Velocity Composites Share Discussion Threads

[lauders] 28/7/2023 01:09

Thank you for your report back on the visit Melody. It really helps other investors when someone is so willing to share their experience. Great to see you are confident of the company's future. We may stay around this share price level until such time as any new contract news comes along.

[cooper30] 27/7/2023 17:43

Melody - Many thanks for sharing

[melody9999] 27/7/2023 17:16

Cooper - re set up costs you are probably right and yes maybe they have other funding options. Will be more urgent if a new contract is signed off.

Given we are talking aerospace, I was surprised at the small size of parts of the kits they create. 1300 FAI kits to sign off and 50,000+ parts within those kits.

But then thats what makes the automation, data and tech that VEL have created valuable to customers and difficult to replicate.

Yep I'm confident the company has a bright future.

[cooper30] 27/7/2023 16:55

Also Melody I forgot to mention, thanks for the feedback, much appreciated

[cooper30] 27/7/2023 16:52

I tend to agree, however, are the burn figures not slightly skewed in this period due to the US facility setup costs? These costs had to be incurred upfront by the company. Now it is set up, spend should just be running costs/overheads. I do agree cash is required, however, I wouldn't be so quick to think of a capital raise, as there are potentially other options... obviously with AIM companies it is always a risk. Melody, did anything that you saw yesterday raise your eyebrows? Obviously following on from the 7am RNS which you would have been aware of... or is your confidence in the company even greater now?

[charliec51] 27/7/2023 15:22

Melody - we are aligned.

[melody9999] 27/7/2023 14:34

Charlie - I think they are still refining their approach to maintaining the best relations with customers(cos they are paying the money!) whilst managing communications to the market.

Even before yesterdays RNS and visit, I thought a capital raise was likely. £2M at 300422 had burned to £1.2M at 300423. The Company did not confirm that yesterday...its my view ..... but personally I feel 'the writing is on the wall' if you look at what is happening.

[charliec51] 27/7/2023 13:38

Thank you for the update Melody. Useful. Whilst I have confidence in the technical 'know how' and the proposition the company have I do harbour reservations on their management of a company operating in a public market. I look forward to those being assuaged. The timing of the fund raise will be interesting, but now that that genie is out the share price will, I suspect, stay much as is.

[geraldus] 27/7/2023 13:11

Thanks for that informative feedback.Always believed that large scale expansion will require some form of funding.Still looks a class act and I've got a front seat.

[melody9999] 27/7/2023 12:37

Folks - here is some feedback from the site visit yesterday.

Our BOD have an in depth understanding of the aerospace industry. Senior management seem solid and dependable

The Board owns a significant amount of the equity (50%?) so their interests are aligned with ours.

There is plenty of opportunity – in aerospace and potentially other sectors. Main 'competition' is that their prospective customer base continuing to carry out work in-house rather than outsource to VEL

Customers are very sticky and reliant on VEL once converted. There is little or no churn but rather new FAIs (first article inspections) as aircraft are modified.

In contract discussions with potential new customer so looks very encouraging. VEL have spare warehouse capacity in the USA.

Advantage that VEL have is in the tech, data and process they have developed to produce kits. This will be invaluable as they seek to contract further customers

A capital raise is possible in the not too distant. VEL keen to involve private investors

As evidenced by the RNS yesterday, VEL intend to ‘tell the story’ themselves rather than rely on brokers to inform the market. In contrast to some other listed companies, the facts about VEL will be in RNS; broker notes will offer the brokers opinion based on the information supplied to them by VEL.

On the RNS yesterday, the FAI sign off delay is by mutual agreement and based largely on the customer needing more time to update their processes. VEL will continue to support the customer to ensure a successful outcome for both parties. No indication that this is going pear shaped – far from it; the contract length is unchanged but starts later.

[lauders] 27/7/2023 08:12

Oops! Thanks for the reminder geraldus. Time flies! Hopefully we will be able to read some feedback from someone who attended. Would be great to know what was said and seen. Wish I was nearer so that I could have been the one to do it.

[geraldus] 27/7/2023 07:03

Hope so,that meeting was yesterday.

