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 Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -25.00p -20.83% 95.00p 90.00p 100.00p 121.50p 95.00p 121.50p 634,400 15:43:59
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Aerospace & Defence 21.4 -0.6 -2.0 - 34.01

Velocity Share Discussion Threads

Showing 801 to 825 of 825 messages
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DateSubjectAuthorDiscuss
23/1/2018
14:41
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.
jonwig
23/1/2018
10:57
Broker downgrade of 2018 PBT forecast by 36% and reduction in price target from 144p to 125p might have something to do with it. Now on a PE of 20 for FY18 which is probably about right given the risks of the H2 weighting IMHO.
wjccghcc
23/1/2018
08:35
Decent results, in line pretty much. I don't see any reason to need further funds, balance sheet is strong, plenty of cash there. Naybe just a forced seller in the market
bobmonkeyhouse
23/1/2018
08:18
Share price spooked by possible fundraising? What else could it be? EDIT - I've added.
jonwig
23/1/2018
07:14
Some outstanding results here: Https://www.investegate.co.uk/velocity-composites--vel-/rns/final-results/201801230700045949C/ They say 'in-line', but appear to have beaten FinnCap's estimates on an adjusted basis. The important thing is the outlook, as 2017 was never going to be profitable. Capital spending is going to be huge this year (new Europe facility being planned), and I suspect they'll be looking to raise more funds: As the global growth opportunity continues to be explored by the Company, we will seek the most appropriate funding route available for both the investment into those new territories and in particular the support of our cash flow to facilitate the purchase of materials for kitted supply to our customers. No dividend, but who cares?
jonwig
18/1/2018
11:50
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.
jonwig
03/1/2018
15:44
Great moves last few sessions. Thanks for posting that link jonwig...could be behind the recent rise
nurdin
03/1/2018
10:44
Prelims 23rd Jan.
death by donut
30/12/2017
08:20
$60bn rush for Airbus orders: Http://www.telegraph.co.uk/business/2017/12/29/airbus-gets-year-end-boost-60bn-order-rush/ From my pretty basic understanding, VEL should be a big beneficiary.
jonwig
20/12/2017
11:37
No, I don't think so. Finncap's estimates for eps are 2017: 1.2p, 2018: 8.5p, 2019: 13.2p, which would make the shares cheap if achieved. But the scaling up has to be realised, and this will gradually become clearer.
jonwig
20/12/2017
11:03
Is it a buy and sleep for an year share?
ashehzi
28/11/2017
07:27
Thanks timbo. Yes, a miss of expectations sure would have a big impact.
jonwig
28/11/2017
07:21
There was a small write up in last night's London Evening Standard, which may explain the renewed interest yesterday afternoon: https://www.standard.co.uk/business/market-minnows-velocity-composites-a3702416.html
timbo003
02/11/2017
14:56
Yesterday: Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, announces that it has been notified that today, Mark Mills, Non-Executive Chairman of the Company, purchased 58,824 ordinary shares of 0.25 pence each ("Ordinary Shares") at a price of 85 pence per Ordinary Share (the "Purchase"). Following the Purchase, Mr. Mills has a beneficial interest in 1,884,024 Ordinary Shares representing approximately 5.26% of the issued share capital of the Company. And today: Velocity Composites plc, the leading supplier of advanced composite material kits, providing engineering value-solutions for the global aerospace industry, announces that it has been notified that today, Peter Turner, Non-Executive Director of the Company, purchased 55,555 ordinary shares of 0.25 pence each ("Ordinary Shares") at a price of 90 pence per Ordinary Share (the "Purchase"). Following the Purchase, Mr. Turner, together with his wife, has a beneficial interest in 55,555 Ordinary Shares representing approximately 0.16% of the issued share capital of the Company. A modest recommendation!
jonwig
01/11/2017
09:15
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.
jonwig
30/10/2017
14:17
They have already said they are confident of meeting 2017 forecasts so I personally am not worried there.What surprises me is the big jump in earnings forecast for 2018 but with no IPO costs and the Farhem factory set up expenditure mostly absorbed in 2017,then anything is possible. I have taken an initial position today.
nurdin
30/10/2017
06:42
Yes, FinnCap are the NOMAD. A canny BoD will underpromise so a small plus above forecast should be expected. I get research notes from Research Tree (subscr.) but not all analysts are available. Will watch progress here with interest.
jonwig
29/10/2017
18:45
jonwig Thanks. Don't disagree, but alternatives are limited. I think FinnCap are the nominated (and company's) broker. Is their forecast freely available? They raised the capital based on hitting FY17 numbers. It would be a big blow to management's and adviser's credibility if they missed. I guess it will be a tad more and that they will hold back more news until the results announcement.
mtioc
29/10/2017
07:34
MTIOC - interesting analysis, thanks. Actually, FinnCap's analysis confirms your views, as it gives EV/EBITDA of: 2016: 39.2(A), 2017: 26.3(E), 2018: 5.6(E), 2019: 3.7(E). Since the year end is next week, we may get an "in-line" (or not) ststement pretty soon. It's a bit early for me to consider committing myself to this, though signs of progress at H1 2018 might change my mind. FinnCap's price target is 144p.
jonwig
28/10/2017
18:16
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.
mtioc
23/10/2017
09:03
The business itself looks very interesting, another disruptive technology but the financial numbers aren't yet strong enough to justify the share price imv. Gross margin is decling and at around 20% isn't strong enough to support the potential. There's so little cash at present that the balance sheet looks very weak and i would expect a further round of funding. The idea of paying a dividend looks rather silly imv. And i agree with dan £21m revenue this year may be possible but £35m next year looks rather stretching things. If the share price were half where it is now i'd be interested aimho woody
woodcutter
23/10/2017
04:46
See write up in the Midas column in the Mail on Sunday this weekend: http://www.dailymail.co.uk/money/investing/article-5004485/MIDAS-SHARES-TIPS-Velocity-Composites-expecting-turn.html
timbo003
14/8/2017
22:16
Not a huge fan of these. Revenues pretty lumpy, visibility relatively good, but constantly subject to any delays in aircraft manufacturing can leave forecasts light in any one year. House broker forecasts seem pretty punchy and not leaving much cash headroom for 2018...
dan_the_epic
19/5/2017
15:25
I have to say that I agree with that view... • It didn't take much reading to see that realisations were high compared with new money, • Prtofitability and assets are poor, • Present contracts are limited mostly to Cessna, expansion is promised, • Brexit could be a problem for Airbus contracts (highlighted in the Risk Factors). The EU has leverage over subcontractors (and VEL is probably a sub-subcontracor).
jonwig
19/5/2017
13:11
There is an increasing number of insider selling from AIM companies.Even the IPO market is seeing material vendor selling on Admission to AIM. This week Velocity Composites, a business in dire need of new equity to bolster its somewhat fragile balance sheet (the Admission Document reveals net assets were only £603k at 31 October 2016) also saw the founders swan off with £4m on IPO. This business has seemingly delivered very little in terms of material profit and cash up to now and has plenty on its plate over the next few years to ramp up production as it adds more sites, yet the corporate broker has managed to convince institutions to let the founders cash out a sizeable chunk. We acknowledge the founders remain sizeable holders but it all looks a bit too easy to us and is another case of being paid to travel, rather than arrive.
investorschampion
Chat Pages: 33  32  31  30  29  28  27  26  25  24  23  22  Older
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