Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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UK's armed forces are no longer regarded as a top-level fighting force due to lack of investment, lack of manpower, old kit in stock and not enough emphasis on training.
Defence sources revealed a US general said this decline in war-fighting capability needed to be reversed faster than planned in the wake of Russia's war in Ukraine.
Finally the UK is waking up to the external threats we face. No easy fixes, so this will be a 5/10 year + urgent need of recapitalisation of Manpower, Equipment and Training facilities. PM and Hunt should act in the next Budget.
QQ in the right sector to continue Q3 performance, now integrated with Avantus US and Air Affairs Australia. Growth in all 3 main markets will start to produce a good Shareholder return.
Divi paid on 03 Feb, whilst we wait for capital appreciation.
Jack
The demand for laser weapons is going to really take off in the future....
https://www.telegraph.co.uk/business/2023/01/18/british-defence-contractor-develop-hypersonic-missile-killing/
Solid trading update and confident outlook. Should rise today.
Agree. Significant contract win. Surprised by the muted share price response. Hopefully the Q3 trading update on Wednesday will get things moving!
Great win here, more in the pipeline coming
Massive swings in recent months. Good time to top one might think but looking like a bit of lost investor interest tracking less interest in Ukraine as it settles into an ongoing situation like Syria?
Over done, as expected.
Looking at QQ Revenue to March 22 - UK £881.7M, US 104.7M and Other £334M = Total £1,320.4M
UK as a percentage of total = 67%.
Annual Revenues for Avantus were stated at $298M or c£253M for full year prior to acquisition, coming on Q3. Excellent expansion into a different territory
UK £881.7M, US 104.7M + £253M and Other £334M = Total £1,573.4M
Therefore, if nothing else changes, UK generated Revenues would drop to 56% of Total.
In addition, Avantus was acquired in the US where there is c$800Bn Military Budget spend and the added advantage of $ conversion.
Whilst UK Defence spending might not get to 3% of GDP by the end of the decade, any future defence cuts might not even be QQ specific?
Obviously find out on Thursday, whether the Market was right to knock off 6% on Friday, with a 3% swing back today.
Jack
Well the results look pretty good to me. I will be checking my cash ballance will a view to a top up. With results like those it's tempting to think QQ. is on discount.
Let's see what happens Monday.
Way over done I think, especially as any changes are likely to be made after the next election.
Whilst a decent currency gain was made on the acquisition of Avantus, they should be integrated this quarter giving significant upside.
Maybe city slickers making a few quid, on flaky news flow.
Jack
They are pulling back from that -
https://www.theguardian.com/politics/2022/nov/10/ben-wallace-steps-back-liz-truss-defence-spending-target?CMP=Share_iOSApp_Other
I thought Govt had committed to 3% Defence spending ?
Either way , QQ are the biggest FTSE 250 faller today at 6.6%.
Where is the RNS stating “Management have no reason for the drop” ?
Jack
The drop is very surprising indeed.
Maybe expecting defence cuts to be announced in next week’s autumn statement?
After the strong results yesterday, I cannot believe the 4.25% drop.
Mind you BAE down 5.56% but FTSE flat ?
Jack
Shares in defence technology specialist QinetiQ Group fell despite the group lifting full-year guidance on Thursday after a spike in first-half revenues and profits.
Underlying revenues for the six months to 30 September jumped 12% to £673.4m, while operating profits rose to £74.1m from £53.4m a year previously. Orders jumped 18% to £798.8m.
On a statutory basis, operating profits came in at £100.1m, against £41m a year earlier, boosted by a foreign exchange gain on the acquisition, announced in August, of US software firm Avantus Federal.
Steve Wadey, chief executive, said: "World events continue to reinforce the vital importance of a technology-advanced defence industry to society and the needs of our customers for differentiated solutions.
"Our first half results demonstrate the strong demand we continue to see from our customers for our distinctive offerings.
"Our home countries of UK, US and Australia have all achieved significant organic growth and the US has performed particularly well, delivering improved and consistent performance."
Looking to the second half, QinetiQ said it was increasing revenue guidance and remained on track to meet profit expectations.
It continued: "Given our strong growth in the first half, we will deliver high single-digit percentage organic revenue growth, with underlying profit margin at the lower end of our 11% to 12% short-term expected range, due to increase investment in our people and capabilities to enable growth."
Capital expenditure is expected to come in towards the middle of its forecast £90m to £120m range.
Sharecast News) - Defence technology specialist QinetiQ Group lifted its full-year guidance on Thursday after a spike in first-half revenues and profits.
