Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Started: melloteam, 3 May 2024 14:30
Last post: 46Gillingham, 29 May 2024 15:41
Now uploaded to website
Did anyone attend this event? Last year the company issued their presentation on their website shortly after the Mello event. Has anyone seen this yet?
Velocity Composites will be at Mello2024 on Wednesday 22nd and Thursday 23rd May 2024, 9am-6pm at the Clayton Hotel & Conference Centre in Chiswick, London. The annual flagship in-person investor event will feature over 40 companies and keynote speakers such as Lord Lee; Christopher Mills; Georgina Brittain; Gervais Williams; Ed Croft; and many more! If you are new to Mello, you can get a ticket for just £30! Use code NEW2MELLO24
Https://www.tickettailor.com/events/melloeventslimited/1201351
Get 50% off your ticket with code LSE50OFF
Https://www.tickettailor.com/events/melloeventslimited/1201351
For more info: Https://melloevents.com/mello2024/
Started: Monkshood, 22 May 2024 10:07
Last post: jim89, 22 May 2024 11:49
Yes I believe so. I have not read the research note myself however another poster confirmed this. You seem to have to pay a monthly fee to read the research notes, which is very frustrating!
Thanks, I guess that is from Dowgate?
I did contact Vel when they switched brokers as it is harder to access Dowgate's research notes.
Copied from another board...
Cash. Brokers are projecting £2m ye net cash and October 25 ye net cash £3.3m. So cash should not be a worry
I thought it looks OK. It was always going to be tight for cash in H1 but it looks like they have navigated through this which was the key thing they needed to achieve.
They should be in a much better position year end to tick the 'going concern' box without needing to raise any funds, unless another large contract lands - but then it would be from a position of strength and at a good price (I won't mention SCE...)
Started: 46Gillingham, 17 May 2024 15:06
Last post: Lauders, 18 May 2024 05:08
VEL are participating in the Mello event next week. The share price had done very well recently. Hopefully there will be some news on Monday or Tuesday prior to the Mello event and based on the recent share price it will be positive news. Then we will hear more at the event or the video recording of it afterwards. Fingers crossed.
I was hoping for news at the end of 2023 now nearly at the end of H1 2024......Whats happening?
Started: Gavster-NBC, 13 May 2024 15:04
Last post: Gavster-NBC, 13 May 2024 18:09
Yep. Correction, had two months to get the form right, all amongst a barren desert of news flow.
Slight reduction, he's still holding with patience.
New RNS shows that he has actually reduced his holdings slightly... bit of a boo boo.
Anyway, good positive price action recently, let's hope it continues
I was curious as to the recent SP increase.............however Banks bought his shares in March, so unrelated.
Now that is a vote of confidence if I ever saw one!! 4.25M shares...
An ex-director of the company, left in 2017. Just bought a lot of shares, all openly from his sole trader address.
From no significant holding (
Started: 46Gillingham, 2 May 2024 07:13
Last post: 46Gillingham, 2 May 2024 07:13
Velocity Composites plc (AIM: VEL.L), the leading supplier of advanced composite material kits to the aerospace market, is pleased to announce the appointment of Canaccord Genuity Limited as Nominated Adviser and Joint Corporate Broker, to work alongside Dowgate Capital, with immediate effect.
Started: 46Gillingham, 30 Apr 2024 22:00
Last post: 46Gillingham, 30 Apr 2024 22:00
Both are mine
Started: moayedinemisis, 12 Apr 2024 20:54
Last post: 46Gillingham, 29 Apr 2024 07:18
Any news would be welcome
Keep the faith people. 1H update (to 30th April) when it issues mid to end of May should be inline. My industry contacts tell me UK business could also soon renew a lot of its existing UK contracts, which taken with the fresh US ones, should give them a very high visible revenue stream into 2H, 2025 and more.
Started: 46Gillingham, 8 Apr 2024 11:30
Last post: Monkshood, 8 Apr 2024 20:24
I am not bothered about new contracts at the moment: H1 was/is going to be tight for cash flow, given the purchases it does indicate that the Chairman thinks that they should manage it without need raise any more funds thus assuaging my main concern.
Not necessarily, plenty of shares around where directors have purchased and news has been released soon after. Check out Intercede (IGP) RNS's from November '23
OK so no news soon then if a director just been aloud to purchase a few shares
Started: 46Gillingham, 25 Mar 2024 09:10
Last post: Gavster-NBC, 4 Apr 2024 19:13
News flow is very thin here agreed, but why not wait until end of May, last years trading update was 24th May, so there should be one due around that time.
I must admit I'm loosing confidence in stock. The entire industry is booming, including competitors, as yet this share is somehow not moving as all.
There nothing concrete the management have presented to reassure the investors, no new contracts so far, no info about upside in production.
Its all smoke and speculation so far. I'm holing my share until the end of April, unless the management gets the grip of the situation and can show something more robust.
It might not be a total coincident that the share price is not following the industry trends. There no fire without smoke
Gavster, good point and you could read a lot into the issues with Boeing, Spirit and the 737 max.
My take on it is that it was Spirit who Velocity were in 'advanced discussion' with last summer regarding a new contract (all presentations pointed to a $100M opportunity with Spirit). Maybe these discussions have now been put on hold given the issues/audits ongoing with Spirit, Boeing and the 737... who knows. Also articles pointing to Boeing buying Spirit back may hamper any new contracts being placed.
It would be interesting to know what parts Velocity were manufacturing for the 737 max through Spirit, does anyone have any info on this?
If these drop below 30p and with the new ISA allowance around the corner, I think I will be averaging down significantly here. We could really do with a positive update from the company soon.
Can we assume the SP is suffering due to the problems at Boeing ?
