Velocity Composites Share Discussion Threads

[jonwig] 26/7/2019 09:21

The collaboration with Wesco Aircraft was announced on 12 June:



It could be significant for returning VEL to profitability and growth.
Here's Wesco's own announcement;


and Wesco's website:

[timbo003] 26/7/2019 09:07

Aide memoire:



The three founders took out approximately £1m each at the IPO (selling shareholders @85p/share) - from aim admission document:








The current major shareholders are as follows - from Velocity Composites web site:

[timbo003] 26/7/2019 06:48

Not sure what to make of this

Will the founders now try to run it as their fiefdom?

[techno20] 26/7/2019 06:46

This looks heavily undervalued IF this is indeed a new beginning. It does sound as if the shenanigans in the board room may not have impacted too much on business performance, in which case it should re-rate, but will take time. Had expected the founders to buy the business back, but looks like they’ve got what they wanted without doing so. Long way to go to get back in the black on this one, and not brave enough to buy more having bought three times on the way down! GLA

[jonwig] 26/7/2019 06:27

Board situation resolved, we hope.
Market will want hard evidence.

[jonwig] 24/7/2019 13:43

It couldn't be any worse than it had seemed to be!

They may have resolved an uncomfortable situation, and this update comes a month after the last, with confirmation of good trading conditions:

"We are pleased to say that business performance has seen a marked improvement during our tenure and we are now trading at a break-even level. We have also overseen the efforts that saw the full amount of EIS/VCT funds employed by the due date on a range of attractive new business investment opportunities as announced on 12 June 2019.

Worth buying on the back of this? Possibly.

[buywell3] 24/7/2019 12:13

BOD change

Will it help ?

[yump] 24/6/2019 11:21

Simply out of curiosity it would be interesting to go to an AGM and ask WTF is going on. Someone or group is acting like a bunch of morons.

Either that, or at some point in the past, the legal structure and conditions for board membership/decisions was not structured properly to avoid future problems.

I can't recall any other floated businesses having this much trouble over this length of time - there must have been some of course.

[spooky] 24/6/2019 08:26

I think it will get bid for one way or another. Composite market growth and market position will make it very valuable to the right buyer IMO.

[timbo003] 24/6/2019 08:04

If the founders have decided they don't like the way it is being run as a public company, the easiest solution is for them to make an offer for the company and take it private. I think most shareholders would accept an offer of around £1.20/share.

[spooky] 24/6/2019 07:35

Well the value and potential are definitely there, its up to the founders to decide whether they want to make money or lose it. In my experience greed/common sense normally wins out in the end.

[timbo003] 24/6/2019 06:40

The interims make pleasant reading and the shares look good value at these levels

Enterprise value of around £3M, revenue of around £25M and growing.

It would be good to understand a bit more about the disagreements between the current BOD and the founders.

[timbo003] 14/6/2019 06:33

That it very significant news released this morning

I wonder if any of the MMs have been short in anticipation of a plentiful cheap supply from VCT forced sellers?

It would not surprise me to see the shares rise back to the IPO price (85p/share) in the next few months, given that the perceived VCT overhang problem is likely to go away.

[spooky] 12/6/2019 13:11

If its one then they may almost be done, if its more than one then there is a way to go.

[timbo003] 12/6/2019 12:51

Just found this from 2017



Hargreave Hale were acquired by Canaccord recently, so hence the name change.

[timbo003] 12/6/2019 12:47

These are the IIs with notifiable stakes (taken earlier today from the Velocity Composites web site which states that these numbers applied on April 10th 2019)



It looks like their are three VCTs/EIS funds in there who will probably be looking to unload at some stage.

Octopus, Canaccord and Amiti

[spooky] 12/6/2019 08:05

Think we are working off the remains of the 550,000 seller at 17.00p on May 20th.

[spooky] 12/6/2019 07:56

Well i've picked up 100, we'll see how this plays out.

[timbo003] 12/6/2019 07:42

Spooky, it is almost certainly the vcts who got in at the IPO as there is uncertainty on whether VEL will continue to qualify for VCT/EIS tax reliefs, the problem being they haven't been spending the IPO money fast enough!

[spooky] 12/6/2019 07:34

They look potentially very cheap, wonder who the aggressive seller is/has been recently?

[timbo003] 12/6/2019 07:06

No numbers given in today's announcement, but certainly sounds impressive

[eezymunny] 09/5/2019 14:17

The trend in revenue is generally up, yoy. Gross margins low, but if they can keep growing the top line maybe some decent profits will eventually drop to the bottom line. Balance sheet is so strong that it doesn't need massive profits to justify a much bigger market cap IMO.

[carlo sartori] 09/5/2019 09:09

A bit of upward momentum at long last!!

[yump] 05/11/2018 08:17

Looks to me as if the changes a while ago were to move the business to more operational management, which often means the founders are not the right people for the job, so they were moved to one side. Perhaps they were having a bit of a free lunch.

Always a difficult process, but should have been agreed much earlier and doesn't look like its been handled well.

[jonwig] 05/11/2018 08:00

I haven't followed this company for a long time, but it's sad to see a niche bit of UK industryu tearing itself apart.