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11th July as per last RNS. Expect a presentation also and hopefully news of new significant contract in US
Until some news comes our way. I believe that results are due mid July (18th?). Hope they are better at their job than updating their website! https://www.velocity-composites.com/investors/financial-calendar/
Hopefully the news, and potentially more contracts (?), will help push the share price up to new highs and sustain them.
That price is all pretty much in line with Cenkos price with revenues at £33m for 2024E, clearly if/when they double the revenue to the £75m p/a then the upside is greater.
I think that there is also a lot of potential outside of aerospace (both civilian and defence) which is what makes this such an interesting holding.
With the expansion into the US and further contracts on the way, I expect to see minimum £50M annual revenues within the next 18-24 months.
The CEO stated that the current US facility can double in production. Contracted business should deliver a three-fold increase in sales from 2022-2024.
Don't forget the aerospace sector is set to achieve net zero by 2050. Demand for composites will grow as new generation aircraft are built and this sector alone is potentially worth $6.5b per annum.
My target here is £2, as this company is in the perfect position to take advantage of the above.
Interested to know other views
The market cap is currently £17.91m.
USA Warehouse bringing in minimum $100m over next 5 years.
Will the UK revenues go back to pre-pandemic levels of over £20m a year ? The current rate is £14m.
The CEO sees overall annual revenues of £75m.
Surely they will turn a profit now instead of year after year of small losses.
IMO a fairer value surely would be £25m to £30m, and and SP to match above 68p.
Very positive update.
CEO reckons the value has trebled. Let's hope the SP will treble too.
Some healthy director buys would be good signs to the market IMO.
"The current UK and US manufacturing facilities are being expanded to meet this rapid increase in order book and with the new US facility setup, can be doubled again in capacity, to meet further new business and contracted volumed growth, of up to £70m. ..
Andy Beaden, Chairman, Velocity, said: "The recent start of manufacturing at our new facility in Alabama was a major milestone and demonstrated the significant progress we have made over the last 12 months. We have trebled the value of commercial business under contract compared to this time last year. The global aerospace industry continues to recover, and alongside our new US base, we anticipate significant revenue growth in the coming years, particularly in North America."
Overall look to be on track. UK/EU production was nearly £1m ahead of Cenkos estimate (in Jan) which made up for a similar shortfall in the US. The US is not lost work, just delayed, and they are now build on their manufacturing there.
In a past presentation they commented about how GKN are good at supporting supply lines with credit and ensuring prompt payment this is highlighted in the rns so providing there are no major hiccups they should be OK for cash flow.
The second half will be key, if they show the expected revenues/profit then this should fly.
Nice to see a few decent buys going through this morning in anticipation of further contract news.
Hope to see this have a nice run back up to previous highs and beyond soon
Bought in a small tranche this morning, and will add next month. Looks well placed now manufacturing is up and running in US. I expect this will be a key trigger for more sales with further announcements forthcoming. GLA
below posted on wrong board... apols/disregard
Far more interestingly, especially given this is the ies.l BB too, my guess is this will get back into the 50's p soon .. which would be in line with the general solid progress being made on the ground here now..
I continue to do my bit by topping up as we go into this rally.. hopefully you, magmanus, are doing similar?
See link below:
https://www.velocity-composites.com/news/2023-04-18-first-kits-delivered-alabama
This is huge for the company and the future is now bright with £100M rolling starting now.
Expect another similar contract now this one is approved and into production with GSK
And big chunk of shares are held by insiders and funds.
(do expect 70-100pp p to the new base up, until the next contract rolls in)
Decent buy after close on tiny float
16:45:07 40.00 13,500 Buy* 5,400
Accumulation mode now
steady up better here, no need to ramp. RNS/Numbers talk for them selves,
(Alliance News) - Velocity Composites PLC on Tuesday announced the successful manufacture of the first composite production kit from its new manufacturing facility in the US state of Alabama.
Velocity Composites is a Burnley, England-based supplier of composite material kits to aerospace and other high-performance manufacturers. The kits aim to reduce all forms of waste from the composites supply chain.
Shares in the firm jumped 11% to 37.23 pence on Tuesday morning in London.
The company said the manufacture of the first production kits is "major milestone" at the site, which was built to support a five-year work package agreement announced in December with GKN Aerospace. The agreement is expected to be worth in excess of USD100 million in revenue over five years. GKN Aerospace is part of Melrose Industries PLC.
A first article inspection plan, agreement with the customer, continues to be implemented. Under the plan, one of each composite kit will be manufactured, delivered and verified before proceeding to sustained volume production.
The final programme is scheduled to be completed within this financial year and will enable a full rate of production to commence either at or before the next financial year, Velocity said.
The kits for the first programme are currently being transferred and account for approximately 18% of the total contract annual revenue, Velocity Composites said.
i believe this was arund 60p odd ......so nice to see this bounce up this morning....some would say this is good value or cheap at this price!!!!
Hi Gavster, it's great the company is doing well but there certainly was something to be said for the period when it was noted that we had gone a year without anyone posting to this board!
short term would be nice
"Where are the employees here?"
"why do they employ rampers"
2+2 doesn't = 5
I have no patience for stupidity, intentional or unintentional.
People should really be able to spot paid rampers on LSE chat forums by now.
Straight onto the ignore list.
Current MKT cap is ? 14M !
100/14 = 6 x under valued right now! approx. You get the point
The kits for the first programme are currently being transferred and account for approximately 18% of the total contract annual revenue. Work is already underway for the second programme and, being the single largest programme, accounts for a further 25% of the total contract annual revenue. This therefore means that approximately 43% of the total contract annual revenue is on schedule to be approved and at rate production by the end of May 2023, with the remainder to follow.
The facility is now also being marketed as a launch hub for future customers, and high-level business development activities are already underway with several large potential customers.
today...i see a lot of people liking today RNS AND SHOWS THE COMPANY HAS A GREAT FUTURE
They sell we buy! They have eat!!
If they did not sell, how would you be able to buy low?
Where are the employees here?
I am come on fella , this might be 100p end of year, and you will not be seen anywhere.
Over and out
I thought I was being very clear. Their contract and expansion news speaks for itself, great.
But why oh why do they employ rampers when at the same time allow directors to sell issued shares.
They should be doing neither and there are obvious ways to avoid director sells.
RNS Number : 9055R, 06 March 2023
Exercise of Share Options and Issue of Equity :
Jeffrey Armitage, 55,059, 0.15
RNS Number : 4206T, 17 March 2023
Jeffrey Armitage, a PDMR of the Company sold 55,059 ordinary shares of 0.25 pence each ("Ordinary Shares") at a price of 34 pence per Ordinary Share.
'In our view, this opportunity supports significant upside potential for Velocity Composites
shareholders and we maintain a BUY rating with our fair value increased to 68-101p (previously
55-101p)'
They need to revise the above now, with £100m contract now being executed after all testing and manufacturing processes completed.