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Keep the faith people. 1H update (to 30th April) when it issues mid to end of May should be inline. My industry contacts tell me UK business could also soon renew a lot of its existing UK contracts, which taken with the fresh US ones, should give them a very high visible revenue stream into 2H, 2025 and more.
I am not bothered about new contracts at the moment: H1 was/is going to be tight for cash flow, given the purchases it does indicate that the Chairman thinks that they should manage it without need raise any more funds thus assuaging my main concern.
Not necessarily, plenty of shares around where directors have purchased and news has been released soon after. Check out Intercede (IGP) RNS's from November '23
OK so no news soon then if a director just been aloud to purchase a few shares
News flow is very thin here agreed, but why not wait until end of May, last years trading update was 24th May, so there should be one due around that time.
I must admit I'm loosing confidence in stock. The entire industry is booming, including competitors, as yet this share is somehow not moving as all.
There nothing concrete the management have presented to reassure the investors, no new contracts so far, no info about upside in production.
Its all smoke and speculation so far. I'm holing my share until the end of April, unless the management gets the grip of the situation and can show something more robust.
It might not be a total coincident that the share price is not following the industry trends. There no fire without smoke
Gavster, good point and you could read a lot into the issues with Boeing, Spirit and the 737 max.
My take on it is that it was Spirit who Velocity were in 'advanced discussion' with last summer regarding a new contract (all presentations pointed to a $100M opportunity with Spirit). Maybe these discussions have now been put on hold given the issues/audits ongoing with Spirit, Boeing and the 737... who knows. Also articles pointing to Boeing buying Spirit back may hamper any new contracts being placed.
It would be interesting to know what parts Velocity were manufacturing for the 737 max through Spirit, does anyone have any info on this?
If these drop below 30p and with the new ISA allowance around the corner, I think I will be averaging down significantly here. We could really do with a positive update from the company soon.
Can we assume the SP is suffering due to the problems at Boeing ?
Specifically the 737. Anyone close to the industry know if the problems are being address, so the sentiment can return.
https://www.wsj.com/business/airlines/disarray-boeing-factory-door-plug-blowout-f063e27e
https://www.sharecast.com/news/aim-bulletin/boeing-approves-velocity-composites-to-supply-737-max-programme--7249124.html
Jim89
Good post and love the idea of £1 plus
There will be a lot going on in the background, I have no doubt about that. However, as we have discussed previously they really need to get the large $100M contract up and running smoothly first before taking on another. The company need to time it correctly and ensure that they have everything in place so that they can hit the agreed milestone dates and not have to disappoint the market (regular news flow is good but it must be positive). This means increasing resource, training, plant and machinery, general infrastructure etc. Patience is all that is required here, I understand its not nice to see the price down at these levels, however, if the company play this right, start making profit this year, get the GKN contract running well/hitting milestones and then announce another large contract, I see the share price this time next year being up into the £1-£1.50 range (in my opinion).
I was hoping for new in Q4 2023......Nearly at the end of Q1 2024 any thought as to what is going on?
Ive just bought a few more. Sadly I can go to the AGM tomorrow is anyone going?
Nice update as many have suggested.
I have had VEL on my watchlist for sometime and not yet taken the plunge, perhaps now is the time to do so, however the buy / sell price spread is crazy and significantly putting me off, and I do feel that VEL still have some way to go to deliver on the forecasts they have given, hence I feel the share price will remain flat in the short term.
As an investor in SCE I am in total agreement with you on that! It was in my mind when I was writing the comment.....
SCE is a prime example of a company that was running before it could walk and look at how it’s fallen flat on its face and the SP trajectory. Once FAI approval is in place, the company will be well placed to demonstrate to other interested parties and put in place further deals in H2 24
Jim89
Thinking about it your approach is sound...ill sit in the back ground wait and watch for a while
I am in agreement with you on this.
Cash is tight for H1 so being on track with the new contract is key (all be it one that had slipped from last years original timeline). Once they get through this year they will be financially more secure to take on further contracts.
One thing that I used to be concerned about was other companies coming in and competing for the work. However, even with their prior experience, the amount of time and effort over past year to get the FAI's, has made me realise that it would not be at all easy for this to happen and that they do have a good 'moat' around the business.
Positive update on the main contract. I've changed my stance slightly on the new contracts and at what point they are announced by the company. I wouldn't worry too much on these new contracts yet, they are obviously there and in the pipeline, however, I feel that it's really important to ensure that this first large contract is up and running, teething issues are resolved, they have all of the approvals in place and they start to receive some of the revenue. Once this has all been achieved I would feel more comfortable with the announcements of new contract wins.
If they take too much on at all once then there is a chance they won't have all of the resource or infrastructure required to deliver on time or to cost and quality for any customer, which will ultimately have a huge negative impact on the share price (spread themselves too thin). Slow and steady wins the race here, but a little more media coverage and communication from the company wouldn't go a miss in order to ensure the share price doesn't slide too low
Thats an encouraging update, however what happening on the new business wins?
Google is showing someone just bought 450k?
Even though im very frustrated with the news flow typical for a small company like this Ihave this morning topped up 3 different portfolios with approx 25,000, 2 x 50,000 shares fingers crossed some news comes this week
AGM on 12th March. Would expect in line performance and continuation of path to show pre-tax profitability for 2H (that is in line with break-even 2024E as flagged). Believe group talking a specific large contract, but release of news on that or revealing its progress I don't think is for now. Later in year I think. Keep the faith.
Hi Sharehunter, that maybe the case but it is clearly not reflected in the shareprice.
32p. Not exactly what we would expect if there was any sort of increase in any type of order.
Hi, yes everyone is so focused on the news about new orders, but everyone is missing the point of the increasing demand for current orders. It's a shame the management is not clearly stating this.
My main issue is news was exspected late last year.... We are now nearly in March and no news on new orders