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Disappointed over the SP retracing back to the 42p level. Firstly, I did not realise this contract was already in the pipeline when the Scottish Yard went under. Good it was re-born but its not all together a new deal. Looking at the make up of the consideration, I notice a chunk was in shares. I have not seen if a lock up clause was put on these but if not, that could explain the large supply of stock into the rally. I am relaxed about the pull back but should we close below the 42p level, I will be disappointed but not alarmed. A close below the ascending support, now around 38p, would make me far less ambivalent
however. Still in for the long run.
Campaigners demand built-in-Britain guarantee over £1.5bn naval supply ships
EXCLUSIVE: The long-running row over the Fleet Solid Support vessels has taken another twist following a written parliamentary answer from a Defence Minister
BY BEN GLAZE
21:00, 20 APR 2021
Campaigners tonight piled fresh pressure on ministers over a £1.5billion deal for three naval supply ships.
Defence Secretary Ben Wallace ruled last year that the Fleet Solid Support vessels would be warships – meaning the Government could award the bumper contract to a British yard without having to offer it to international rivals.
However, ministers are refusing to say the contract will be a “UK-tender only” – meaning foreign firms could be involved in building British warships.
In a written Parliamentary answer last week, Defence Minister Jeremy Quin signalled overseas companies could benefit from the deal.
“The detailed contract requirements are yet to be published but we would expect substantial UK involvement in any successful bid,” he said.
“We would encourage interested international partners to work with UK firms to bid”.
The revelation triggered fresh dismay among unions and MPs who believe British workers should benefit from the lucrative order.
Former Defence Minister Kevan Jones, who chairs Parliament's cross-party group on shipbuilding, told the Mirror: “For something as important as warship design and construction, the Government must ensure this is a UK-only tender.
“It is time for the Government to support UK shipbuilding and offer yards and supply chains the assurances they need to invest in skills and apprenticeships for the future.”
The 40,000-tonne Royal Fleet Auxiliary vessels will resupply Royal Navy warships, including the £6.2bn Queen Elizabeth-class aircraft carriers, with food, ammunition and explosives.
Thank you Si
It certainly seems like we are heading in the right direction
Hopefully the corporate news flow in the coming weeks will provide more solid support to take us higher.
I don’t “do” charts but can see we are creeping or trending up.
I’m hoping Mr Poots provides the Company with a consent to develop the storage project because that will surely unlock so much including work for the yard in Belfast.
FWIW, my view is it's just doing what it normaly does after news.
Filling the gap left from Fridays news and then slowly retracing until the next bit of news.
Here's my chart of the last 12 months with indication of various news items.
https://invst.ly/uj5q8
Also, keep an eye on the RSI at the bottom and see how once it gets up over 70 there's a natural fall off until its gets back down to the low 40's when it starts to slowly build back up. Rinse repeat until the next news event.
Long term, the 50ma is nicely above the 200ma. Short term ma's showing the pull back. But , meh!
And all way above the long term trend line. Which is nioce.
All, IMO. Si. :)
Over to you Lottie, for I'm sure, a much better interpretation.
Be good to get Lottie123 view on the recent share price movements please
Tango, I think this project has been in the pipeline since 2007 with full planning granted 2012, also there were two grants in place, 1 x HM treasury 2013 and an EU grant 2017 that 1 clearly gone now, cannot find what % of the project would of been covered by a grant, and if the ML is granted what is avaible to INFA by way of a state grant.
roly12- Infa has already put circa £15M into the iM project, so they will be looking at getting that back from whoever takes on the project + an equity stake, INFA will also be building and managing the project to completion for whoever takes the FID at the going rates.
Stokey,government funding...........let's see....who wants shipbuilding to return??,who want to Join the hydrogen revolution ??,who wants thousands of apprenticeships in shipbuilding? ?.
Friday's RNS was welcome as was the SP uplift, however having read yesterday's RNS twice not sure why the SP dropped, all I can think of is impatient PI's selling. Correct me if wrong but I think that I read that the cost of developing Island M was in the area of £220M, clearly INFA cannot do that so investment partners WILL be brought in, given the figures I would think that INFA would do a fundraise to cover their equity interest in that project. Getting back to last Friday's RNS, we now have confirmation of our first substantial contract (The 1st 1 always the hardest to get), and I would expect more to follow, let us not forget that our Gross profit from that contract will be in the order of £5-6 M. I for one am looking to increase my holding here soon, just have to put some of my other holdings through a haircut. Roly.
stokey12,
Once again, this is becoming tedious. Clearly you were unaware of the debt facility until my previous post - I will leave it at that.