[lauders] 27/7/2023 02:34

The Board is pleased to announce that it is in advanced discussions with a large, global Tier 1 composites manufacturer with multiple sites in the US on another agreement. Further announcements will be made, as appropriate.

In the UK, demand is growing. In FY2023, growth of at least 15% is expected compared to FY2022. In FY2024, Velocity is planning for extra work from a UK manufacturer seeking to expand its capacity to meet growing demand. With expected UK growth and the start of the full rate production under the Agreement in the US, the Company can deliver profitability in FY2024.

The two highlighted parts I show above from the RNS yesterday are very encouraging.

I would hope that the point about "transparency" and knowning the full details in advance of the contract negotiations with GKN raised by Charliec51 will be asked at the upcoming meeting planned at the company's HQ soon?

[charliec51] 26/7/2023 15:14

Not convinced they have passed the transparency test here at all. Were they really not aware of these facts when the results were put out? Poor governance and the Board's judgement can be very reasonably questioned.

[gopher] 26/7/2023 13:11

Unfortunately seems a plausible explanation to the selling after results a couple of weeks back; broker might not be amused.

[husbod] 26/7/2023 08:39

Disappointing but if it's just a shortish delay we'll bounce back.Plus potentially another large contract in the offing.I'm sitting tight.

[geraldus] 26/7/2023 08:18

Couldn't get a quote at all first thing.Cenkos note out with much reduced earnings for '24 and no further projections.

[pyemckay] 26/7/2023 08:07

I could only get rid of the a tranche of the normal market size of VEL shares this morning right on the bell. Will happily buy them back when the dust settles later. In for the long term but might hit low 40’s today.

[someuwin] 26/7/2023 07:23

* Slight delay on full rollout of USA contract.

* in advanced discussions for a new US agreement with a large, global Tier 1 composites manufacturer.

* UK demand growing.

Andy Beaden, Chairman, Velocity, said :

"Velocity is focused on successfully completing the FAI with the Customer, enabling it to achieve operational success in its projects. Collaboration with the Customer has been close knit, working together on what is one of the largest composite kit supply FAI processes ever conducted in the industry.

The last year has been one of transition and investment. The investments we have made will be repaid many times through the new contracted business we have already won and the new business we can now target. In the next financial year, we will see a transformational upturn in annual revenue at Velocity. We have built a significant asset in the US in terms of production capability and engineering resource, which with organic growth in the UK, will make the Company profitable.

We will continue to invest in skills and technical engineering abilities to drive business development and project implementation. The appointment of Kevin Hickey as COO will help the team in our next exciting growth phase. We remain confident that more contracts can be won as the use of composites grows as part of the next generation of aircraft, and as other industries look to use composites to deliver their net zero goals. We expect our investment in people and technology to be fully rewarded in the coming years as we expand at scale."

[geraldus] 26/7/2023 07:22

The market may not like that RNS,whatever shine is on it.Wonder if we will get an update from Cenkos now.

[gopher] 24/7/2023 12:07

Thanks Melody.I was tempted but other commitments. I would be interested in how they see their sales pipeline develop both here and in the US over the next few years. Who are their competitors what are their advantages and USPs. do they see future tied in with GKN?

[charliec51] 24/7/2023 10:55

No questions from me, but I would appreciate your view of the visit once done. It is good to see them hosting visits from PIs - more small caps should do so.

[melody9999] 24/7/2023 08:31

if anyone has any questions they would like me to put to management when we meet on WEdnesday, let me know and I'll try to do that ...given the right opportunity.

[melody9999] 23/7/2023 18:37

taly3 - sent you a PM.

[cooper30] 22/7/2023 12:08

Unfortunately, although I only live 30 minutes away I am unable to attend this due to work commitments.
What a great idea though and nice to see that the company are facilitating investors in this manner (kudos also to melody9999 for arranging this). There are potentially a few questions that investors who cannot attend might want to have raised, if those that do attend could potentially find the opportunity to ask? Maybe not for this open forum but has anyone thought about setting up a telegram group for Velocity shareholders? Or there may already be one that I am unaware of. I am happy to set one up and post the link, if people feel that it may be a good idea to discuss the company in greater detail? I do feel that we may well be about to come into a significant period for the company and it would be great to have a group set up to discuss and share easily