- Advanced materials company Velocity Composites said £5.0m of funds raised at the time of its market listing in 2017 had bow been employed within the necessary timeframe for tax purposes.

EIS/VCT qualifying funds of £5.0m were raised at the time of the company's admission to trading on AIM in May 2017.

Their use had included establishing a new collaboration agreement with Wesco Aircraft Holdings, which would require investment by Velocity in the US.

A smaller but still significant investment was also planned for a new site in mainland Europe.

'As the group has retained the EIS/VCT monies within a separate bank account kept solely for this purpose, the group is able to fund the expenditure detailed above with only a small amount of additional funding required which is expected to come from cash flows generated by the group's improved trading performance,' Velocity Composites said.

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