AIM-quoted investment company Braveheart Investment Group (LON: BRH) has taken advantage of the sharp jump in the Velocity Composites (LON: VEL) share price to sell some or all its stake. It appears to have made a gain on its original investment whether or not it has been fully realised.
On Tuesday, composite aerospace parts kits supplier Velocity Composites announced a $100m plus work package agreement with GKN Aerospace in Alabama, which boosts exposure to the US market. The GKN agreement covers five years. The new US production facility opens at the beginning of 2023. GKN is an existing client in the UK.
The share price started the week at 27p a share and reached 48.5p at one point. It is currently 38.2p. The sale was on the day of the announcement. The 2017 AIM flotation price was 85p.
Braveheart Investment took a 4.13% stake on 24 September 2021 and the market price was around 24p at that time. The stake was trimmed to 3.69% in November, and it may have been at around 30p a share thereby raising more than £40,000. The stake has been reduced to below 3%.
Velocity Composites expects to report 2022 revenues of £11.9m. A loss of £1.5m is forecast and it will not be much less next year. Once the US is fully up and running the company could move into profit in 2024.
At 9.75p, Braveheart Investment is valued at £6.2m. It also has stakes in thermal insulation material manufacturer Autins Group (LON: AUTG) and AIM-quoted architect Aukett Swanke (LON: AUK).
