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Davey, I'm not sure which account you're trading from. Perhaps next time, switch to live mode from demo. lol hehe
50k max online at full 3p...still think there is a sell to show a lot of buying this morning will no upward movement
Hey petro...clueless...ah thanks petro I love compliments. I have been trading for a living for near on 20 years now. And tough times this year but I will survive thanks but again thanks for the compliment.
ps..hour past since 8.17 L2 drop fest and not one delayed sale shows up?
I bought at 1.45 is that ok
I warned all the newbies investing here last week not to get caught in spikes when pumpers and traders are pumping to exit for small profits.
davey50, another clueless individual and now he doesn't know what he's talking about.
If they were offering millions I might be concerned but it's 250k max at full offer 3p online
What's wrong with a company that is probably now the best it's ever been I am new to here but find your comments unusual
Once again a short visit to a price below 3p.....
And Once again quick rise......
Some healthy demand to buy at this level, wonder 🤔 why......
GLA.
The ratified contract is a gamechanger for the company. We are expected to tip into profitability next year. Once we are cash generative the company will no longer rely on the market and will be growth focused. The share price will align in time, now is the time to accumulate shares. WSG has been one of the better companies on AIM not having issued any shares over the past 3 years, carefully managing cash in what has been a torrid time on AIM and the markets in general. Following Covid, then the Ukraine war and unstable markets the board has been very sensitive to its shareholders. They're not about to rinse us now despite what people may have you believe. $10m additional revenues IS significant and will only rise. GLA
Short shake, 3.1p to buy now.
Lovely use of emoticons but your spelling not so good, it's their not there
Anyone buying this pile of 🐕 💩 needs there head examining
I presume there’s a big delayed sell that hasn’t been printed yet as there are only two small trades showing atm.
Anyway, I’ll be adding.
Because they delay such small traders such as 250k you never know what is going on 5 market makers have dropped at 8.17am, now there has to be a reason or is it a shake, has 1-2 big sales gone though. I always wanted to know if the mm's can see other mm big trades instantly or are they delayed for them too ??
Big shake this morning, with a huge spread.
Buying opportunity.
It was overwhelmingly positive.
The $10mill is the very lowest it will ever be and even in the first year it is highly likely to be in excess of this.
This is based off old embarking passenger numbers which will inevitably gone up. It also excludes new routes like the x2 non stop to Qatar, further Air France and likely flights to UK via BA. UK has the 3rd largest population of Congolese outside of DRC so its a huge market and the next inspection is November which should then allow BA to fly there thanks to WSG.
So i would be surprised if there is no uplift in the initial $10mill quote and in a few years with the addition of domestic and cargo i can't see it being less than $30mill. It is a truly transformational contract and being able to buy right now at around 3p is a joke.
If they take on domestic airports for internal flights, pax is 2-3 times that of international flights.
Freight is said to be double pax revenue.. (unconfirmed just notes on the private twitter group.)
Future Potential in DRC is current income a minimum of $10mil revenue x 4 ..
International pax growth very likely , improved security means more airlines will fly to DRC.
15 live MSC in discussion. some advanced, one very advanced. Expect to sign at least 1 more in 2024. PF feels the DRC contract gives great credibility and will encourage other African countries in discussions to step up.
Things are certainly looking a lot brighter here than they were a month ago.
Just listened to the first part of the call. A few points i noted, I’m sure mikes already covered but maybe offers corroboration.
“Opex/capex covered by revenue streams, very profitable from day 1”
They Will require some initial funding to start up. A number of options available.
“Our preference is debt financing, discussions under way to do that, we will announce in due course”
He wont completely rule out a future equity raise, “it would be foolish to do that” ( commit to no placings in future)
WSG believe that this contract as it stands should add 10p onto the SP. If we take the low at 1.4p thats a value of 11.4p before any future growth in DRC.
They are very surprised at the current low Sp.
The opportunity for growth in DRC is vast. Internal flights are the main travel means given DRC is the size of western Europe. If they take on domestic airports it will be much bigger than international. They cant take on until international contracts under way.
Freight contract another huge growth area.
Ive not got to the questions section yet. Will try and finish it later.
Rise ON funding news rather than INTO I suspect.
My take away is that this is stupidly undervalued. I totally understand why (lack of delivery for years), but it does give a potential for some cheap shares.
Potential $10m+ annual profit vs a £10m mcap. Something has to change!
