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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'
Quite a large one at that (39% of issued shares). 13% discount to the closing price which is not too bad. I thought that they would do this in conjunction with news of an order but I guess that purchasers want to see the company on sound financial footings first.
There is a retail offer of £0.5M which is good - too many companies just seem to ignore our interests .
In all I think it will be well received and with any short term concerns on funding behind them I can see the share price quickly rising above the placing price.
8 grand is more like Big Jobs !
Strange it's listed as unknown as it was clearly done above the 45p ask.
The number of trades are minimal but surely the number of sellers at these prices is even fewer.
I would expect the news of FAI approval to spark buys and a spike up.
Only a handful of buyers would move the price it seems.
I also just bought another dollop. It’s showing as ‘unknown’ but that was me topping up another eight grand this morning.
Hi all. I am assuming VEL will release news of the FAI process being completed positively as and when this happens.
What is it they are making for the US clients that is different to what they've manufactured before ? I ask this as I would have thought that their products made in the UK would up until now already be approved by the FAI.
Anyway..
I just bought another tranche today. I had to send a limit order on the ask as trying it on with lower limit prices did not work for two days. I was also able to sell my entire holding instantly, so overall that shows demand and an upward moving price.
Chart-wise the price is at the bottom of it's recent uptrend (started since October 22 and can be seen on the daily chart), MACD RSI and STOCH all show potential positive movement.
We'll see. Onwards upwards...
Funny we all think theirs real upside but never really see many trades each day.....
Does the company need better PR?
Jim89
I am far from concerned here, this is a huge opportunity...
100% agree Medium and long term looking very encouaging
Those in the know will very probably have already bought and are topping up on this dip...
Understand that the market will obviously react badly to what was included in today's announcement, they always do when forecasts are reduced but its only forecasts. Teething issues were bound to occur on a new contract, in a new facility. However, the bigger picture needs to be looked at here. There is obviously another large contract on the horizon in the US, the facility can treble in production as has been stated numerous times. This potential (I firmly believe the deal is closer than has been stated) will not be baked in to the current numbers, therefore, I certainly see a huge upturn in the next 12 months with two major tier 1 companies on board. Will the next contract be larger, very possibly but that is just my opinion. Transformational was the word used by Andy Beadon...
The risk/reward ratio certainly swings in favour of reward here if you look at the potential and hints provided by the company over the last 6 months.
I am far from concerned here, this is a huge opportunity...
A bit of timing delay here and I get a whiff of the same potential fundraise Gavster-NBC.
Was going to put in a few more K but will hang back for now just in case.
No doubt it has bright future. Just needs to be a little bit more transparent on funding.
Back down to the early 40s with so much 'Jam tomorrow', but IMO a lower SP suggest buying opportunities.
I get a whiff of fund raising which as we all know means dilution, but hopefully they'll be experienced enough to do this at as high share price as possible, I imagine by borrowing until the first cash from the $100m contract starts to roll in, and the clients are happy. Also at some point there is surely going to buying from those in the know about this contract as they also see an investing bargain.
Meantime.. the next 6 months will surely see a slow rise.
Good news re below
The Board is pleased to announce that it is in advanced discussions with a large, global Tier 1 composites manufacturer with multiple sites in the US on another agreement. Further announcements will be made, as appropriate.
In the UK, demand is growing. In FY2023, growth of at least 15% is expected compared to FY2022. In FY2024, Velocity is planning for extra work from a UK manufacturer seeking to expand its capacity to meet growing demand. With expected UK growth and the start of the full rate production under the Agreement in the US, the Company can deliver profitability in FY2024.
As of 30th April they had £1.2M cash, GKN are also supportive as noted in the Half Year results-
' working capital will be supported by supply chain finance lines provided by GKN, helping to provide a self-funding mechanism until the profit from the contract can then fund the work under the contract in the long-term'.
Moving in the right direction but with the typical teething issues seen in these company expansions.
One very positive statement which highlights why this company offers lots of potential-
'The Board is pleased to announce that it is in advanced discussions with a large, global Tier 1 composites manufacturer with multiple sites in the US on another agreement. Further announcements will be made, as appropriate.'
Delays with approvals will have an impact on short term revenues although ultimately this years income will now be in excess of the original contract from GKN which will still deliver $100M, but starting from next year.
Cenkos-
'Our forecasts: We are lowering our FY23E revenue forecast from £20.1m to £16.2m based on the revised schedule for GKN, and we reduce our FY23E adjusted EBITDA forecast from £0.1m to £(1.5m). We maintain our FY24E forecast at £33.4m, which includes a less favourable $/£ exchange rate and a reduced Q1 contribution from the GKN programme, offset by an assumed £3m incremental contribution from an additional customer in the USA. We are reducing our FY24E adjusted EBITDA forecast from £3.5m to £2.1m, reflecting the additional investment costs as well as a gross margin assumption reduced from 25% to 23.5%, which is driven by a higher proportion of revenue coming from ramp-up stage activity.
Conclusion: We believe that Velocity has a strong medium-term revenue trajectory, driven by the civil aerospace demand environment and by expansion of the customer base. The announced slower ramp-up schedule leads to a reduction in our near-term forecasts. We believe the company has an increased level of visibility now that the first work packages for GKN are in production and maintain a BUY recommendation. '
Suddenly, there's more than £40k's worth of investment - just out of the blue! Obviously, more news on Alabama must be imminent and now is the time to top up.
I think so Gavster. The market is probably cautious on the cash situation and awaiting news of further business. This should double from here in the next 18 months if all goes to plan
Somewhat disappointing in the short term.. The share I took the cash to buy back before results has since shot up 10%, and VEL down 10%, and is almost at the bottom of the trend line on the daily chart (around 42p) which we should expect it to bounce from.
Waiting game it is. News of first US payments, jobs being accepted and UK growth, should all help to take us up from the somewhat ridiculous market cap of £16.25m.
Surely and MC of £25m to £30m is on the cards.
Cheers all and GL
'Not long'... Well, six months to a year at least.
I don't see anything particularly new in today's accounts. I did expect some sort of financial deposit or news of first delivery and some received USA payments to be included.
Looks like no jolt upwards today, more a slow rise over the coming months.
Surely we're all anticipating the good news to solidify and continue with this weeks updates...
Some profit would be good as well as new contracts. Market cap is still so low !
I top sliced 50% of my holding at 55p a few weeks back, now back in with the same cash and with a higher holding at a lower average. Pretty happy with that, as so often these kind of trades go sideways but VEL looks pretty consistent with chart wise retraces.
Cheers and GL
The SP should go well clear of a quid, if expectations are anything to go by. Up 15% and further progress being concentrated on Alabama. Should be a good month, this.