Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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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?
Agreed, very frustrating that we haven't even received an update on the new contract discussions, since summer. I understand these can take a lot of time to negotiate and with NDAs in place it is often hard to disclose information but a little bit of communication from the company wouldn't go a miss.
With regards to the money from the GKN contract, this is delayed as per one of the RNS's from last year. This is due to things taking a little longer than expected. This could have a slight impact on the share price when results are announced on 22rd Jan, however, this has been communicated by the company so shouldn't really be a surprise to show the revenue figures reduced and the EBITDA as a negative.
We could really do with a positive update from the company here, shareholders are currently being kept in the dark which does not inspire confidence.
Where's the money ?
Just one question where are the new contracts?
From The Times-
'There was a record-breaking backlog of 15,000 aeroplanes on order in November because of soaring demand for travel coupled with supply chain challenges, according to the latest figures from the UK’s aerospace trade body ADS, which represents aerospace, security and space, reported that there was a 350 per cent increase in the number of orders for aircraft compared with last November and a 10 per cent growth in the backlog. '
So I guess we will have to wait till 2024 for any news on new contracts
Thanks Jim, great overview.
I'm sure they're under strict NDAs with Tier 1 clients which limits what they can disclose. Also, reaching contractual agreement with large companies can take a very long time - 6 months+ often just to go through the legal counsels.
All sounds very positive though
Just topped up £3,500 & 58,792 shares
Jim89
Thanks great summary
Main points I took from the presentation is that:
● contracted revenue for 2024 has increased significantly to £30-£36M - industry players are approaching velocity. 2022 - £12M turnover, so a large increase
● Due to be 'very profitable' in the second half of next financial year (2024). This is based on the revenues that are already secured
● P&L account will be transformed into a profitable business next year, fixed costs are already set
● Aim is to be £100M turnover in 5 years
● The majority of investment is done, equipment, technology, services, people, US facility
● Significant pipeline of opportunities with large numbers proposed
● Surrounded by large Tier 1 organisations in the US
● No real competitors providing this service, main competitors are the customers undertaking this service themselves which does not provide the cost savings (very niche offering)
● Near term growth supports 10% EBITDA
● Return on capital circa 25%
A decent presentation however, slightly unprofessional towards the end where the question was raised regarding share options, Andy questioned the chap on his understanding of options and it got slightly awkward. I also felt that they weren't really all in sync with each other, Andy B stepped in a lot when the financial questions were posed and answered vaguely by Andrew Hebb. Just my take on it, however, a positive presentation nonetheless.
Would have liked more questions posed on future contracts, discussions with Tier 1's etc. We last heard from the company back in July when they stated they were in advanced discussions with a large Tier 1 organisation, we really could do with an update on that in order to settle the market.