Member Info for Lottie123

Need room to lay down hull of the new Brittania if and when H W get contract end June. The old scrap ship could be tied up on the wharf outside.

Given the importance of this new sphere of work and the extent it drives revenue above estimates made in the... Going Concern statement ...of last months unaudited accounts, I would like to see the wider financial press run with this story. The company needs to be banging the drum and expand shareholder interest.

Congratulations to the BoD on expansion of workload and initiative on the purchase from the MoD. Should they win the refurbishment of the minehunter, the contract is likely to be several multiples of the (yesterday's) market cap. Lets hope others now start to see the vision of long term shareholders.

Maybe we have declared war on NI?

Basically, the technicals are shot to shyytte. Only remaining chart hope is a capitulation, followed by a key reversal.

The FT runs a story today, regarding the difficulties faced by Korean shipyards following another double digit hike is steel prices. It follows a Korean times article earlier this month.
https://m.koreatimes.co.kr/pages/article.amp.asp?newsIdx=22434

Page 7 on today's accounts.
This is a dose of reality for us bulls. The companies turn over estimates are on work flows from existing customers and on a worst case scenario of no new contracts from third parties.
If this were to be reality, a 28% gross margin on c£70m t/o would imply a net loss of around £16m given management and admin expenses of c£30m. This would be a real worry...however, I am hoping that this new found realism/uncertainty is not how the future pans out. With MoU in the bag and MoD/Govmt intentions to allocate more ship building, we can only pray that the t/o numbers for fiscal 22 are nearer £100m and 2023 sufficient to bring about a net profit.

Last month we saw the RSI above 70 which indicates short/medium term overbought, whilst today, we see it below 30 which indicates the opposite. Lets hope that is a support at what is near to the all time low again. Let's hope, the management did what I would do, put as much of the costs and negative in a bad year (last) as I could. Rosie the tinted girl.

Not sure about all these comments. Company states no material changes to achieve audit. MoU have been signed with Scotwind operators. Losses mainly attributed to significant investment. Margins have increased significantly. The worst is behind and revenues are growing. No need for another cash raise as revenue growth and the debt facility rule that out.

The Business Secretary has warned major energy companies to start awarding significant contracts soon, to alleviate the significant pressure to inflict harsh windfall taxes on them. I am optimistic that this may bring forward investment decisions on such things as infrastructure for Scotwind and the other large offshore wind farms. At this point the contracts may only be Memorandum of Understanding (MoU) but it will provide a solid footing for local suppliers. Investment going to overseas suppliers and fabricators will be an own goal which would not be well received in the corridors of power. Apologies for the rose tinted again.

The Economist has an article which shows how gas prices have plummeted but due to our "piddling" storage capacity, we are sending a lot if it to Europe. It has a chart showing our storage capacity vs European countries, both in total capacity and as a percentage of annual consumption. We stick out like the balls on a bull dog (not in a good way). As we know, this is due to our headlong charge to go green without a single consideration of...security of supply. Got to love our politicians and their happiness to bend over for minority groups.

Sorry last few lines should read...Captains of the 4 sites are professional

To answer the questions since reviewing my visit.
Stokey...no institutions but I am not surprised as its not a big enough market cap to be on most radars plus its not tech. Two gentlemen from a local investor club were also in attendance and were mightily impressed.
Jabido...IM is still a huge focus and yes, work continues with third parties and the JR has not deflected investment interest in the project.
Blairpeach...yes, I started as a messenger in 1974 having left school with no qualifications. I retired 30 years later having secured multiple senior directorships at top investment banks and seven figure salaries. Went to university to move to new career and new challenges running my own company.
Chrisattrg...Your concerns on break even. Yes, I grilled Arun at length re cash flow, especially as at last years egm in London I was told cash flow was expected to be balanced at beginning of 2022. Well yes, that was achieved . However, successful contract wins and the need to attract more, have driven significant spending on the wide range of costs as you can imagine in a heavy industry focused company eg Labour, machinery etc. That has led to a bumpy ride of monthly break evens followed by high investment costs reversing in other months. I am satisfied that this is the right approach. Remember, these facilities were stripped bare by the previous owners. Hence, in this sharp growth period the S curve of investment will apply. Over time, when revenues rise above (my est) £100m, these investments will then drive profitability sharply. I suggest looking at the investment by Babwilly in its new facility which helped win the QE aircraft carrier contract. Similarly, the investment by an overseas company at the site of the old Redcar Steel works, to build wirly gig bits, it's multiple hundreds of millions to build these facilities from scratch highlight the value of our portfolio once profits are forthcoming.
Nobby 31...I share your pain having persuaded many family and business friends to invest in this company. That is the reason I made this trip. I needed to know if cutting my losses was my only course of action. Following my visit, I believe the attempt to restore this countries pride in heavy engineering is in good hands. Yes, we need a fair wind in our sails but the Captains of the 4 sites and professionals and more than capable of success.
I hope that answers everyone.

