Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Our Methil Delivery Center has a massive potential across our five key markets (Defence, Renewables, Energy, Comercial and Cruise and Ferry) as we move forward it will provide Scotland with not just serious renewable fabrication options, but real shipbuilding oportunities along with a Center of excellence for pipework fabrication.
Capitaliseing on current market opportunities, generating credibility by partnering, forming consortiums and Joint Ventures with our supply chain and clients is the way forward to reach our potential.
A interesting fact that is not known by many is our Methil Delivery centre is larger than Belfast
Only a couple of weeks ago JW stated:
We have seen very healthy growth to our business since 2021 and key achievements include:
1. Contracted backlog increase from £110 million to £900 million (based on management estimates)
2. Largest single contract size increased from £55 million to £750 million
3. The workforce has grown to 769 personnel
4. Debt facility moving from $35 million to $100 million, with negotiations ongoing to complete a £200 million refinancing facility with UK Export Finance guarantees and a syndicate of private lenders and commercial banks, expected to complete in early autumn 2023
5. Uncontracted weighted pipeline of opportunities increased from £1.36 billion to over £2.50 billion over a five-year period
6. Securing our first export contract
7. Securing our first defence contract
8. Securing our first large commercial fabrication contract
Key for me is
'At turnover levels of £200 million and above, the Company would expect to be in a position to generate sufficient cashflow to initiate returns to shareholders’
The award of the LOI of 60-70 million for 2024 and then the already allotted contracted revenues exceeding £70 million (ref. RNS 30 June). Direct quote from JW :
‘Our contracted revenues for FY24 have already exceeded £70 million at the date of this report. We are seeing significant traction in contract fruition going into Q3'23 and beyond, giving us confidence of achieving further growth as I have outlined in March of this year.’
This already hits revenue’s of in excess of £140 million for FY24. Think we can see the target for 2024 easily being achieved as per JW’s aspirations stated in 2022 and again recently in his LSE chat to shareholders
Therefore, we know that H&W are already at >70% of revenue aspirational target set by BoD's for FY 2024, this sets very strong foundations for generating new business in all areas and does not take into account the FSS contract award.
Annnnnnnndddddddddddddddddddddddddd most importantl;y to me and what I think will be RNS's in just a few short weeks from now and why I anticipate this going back rapidly to the mid 20's to 30p range........
Completing the £200 million refinancing facility with UK Export Finance guarantees and a syndicate of private lenders and commercial banks, expected to complete in early autumn 2023 👍😊💰💰💰💰👀👀✔✔✔✔✔😎😎
2023.
H1 update ✔️
IM JV outcome ✔️
News of further conversion of bids into contracts ✔️
Targets are being hit and I remind folks of JW’s comments last year which are now hitting projected forecasts with a high degree of accuracy 🥳
‘With significant levels of revenue contracted, the relative stability of the cruise & ferry and ship repair markets and confidence around potential orders within the defence and renewables markets, management has an aspiration of generating revenues of between £100 million - £115 million for FY23. ✔️
While it is clearly more difficult to project FY24 revenues given the lumpiness and scale of certain contracts, the aspiration is to generate revenues of between £200 million - £230 million for FY24. Whilst this is a significant step-change from the FY23 aspiration, it reflects the trajectory of major defence and renewable programmes commencing from 2024 onwards and beyond.
At turnover levels of £200 million and above, the Company would expect to be in a position to generate sufficient cashflow to initiate returns to shareholders’
The award of the LOI of 60-70 million for 2024 and then the already allotted contracted revenues exceeding £70 million (ref. RNS 30 June). Direct quote from JW :
‘Our contracted revenues for FY24 have already exceeded £70 million at the date of this report. We are seeing significant traction in contract fruition going into Q3'23 and beyond, giving us confidence of achieving further growth as I have outlined in March of this year.’
This already hits revenue’s of in excess of £140 million for FY24. Think we can see the target for 2024 easily being achieved as per JW’s aspirations stated in 2022 and again recently in his LSE chat to shareholders
Therefore, we know that H&W are already at >70% of revenue aspirational target set by BoD's for FY 2024, this sets very strong foundations for generating new business in all areas and does not take into account the FSS contract award.
The SP will take care of itself.
Https://www.dsei.co.uk/exhibit
Good to see us exhibiting. Mid Sept
Lots of news coming in rest 2023.
H1 update ✔️
IM JV outcome ✔️
News of further conversion of bids into contracts ✔️
Targets are being hit and I remind folks of JW’s comments last year which are now hitting projected forecasts with a high degree of accuracy 🥳
‘With significant levels of revenue contracted, the relative stability of the cruise & ferry and ship repair markets and confidence around potential orders within the defence and renewables markets, management has an aspiration of generating revenues of between £100 million - £115 million for FY23. ✔️
While it is clearly more difficult to project FY24 revenues given the lumpiness and scale of certain contracts, the aspiration is to generate revenues of between £200 million - £230 million for FY24. Whilst this is a significant step-change from the FY23 aspiration, it reflects the trajectory of major defence and renewable programmes commencing from 2024 onwards and beyond.
