Velocity Composites Share Discussion Threads

[yump] 17/11/2019 17:13

I was going to reduce my average but a bit unsure. Two reasons: first is that I’m not sure quite what level of profit they can squeeze out by cutting costs - for a business in demand that shouldnt really be an issue with their level of turnover and its not clear whether existing levels of admin will cope with increased business, or whether each new facility jumps the admin costs. Secondly it seems a bit odd at this early stage to mention incentivising staff, while also thanking them for their enthusiasm and commitment.?

I’d like to see the uk/eu based business making a clear profit before they start on overseas, mainly to just prove the business isbproperly viable and the final profit won’t be some miserly % that can be knocked into loss by small negative events.

[jonwig] 15/11/2019 08:29

Andy Beaden again? Could be a director buy, The closed period is end-Nov: two months before the results announcement which is 31/01.

[techno20] 15/11/2019 07:51

Decent 50k buy at close of play. Have been adding a few since the the trading update to reduce my average. Vel listed at £30m and though all of the boardroom antics has made solid progress. I remain hopeful that now that things appear to have steadied we’ll see more investors willing to come aboard.

[jonwig] 13/11/2019 08:04

Trading statement:

- Revenue for the year approximately £24.2m (FY 2018: £24.5m) ie. flat.

- Gross margin improvement over FY 2018 (18.3%) and H1 2019 (20.9%) good, significant.

- Results for the year to October 2019 are expected to be in line with market expectations whatever those are! I can't find any views from Cenkos or anywhere else.

- Net cash (before finance leases) £3.4m as at 31 October 2019 but FLs have to be classed as debt under new accounting rules. Some investors might be caught out if they aren't aware.

Exciting enough?

[husbod] 31/10/2019 16:03

Thanks jonwig. Agree with your conclusion and give his date of appointment he is not one of the directors who led us into a false sense of euphoria with their earlier buys.

[jonwig] 31/10/2019 11:18

The buyer:

Andrew was appointed Non-Executive Chairman of Velocity in July 2019. He most recently served as Group Finance Director and a member of the board of Luxfer Holding plc, a producer of highly engineered advanced materials, from 2011 to 2017, having joined its predecessor British Aluminium in 1997. Luxfer (LXFR) is listed on the New York Stock Exchange. Mr Beaden is a co-founder and Chairman of IN4.0 Group Limited, a company encouraging growth through the use of industry 4.0 technologies.

Mr Beaden is a Chartered Accountant, holds a degree in economics and econometrics from Nottingham University and is a Fellow of the RSA (Royal Society for the Encouragement of the Arts, Manufactures and Commerce).

Also stuff on Linkedin and his own website;

I doubt he'd spend £100,000 on company shares on a whim!

[enter] 30/10/2019 17:20

I was almost tempted to buy shares in Velocity once, but when they surged from 100p to 130p I decided to leave it. That was a rare piece of good luck for me.

The director buying is interesting but I would not expect imminent good news because there would be accusations of insider dealing. There probably is value from here though if you are prepared to hold for a while.

[husbod] 30/10/2019 17:02

Don't worry chaps - like your goodselves I thought I saw the potential here a while back and am just averaging down on the basis of developments that should now be occurring allied with the directors buys.Thanks for the posts though.

[jonwig] 30/10/2019 16:25

@ Husbod - it's just the one director buying in bulk, isn't it? (The Chairman. I guess the others have plenty anyway, haven't checked.)

The close period is 30 days before final results are announced, and they have indicated that will be on 31 January.

[techno20] 30/10/2019 16:06

Husbod - Velocity is the perfect example of why not to remortgage your house to buy stock. I first purchased multiple times at around £1, on the back of significant director buying. I then bought a bunch more at around 50p again when directors were buying. You can see what’s happened since! I’ve bought yet more in recent weeks to bring down my average, but this is still high risk, so take care!

[husbod] 30/10/2019 15:28

Never had so many directors buys in any of my holdings before and as I am a huge fan of such buys I really should be mortgaging the house.Time to further review the portfolio.

[techno20] 30/10/2019 15:08

And another purchase. Been adding over the last few weeks, but wished I’d been more aggressive. With the board issues sorted, things are looking much brighter.

[husbod] 30/10/2019 11:25

Correct me if I'm wrong but doesn't the fact that a director has just bought means we must be some way off any results announcement.Whatever, the continued directors buying must mean things are going well so happy to accumulate/average down.

[jonwig] 29/10/2019 20:27

Last year there were trading updates on 4 Sept and 26 Oct. This year, none since the H1 results in June. Year end is Thursday, so I'd expect something pretty soon.

[spooky] 29/10/2019 17:03

Another 100,000 shares picked up by the Chairman.

[husbod] 18/10/2019 23:00

Seems like a definite buy signal to me.

[jonwig] 18/10/2019 15:18

Another purchase from him:

Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, has been informed that Andy Beaden, non-executive Chairman of the Company, has today purchased 75,000 Velocity ordinary shares of 0.25 pence each at an average price of 23.40 pence per Ordinary Share.

Mr Beaden now has a beneficial interest in a total of 225,000 Ordinary Shares representing approximately 0.63% of the issued share capital of the Company.

Wot's up? Summat's up!

[husbod] 17/10/2019 09:34

Bloody well hope so spooky as I'm well under water here.

[spooky] 17/10/2019 08:52

Any sort of positive news, contract, boardroom or otherwise and they will double IMO.

[jonwig] 16/10/2019 20:03

I think the main factor is whether peace has broken out in the boardroom ... director buys suggest maybe it has. And we know trading is on course. Lots of volume to support the idea.

[husbod] 16/10/2019 16:57

Well unless they are trying to lose money I would imagine they think the company's prospects are improving.Indeed they may even think a decent contract is imminent.

[spooky] 16/10/2019 15:27

Another 100,000 share director buy.Hmmm.

[husbod] 16/10/2019 14:38

Been lurking here for quite awhile as I watched my investment fall relentlessly. So I have pursued my inevitable strategy of identifying what I think is a good company, buying too much too early and then having to average down in subsequent years.Hopefully that director can see things are moving in the right direction.Back to sleep.

[jonwig] 16/10/2019 06:07

Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, has been informed that Andy Beaden, non-executive Chairman of the Company, purchased 50,000 ordinary shares of 0.25 pence each on 15 October 2019 at an average price of 18.49 pence per Ordinary Share.

Mr. Beaden had no previous shareholding in the Company. Consequently, he now has a beneficial interest in 50,000 Ordinary Shares representing approximately 0.14% of the issued share capital of the Company.

ADVFN trades aggregates them into a single block, but there were three other very large trades (all Buy) reported yesterday.

[jonwig] 29/8/2019 14:11

The last week has seen some fairly large trades. ADVFN's algorithm is unreliable as to reporting them, but I suspect there's buying pressure.

Obviously plenty of people will be close to what's happening at board level, and whether there might be a final resolution. I don't want to be too optimistic, naturally!