It's difficult to put a degree of certainty on this proposal. It's difficult to assume any timeline. It's difficult to pin down how the public/private funding will influence the balance sheet (asset value vs debt structure)...
what is not difficult, is to realise that a company with a market cap of around £20m, with revenues growing strongly, involved in market sectors very much in the spotlight...represents an incredible opportunity for investors.
Should the if, buts and maybes of Arnish and Methil come to fruition, you will be buying into a company at a fraction of it's future value.
The uplift to NAV following huge capital investments in the four facilities, the accretive impact to net profit from state of the art, labour reducing machinery will all pay dividends.
As for the morning. Positive but no cigar just yet...finance needs sorting.
firstly, sonia never won eurovision, came second.
secondly, i am sick and tired of reading your replies to people you should have blocked long ago. if you do not give these people a platform for their keyboard warrior tosh, they will go elsewhere for their stupid pleasures. you are too blame!
they never add anything new, just the same old negative tosh. the sp is ****e, we all get it and we all have to deal with it.
if you keep telling them how stupid they are, they win...coz you are the stupid ones.
now block them and see them disappear...for gods sake!
Stokey. I hope they are putting in sufficient footings to allow a second tier should the endeavour prove successful. It would not be a big additional cost but would greater flexibility in the future.
The second from last paragraph on page 4 highlights the socio-economic issues faced by communities in the areas of HW four facilities. This highlights the need for heightened consideration when awarding future MoD contracts...tick
Page five talks of creating a freeport or investment zone in NI...tick
Good post Kaeran
It appears a note by Goldman suggests that the earnings uplift to European defence companies is all but priced in. All major players are down today. Maybe, just maybe they suggested switching from the overpriced big caps into the neglected small cap players...one can hope!
As this article from the DT highlights, many companies feel that their true value and or potential is not being recognised on AIM or the other small companies market.
We are all blame our BoD for the appaling SP but to an extent, the wider issue of the UK investment market as a whole is to blame.
Overseas takeovers of UK companies continues as does share buybacks. I cannot believe I am writing this after 14 years of conservative government. They have always professed to be pro business.
Unless something is done soon, the City could rapidly decline even further with significant implications for the economy as a whole but more acutely, London. Property prices could collapse with unemployment and poverty resembling that of a mining town in the mid 80s...food for thought.
Let's get the finance deal done, secure the companies future, then build some bloody ships.
The sun has finally come out over old London town and the thermometer is at 18°...yeehaa.
To add to this sunny disposition, HW has significantly outperformed the FTSE this week by nearly 10%. I know this is a laughable gauge but it is still remarkable. Despite many of us expecting a sell off when no finance deal was announced, end Q1...we made it through the week with a smile and a lovely story about a steam ship company (who never intended to give a contract to a UK yard) lieing to the very people they are duty bound to serve...delicious.
Have a great weekend, 70° and wall to wall sunshine darn surf!
I know this article is from Feb but it just goes to show the biggest global investor still thinks there is room for more to play in the defence sector. 2024 has seen a 30% gain in the European and FTSE indices, with a near 80% uplift over 12 months.
Yes, there criteria is minimum a 300m mkt cap but it will not stop the eventual rising tide lifting even the smallest tenders languishing on the shoreline. Stay with it. Northern hemisphere yards are more in demand than since the end of the cold war decades ago.
https://www.etfstrategy.com/blackrock-launches-global-aerospace-defence-etf-in-europe-10339/
Forestperson. In the last 2 years, oil has averaged this level, peaking around $135 and a low of $70. It is exactly where it was 12 months ago. More importantly, gas is 50% lower. Not sure what you are concerned about. Chill for easter
It is looking more than likely the ECB will bring forward the first rate cut from the highly forecast, June 6th meet. Comments from the French central bank gvnor yday highlighted the potential for economic decline being greater than the threat of a resurgent inflation.
This morning, French inflation data has backed that up. It came in at 2.4% vs 3.2% the previous month. It was much better than expectation of 2.8%. It is possible that Italian inflation, due later, will come in at 1.5%.
I expect the £/€ rate to improve as expectations for earlier ECB rate cuts than BoE take hold.
French manufacturing inflation was 0.1% mom and goes some way to confirm the picture that China is exporting industrial deflation at an increasing rate.
Falls in the pricing of Iron ore, steel and nickel confirm the collapsing real estate market there and the country is trying to hold up the economy with exports industries. China accounts for 31% of global supply but only 13% of consumption.
UK inflation is and will continue to fall and should sterling rise strongly in the next month, the BoE may consider bringing their first rate cut forward to May.
The umbilical between big caps and minnows always gets stretched in high interest rate environments and should this opinion become entrenched, I am hoping that the significant discount of small caps vs big caps starts to compress. We can only hope.
If you listen to the presentation from the steam ship company at the recent council meeting, you will hear them say that they were boosting reserves (by not paying dividends) for several years previous, to save sufficient for the upfront payment. If they were of a mindset to build in the UK with government backed funding, that would not have been necessary. The whole island depends on the goodwill of the UK, its governance, financial backing and seasonal customers...why would the sole, monopoly transport provider not be happy to support, on whatever terms, the county it depends on. I know the steamship company is independent but is it? Without the UK it and the island would not survive...in my opinion.
LSE03. Liam speaks total sense and anyone outside the Westminster buble knows that. Both Labour and Conservatives have steered this ship onto the rocks and keep thinking the rocks will move. With an uncompetitive energy cost, UK industry has shed around 3 million manufacturing and engineering jobs. Leveling up will never be achieved with these numpties in power....Reform is needed!
JPMorgan have issued a note on the European defence sector. They see the re-arming process (following the 30 year cold war peace dividend) lasting for another decade. They expect further strong earnings growth, upside risk to consensus and the possibility for stocks to re-rate as the visability of earnings improves.
HW will be a lagard until revenues hit at least £300m in my opinion but at the current SP it is extreemly ignored with all the focus on large caps. The big guns will eventually train on the minnows as capacity constraints begin to bite. Hang on in there! Circle the wagons, Custer is coming!
Despite a broad indices decline today, the European defence sector racked up its tenth gain in a row (0.8%) to help bring up a 30% rise in 2024 to date.
Shares of Hensoldt, Dasssult, Rheinmetall and Leonardo were all positive.
The UK index has registered a similar showing. This sector performance will, at some point, float all boats as investors look for smaller players. It will not happen for HW until the sword of damacles (financing) is removed. Keep the faith and continue to load up, the direction of travel, of revenues, is good/stable. I am sure a whirly gig based order(s) will be forthcoming given the billions of investment in and around the British Isles.
Yes, that is a view through rose tinted glasses but to sell at a 10p is crazy as it just represents option money.