At turnover levels of £200 million and above, the Company would expect to be in a position to generate sufficient cashflow to initiate returns to shareholders’
The award of the LOI of 60-70 million for 2024 and then the already allotted contracted revenues exceeding £70 million (ref. RNS 30 June). Direct quote from JW :
‘Our contracted revenues for FY24 have already exceeded £70 million at the date of this report. We are seeing significant traction in contract fruition going into Q3'23 and beyond, giving us confidence of achieving further growth as I have outlined in March of this year.’
This already hits revenue’s of in excess of £140 million for FY24. Think we can see the target for 2024 easily being achieved as per JW’s aspirations stated in 2022 and again recently in his LSE chat to shareholders
Therefore, we know that H&W are already at >70% of revenue aspirational target set by BoD's for FY 2024, this sets very strong foundations for generating new business in all areas and does not take into account the FSS contract award.
The SP will take care of itself.
The award of the LOI of 60-70 million for 2024 and then the already allotted contracted revenues exceeding £70 million (ref. RNS 30 June). Direct quote from JW :
‘Our contracted revenues for FY24 have already exceeded £70 million at the date of this report. We are seeing significant traction in contract fruition going into Q3'23 and beyond, giving us confidence of achieving further growth as I have outlined in March of this year.’
This already hits revenue’s of in excess of £140 million for FY24. Think we can see the target for 2024 easily being achieved as per JW’s aspirations stated in 2022 and again recently in his LSE chat to shareholders 🥳🥳🥳💰💰💰💰👍👍👍✔️✔️✔️✔️✔️✔️✔️
Lots of news coming in H2 2023
Targets are being hit and I remind folks of JW’s comments last year which are getting a high degree of accuracy 🥳
‘With significant levels of revenue contracted, the relative stability of the cruise & ferry and ship repair markets and confidence around potential orders within the defence and renewables markets, management has an aspiration of generating revenues of between £100 million - £115 million for FY23.
While it is clearly more difficult to project FY24 revenues given the lumpiness and scale of certain contracts, the aspiration is to generate revenues of between £200 million - £230 million for FY24. Whilst this is a significant step-change from the FY23 aspiration, it reflects the trajectory of major defence and renewable programmes commencing from 2024 onwards and beyond.
At turnover levels of £200 million and above, the Company would expect to be in a position to generate sufficient cashflow to initiate returns to shareholders’
Future is rosy and SP will get very strong.
I think once funding is finally announced this will be beget a flurry of contract announcements contemporaneously.
JW has done a great job to date and leaving little clues as we go along. Remember he knows every detail and every stage of each contract/negotiation and he was happy to part with £60K of his own cash at average of 24p/share. That will do for me as his interpretation of good value.
What I really like from the JW presentation was him discussing revenues for 23/24/25 (projected) and saying he is VERY confident of these being achieved. We already know that he has shown us 60-70million (NTP) from 1 contract in 2024, which covers 30% of revenue for 2024 based on mid range of target (£215 million).
I think we will be observing numerous RNS news over second half of 2023 which will be extremely favourable, and I say that discounting IM JR completely.
The future is bright :-)
Great find Kaeren,
Ilike this quote at the end from Ben
'This is exactly the sort of change that Maritime UK and RenewableUK hoped to see following publication of its 'Offshore Wind Plan', launched in Grimsby in March. It also takes forward a key recommendation from the Offshore Wind Champion, Tim Pick.
For supply chain companies like H&W with vast fabrication facilities strategically located for future renewables, a new approach to valuing developments could be very significant.'
All the foundations are being laid for a very successful and fruitful H&W future :-)
Thanks Kaeren,
Fantastic news this morning, good news for our Gas Storage project at Islandmagee, the largest storage project that is “Shovel Ready” - no other gas storage project is at an extremely advanced stage, having compleated Front End Engineering Design and will take a significant period of time to catch up to the point we are at today.
Substantial amounts of work have also been undertaken looking at suitability of other gases including hydrogen to be stored subject to additional approvals. The need for storage will be driven from excess renewable power generation and the need to store energy and the ridiculously low levels of storage we have survived on in the U.K. whilst importing gas on a just in time basis from Russia.
The larger and more important take away from todays announcements is the realisation that Renewables, whilst a lot of work has and is being done to aid the transition will fall far short in the short/medium term.
Oil and Gas from domestic markets is the only sensible plan to deal with current and expected demand over the next couple of decades. Our Energy Market has seen a significant up tick in enquiries from this sector this year, with live tenders on the street with some due to be awarded this year.
All positive noises !!! :-)
Biggest takeaway for me was revenues on target. I can accept losses over short term for H&W as growing rapidly. With revenues will come profits and positive EBITDA (best guesstimate mid 2025).
JW gave me confidence and therefore sold more AZ and added again this morning. Good luck all. I believe this will be great LT success story.
And
'It will be good to see Belfast capable of delivering 800ts a week of panels through our new automated panel line with just twelve people recent calculations have shown. This will place H&W in a significantly enhanced position going forward on the global stage.'