Stokey I agree that there are many ways of raising capital, but most cost more than issuing new shares. Preference shares would have to at promise future dividends, obtaining a floating charge over assets would incur interest payments, whereas new shares need promise the investor nothing except jam in the future. Of course Infa could sell an asset, but at this early stage of their development I don't think the market would be happy with that.
Ultimately I think it will all come down to management. The potential turnover is there and evident to all. It's up to the management to turn revenue into profit (which previous owners of the various businesses were not able to do). So it is really a gamble on Infa's management skills.
Further to my 08.18 post this is the report on the BBC website. https://www.bbc.co.uk/news/uk-politics-56807520
BlairPeach In relation to your 14.21 post you must try better when you want to scaremonger the RNS of 10 February 2020 states inter alia 'has secured a £2 million asset backed term debt facility (the "Facility"). ' While it does say that the facility is secured by a FIRST charge over the assets of H&W (Belfast) the value of those assets exceed the amount of the facility. I would draw your attention to the accounts where there is shown a figure in excess of £6m in the revaluation reserve. This figure relates to the assets of H&W (Belfast) and is the difference between the value of those assets as valued at the time of the purchase and the revaluation of the assets. So as a conservative estimate allowing for interest payments H&W (Belfast) can provide security for £8m by way of a second charge.
stokey12,
Oh dear. May I point you to the RNS released on 10th February 2020? I suggest you sit down before reading, as it seems that you have been investing in this company without being aware of some rather salient points.
BlairPeach In elation to your 14.02 post where do you get the information that H&W (Belfast) is 'hocked to the leg breakers'. My figures were taken from the balance sheet in the interim results.
stokey12,
A reminder that all the assets of H&W Belfast are already hocked to the leg-breakers and that INFA is paying a usurious interest rate for the privilege. Given the collateral-worthiness of the remaining assets, how much more asset-backed finance do you think the company could raise and at what rate? Don't forget that the company has to pay back the principal to the leg-breakers in February (or is it March?) next year. That time is not far away.
As for dilution, mine currently stands at seven-fold, thanks very much.
I got in today as see this as a good entry price. been following for years; looking forward to contracts coming in.
GLA
IvorHunch In relation to your 12.34 post while a rights issue or a placing is possible it is not the only way to raise finance. In respect of the Islandmagee Project there is the option of selling an equity stake in the subsidiary that 'owns' the assets. Also that subsidiary could create a subsidiary with the investors holding a share in that subsidiary. In addition there is the option of preference shares being issued. None of these options would cause dilution. Also as there is £20m in net assets there is the option of a floating charge over those assets. From this you can see that raising finance does not mean dilution.
Personally I am not too concerned whether Infa decides to issue more shares at a later date, in fact I think it's almost inevitable. The stock market is a means for companies to raise capital without adding to borrowings and I have taken up rights issues in many companies that have gone on to do extremely well. My main concern is that it is not a private placing but open to existing shareholders.
The potential for Infa is quite staggering and its turnover will soon be multiples of the present figure. This exponential growth is not going to happen without more funding. Inevitably a placing or rights issue will damage the sp short term, but it will be worth the temporary pain.
Indeed, every silver lining has a cloud...
Well read Tango, being allergic to equity dilution I had also made that assumption, now remedied.
Regarding the Abstraction License, I think people already know this, the response from DAERA to my recent query was "The application is currently with the DAERA Minister for his consideration."
I continue to have faith in my previously stated "Belief, patience, long-term hold" position.
Tango1
thanks ...I read that..but have to admit..was confused by the later comment " by diluting its shareholders"... so I was keen to hear further comment for clarity...
so, that " diluting its shareholders" is referring to the " identified pool of investors " and equity terms within that pool, tied within the project ?
Pokerchips- Looks like you suffer from creative reading! the actual statement does not state they will seek new investment it states:-
"Subject to the outcome of the determination of the marine licence by Minister Poots, we will seek to engage more actively with our identified pool of investors with a view to agreeing project level investment and equity terms with them and proceeding to Final Investment Decision ("FID") in the next few months. Further announcements will be made to the market on the marine licence and next steps thereafter in due course."
The investors are for the project not the company "at project level" should have given it away.
Solid foundation to build from ..
Cash at Bank - £3,990,788
Harland and Wolff (Appledore) acquisition - £1.5 million is payable on 31 August 2021
Islandmagee gas storage project - awaiting the project's final marine licence.
" Should the marine licence be formally granted, the Company will seek to attract new investors at the project level by diluting its shareholders and proceed to Final Investment Decision. ...the project continues to be economically robust "
Any new investment will be for good reasons should they get the necessary licence requested....
What is the suggested next fund raise amount looking like..given the next stages of growth... ?
When is the licence decision expected ?