Velocity Composites Share Discussion Threads

[husbod] 12/12/2024 12:34

Been here for a while and good to see the Boeing contract will at last benefit the bottom line next year.Also pleased to see that we are working with Airbus in the UK but there was much talk at the time of the announcement of the Boeing deal that there was another major contract in the pipeline. That would almost certainly have had to involve Airbus so I can only assume that the potential is still there but is as yet proving difficult to reel in.Agree there must be a big seller as the volume of buys would normally result in a material surge in the share price

[rivaldo] 12/12/2024 12:20

I bought in here on the bell and afterwards for the first time this morning having watched for years, for the same reasons as others.

The m/cap is low given the potential, achieving positive operating cash flow and VEL's now being into positive EBITDA territory and on the cusp of making a real PBT.

With VEL forecast to achieve decent surplus cash for this year, a small fundraising at current or elevated levels to accelerate growth would be fine anyway.

VLE would appear to be in the right place at the right time to meet record order backlogs and to help achieve improved efficiency and higher sustainability targets.

[devonlad] 12/12/2024 11:47

Same as Sphere25, waiting for the move but there must be a bloody big background sell going on to keep it down given the buys.

[martinmc123] 12/12/2024 11:16

3*
Velocity Composites plc, the leading supplier of composite material kits to aerospace, issued an encouraging trading update for the 12 months ended 31 October 2024. Revenue was up 40% to £23.0m (FY23: £16.4m), driven by growing US sales driving a positive adjusted EBITDA of £0.4m, the first time since the Covid-19 pandemic (FY23: adjusted EBITDA loss £(1.6m)). Revenue was slightly ahead of current market forecasts, with sales in the US quadrupling to £7.9m (FY23: £2.0m) as a result of the Company onboarding work from its major US customer and the Company expects sales in the US to continue to grow, as production ramps...from WealthOracle

wealthoracle.co.uk/detailed-result-full/VEL/1085

[gopher] 12/12/2024 10:57

Good update, a finance director buy is usually sensible although the 35p paid is not great timing. That looks a sensible target in the absence of new contracts which should take the price much higher. Only valued at 12ml at present which looks too low given outlook.

[sphere25] 12/12/2024 09:12

I bought here at the bell at 23p thinking, that it has been beaten down so much, maybe the market was expecting worse. Therefore some form of bounce back could happen, especially as they appear to be signalling the worst could be over and 2025 has bullish tones to it.

There was a barrage of buying that followed, and it is notable with 640k already traded, so others are clearly thinking "Buy into the bullish noises for 2025". Except there is a big seller here stalling the break higher on that chart.

Just wondering if this buying continues whether it can eat through that seller and break higher. I'll have to have a little cry and exit if it goes stale. It might just then fart around these levels.

All imo
DYOR

[melton john] 12/12/2024 08:23

Put a limit order in before open and got some at 24p.

[sidam] 12/12/2024 08:09

Can only access one piece of research. Project breakeven for current year, but cash inflow so net cash of £1.2m. Target 60p. Looks like we have passed the bottom.

[lauders] 12/12/2024 07:46

Looks promising. 2025 will hopefully be a better year here as the airline manufacturing companies fortunes, and hence VEL's, improve!

[lauders] 30/11/2024 01:24

My mini top-up at 21p the other day seems to be working at the moment. Let's hope the new trajectory is maintained!

[tomtrudgian] 27/11/2024 16:40

You say Melody9999, that VEL are in a long term industry. That is rather obviously true, and logically the company should be viewed over a multi year scenario. Yes, VEL’s share price has, like many others, been affected greatly by 2024’s diverse and quite extraordinary geopolitical events throughout Asia, Europe and the USA.

However why should VEL have paid for an earlier RNS reply? Was it not natural for the CEO to sell such a trivial part of his shareholding, after so many years without a dividend?

I have found it difficult to get a quote to buy (or sell) substantial amounts of VEL shares until very recently. Perhaps others may enlighten me.

VEL’s RNS Trading Update was long ago announced for 12 Dec.

Tom Trudgian

[daniel levi bmd] 27/11/2024 13:02

Great read

FYI

ADVFN SHAREHOLDER ACTION GROUP? hxxps://www.guerillainvesting.co.uk/2024/11/27/advfn-shareholder-action-group/

Dan
x

[husbod] 27/11/2024 13:01

Presumably it reflects firstly the Boeing problems and how this might affect outsourcing generally. Plus this Boeing contract seems to be taking longer to get onto our bottom line than we all expected.If I weren't already holding a shedload I'd probably look at the current share price as an opportunity to top up.

[melody9999] 26/11/2024 19:36

VEL are in a long term industry. But the share price has halved in 2 months and that just does not make sense because the company has not reported any change - positive or negative - in that time period.

[gopher] 26/11/2024 19:00

My reason to hold would be the market cap is only £10ml which suggests a dilutive fund raise but I don't believe the company is in trouble.

[cooper30] 26/11/2024 17:08

Also well in the red here but bought some more today in order to average down.
Website unusually shows that a trading update is due on 12th December (under financial calendar)

[gopher] 26/11/2024 16:37

I'm well down here, I checked and no RNS news expected until January. I noticed in 2023 they reported results at the lower end of directors guidance and I would expect the same in 2024 given the Boeing strike. I would hope they are at least cash generative but much depends on outlook statement. Difficult share to judge, I thought the FD purchase was an excellent sign but this was undone by subsequent director share sale.

[aneurysm] 26/11/2024 14:16

This share price has been down here before and always bounced back. But this time they have infrastructure in place to really grow and are about to break profit for the 1st time since COVID. A delay of profits due to ongoing supply chain issues, doesn't warrant a 60% reduction in share price in my opinion. Im adding every month since it dipped below 25p.

[melton john] 26/11/2024 13:37

JPMorgan give £2 per share upside on GKN Aerospace owner MRO melrose Industries good read across to VEL imho.

[melton john] 26/11/2024 12:39

I'm up to my neck in them,last buy at 30p. Will hold off until trend starts upwards. My main concerns would be cash flow, working capital and worry of a fund raise. Their balance sheet at the interim shows a regular reduction of long term debt (excluding lease obligations) from max 2M in 21 to .719M so their credit rating at their bank should be fine.
Current assets were 7.8M including cash of nearly 1.8M whereas current liabilities were 4.46M. The cash was reduced by -1.39M over the period with the above 1.8M remaining, so its going to be tight but I hope a loan will be preferred by the directors who will want to avoid dilution.
I must say that I'm not an accountant and just reading it how I see it, discussion welcome. I note that no material change from the september trading update has been published although the optics of the CEO's close associate's first share sale aren't great. I assume a close relative wanted out.

[lauders] 26/11/2024 11:23

Wow.... VEL is really unloved. Just added a very small number to the long term portfolio. Seems overdone unless some unexpected bad news is on the way. Same over at HVO. Seems some small caps are taking a beating at present.

[aneurysm] 31/10/2024 09:17

Absolutely, this is now an absolute bargain for me.for the sake of a delay, not the fault of Velocity, just the supply chain issues, this is now buy buy buy for me.

[melody9999] 31/10/2024 08:44

I've taken a few again. Unusually I managed to sell at the top at 45p a few months ago.... The last TU 180924 signalled 'short term delays' caused by the customer which will impact the supplying of VEL kits, and so revenue, rather than anything more significant. Meanwhile FD buying.

So with the budget out of the way and the share price some 40% lower, I think the risk is now skewed firmly to the upside. Just my view!