Share Name Share Symbol Market Type Share ISIN Share Description
Velocity Composites LSE:VEL London Ordinary Share GB00BF339H01 ORD 0.25P
  Price Change % Change Share Price Shares Traded Last Trade
  -2.50p -3.76% 64.00p 28,425 10:19:08
Bid Price Offer Price High Price Low Price Open Price
60.00p 68.00p 66.50p 64.00p 66.50p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Aerospace & Defence 21.4 -0.6 -2.0 - 22.91

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Date Time Title Posts
06/6/201811:52Velocity Composites PLC57
14/4/201819:57Vanoil - BIG oil prospects in EAST AFRICA !!269
12/5/201122:49***VELTI PLC***THE MOST UNDERVALUED AIM STOCK407
28/9/201009:28VELTI - cheap and interesting?103
24/1/200614:39R EAST SECURITY-

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Velocity (VEL) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2018-06-21 13:08:2066.405,0003,320.00O
2018-06-21 12:14:1166.40741492.02O
2018-06-21 11:03:1666.405,0003,320.00O
2018-06-21 09:24:2266.501,052699.58O
2018-06-21 09:19:2761.001,420866.20O
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Velocity (VEL) Top Chat Posts

DateSubject
21/6/2018
09:20
Velocity Daily Update: Velocity Composites is listed in the Aerospace & Defence sector of the London Stock Exchange with ticker VEL. The last closing price for Velocity was 66.50p.
Velocity Composites has a 4 week average price of 52.50p and a 12 week average price of 45p.
The 1 year high share price is 137.50p while the 1 year low share price is currently 45p.
There are currently 35,795,539 shares in issue and the average daily traded volume is 24,834 shares. The market capitalisation of Velocity Composites is £22,909,144.96.
02/3/2018
14:41
sidam: Here is the note. It is a bit long. I hope it is of general interest. 27 February 2018 Velocity Composites (VEL.L) Price: 70p Market Cap: £25m Velocity (VEL) was one of my favourite stocks for 2018. At the end of last year, the shares rose sharply, but the fell after the results as estimates were cut and again after the AGM statement. The reasons for the early reduction were partly for positive (possibly very positive) long term reasons and partly negative, but there was no further reduction in estimates after the AGM. The purpose of this comment is to look at the current projections, compare the difference with those previously published and to try to ascertain whether the shares can be considered a buy. If you read to the end, you will see that I am still very bullish. Velocity manufactures advanced carbon fibre kits, which are used by Tier I suppliers to produce components for the major aircraft manufacturers. Management state that they are unique and are the only company worldwide to offer this service. Their USP is the reduction in waste by using their proprietary software to cut the carbon fibre rolls. There can also be a reduction in the rejection rate of finished components. The AIM admission document describes further significant benefits. It is worth reading for background and can be found on the company’s website. The company joined the AIM market last year to raise capital. The company’s facilities are replicable and the new capital would enable new sites to be commissioned in Europe. A secondary consideration was the status accorded to publicly traded PLC. This has proved to be the case and is discussed in more detail below. The results for last year are roughly as expected in that adjusted profits were in line. However, revenues were higher than expected, but gross margins were well down. There also unexpected and large marketing expense outside Europe. That will continue and is one of the reasons that profits and EPS for the current and next year will be lower than original projections. That is potentially, and likely, to be very good news. It was publicity from the flotation that led a number of non-European groups to approach VEL and ask for quotations. Management indicated that the most likely area to build a plant would be Asia where there were some nine hubs each of which was as large as the UK market. A site in this area is possible this year but more likely next. The first non-UK site will almost certainly be opened in the EU. The AGM statement reiterated this factor. I quote “Since IPO, the Company has won significant new business and momentum remains firmly with the Company as they are approached by more and more potential customers looking for significant savings versus their existing processes. Velocity has started to benefit from economies of scale and this will drive further cost savings, both for the Company and its customers. The Board remains excited about the prospects for the Company and this has been reinforced by recent