Anuncio • Jan 18
Velocys Announces Cancellation of Admission to Trading of Shares on AIM from 18 January 2024 Further to the announcement made by Velocys on 17 January 2024 that the Court-sanctioned scheme of arrangement in relation to the recommended cash acquisition by Madison Bidco Limited of the entire issued and to be issued share capital of Velocys had become Effective, Velocys announced that, following an application to the London Stock Exchange, the admission to trading on AIM of Velocys Shares has been cancelled with effect from 7.00 a.m. 18 January 2024. Anuncio • Dec 06
Velocys to Cancel of the Admission to Trading of its Shares on AIM The boards of directors of Madison Bidco Limited (‘Bidco’) and Velocys plc (‘Velocys’) announced that they have reached agreement on the terms and conditions of a recommended cash acquisition by Bidco of the entire issued, and to be issued, ordinary share capital of Velocys. It is intended that the Acquisition will be implemented by way of a court-sanctioned scheme of arrangement under Part 26 of the 2006 Act. Velocys Shares are currently admitted to trading on the AIM. Applications will be made for the cancellation of the admission to trading of Velocys Shares on AIM and steps will be taken by Bidco following the Acquisition becoming Effective to re-register Velocys as a private company. Anuncio • Dec 05
Lightrock Climate Impact Fund managed by Lightrock LLP, Carbon Direct Fund II LP managed by Carbon Direct Capital Management LLC, Carbon Solutions Investments Pte. Ltd., and Kibo Investments Pte. Ltd. agreed to acquire Velocys plc (AIM:VLS) from Lansdowne Partners (UK) LLP and others for £4.1 million. Lightrock Climate Impact Fund managed by Lightrock LLP, Carbon Direct Fund II LP managed by Carbon Direct Capital Management LLC, Carbon Solutions Investments Pte. Ltd., and Kibo Investments Pte. Ltd. agreed to acquire Velocys plc (AIM:VLS) from Lansdowne Partners (UK) LLP and others for £4.1 million on December 5, 20232. Carbon Direct Fund has agreed to provide a secured bridging loan of £3.5 million ("Bridge Financing") to provide sufficient capital for Velocys through to the Acquisition becoming Effective. The Consortium of buyer has agreed (from the Effective Date) to provide up to (approximately £31.5 million) of growth capital which is expected to ensure that Velocys has the capital resources it needs to deliver against its medium-term strategic plans. The cash consideration payable to Velocys Shareholders under the terms of the Acquisition will be financed using cash resources made available to Bidco from members of the Consortium. The transaction is subject to Velocys plc shareholders and court approval. The Velocys Directors unanimously intend to recommend the Scheme. The long stop date of the transaction is June 5, 2023.
Emma Earl, John Prior, Will Goode, Mark Rogers, and Hugh Rich of Panmure Gordon (UK) Limited acted as financial advisor to Velocys. Panmure Gordon (UK) Limited advised to Velocys plc regarding the transaction fairness and reasonable. Marc Milmo, Henrik Persson, Seamus Fricker of Cavendish Capital Markets Limited acted as financial advisor to Consortium of buyer. Cooley (UK) LLP is acting as legal adviser to Consortium of buyer. Mayer Brown International LLP is acting as legal adviser to Velocys. New Risk • Oct 31
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: €5.50m (US$5.81m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-UK£14m free cash flow). Share price has been highly volatile over the past 3 months (61% average daily change). Revenue is less than US$1m (UK£254k revenue, or US$308k). Market cap is less than US$10m (€5.50m market cap, or US$5.81m). Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (UK£15m net loss in 3 years). Shareholders have been diluted in the past year (18% increase in shares outstanding). Reported Earnings • Sep 21
First half 2023 earnings released: UK£0.006 loss per share (vs UK£0.004 loss in 1H 2022) First half 2023 results: UK£0.006 loss per share (further deteriorated from UK£0.004 loss in 1H 2022). Net loss: UK£9.23m (loss widened 80% from 1H 2022). Revenue is forecast to grow 68% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Energy Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 42% per year, which means it is significantly lagging earnings. Anuncio • Sep 21
Velocys plc Provides Financial Guidance for the Year 2023 and 2024 Velocys plc provided financial guidance for the year 2023 and 2024. Financial results for the full year 2023 are expected to trend in line with results reported for first half with an increase in revenue expected to be seen in 2024 following completion of the project funding and as the pipeline crystallises. New Risk • Jul 26
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -UK£21m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-UK£21m free cash flow). Share price has been highly volatile over the past 3 months (37% average weekly change). Earnings are forecast to decline by an average of 0.3% per year for the foreseeable future. Revenue is less than US$1m (UK£241k revenue, or US$312k). Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (UK£16m net loss in 3 years). Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (€31.8m market cap, or US$35.2m). Reported Earnings • Jun 30
Full year 2022 earnings released: UK£0.009 loss per share (vs UK£0.008 loss in FY 2021) Full year 2022 results: UK£0.009 loss per share (further deteriorated from UK£0.008 loss in FY 2021). Net loss: UK£13.2m (loss widened 56% from FY 2021). Revenue is forecast to grow 43% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Energy Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 43% per year, which means it is significantly lagging earnings. New Risk • Jun 09
