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Another very good and professional presentation. Expecting another large contract before year end
Https://www.velocity-composites.com/docs/OctoberInvestorPresentation_161023.pdf
My highlight is page 11
Current Contracted Business $36m - $43m Annually
Current 3 Facilities Support $85m Annually
Potential Pipeline $250m Annually
Near term growth supports 10% EBITDA and 25% return on capital
Expected to fund further investment through profits
Velocity has identified the following long term opportunities that are not already included in Velocity’s contracted business:
Customer Estimated Annual Opportunity ($m)
Qarbon Circa $25m
Safran (Additional) Circa $25m
GKN (Additional) Circa $25m
RTX $50m +
Boeing (all US Sites) $50m +
Gulfstream Circa $20m
Spirit $100m +
Article from last week. Though not even a blip upwards on the SP which is annoyingly more than 10% below the recent offer price. Lets hope Jon Bridges, Kevin Hickey and the team have a good update up their sleeve. End of December is the next trading update.
Leading composite material kit manufacturer, Velocity Composites, has joined an elite group of aerospace companies that have successfully completed the National Aerospace and Defence Contractors’ Accreditation Programme special process audits to the highest level.
https://compositesuk.co.uk/velocity-composites-passes-aerospace-audits-with-flying-colours/
Also
https://www.lancashirebusinessview.co.uk/latest-news-and-features/velocity-composites-strengthens-senior-team
Some institutional change of holdings by the looks of things
A nice £85k buy just printed from yesterday. The ask was at 37p and 39p was paid. Encouraging!!
Thanks, Gavster. Yes, interesting indeed. If Melody9999 is anything to go by, we might expect some excitement within the next fortnight. £5m placing to complete this Friday followed, possibly by a virtual presentation next Friday. If correct, this will be the most information we've had in quite a while. Is it worth topping up?
Neither am I but the chats can still be read, as they can be here.
https://uk.advfn.com/stock-market/london/velocity-composites-VEL/share-chat
Gavster, I’m not on ADVFN, would you be able to share the details posted?
Interesting few posts on ADVFN today.
Weakness of the SP should be short lived if there's some completion of the deal.
We wait..
Not sure………but the RNS about the Group FD leaving with immediate effect is concerning. That can only mean gross misconduct. I doubt we’ll ever find out the reasons why but I hope nothing which will materially impact VELs future
with the lack of activity lately, i've barely looked in here so, this teatime rns sneaked past me. somebody enlighten me. what does the cancellation of the share premium account mean? will this give the sp a kick up the **** in october?
Such a shame VEL do not seem too interested in retail investors holdings shares.
I would guess that most retail VEL holders don't check their holding or the news each day, especially in August, prime holiday time. I'm sure there would have been many more takers.
Also, the kind of holders that do check their holding daily in August on sites like this are those more likely to sell and take a profit on meaningful news or rises in SP, lowering the number of retail again.
I imagine the new holders must have more than a sniff of the new Stateside deals and projects.
At some point I'd expect a US listing will happen too.
As far as I can quickly tell...
Number of shares before : 36,920,785
Number of shares today : 40,893,368
After 12,500,000 EIS/VCT Placing : 53,393,368.
Adding some of the new cash onto the £25m Market Map estimate,
This now makes for a prospective initial rise in SP to £30m/54m = 55.5p
The dilution of under 3/2 is OK.
BTW
I did sell a portion, £3000 of my holding after the announcement at 41.1 and made 186 shares buying back £3000 worth in the offer.. Ker-ching !
Shortfall of rex raise (to limit of what they can offer with the subscription etc without a vote) has almost been meet by a 'strategic investor' , so someone clearly has confidence in the companies future prospects.
I believe that the VCT shares (still to be issued) will have to be held for 5 year to qualify for tax relief, so although this does not mean they cannot be sold it must mean that they are far more likely to be held for at least this period than those issued in this initial placing. So although there has been a significant dilution I can still see this moving quickly on any news.
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...