I made the 510 mile round trip today, approx 4 hours each way, to meet management and view the facility. As I have built a large (for me) holding since I started investing in (Infrastrata) Dec 2019, I felt it important to make sure my investment was sound. I met with the CFO and the new general manager Tom Hart. Arun and I have met and discussed matters on several occasions. Prior to the tour, we had a review of the operatio. Tom then led us around the facility. His CV speaks for itself but in reality, he was far more impressive. His commitment and enthusiasm was evident. The workforce has risen from 30, nine months ago, to around 100 today. This number includes around 20 subcontractors and 4 apprenticeships. The current work load of the RNLI platform and the Avocet, will ensure gameful employment, at current levels, until end July. The confidence shown that contracts currently under negotiation will fill the void post this period was reassuring. Of course, we need to see the proof of the pudding. They are forecasting raising the total workforce significantly from current levels by year end. The facility itself was busy and the machinery in good working order. It is clear that a lot of work and Investment has gone into raising the operational ability from what was the knackers yard. Yes, the machinery is dated but in excellent working order. The workforce is highly skilled and capable of significant, sizeable repair and build.
The tour was followed by a Q and A session with Arun which was frank and productive.
I am now much happier with my investment. To the extent I am considering a further large investment. I am happier that the local community is benefiting greatly. This company will survive. If I had £25m spare, I would buy H&W.
Regarding IM, the 7,500 pages submitted by the objectors is being reviewed by the authorities. The companies line is that precedence of previous licences issued by a minister negates a significant pillar of the objectors argument. Legal advice taken by the company leads them to be totally confident the caverns will go ahead.
The release of the accounts is on the horizon and Arun explained that the delay was due to the auditors struggling with the larger operation and their own staffing issues. As we all know, they are history. What counts is the commentary on the current cash flow/ turn over and the estimated revenues going forward.
I urge anyone who is concerned with their holding, don't just sell in despair, go and visit one of the sites. You won't be sorry.

I am going.

Looking at the winning contract value vs the need to keep the dock ever avaliable, in case of emergencies, I am thinking that more can me made over time providing the current high rate of servicing contracts can be maintained. A myriad MoD contracts, many more suited to HWs assets, are still up for grabs.
Sorry for rose tinted as ever.

****suela. If you could put your hatred of the management to one side, people might actually listen to you. Sadly, everything you say is full of vitriol and cynicism, not just facts. Either move on or be more balanced. Yes, there are reasons to be sceptical about IM but there are also very compelling arguments for it. Can we all leave IM until the courts have spoken. I am sick of the to and frow which has no relevance to the outcome.

Additionally, the government are now considering natural gas as green energy for investment purposes...see today's Telegraph

****suela. If you could put your hatred of the management to one side, people might actually listen to you. Sadly, everything you say is full of vitriol and cynicism, not just facts. Either move on or be more balanced. Yes, there are reasons to be sceptical about IM but there are also very compelling arguments for it. Can we all leave IM until the courts have spoken. I am sick of the to and frow which has no relevance to the outcome.

Yes, I admit, another glass half full post but I think it's a valid point. This time last year, Sterling was just short of $1.43. Today, it is €1.23. Analysts are talking of further declines, testing the post Brexit lows. Additionally, it is near multi year lows vs China's Yuan. The US federal reserves interest rate policy is without doubt behind the rise. This weakness is a timely boost to UK companies competing for contracts from the international energy and shipping community...just saying