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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
I still don't understand a lack of optimism as the entire industry is extremely busy. From what I've witnessed there is more work than ever before, as the industry is not only recovering from covid, but seems to be moving to another higher gear. The big aerospace companies are already fairly valued so this stock could be the last opportunity to jump on the bandwagon of the aerospace industry valuation being higher than ever.
Agree the market reaction was strange! In some sense I dont mind, as Im currently loading up monthly on this and will continue to do so for a while.
The meeting yesterday I thought was brilliant, out of the few AIM investor meetings I have attended this team seems to be the most switched on, have a clear and executable route to success and most importantly, I think they are very wise when it comes to the financial management of the company.
I do think there is a lack of marketing exposure for VC when it comes to investors, but then again I am happy with that as I want to load up and dont want them to become a trading playground.
This is an incredibly strong AIM company with a very bright future.
It's a very strange market reaction to recent news.
Don't even need to read the financial report to know there is only one direction for this company. ⬆️
Velocity is in competition with only one other company that provides similar types of materials to aerospace mainly. This basically means they will share the entire market between them. Its like choosing between Boeing or Airbus , depends on preference but both must succeed no matter what.
Several aerospace companies have already forecasted a significant growth in production in the next few years.
There's is no other way efficient way for those companies but to purchase the products that velocity provides.
I fully understand what the company is making and therefore I know that the company finance is like a delayed chain reaction. If Airbus, GKN , Safran did well last year it will be reflected in velocities results 6-12 months later.
I expect this share to be up x3 by mid 2025
Hedge funds playground.
My feeling new orders will come
Just put a couple of order in 50,000 shares and £10,500 order approx 30,000 so in Total 80,000 more just bought.
Fingers crossed some additional good news comes soon
Not exactly the market reaction I expected.
Is it any wonder there is an exodus from the LSE. Brexit may have been the pin for the balloon to burst, but the LSE isn't helping itself rather than slowly watch it deflate.
Monkshood, IMO another placing will not happen this year, more likely a listing in the USA.
Really positive from Cavendish!!
Thanks for sharing Monkshood, appreciated
Cavendish-
We remain confident that Velocity will complete the signing of its second customer for the Alabama facility in due course, but with a more accommodating timeframe. FY24 EBITDA guidance is unchanged, with the revenue mix now reflecting a smaller contribution from low margin initial-stage production. We provide details of our revised forecasts on page 3. - Drivers: Velocity continues to enjoy positive demand drivers in its civil aerospace and defence.
Summary: The FY23 results present a de-risked outlook and a clear pathway to near-term profitability. We believe that the current production facilities can support up to £70m of revenue, and the company is positioned for very strong revenue growth in FY24 and FY25 and beyond. We maintain a 101p target price.
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?