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Hi, Dactions, Westek cost 3 Mill down and 0.5 Mill within 12 months. Last year revenue was 3.5 Mill so basically we've moved 3.5 Mill from cash to revenue. It made profit last year of 0.2 Mill which is not huge but a darn sight more than we made on the cash!

The RNS said that this will complement TPG existing rugged control business and bring potential new customers to the group. 2 weeks after the takeover we announced a 0.75 Mill order!

If you read the RNS again you will see other advantages. I Think there is more to this than Solid State Hard Drives.

As the new larger reactor has yet to be built and then commissioned in new premises I'm guessing it will be a couple of years before we see any real revenue. But by then surely Airbus will actually have placed an order? Or is that too much to hope!

It looks as though year end September '20 will hopefully see the new reactors and premises up and running so year '20 - '21 should show real revenue growth. Hopefully this will help to fund a programme of reactor acquisitions to cope with all the business!

Long time coming but with a unique product with lots of different applications this has massive potential. I am encouraged.

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Hi BurtonS,

Your right, the company has no crystal ball but this investment programme makes some assumptions

If the chicken and egg scenario is important then we have laid a couple of eggs with more to follow and our breeding hens are assumed to be fine and dandy.

This a turning point: - the only constraint on us now is production capacity - our next need is a continuous supply of new reactors.

I've been here for about 8 years. By judicious trading I now stand at £1420.00. in pure profit. So do I stick or do I twist - which way is more lucrative - just give up on a flat SP and hope SYM will actually make it or is the 2.30 at Chepstow a better bet?

Seriously- if Blue Planet can't move this stock then the BoD is real crap.

Hi Nitbhav, I also have a sales background and with a 1.1m order I'd have passed that on with say a 2-5% over ride. Any other leads we could discuss?

Hi Roger, yes just caught Directors Talk. But as over 60% or so of current revenue is from the US that just seemed logical to me. Hey do I care! Lets just get the revenue!

Hi Wisheyed, HDD is what I cottoned on to some 9/10 years ago and it looks as if it might make it - one day! With the benefit of hindsight I might not have bought my initial shares at 11P! Best of luck with your other holdings.

Hi dactions, I've only been here for 2 years and I don't have your background. But I do have to say that CG's announcements seem to be a little ambiguous. I get the feeling that an order gets announced in tonnage and then later gets announced in cash terms. I don't think it's deliberate but at his level he should know better!

However, in spite of huge obstacles the guy keeps on batting, and at last we seem to getting all our ducks in a row. I get the feeling that we are very close now to moving upwards. I believe the last years poor revenue figures will pail into insignificance as the business builds. As an extra bonus if, and if, we make it - Stone Alliance will blow our socks off!

Hi Wisheyed. No idea about Avacta. But if there was a lack of core momentum there - this is exactly the opposite!

2nd Thoughts. I posted a year or two ago about HDD being a " Slow Burner''. The reason was the production constraint caused by the 12 month lead time for new reactors. My guess is that the 1st large reactor and the larger reactor will go to Oxford and the 3rd to Virginia.

If we say that last September we broke even then this year should be a profit with the new reactor. September '20 should be the same with the new premises fully on stream for the full year to September '21. This is a clear progression and with no debt to service our main expense will be funding a new stream of rectors plus premises.

We then open up myriad possibilities. Maybe open new facilities in Houston for O & G no NADCAD will be required and we had one there before. This leaves Virginia free for Aerospace. Maybe new premises in say Ireland if Brexit proves a problem. Or even licence to specific customers, say Airbus for instance.

There is a lot of R & D going on at the moment and a whole raft of new applications are likely. This is the crossroads and we're taking the correct turn. A slow burner that could build to a volcano!

That the BoD took on my concerns raised here recently and have reacted so promptly and decisively! (Just a little tongue in cheek)

Has to be the right move as it means both the new site and Virginia are both capable of further expansion.

I think the SP is dependant on 2 things. 1. Will they get the earn-out? 2. Can they successfully develop the Licensing model?.

At the moment it seems to reflect that both are uncertain and the market hates uncertainty. Only time will tell so patience is needed. But if both come good then we will all do very well indeed.