Underlying revenues for the six months to 30 September jumped 12% to £673.4m, while operating profits rose to £74.1m from £53.4m a year previously. Orders jumped 18% to £798.8m.
On a statutory basis, operating profits came in at £100.1m, against £41m a year earlier, boosted by a foreign exchange gain on the acquisition, announced in August, of US software firm Avantus Federal.
Steve Wadey, chief executive, said: "World events continue to reinforce the vital importance of a technology-advanced defence industry to society and the needs of our customers for differentiated solutions.
"Our first half results demonstrate the strong demand we continue to see from our customers for our distinctive offerings.
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QQ delivered strong and consistent operational performance in the second quarter.
Order intake continues to remain excellent with first half orders at c. £800m, 18% higher than the first half of FY22
good organic revenue growth
profit in-line with expectations and
strong cash conversion.
With more than 90% of our FY23 revenue under contract
confident to deliver in-line with expectations for the full year
Excellent growth in Global Products ($ based)
Plus strategic milestones in the 2nd Qtr in M&A
“All three transactions demonstrate disciplined execution of our strategy and capital allocation policy - focusing our capital deployment into strategically-aligned businesses to support and drive our long-term growth in our six distinctive offerings in our three home countries, the UK, US and Australia, as we continue to build an integrated global defence and security company, delivering good shareholder returns.”
No bad in the current climate and excellent opportunity with the new acquisitions
Jack
QQ were at FTSE position 149 as at 30 Sept 22, up 10 from 159 from the end of August. Despite coming off our SP high of £3.96, QQ have faired better than others in this tough market.
I want to see some reinforcement in the Interims next Wednesday on performance in the current market to plan, how the defence sector in general is perceived and also expecting a robust update and further information on the recent acquisitions. The sooner they are in, QQ can start to benefit from their earnings and EPS growth.
Jack
FY23 Interim Results
QinetiQ will publish its Q2 Trading Update on Wednesday 12th October and its full Interim Results on Thursday 10th November 2022.
In the meantime good to see QQ reviewing their portfolio and swapping out Space NV Belgium for Air Affairs Australia as part of their long term strategy to focus on six core offerings over the UK, US and Australian markets.
Roll on 12 Oct.
Jack
No idea why this has dropped 60p from mid 380's, as I thought the defence market was a compelling proposition at present.
The acquisition of Avantus pulls in a large $ Revenue number and I would have thought that the loan facility would either have been in $ or hedged to $ pending payments made.
Interestingly QQ have faired well in my FTSE tracker, moving up 8 places from position 159.
Last years interims were out on 11 Nov, so waiting for a strong update.
Jack
I hope it does make the FTSE100 as that would put the share price around 800p and be a wonderful return.
http://www.stockchallenge.co.uk/ftse.php
Dividend is paid today at 5p per share.
Despite a 20p drop in SP since post on 10 Aug, QQ still at position 160 in FTSE.
Lets hope that post the dividend the SP starts to climb again, in a very exciting market for QQ.
Jack
Good to see the recent acquisition announcement of Avantus, which is earnings accretive, and the $45M new contract win.
The mission statement below will propel QQ into the FTSE 100. As at end July 22 QQ was in position 159. With a SP of £3.86 the Market Cap is £2,236M.
Since end of July QQ have moved up 4 places to 155. Britvic and Rotork are within 4p of being overtaken.
The story continues
Jack
"Building on our track record of growing the company by 75% over the last six years, we are targeting to deliver a further 75% growth over the next five years, with revenues of more than £2.3bn by FY27. More than 50% of this growth will come from AUKUS countries (Australia, UK and US) with a shared defence and intelligence mission, achieved through both organic growth and strategically-aligned acquisitions."
Delivering organic growth in the US with $45m contract win
09 August 2022 - QinetiQ Group plc ("QinetiQ" or the "Company") has won a contract to provide technical services to the US Army. The five year contract, worth up to $45m, will provide services for the Development Command (DEVCOM) Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance and Reconnaissance (C4ISR) at the Fort Belvoir Prototyping Integration Facility (PIF).
The contract, a 1-year base period followed by four 1-year option periods, will provide technical services for system development, fabrication, sensor and system integration, prototyping of multi-function sensor suites, and technology assessment efforts aimed at supporting current and future DEVCOM C5ISR PIF Belvoir customers.
This contract is an important competitive win for the business and reinforces our continued value to our customers. It is the largest significant win for our strengthened US leadership team, focused on driving short-term operational performance and organic growth. This success demonstrates our strategy is working and provides further confidence as we prepare for the integration of our recently announced acquisition of Avantus Federal LLC.
About QinetiQ