Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"H1 2020 the project has generated OVER $1 million USD for Westminster." (HY report)
If it was $2 a crate as you said earlier that would be OVER 500k crates. So either your figures here are wrong or it's closer to $3 a crate.
This is a great contract and totally out of the blue for everyone.
Not only does the contract carry a certain amount of prestige, but with WSG finally starting to prove profitable we can start to value the company on some genuine metrics. 7-8p is looking better value now.
I actually think £1.8m is fairly significant for the MCAP, with the provision of maintenance and services the margins are likely to be better than just tech sales.
Looks to be in good shape and I predict more to come.
I searched Twitter "#WSG" to see that "rumour". It's posted by a con artist. If the Menzies contract comes through, it will be entirely unconnected to what a confidence trickster on Twitter claims to have heard.
I do however believe that sales are going well based in part on the hiring of additional sales managers.
Meanwhile Lungi is starting to perform with daily flights, Tema continues to grow and unless I hear otherwise I believe WSG are set to turn a profit again in H2. Would be great to hear if any progress has been made in KSA, but I think anything around 7-8p provides a good entry point.
Apologies. I meant USD. The figures for 2019, when the project was in start-up, give a lower figure than the price per TEU in H1 2020.
Revenue has risen over 66% to over $1m. "Despite COVID-19, in H1 2020 the project has generated over $1 million USD" (half-year report).
While daily volume of TEUs has risen by 50%.
There's a fair bit of disingenuous information here.
Tema is nearer £2/3 per TEU.
It's a hugely successful contract that's actually saved WSG. It has secured revenue and margins similar to a fully operative Lungi. It's saved them, because it's been resilient to the Covid epidemic and continued to perform and grow even when a lockdown was experienced in Ghana.
Speaking to other investors, I think they were expecting more from Tema, hence some disappointment, but to say it's "pocket money" is factually incorrect.
The geographic spread of WSG's business should see them weather any second wave. Particularly as Covid sales that were predominantly in US and Europe may continue. They've recently hired new sales managers to cope with the demand.
Lungi is continuing to see growth in air passengers and appears to slowly be rising to slightly above 50% of pre-epidemic levels.
The negatives as always are the outstanding CULNs. A placing though is unlikely. The recent YA finance deal hasn't worked out great, but WSG are still receiving funds from that, with the shares already issued, while the business is still currently generating a small amount of cash.
It's only been 1 month since any news. I would like a small update, but I always feel that way on my AIM shares.
Volume ticking up nicely. I think anything <10p still provides a great risk/reward ratio given Peter's finally taken WSG kicking and screaming into at least a short-term cash-generating business.
The significance of Tema shouldn't be underplayed. If Covid sales continue and Lungi continues to build above 50% pre-Covid depatures, H2 should look equally as good. Of course the reason this is traded so often is the potential for another large MSC to drop, interspersed with disappointment. Correct paperwork in KSA would be a start.
You're right. Tema is significant. Revenue and margins are similar to Lungi with, I believe, more potential for growth over the next few years. The most significant factor though for me is that it is more resilient than air travel, bringing in revenue during the height of the pandemic.
It seems some people feel misled on how big it would actually be. Of course that's disappointing, but it's still a very significant and promising win for a company of WSG's size. I'm hoping that the successful implementation of Tema by WSG could lead to further contracts withing Ghana, e.g. airports.
Anyone have any up-to-date figures for Lungi departures? The website seems to be filling in only arrivals. Extrapolating from that, I believe Lungi is operating 45% of the numbers pre-pandemic.
We live in strange times though. Many companies were sitting on historically low PER after Covid hit and the entire market took a pasting.
I think with a net cash position and increasing share of digital market this could present a good recovery play. Maybe earnings will fall, but we may get a more standard PER.
I'll be watching my stop - loss carefully though.
Support service in FTSE are currently running a P/E ratio of around 20. For WSG to hit 28p or a MCAP of about £44m. They'd need to be clearing £2m profit. They're almost certainly going to need one more contract around the size of Lungi for that.
If you're an optimist there'd probably be a premium on the p/e if people expect further growth.