additional industry accreditations that provide the Company with access to new platforms and programmes. In addition to the above, we continue to expand the customer base, including for programmes to be delivered to customers in Europe and beyond. The scale of composite production in these locations dwarfs the UK market.” In the latter context, virtually all historic revenues have been generated in the UK. The original projections were for EPS of 8.5p and 13.5p for the years ending October 2018 and 2019 respectfully. With a share price of then around 95p, there appeared very large upside as in January 2019, the current year PER would have been 7. That would have been ridiculous given the growth rate and the likelihood in the medium term of a growth rate of 20% made up from a 10% growth in industry demand and 10% from increasing market share. However, those projections have been reduced and the EPS estimates are now 5.5p, 10.6p and 13.0p for October 2018, 19 and 20. As one would expect the drivers for profitability are revenues growth and margin recovery. The AGM statement added “developments have had an impact of approximately £2m on the visibility of this year's revenue outturn, but management is confident that further work can be won to replace that and bridge the gap in order to meet market expectations for the year ended October 2018, if market conditions and customer demand remain stable.” Looking at the numbers in more detail, there is no change in revenue estimates for the current year but those for 2019 have been increased by almost 10%. That is almost certainly from the first non-European site. Gross margins are now lower, however these are expected to be more in line with the historic levels. Previously these had been projected to rise significantly, which with hindsight does look a bit strange. Marketing costs will increase as mentioned above and depreciation is forecast to increase in both years. The tax charge is expected to be lower. There were no previous estimates for 2020 as far as I am aware. The move into Asia and potentially into North America, from where there have also been requests, is likely in my view to maintain a 20% (plus?) growth rate for a longer period. On that basis, I consider that the shares should justify a PER in the range of 12 to 15 (a long term PEG of 0.6 – 0.75). However, if current projections are now accurate, in January 2019 the current year PER would be 6.6. A PER of 10, would give 50% upside and 12 would give over 81%. In addition, maiden dividends are projected for the current year. Management have stated that the results will be H2 weighted and that Q1 normally is the quietest, so it appears that there is some seasonal weighting not just growth. I consider this should be a winner. The safety play is probably to wait for the interim results, but I have recently added and it is now one of my largest holdings. I hope I am right.
23/1/2018
14:41
jonwig: Thanks all for the recent posts. I must say that I misread the factors which drove the share price fall. However, as pointed out, future growth is bigger than originally anticipated, and capacity has to be bought. I hope the current management are able to manage the expansion. If the AGM is in Burnley, I'll be there. If Fareham or London, not.
23/1/2018
08:18
jonwig: Share price spooked by possible fundraising? What else could it be? EDIT - I've added.
18/1/2018
11:50
jonwig: The share price rose at just about the time this was released: Dubai’s Emirates Airline has signed an initial agreement to buy 36 Airbus A380 aircraft, including 20 firm orders and the option for 16 more in a deal valued at $16bn, marking a critical win that will salvage the super-jumbo jet programme. The deliveries, expected to start in 2020, will guarantee production of the plane for at least another decade, said John Leahy, Airbus’ sales chief. “I’m personally convinced more orders will follow Emirates’ example and that this great aircraft will be built well into the 2030s.” Https://www.ft.com/content/6e99d902-fc3b-11e7-a492-2c9be7f3120a The A380 was in doubt since November, when the orders appeared to be cancelled. It's one of the key models which will trickle all the way through the supply chain.
01/11/2017
09:15
jonwig: FinnCap this morning on the trading statement: The year-end trading update reads positively, with the group continuing to see a significant year-on-year increase in operations and profits, and having traded in line with expectations. No change to forecasts or price target, but with continuing strong conviction that the group’s growth trajectory is achievable. The low share price rating offers significant upside as the group delivers on its stated scale-up strategy.
