Velocity Composites Share Discussion Threads

[husbod] 11/7/2023 07:17

"Since last year the value of commercial business under contract has trebled."Short but very positive statement and the current loss is explained by the initial set up costs of the US facility.More than happy to have this in my portfolio but short term maybe the market will be neutral.

[lauders] 08/7/2023 01:24

Yes, according to the company too, although the word "expects" is very evident:

VELOCITY COMPOSITES PLC (“Velocity or the “Company”;)

Trading Update & Notice of Results

Trading in line with expectations as US facility begins manufacturing kits
Velocity Composites plc (AIM: VEL), the leading supplier of composite material kits to aerospace and other high-performance manufacturers, provides the following trading update for the six months ended 30 April 2023 (“H1 FY23”). The Company expects to publish its H1 FY23 results on 11 July 2023.

[husbod] 07/7/2023 16:11

Interims on Tuesday (according to IC).

[hydrus] 08/6/2023 12:18

The chances of airline companies outsourcing from the USA and Europe toChina for aircraft manufacturing in the current political climate is as close to zero as you can get I would suspect. On-shoring is the trend which is the exact opposite direction.

[gerihatrick] 08/6/2023 12:04

Looking at the wider picture, the world has been dominated by Boeing and Airbus. There is now a new kid on the block which is a Chinese manufacturer. Is there room for 3 majors and what will be the impact of the Chinese manufacturer? I feel that either Boeing or Airbus will fall by the wayside so how might that affect VEL, as it is now setting up a new facility near Boeing?

I have no doubt O'Leary will have negotiated a great deal for his new 737s in light of the recent disasters involving Boeing. It also asks questions on the whole Boeing management and have they really changed or just reacted to the crisis? The Western producers will have to be flexible and streamlined if they are to survive the Chinese onslaught.

Am I being too negative? I hope I am wrong!

[someuwin] 08/6/2023 11:32

Talking of traders, Zak Mir is today targeting 80p level by end of the month...



Personally, on fundamentals, I see see this surpassing previous highs and going much higher in time. With USA expansion now happening and winning multi-year $100m type contracts with the major aircraft manufacturers. I can't see why they wont keep growing for many years to come. All driven by the increasing need for new aircraft to become more efficiency by reducing weight.

[cooper30] 06/6/2023 19:58

Traders may come when the volume picks up but right now this share is just slowly consolidating a nice position. There isn't enough volume for traders at the moment. Another good day today though, consolidating around the 50p mark before the next move upwards

[yump] 06/6/2023 19:05

Approx 75% in “firm” hands.

I can see why it might attract traders.

[someuwin] 06/6/2023 10:06

Good to see large holdings by directors and institutions. I expect there are other instis who would like to get onboard but are prohibited by the small market cap. (one of the advantages PI's have over the big players)

Jonathan Bridges 14.94%
Gerard Johnson 13.01%
Christopher Banks 13.01%
Andy Beaden 1.54%
Stonehage Fleming Investment Management 11.44%
Charles Stanley 4.78%
Octopus Investment Management 4.24%
Hargreaves Landsdown Asset Management 4.01%
Braveheart Investment Group 4.06%
Amati Global Investors 3.12%

[cooper30] 05/6/2023 11:31

You've read it right, she's on the move now

[someuwin] 05/6/2023 10:40

...Can buy even less now. Will move up soon - imo.

[someuwin] 02/6/2023 15:48

Can buy £2k. But not £3k.

[jitters3] 02/6/2023 09:09

They're not helping with that spread 3p

[cooper30] 02/6/2023 08:47

Interesting price action this morning. Its the first time since I purchased these back in January that I can sell 100k in one tranche but cannot buy. Think we may see another leg up today and hopefully some juicy news next week.
Some great updates from the presentation above, it seems this is only going to go one way over the next few months. It won't happen over night but patience will be rewarded here I feel, as this is sitting nicely under the radar for now

[someuwin] 31/5/2023 14:10

Good summary geri. From the Mello presentation...

• Contracted business should deliver a three-fold increase in sales from 2022-2024

• The aerospace sector to achieve net zero by 2050. Demand for composites will grow as new generation aircraft are built

• Aerospace sector potentially worth $6.5b per annum

• There are opportunities outside aerospace, Total Annual Composites Market Opportunity of $41 billion.

...That's a lot to go for for an £18m company.

[gerihatrick] 31/5/2023 13:31

Velocity (VEL)

This company presented at Mello in May. What I appreciated was that they took us retail investors seriously. They had 3 of the senior management team present and the CEO was an apology as he was in the US dealing with the newly opened plant. Each presented, expanding on their relevant expertise. I was impressed.

Traditionally planes were made of aluminium, but they are now being replaced by carbon based materials which are strong, durable and light i.e. Dreamliner 787 and Airbus 380. They manufacture and supply the suppliers, GKN and BAE for example.

Traditionally, these functions were carried out “in house.” This is now changing to “outsourcing.” It is a bit like an Airfix kit-they supply the parts and Boeing/ Airbus build the planes. With net zero, demand for composites is growing and this lowers the carbon footprint. Carbon composites now supply 50% of an aircraft.

They have created the “model” in the UK/EU and are now expanding into the US with a new factory in Alabama, adjacent to GKN and Boeing. They have a 5 year contract to supply GKN worth £30-£36m pa over 5 years. This provides savings to the airline manufacturers in inventory/materials/time, and hence cost.

They have the capacity to double current production in Alabama with current facilities.

Revenue 2021 £9.767m; LBT £1.546m; cash £3.476m and in 2022 £11.957m; LBT £1.504m and cash £2.344m.

I have taken an initial position. Having had traditional plaster of paris for injuries in the past I have had a carbon fibre plaster recently. In effect there seems to me to be an association in moving from old traditional technology and Velocity are doing that in a different context!

Any corrections/amendments/omissions please comment. This is a new one for me.

[yump] 31/5/2023 07:44

I’m not sure you’ll manage to get this onto the rampers chosen list.

[someuwin] 30/5/2023 12:27

...Cheap at twice the price

[geraldus] 30/5/2023 12:09

Buyers willing to pay ten bob now.

[lauders] 26/5/2023 13:42

From the 18th April RNS: The kits for the first programme are currently being transferred and account for approximately 18% of the total contract annual revenue. Work is already underway for the second programme and, being the single largest programme, accounts for a further 25% of the total contract annual revenue. This therefore means that approximately 43% of the total contract annual revenue is on schedule to be approved and at rate production by the end of May 2023, with the remainder to follow.

The facility is now also being marketed as a launch hub for future customers, and high-level business development activities are already underway with several large potential customers.

So next week is end of May and several LARGE POTENTIAL customers are already involved in "high-level business development activities". Look forward to hearing about those!

[lauders] 25/5/2023 16:31

Profit takers after yesterday's big rise now out. New buyers coming in.

I was one of the new buyers. Should have been yesterday morning but dithered! Don't like buying when the RSI is in the overbought region but only a small stake to start off.

[someuwin] 25/5/2023 15:56

Velocity Composites sees "huge opportunity" in advanced manufacturing...

May 25, 2023

[someuwin] 25/5/2023 09:16

Profit takers after yesterday's big rise now out. New buyers coming in.