Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Another strong day, long may it continue!
Hopefully we can keep rising 5% per day until news. Want to be back into the 50's or 60's before another large contract lands
Some nice late volume today
Very interesting and great news potentially for velocity...
https://www.gknaerospace.com/en/newsroom/news-releases/2023/gkn-aerospace-and-ge-sign-major-agreement-on-industry-leading-aero-engines/
Nice clip from the article:
"The ground-breaking technology insertion programmes on the GEnx will focus on alternative material solutions, providing a more sustainable manufacturing footprint for several products currently flying. GKN Aerospace will provide component design expertise as well as its latest technologies, to help drive the GEnx programme towards its targets on carbon emissions reduction targets and cost reduction".
Hopefully some good updates very soon... just bought another £15,000
Another very good and professional presentation. Expecting another large contract before year end
Https://www.velocity-composites.com/docs/OctoberInvestorPresentation_161023.pdf
My highlight is page 11
Current Contracted Business $36m - $43m Annually
Current 3 Facilities Support $85m Annually
Potential Pipeline $250m Annually
Near term growth supports 10% EBITDA and 25% return on capital
Expected to fund further investment through profits
Velocity has identified the following long term opportunities that are not already included in Velocity’s contracted business:
Customer Estimated Annual Opportunity ($m)
Qarbon Circa $25m
Safran (Additional) Circa $25m
GKN (Additional) Circa $25m
RTX $50m +
Boeing (all US Sites) $50m +
Gulfstream Circa $20m
Spirit $100m +
Article from last week. Though not even a blip upwards on the SP which is annoyingly more than 10% below the recent offer price. Lets hope Jon Bridges, Kevin Hickey and the team have a good update up their sleeve. End of December is the next trading update.
Leading composite material kit manufacturer, Velocity Composites, has joined an elite group of aerospace companies that have successfully completed the National Aerospace and Defence Contractors’ Accreditation Programme special process audits to the highest level.
https://compositesuk.co.uk/velocity-composites-passes-aerospace-audits-with-flying-colours/
Also
https://www.lancashirebusinessview.co.uk/latest-news-and-features/velocity-composites-strengthens-senior-team
Some institutional change of holdings by the looks of things
A nice £85k buy just printed from yesterday. The ask was at 37p and 39p was paid. Encouraging!!
Thanks, Gavster. Yes, interesting indeed. If Melody9999 is anything to go by, we might expect some excitement within the next fortnight. £5m placing to complete this Friday followed, possibly by a virtual presentation next Friday. If correct, this will be the most information we've had in quite a while. Is it worth topping up?
Neither am I but the chats can still be read, as they can be here.
https://uk.advfn.com/stock-market/london/velocity-composites-VEL/share-chat
Gavster, I’m not on ADVFN, would you be able to share the details posted?
Interesting few posts on ADVFN today.
Weakness of the SP should be short lived if there's some completion of the deal.
We wait..
Not sure………but the RNS about the Group FD leaving with immediate effect is concerning. That can only mean gross misconduct. I doubt we’ll ever find out the reasons why but I hope nothing which will materially impact VELs future
with the lack of activity lately, i've barely looked in here so, this teatime rns sneaked past me. somebody enlighten me. what does the cancellation of the share premium account mean? will this give the sp a kick up the **** in october?
Such a shame VEL do not seem too interested in retail investors holdings shares.
I would guess that most retail VEL holders don't check their holding or the news each day, especially in August, prime holiday time. I'm sure there would have been many more takers.
Also, the kind of holders that do check their holding daily in August on sites like this are those more likely to sell and take a profit on meaningful news or rises in SP, lowering the number of retail again.
I imagine the new holders must have more than a sniff of the new Stateside deals and projects.
At some point I'd expect a US listing will happen too.
As far as I can quickly tell...
Number of shares before : 36,920,785
Number of shares today : 40,893,368
After 12,500,000 EIS/VCT Placing : 53,393,368.
Adding some of the new cash onto the £25m Market Map estimate,
This now makes for a prospective initial rise in SP to £30m/54m = 55.5p
The dilution of under 3/2 is OK.
BTW
I did sell a portion, £3000 of my holding after the announcement at 41.1 and made 186 shares buying back £3000 worth in the offer.. Ker-ching !
Shortfall of rex raise (to limit of what they can offer with the subscription etc without a vote) has almost been meet by a 'strategic investor' , so someone clearly has confidence in the companies future prospects.
I believe that the VCT shares (still to be issued) will have to be held for 5 year to qualify for tax relief, so although this does not mean they cannot be sold it must mean that they are far more likely to be held for at least this period than those issued in this initial placing. So although there has been a significant dilution I can still see this moving quickly on any news.
No problem getting the full allocation with around 200K raised from retail (max of £500k allowed).
The short notice period with the carrot of potential new orders rather than something 'in the bag' would not have helped.
I had been using around 40p as a top up point, so with the finances looking solid now I took the opportunity to increase my holding by 50%. In practice it provided a good opportunity to reevaluate my other small caps as I had to sell some for the funds.
You might not get what you want at 40p because it’s limited
Anyone understand why I'm able to easily sell at 41.1p
Then I can just fill in the form to get them back at 40p... ?
Long term this will be positive and needed, short term it will subdue the SP and also make it less spiky. My average is 37p so doesn't materially affect me but I won't be buying further (only bought in a few months ago). The SP may fall below 40p so little incentive to do so
Yes, definitely going to get some. Just been looking at the best way to finance it, not too much cash in my small cap pot this year!
You only have to look at the number of orders that have been placed for new commercial aircraft to see that this income stream is set to grow. I think that the additional opportunities for defence contracts and other applications gives the potential for this to be a really strong growth story going forward.
Hi Monkshood.
This is all pretty interesting. 40p is a decent price.
Thinking aloud: If this was all done in one go, there's either great news about the new USA deal being verified and ongoing, or that deal goes pear-shaped but they're 'Alright Jack' financially, jam in the pipeline etc etc.
Both of which we've seen similar whilst investing in AIM shares.
However. The placing is being spread with the main EIS/VCT 12,500,000 conditional to AGM vote August 29th way after our shares have been bought.
IMO this means confidence of the deal must be going ahead must be very high, so some sort of AIM type trading spike could happen to allow liquidity of the placers to take some profit, to happen with an imminent news release.
We'll see.
Are you going to partake ?
It's quite a lot to ask from such a small capper in a short time frame.
Not sure I have the funds available I would otherwise invest if there was more notice.
What I don't understand is the cancellation and consequences flowing from it.
'It is proposed to cancel the Company's Share Premium Account'