Retail stock mainly1 Feb 2019 12:53
Retail buying and selling has pushed the value of this company up and down, not II.
Retail have largely moved on after years of delay and disappointment. They'll be back once a contract is signed and sealed.
For current share holders, the announcement of the SPV should give great comfort that the Iranian contract is now a 'when' not an 'if'. The SPV underlines the legitimacy of doing business with Iran. That it will help in processing transactions back and forth is a bonus but I believe the most important thing it brings, is support from EU governments.
I would imagine PF will on his travels to Iran before too long. Both sides had to wait for the establishment of the SPV. It brings new parameters to any business conducted between EU countries and Iran. Now those parameters are being established they can get on and do business.
WSG's contract with Iran is a non-sanctionable business. The service they will provide will fulfil the EU's desire for planes that fly into the EU to be as safe as those that fly out. WSG is an SME. The SPV could have been tailor made for them to help them fulfil their contract with Iran.
And then we have this African contract, which was described at the AGM as ,'transformational'. We know it is bigger than SL and smaller than Iran. We know they have been negotiating this contract for a very long time, we know things have come to a head in H2 2018, we know contract terms have been agreed, the contract has had a final draft written and we know the client asked WSG to sign it and leave it with them . We wait for the appropriate government officials to sign it.
In the mean time, the company is EBITDA positive, has plenty of cash in the bank, has made a fantastically cheap acquisition and has fulfilled its AGM pledge to beef up the board.
Things seem to be set fair, just got to wait.
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