential funding requirements as it expands further.”