They used to be bookies and we are still gambling!

Thank you for the re-post Dar. I thought my points had been rather overshadowed by Sharon conner!!

I believe this has all the makings of a long term hold stock. The last 3/4 years have been transformational and apart from the acquisition delay, which the people who put the money in don't seem to concerned about, the BoD have proved excellent.

Hi Dibs, I have no idea why the BoD sanctioned such a statement - it makes no sense to me and I can see no advantage in it. It is in effect a "For Sale" sign.

As for price - well where does one start! The patented technology appears to have more and more applications as time goes, witness the new research into lower temperature substrates. It also appears to out perform most other coatings so the potential is astronomical in the longer term.

As an example the ROV application came out of the blue, as Kirkham said at the time "We would never have targeted that" I suspect the Post Office thing was the same and also the baggage scanners. All were relatively were small beer but the range of applications appears to go on and on.

It's far to early to price hence concern at the announcement but in the long term future a £1.00 is possible.

Exactly right Bakky. The name change allowed some of us to look forward and put the litigation and old Premaitha problems in the past. (And VIY as well!)

The half year numbers were all in the right direction and can only be improved on in the full year. Sage 32 is a cracking development that will not have to much effect on this years figures but will really impact next year.

Onwards and upwards!

I refer to a June '18 video presentation on the HDD website. At the Q & A session Kirkham stated that each reactor generated about a £ Mill a year revenue but the 3 in Oxford ran at some 75% capacity to allow for R & D. He also said that Virginia could possibly grow to 7 reactors. If this is so, and bearing in mind it seems to take the best part of a year from ordering a new reactor to getting commissioned then some 9 Mill a year is the best we can do AFTER getting 4 new reactors. This ain't gonner make us rich anytime soon!

He stated that aerospace could be bigger than oil and gas and later said it could be huge. At the latest forum apparently Turbine blades are also going to be huge. It rather begs the question "Where are we going to get the required huge production facilities to cope?"

So which comes 1st the orders or the reactors? Or do any orders make us more attractive to a takeover?

Deafening silence from the BoD. I have floated before that maybe a licencing model may work where Airbus say have reactors installed on their premises. Accountability should not be a problem because I believe many aircraft parts are carefully serialised.

Can't help feeling that if we're not at the crossroads yet - we soon will be!

We had 21 Mill in June according to the half year report. Westek cost 3 Mill and we've had 7 months strong trading so yes 20 Mill it is.

Reasons to be cheerful.

1. Financials. TPG has now moved into profit. Although the existing contracts total some 18 months or so of current revenue they are spread over many years giving clear forward revenue.

2. Defense spending is not so dependant on market forces and elements continue even in recession. Witness the latest US and Russian spat and the Chinese navel expansion. NATO will have to respond or at least keep up.

3. Even though our acquisition programme is well behind schedule we still did a partnership deal in the States last year and a Framework agreement in France. Both have a lot of potential.

4. Even when we were lossmaking in previous years we were still cash generative and made acquisitions. Now we have 20 Mill in the bank we can only go forwards with a growing orderbook.

Memo to me - must buy some more if the SP dips again!

I think the SP rise may be partly due to the encouraging 1st half figures plus the Sage 32 announcement. The only downside is the balance sheet weakness but the comments in the report are all on the positive side.

Hi JJLH, I too missed any previous reference to HDD becoming an attractive acquisition target, if in fact there ever was one. I'm not to certain what the difference is between that and a dynamic profitable company run for the benefit of customer staff and shareholders is anyway?

Apart from that the presentation was basically a re-hash of previous announcements but unfortunately no reference to the new larger reactor previously stated as going to be ordered at the end of 2018.

As regards takeovers you'd have thought Airbus would be interested - they know a lot about the company after 9 years of collaboration?

If indeed the weather does come down on our side and we restart early it couldn't have come at a better time.

It now seems we have definite orders to fill. In the past I have thought that occasionally Chis has got his Quotes mixed up with his orders and he felt under pressure to deliver good news. Perfectly understandable in a start-up AIM environment.

It now seems that his hard work and optimistic attitude is about to pay-off. Quite right that he should now reign back on advertising and comment more on reporting good news.