Market Value.3 Apr 2022 12:06
The more I write and think about the prospects for HW, the more I want to buy at these levels (added 56,000 last 2 weeks). In Wind and New Build vessels, the news continues to point 100% in the right direction. I admit, the lead times are long buy so are the contract durations. 150 new UK ships over 30 years will need Belfast and Appledore to achieve. Wind farm development is gaining pace and traction with local content becoming more important despite the ire of the EU.
Cash flow Breakeven, we are led to believe, was achieved with only a fraction of the ships now contracted for servicing in 2022.
IM will come good despite local opposition.
All this leads me to think £10m profit (EBITDA) is well within reach next 12 months. If anything, that is way below potential should all strings of the bow pull together. Who knows what peak earnings could look like but a £30m current market capitalisation is absurd. Given the two recent shareholder announcements, it is clear that this belief is gaining a wider, deeper pocketed audience. .
A £100m market cap is possible this year. I don't need to tell you where that puts the share price but 19.75p it ain't!