Specifically the 737. Anyone close to the industry know if the problems are being address, so the sentiment can return.
https://www.wsj.com/business/airlines/disarray-boeing-factory-door-plug-blowout-f063e27e
https://www.sharecast.com/news/aim-bulletin/boeing-approves-velocity-composites-to-supply-737-max-programme--7249124.html
Jim89
Good post and love the idea of £1 plus
Started: 46Gillingham, 11 Mar 2024 16:07
Last post: 46Gillingham, 11 Mar 2024 16:07
Ive just bought a few more. Sadly I can go to the AGM tomorrow is anyone going?
Started: 46Gillingham, 11 Mar 2024 07:19
Last post: Bullwinkle38, 11 Mar 2024 14:33
Nice update as many have suggested.
I have had VEL on my watchlist for sometime and not yet taken the plunge, perhaps now is the time to do so, however the buy / sell price spread is crazy and significantly putting me off, and I do feel that VEL still have some way to go to deliver on the forecasts they have given, hence I feel the share price will remain flat in the short term.
As an investor in SCE I am in total agreement with you on that! It was in my mind when I was writing the comment.....
SCE is a prime example of a company that was running before it could walk and look at how it’s fallen flat on its face and the SP trajectory. Once FAI approval is in place, the company will be well placed to demonstrate to other interested parties and put in place further deals in H2 24
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.
Started: 46Gillingham, 26 Feb 2024 10:06
Last post: 46Gillingham, 26 Feb 2024 14:19
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
Started: Sharehunter2, 24 Jan 2024 11:40
Last post: moayedinemisis, 23 Feb 2024 18:00
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.
Started: 46Gillingham, 11 Jan 2024 09:43
Last post: Schlum, 23 Jan 2024 17:43
Hedge funds playground.
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.
Started: 46Gillingham, 23 Jan 2024 14:18
Last post: 46Gillingham, 23 Jan 2024 14:18
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
Started: woodyjohn40, 17 Jan 2024 07:34
Last post: 46Gillingham, 17 Jan 2024 09:52
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?
Last post: Monkshood, 27 Dec 2023 10:56
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. '
Started: 46Gillingham, 22 Dec 2023 10:34
Last post: 46Gillingham, 22 Dec 2023 10:34
So I guess we will have to wait till 2024 for any news on new contracts
Started: jim89, 16 Dec 2023 10:04
Last post: DD77, 18 Dec 2023 13:53
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.
Started: Monkshood, 14 Dec 2023 07:13
Last post: Monkshood, 14 Dec 2023 07:22
Putting it politely, they seemed to be very 'astute' with their timing so I assume it came before the placing.....
They sold out during the Summer -
''A total of 460,614 shares in Velocity Composites plc were sold during the period. No shares were held in Velocity Composites plc at the end of the period.''
Started: 46Gillingham, 3 Dec 2023 07:43
Last post: Gavster-NBC, 13 Dec 2023 11:39
Well no trades. Nobody was impressed with the presentation.. Why ? Where is it ? It should be on line, unless it's the same one from a few weeks ago.
I still have hope for news this year. Last years' major contract RNS was very late into the year.
Did anyone attend the shares mag presentation yesterday? If so, would welcome any feedback or info
Its not looking good for any news this year....Approx 1 week left before everything starts to close down for Christmas
What is happening its over a year since the current contract was announced. lets have news on the next client BOD come on
This would be a lovely Christmas present....Having new Tier 1 client
Started: FONDA, 5 Dec 2023 10:00
Last post: FONDA, 5 Dec 2023 10:00
Not before time and a chance to quiz with questions after presentation with important company and share-holder updates next week.
https://www.sharesmagazine.co.uk/events/event/shares-investor-evening-london-live-event-121223
Started: 46Gillingham, 4 Dec 2023 16:27
Last post: 46Gillingham, 4 Dec 2023 16:27
Google show the trade today as 270k share over £100k?
Started: 46Gillingham, 28 Nov 2023 16:03
Last post: 46Gillingham, 2 Dec 2023 08:57
I guess something should be annouced within the next couple of weeks
Jim89
Appreciate your post. Ive already top-up a few times may do again in the next week or so
46Gillingham - absolutely! There is no volume here at the moment, hence we are stuck around the 40p mark. It will soon be on radars though and as its been said previously, this one sure motors when the volume arrives.
If you put all of the pieces together here (which have been communicated openly by the company), then you can read into what is about to happen over in the US and Europe. The US facility is way off full capacity, the facility is located bang in the middle of several Tier 1 companies, open discussions are happening and have been for a while, aircraft need to weigh less in order to meet new regulations regarding fuel consumption and velocity have a niche process that works and can save money for the Tier 1's... they are also in a good position with cash due to the recent raise. Everything stacks up nicely.
The company are local to me in the UK (one of my reasons for investing) and people are starting to talk more about their potential to grow and take their positions... not long to go, excitement will soon build - all in my opinion of course ;-)
Jim89
Very happy if your are correct. Ill keep my finger crossed for us both
Hopefully. We are certainly due some news and we all know the company are in advanced discussions with a Tier 1. If we get a December period like last year then I expect this to be well above £1 in Q1 2024. As always stated £2 is my target here
Started: 46Gillingham, 6 Nov 2023 18:04
Last post: Monkshood, 9 Nov 2023 15:26
The 15-60p ride was quite fun! They have increased the number of shares since then but I assume the VCT ones will be reasonably sticky. If they announce another large contract it will do another big step up.
Some chunky buys too.............this SP doesn't half move quickly so strap yourself in for a ride
Still moving north
Another strong day, long may it continue!
Hopefully we can keep rising 5% per day until news. Want to be back into the 50's or 60's before another large contract lands
Some nice late volume today