However, I'm currently willing to hold these as I think even on the current earnings these are worth 10-14p. Lungi now seems to be running at about 50% which should help compliment the growth in Tema on top of the H1 figures.
And of course there's always the chance that something over and above Lungi/Tema could materialise from KSA, W. Africa or E. Africa.
I'm assured that they're currently cash positive, so don't fear any further dilution at the moment. The Damoclean Sword being the drag caused by the current loan facility - although not dilutive.
Best of luck. Play nice.
This is trading on a historic PER of 1.5
In 2019 they moved from net debt of £40.8m to £20.4m net cash and that's risen further still.
Although advertising revenues are down, reach has increased with April views up 57% to 1.7bn.
As things begin to normalise and advertising spending increases, this could be a decent recovery play.
Bridge, some skill to comment on an article before Vander posts it. That's some next level stuff.
This is an example of automated journalism.
"In automated journalism, also known as algorithmic journalism or robot journalism, news articles are generated by computer programs. Through artificial intelligence (AI) software, stories are produced automatically by computers rather than human reporters. These programs interpret, organize, and present data in human-readable ways. Typically, the process involves an algorithm that scans large amounts of provided data, selects from an assortment of pre-programmed article structures, orders key points, and inserts details such as names, places, amounts, rankings, statistics, and other figures. The output can also be customized to fit a certain voice, tone, or style."
There are several articles on there with the same format and phrases - then linking to how you can sign up to their paid content. Disappointingly the information they've used in the algorithm for WSG is also out of date. I guess they only use figure for full year and not the recent H1 report or obviously the information from Ian that they are still continuing to be cash generative?
Bridge, some skill to comment on an article before Vander posts it. That's some next level stuff.
This is an example of automated journalism.
"In automated journalism, also known as algorithmic journalism or robot journalism, news articles are generated by computer programs. Through artificial intelligence (AI) software, stories are produced automatically by computers rather than human reporters. These programs interpret, organize, and present data in human-readable ways. Typically, the process involves an algorithm that scans large amounts of provided data, selects from an assortment of pre-programmed article structures, orders key points, and inserts details such as names, places, amounts, rankings, statistics, and other figures. The output can also be customized to fit a certain voice, tone, or style."
There are several articles on there with the same format and phrases - then linking to how you can sign up to their paid content. Disappointingly the information they've used in the algorithm for WSG is also out of date. I guess they only use figure for full year and not the recent H1 report or obviously the information from Ian that they are still continuing to be cash generative?
Predictions about the future are made using extrapolations from the past. Tema is growing and was reliable throughout the pandemic and now Lungi is open providing recurring revenue, this helps us extrapolate to the future.
It goes without saying that new contracts are needed for "big" moves, but my point is I think this is a good price to not loose money, with the potential to realise decent gains.
Margins on Tema are decent.
They've done a great job in securing a profit during a world wide pandemic. The first in WSG history.
With WHO suggesting that it may take up to 2 years to fully get on top of Covid there's still the scope for them to profit from screening and sanitising equipment. I'm hoping to see something shortly from the successful trial of their fever screening solutions in association with Menzies Aviation, announced 3rd June.
As H&N rightly pointed out, business travel may be providing a barrier to progressing some of the larger non-Covid contracts, but with a profit secured in H1, Tema continuing to grow and Lungi re-opening there's now a solid base to grow the business with any additional RNS'd contracts.
Nothing's a no-brainer in these times, but the price seems attractive to me here.
It's not the reason I bought into Westminster, but they're diversified well in a time of crisis.
Miller & Carter have restaurants in over 70 UK cities.
https://twitter.com/wg_plc/status/1296053656182296576?s=20
WSG's revenue in Rest of World (Americas mainly) went from £95k H1 2019 to £2.98m H1 2020, mostly from Covid sales. I think it's still ticking along while Lungi's opening up.
Looking good today. They've said that they won't update for the sake of it, but should have news due soon on Wavertree and West Derby.
A new deal could see multiples of the current SP. Heard they were closing in on a Uni deal before the Covid hit. Hopefully with impetus from the new CEO and cash from Warrants/completion of current projects holder could be in for a nice ride.