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NOBONES, I believe this is the first time Military spending has truly increased since 1945. Like I said, I invested back in the days of 0.8p (equivalent 80p now) and this had better do MORE than double the current SP!
Glad to see us get the 10% rise I predicted, albeit a day later than anticipated :)
It's amazing to think this time last year we hadn't even completed the acquisition of H&W. It looked at the time a very bold (risky) call for INFA of all companies to be taking on a loss making monolith out of admin, sold mainly to investors using the rational that it would reduce fabrication costs of IM by 15% or something. Fast forward to today and we are the owner of not one but two shipyards and the government has just announced the biggest defence spending boost since the Cold war with the stated aims of sparking a "shipbuilding renaissance" and making Britain "the foremost navel power in Europe".
What's great is the implicit desire to strengthen the union and bring work to all four corners of the UK, no bad thing when you own shipyards in Belfast and North Devon ;)
Anyway, considering the SP performance since acquisition I believe this quite simply has to rerate, £1 on sentiment alone IMO.
Thanks Drango for that info. I was aware of the number of drydocks they had at Devonport but had no idea they had that acreage of 650. That's a huge area. Do you know if Devonport have previously done much renewables work with turbines or what this acreage has previously been used for ? Cheers.
Like Razorshulz i have been listening to John Wood's LSE interview. Judging by the share price it has generated a lot of interest. It reinforces my view that this is a strong buy. Looks like there is a lot of work going in that we are not seeing. I am looking forward to reading the next two sets of accounts.
Thistimenextyear, bab**** have 15 drydocks at devonprt they don't use no 13 I believe Their drydock in North yard could take in the the past air craft carriers . The site covers 650 acres in total, not all engineering related. According to the local tv station last night it's expected that Appledore would get the smaller ship builds and devonport the larger ship refits but this is all subject to confirmation. Local MP for Devonport Luke Pollard said this was great news for the area but was expecting cuts to be made in other areas to fund the projects.
"We have a 1.7 billion weighted pipeline, and we have several 100 million in tender waiting for awards to come through and we are fairly optimistic about where we are, and its about making sure we have enough space for all the work, which is where we can share with Appledore."
Exerpt from the article/video linked at the top of the page
I'm in INFA a few years now Simbah and have never been as excited as i currently am with the potential that's here in this company.
Don't take your eye of the Islandmagee project though. The billions being discussed in potential MOD work maybe has us a little distracted at the moment, lol. If this Marine License comes through this is MEGA for INFA.
As for large chunky buys, there certainly are a few of these coming in today. It'll be interesting to see what the trading totals end at today. I believe it'll certainly be a big trading day by close of business.
i bought in myself after researching the history (which i dont like to be honest due to various delays in islandgas cavern project)
HOWEVER, then i came across naval military spending just announced only a couple of days ago.
equivalent company in the US re shipyard operator for military will be worth well above £100m mcap. yet here we are at tiny 30m mcap
these military contract will be massive, not just the usually 50m contract that they used to get . will be north of billions .
just buy before the crowd coming in.
There's a banner at the top of the page with a link to John Wood's latest video!
ThisTimeNextYeer Inrelation to your 10.30 post I think were the share price goes is likely to be dependent on the size of the contract. If we assume that the profit margin is 20% then if the contract size is £500m then that would give a a profit margin of £100m so I would expect the share price to go to the £2.50 range. The reason for this is that the EPS would be around £1 per share.
I didnt get to finish my post on size. I posted it by accident before completing, lol.
The exciting factor for me is that at H & W have the capacity to take a massive chunk of MOD work based on their dry dock capacity. They have a massive dry dock that is big enough to hold 4 large cruise ships at the one time (556m x 93m). They also have a dry dock of 335m x 50.29m. This is just Belfast. There's also Appledore and their covered dry dock.
There are other dry docks in the UK but are these currently free ? Bab have other work in these docks and ongoing contracts to meet.
INFA have the size of docks that could handle a lot of work. They're also all free at the mo.
Exciting times !
They won't terminate it, they'll carry on their original vision of developing it, selling it off mostly through equity but retaining a small stake, and perhaps fees for managing it (if that's their plan still)
We're all quite rightly pleased with a 20% increase in share price this week (this includes today so far). Lets be clear though, this rise is on absolutely NO confirmation of any contract coming to INFA (yet). It's on news of increased defence spending and Boris some Boris words.
Here's the question. Where will the share price ACTUALLY go, when there is an announcement of contract news ?
i happen to be invested in this for years and i dont understand the industry; would knowledgeable investors here say it s a good reentry/to add
‘ NFA may terminate their gas cavern project once this shipyard business taking off !!’
I didn’t get that impression from the Zoom Meeting, the project is ‘shovel ready’ was the term that was used ... just waiting on the Marine Licence.
With Boris' recent visit to Appledore site it looks positive that they will be in the mix for new MoD work...
and minimum contract worth 1bn. though i am sure will be much more than that.
shipping contract are heavy/expensive and there are only limited number of shipyard in UK capable of doing it.
INFO got lucky buying this during their shipyard cash crisis.
INFA may terminate their gas cavern project once this shipyard business taking off !!
Great to see some positive movement in this company. ‘Attended’ the Zoom Meeting on 10/11 and was impressed with how things to be shaping up. Good to see there appears to be confidence that the company will get a slice of the defence contract and of course if news comes through regarding the Marine Licence then I can only foresee more good things happening.
it had better double - at least. I bought most of my holding around 0.8p I believe, so I'm going to be underwater until this doubles. The share price was 2p at one point, before the consolidation. So it had better get back to £2 at least.
Up10.9% very nice move heading towards news ,I would th I I will double on mod contract news imho future divis are possible
Loosegoose I agree with your 08.52 post as I see it at the curret share price if we get a earnings per share figure of more than 5p then the share price is likely to move up. As INFA only has 65m shares in issue that would need only about £3.5m in earnings to generate an eps of 5p
Great posts on the recent announcements by the PM. Bodes very well for INFA. Let us not forget that there is also plenty of work in the other segments such as cruise & ferry, renewables etc. Cruise & ferry has been good so far with around 20 smaller contracts so far and something bigger will come on the back of these successes - no doubt. This coupled with military paints a very welcome picture of a bright future. I think of IMSL and pending ML as the joker up the sleeve.
With Brexit fast approaching the horizon it would be interesting to see if the spending review makes any mention of other soveriegn that the UK might need as a consequence. As I see it the UK will need Fisheries Protection Vessels and possibly Border Force Vessels. These will be needed to protect our waters from various threats. I can see this work coming to H&W as it has the capacity.
Well put Jabido. It would be hard to imagine that Infa as part of Team Resolute did not win at least some kind of contract work for the MoD!
Boris said so, not me... so its guaranteed coming. hence I am in !
Boris also visited and met our CEO few mths ago!
https://www.business-live.co.uk/ports-logistics/hopes-devons-appledore-shipyard-johnsons-19309958?utm_source=twitter.com&utm_medium=social&utm_campaign=sharebar
I have bought in, putting all the past history aside, this is massive turning point.