28/10/2017
19:16
mtioc: I agree that current performance does not justify share price, but nevertheless I have bought a small initial holding. In general any shares that currently have the characteristics that I like (e.g. ROCE>15% and relevant profit margin at least 10%, consistent growth, cash generative and management on the right side of the table etc..), are all too expensive for me (e.g. EBIT yields<4% versus the 8% I would like). In that case, if I could be reasonably confident that a share could meet these thresholds in the medium term, I may take that risk rather than buying one I consider very overpriced now. VEL has an EV of c. £30m and should make £1m EBITDA (normalised) on c. £20m sales. On its own, £30m is a ridiculous valuation, but if it made the forecast £4.5m EBITDA (on £35m sales) for the next year (and that was sustainable) it would be relatively cheap. Therefore the key is the confidence that VEL will grow to that level in the next few years. Commercial airliner production is set to grow significantly over the next 15 years. The major manufacturers, Airbus and Boeing, have developed their platforms and the next airframes will not appear until the mid to late 2020s (i.e. this is the period for them to recover their development investment). This is covered in detail in the listing docs. VEL mainly provides services to the Airbus supply chain. The new-ish Airbus wide body, A350, will double production from 5/month to 10/month and has a c. 9 year order book. The narrow body, the A320 with new engines, will increase from 50/month to 60 and has a similar order book. At the moment, we do not know how much revenue VEL gets from each aircraft produced. However, a bit of research suggests VEL is embedded in the supply chain and its sales should grow rapidly with production increases. In its latest news release it mentions a major US customer contract win. VEL only appears to have one major US customer, GE. Its composites (mainly for airframes) are done in Hamble (near Southampton) in an old Smiths facility. According to Googlemaps, VEL's facility in Fareham is 20 minutes drive away. Given Airbus order visibility the supply chain ramp up is no surprise - everyone in the industry has been talking about it for years. Since 2013, GE appears to have spent $50m on 2000m2 of composite clean rooms. In considering an investment of this size, it has still outsourced the relevant services to VEL (after making sure they could deliver on a PO basis first). VEL would therefore appear to be embedded in a very predictable and growing supply chain. The story of Safran Nacelles (mainly engine composites)in Burnley is very similar. (These big plant investments are covered in loving detail by local newspapers.) VEL may be able to expand this model with existing and new clients. GE for example may take it into the Boeing supply chain, where the latest models have more composites than any others. There could be potential to serve other commercial aviation clusters (e.g. Hamburg or Tolouse). I also like the fact the management team are at the right point in their careers, have significant shareholdings and a clear vision. Hope this is helpful, but as always DYR.
19/9/2014
21:22
dropside: At £1.6m cap it is very cheap, but the liabilities make this high risk. However there are still deals to be done - with Kenya direct or through arbitration; Seychelles and L9. Compensation from Kenya could be rolled onto the liabilities and Seychelles (once settled) and potentially L9 could be farmed down. The intellectual property (3D seismic etc) on 3A and B could be sold. In time the Glencore deal and Witkop could be worth something. Just can't imagine Passin is throwing the towel in while discoveries are being made near 3A and Seychelles is looking promising. It would certainly help of course if they communicated properly with shareholders, no doubt that has damaged the share price. On the principle of buy when there blood on the streets I've added some more. Its very high risk but potentially high reward. Definitely no advice intended!
11/4/2014
19:06
dropside: £3.1m market cap. Even if they lose 3A and 3B licenses, the other licenses are worth more than that. Plus the old Tunisia agreement and Witkop. Now looking well oversold, but they are not helping themselves with their Trappist monk communications. James Passin may own most of the company but surely he cares about the share price, it affects the value of his Firebird fund for one thing. A few pounds spent on an RNS, even if it does not say much, would bring us more up to date than keep re-reading Februarys news.
18/5/2013
12:16
dropside: LOL! Very happy to have VEL as my biggest holding thank you :-) So trading has gone back a day, I hadn't noticed that. I still have FLOR shares in both broker accounts, not VEL as yet. I'm quite pleased how the VEL price has held up given the placing going on over there. Honestly speaking I would like to see a farm-in partner on these wells to spread the risk, however I am very excited about what we will discover- I note Africa Oil's recent hit rate in Kenya, every one has come up good. Afren too have high hopes of the Seychelles prospects (which we will also farm-down) so there is plenty to go at, and L9 too.
20/2/2011
18:50
johnyee 7: but it says they will cease trading on aim in april,confused, I am. Last summer, Moukas and Kaskavelis, chief executive and chief operating officer respectively, said they planned to list on America's Nasdaq technology market. The new shares finally started trading on January 27. US investors snapped them up and the London share price rose in parallel. Now Velti plans to cancel its Aim membership and shares will cease trading here some time in April. Existing investors have two options. They can either transfer their shares to America or sell them in the market. Midas verdict: Swapping British shares for US ones is a logistical headache. Velti shares may continue to do well but investors who bought at 150p have been richly rewarded and are advised to sell now and put the money into something more accessible.
Velocity share price data is direct from the London Stock Exchange
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