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All looks OK but they are tighter on the cash flow for the next year than I was expecting.
I think we are likely to get another placing if they land a big contract unless it is phased to start in 2025. Still, if it accelerates the growth than that would be reasonable.
Pretty much as expected. My only concern is the reduction in margin to 18.8%. Hopefully more detail will be provided at 10am.
Very exciting news regarding the MoU with a Tier 1 and the business development plan with another Tier 1, again, hopefully we will hear more information on these opportunities soon!
Overall I'm happy with the update and direction the company is heading in.
Meeting today..
Our current market cap is £19m
Surely a rerate to at least £25m / £30m based on this news alone.
While existing contracts will show significant growth on FY23, the Board now expects revenues for FY24 will be between £27m and £30m.
· This guidance assumes no revenue is recognised in FY24 from the current pipeline of new business opportunities, with the main risk variances relating to FX and OEM regulatory sign off on individual US programmes now being onboarded
· Current contracted business, without any new customer wins, is expected to double in size once all contracts reach full production to at least £33m.
Jim89 I wish they had suspended awaiting an announcment.....Would be nice to get some news
Sorry, thank you.
Hi Woodyjohn40, wrong board I'm afraid. Velocys Plc (VLS) have suspended not Velocity (VEL)
At the request of the Company, trading on AIM for the under-mentioned securities was temporarily suspended from 17/01/2024 7:30am, pending an announcement.
what will the announcement be, does everyone know?
Agreed, very frustrating that we haven't even received an update on the new contract discussions, since summer. I understand these can take a lot of time to negotiate and with NDAs in place it is often hard to disclose information but a little bit of communication from the company wouldn't go a miss.
With regards to the money from the GKN contract, this is delayed as per one of the RNS's from last year. This is due to things taking a little longer than expected. This could have a slight impact on the share price when results are announced on 22rd Jan, however, this has been communicated by the company so shouldn't really be a surprise to show the revenue figures reduced and the EBITDA as a negative.
We could really do with a positive update from the company here, shareholders are currently being kept in the dark which does not inspire confidence.
Where's the money ?
Just one question where are the new contracts?
From The Times-
'There was a record-breaking backlog of 15,000 aeroplanes on order in November because of soaring demand for travel coupled with supply chain challenges, according to the latest figures from the UK’s aerospace trade body ADS, which represents aerospace, security and space, reported that there was a 350 per cent increase in the number of orders for aircraft compared with last November and a 10 per cent growth in the backlog. '
So I guess we will have to wait till 2024 for any news on new contracts
Thanks Jim, great overview.
I'm sure they're under strict NDAs with Tier 1 clients which limits what they can disclose. Also, reaching contractual agreement with large companies can take a very long time - 6 months+ often just to go through the legal counsels.
All sounds very positive though
Just topped up £3,500 & 58,792 shares
Jim89
Thanks great summary
Main points I took from the presentation is that:
● contracted revenue for 2024 has increased significantly to £30-£36M - industry players are approaching velocity. 2022 - £12M turnover, so a large increase
● Due to be 'very profitable' in the second half of next financial year (2024). This is based on the revenues that are already secured
● P&L account will be transformed into a profitable business next year, fixed costs are already set
● Aim is to be £100M turnover in 5 years
● The majority of investment is done, equipment, technology, services, people, US facility
● Significant pipeline of opportunities with large numbers proposed
● Surrounded by large Tier 1 organisations in the US
● No real competitors providing this service, main competitors are the customers undertaking this service themselves which does not provide the cost savings (very niche offering)
● Near term growth supports 10% EBITDA
● Return on capital circa 25%
A decent presentation however, slightly unprofessional towards the end where the question was raised regarding share options, Andy questioned the chap on his understanding of options and it got slightly awkward. I also felt that they weren't really all in sync with each other, Andy B stepped in a lot when the financial questions were posed and answered vaguely by Andrew Hebb. Just my take on it, however, a positive presentation nonetheless.
Would have liked more questions posed on future contracts, discussions with Tier 1's etc. We last heard from the company back in July when they stated they were in advanced discussions with a large Tier 1 organisation, we really could do with an update on that in order to settle the market.
Putting it politely, they seemed to be very 'astute' with their timing so I assume it came before the placing.....
They sold out during the Summer -
''A total of 460,614 shares in Velocity Composites plc were sold during the period. No shares were held in Velocity Composites plc at the end of the period.''
Well no trades. Nobody was impressed with the presentation.. Why ? Where is it ? It should be on line, unless it's the same one from a few weeks ago.
I still have hope for news this year. Last years' major contract RNS was very late into the year.
Did anyone attend the shares mag presentation yesterday? If so, would welcome any feedback or info
Its not looking good for any news this year....Approx 1 week left before everything starts to close down for Christmas
What is happening its over a year since the current contract was announced. lets have news on the next client BOD come on
Not before time and a chance to quiz with questions after presentation with important company and share-holder updates next week.
https://www.sharesmagazine.co.uk/events/event/shares-investor-evening-london-live-event-121223
Google show the trade today as 270k share over £100k?