Great summary Mike. Thanks hugely. It all sounds very positive. Sounds like SP should rise into funding news and once that’s sorted then the brakes should be off.
Likewise, the domestic passenger traffic, which is circa 2, 3 x the international travel. The domestic airport that WSG will operate, is the domestic airport that the DRC president uses.
The tax that WSG will collect will be circa $25/pax and will be made up of a part share of an existing tax, and a new tax of circa $12/pax.
The $10M revenue quoted is not reliant upon the passenger figures and the speed of the roll-out.
Air Quarter have just announced an increase in their provision from 1 to 4 flights a week.
PF believes that Air France are looking to increase the frequency of their flights to the DRC.
The British Government are also looking for a British Carrier to commence direct flights to DRC. However, for this to happen the security structures in place need to be improved. The Statutory body responsible for assessing airports make annual inspections. The next inspect in the DRC is November of this year. It is possible that the initial enabling works that WSG will have carried out by then would allow progress to be made on this.
MH confirmed that the operational set-up costs are inclined to be fixed costs and an y increase in pax traffic goes to the bottom line in terms of profit. It was clear from the discussions that the management believe there is the scope to considerably increase the contract value over the next few years.
This is MY take on that discussion, but I would suggest that a natural growth in international traffic, the add-on of freight traffic scanning and picking up a proportion of the domestic traffic, then $20M could be on the cards in 4 or 5 years.
Given enough time, PF may look to do several interviews over the coming weeks.
WSG have a conservative 10p/share value against the DRC contract based upon the existing contract structure.
Hope this helps.
DRC Contract
Previously announced in 2021 as being 20yrs. However, in-country PPP laws allow for an initial contract of 10yrs. We have 10yrs with a potential 5 years extension. Note, WSG will own all kit installed. If the contract is terminated after 10yrs with no extension the DRC must pay for or return all kit. This disruption and cost would suggest that the 5yr extension is most likely to be extended.
Should the contract be terminated early, WSG will receive 5 x annual contract value, so circa $50M min.
Should there be a dispute in the T&C’s, the arbitration body that will oversee any negotiations will be an International third party, outside of any in-house political influence.
The revenue due to WSG will be paid by the individual airline carriers in US$ to WSG. The monies do not come from a DRC source of African banks etc.,
The initial funding will come from cash at hand. The remainder of the funding will come from revenue generated by the security fees, as income starts in July 2024, and most likely debt funding.
PF clearly, would not take a ‘Placing’ off the table but it was made clear that is not his preferred route. PF confirmed that the company already had several debt-based funding offers on the table. Some with attractive T&C’s and others with less attractive.
The company has time in which to engage with the various lenders with a view to getting the best deal for the company. Given they have cash at hand, I got the impression that this process will stretch in to the ‘weeks’ rather than ‘days’ timescale. When decided, it will be announced to the market.
The roll out of the works/training for the 5 airports will be an 18-24month process, but the implementation has already started with staff in country. PF will be back in the DRC within the next few weeks and MH will most likely be in country towards the of May.
The current contract is for embarking international passengers only. The company are using historic date which suggests 400k pax/annum. WSG believe this may be lower than the current pax, however, want to commence operations on the ground before they comment further. For this reason, it will most likely be 3 or 4 months before any Brokers issue any new notes on the company as there forward-looking analysis will be based upon these numbers. They will also have the debt funding structure to hand by then.
The in-country company employing local labour will be 100% owned by WSG. They will be paid by WSG, and when all airports are operational, they estimate 400 employees.
The contract does not include freight scanning and monitoring. The DRC are desperate for this become in-country as this is, at present, sent outside of country for scanning, processing, and monitoring. It is likely that existing contract will be developed to include freight handling, however, PF stated that WSG must, in the short term, concentrate on deliver the international passenger contract.
Linton:
I con confirm what Esteban posted on Twitter.
Multiple debt funding options….deciding which is/are the best options in terms of total cost of capital.
Seemed bullish on at least another MSC this year…but this is irrelevant. Until the signed one starts to get priced in, nothing is the pipeline will be considered by the market.
But in the same way that people jump on a momentum trade as they like to know they’re not alone, the signed DRC contract should help with the other late stage MSCs.
I came out of the call more bullish. I’m more than happy to wait it out now. They’ll have to RNS the funding at some point, and the money starts rolling in from start of July, so there are 2 catalysts.
Https://x.com/estebanmaccers/status/1780567663862755778?s=46
“Multiple debt funding options”
Can others confirm what was said?