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 18% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-UK£21m free cash flow). Share price has been highly volatile over the past 3 months (27% average weekly change). Earnings are forecast to decline by an average of 2.6% per year for the foreseeable future. Revenue is less than US$1m (UK£241k revenue, or US$302k). Minor Risks Currently unprofitable and not forecast to become profitable over next 3 years (UK£16m net loss in 3 years). Shareholders have been diluted in the past year (18% increase in shares outstanding). Market cap is less than US$100m (€44.2m market cap, or US$47.6m). Reported Earnings • May 19
Full year 2022 earnings released: UK£0.009 loss per share (vs UK£0.008 loss in FY 2021) Full year 2022 results: UK£0.009 loss per share (further deteriorated from UK£0.008 loss in FY 2021). Net loss: UK£13.2m (loss widened 56% from FY 2021). Revenue is forecast to grow 43% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Energy Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Anuncio • Dec 12
Velocys plc Receives Grant from UK Department for Transport's Advanced Fuels Fund Velocys plc (VLS.L) announced that in addition to the £27 million grant from the UK Department for Transport's Advanced Fuels Fund for the Altalto waste-to-SAF project, announced separately, it has also been awarded a grant of £2.5 million from the same fund, to contribute its technology to an e-fuels project in the UK in collaboration with a number of new and existing partners. The Advanced Fuels Fund provides grants to support the development of commercial-scale SAF plants and has a specific total allocation of £22 million for the development of e-fuels projects. These are fuels produced using renewable (decarbonised) electricity rather than vegetable oils or waste. The £2.5million grant awarded to Velocys under this e-fuels allocation will be used in conjunction with the E-Fuels Project's partners to conduct feasibility, technical validation, site selection and pre-FEED engineering for such a project, to make SAF from carbon dioxide and hydrogen, in the UK. The E-Fuels Project, to be known as "e-Alto", will be managed by Velocys, partners include Clariant Catalysts, Technip Energies and British Airways. The key objective of the Advanced Fuels Fund is to kick-start the UK advanced fuels sector with the commercial deployment of innovative fuel production technologies that are capable of significantly reducing UK aviation carbon dioxide emissions. Reported Earnings • Sep 22
First half 2022 earnings released: UK£0.004 loss per share (vs UK£0.002 loss in 1H 2021) First half 2022 results: UK£0.004 loss per share (further deteriorated from UK£0.002 loss in 1H 2021). Net loss: UK£5.14m (loss widened 182% from 1H 2021). Revenue is forecast to grow 92% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Energy Services industry in Europe. Over the last 3 years on average, earnings per share has increased by 43% per year whereas the company’s share price has increased by 38% per year. Board Change • Jun 23
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non-Executive Director Tom Quigley was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • May 19
Full year 2021 earnings released: UK£0.008 loss per share (vs UK£0.011 loss in FY 2020) Full year 2021 results: UK£0.008 loss per share (up from UK£0.011 loss in FY 2020). Revenue: UK£8.28m (up UK£8.11m from FY 2020). Net loss: UK£8.44m (loss narrowed 4.0% from FY 2020). Over the next year, revenue is expected to shrink by 73% compared to a 19% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Anuncio • May 17
Velocys plc, Annual General Meeting, Jun 21, 2022 Velocys plc, Annual General Meeting, Jun 21, 2022. Anuncio • May 02
Velocys plc to Report Fiscal Year 2021 Results on May 17, 2022 Velocys plc announced that they will report fiscal year 2021 results on May 17, 2022 Anuncio • Feb 10
Velocys Announces Management Changes Velocys plc announced the following changes to its management team. Andy Bensley has joined Velocys as the Global Head of Business Development and Technology delivery. He comes with 35 years of international experience in senior corporate, functional leadership and project delivery roles in both major IOC's and EPC contractor organisations, including positions at Bechtel, Shell, SK E&C and Eni. Heinz Robota, VP Technology, will be retiring from his role after 10 years at Velocys and will be replaced by Dawid Duvenhage who joined the Company in November 2021 with the responsibility for Velocys' catalysis division. Heinz has led the catalysis efforts from R&D into commercial demonstrated status of Velocys' super active FT catalyst. Following an initial career as a chemist and chief scientist, Dawid has over 30 years' experience in catalyst development, scale-up and commercialisation. Andrew Morris, CFO, has advised the Board of his intention to leave Velocys in order to pursue other career opportunities. The intention is for Andrew to step down as CFO and Board Director during Second Quarter 2022. Further updates will be made in due course. Board Change • Dec 31
High number of new directors Independent Non-Executive Director Tom Quigley was the last director to join the board, commencing their role in 2021. Board Change • Nov 01
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 1 experienced director. No highly experienced directors. CFO & Executive Director Andrew James Morris is the most experienced director on the board, commencing their role in 2017. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Executive Departure • Oct 07
Senior Independent Director Sandra Nan Shaw has left the company On the 30th of September, Sandra Nan Shaw's tenure as Senior Independent Director ended after 1.8 years in the role. As of June 2021, Sandra Nan still personally held only 551.09k shares (€36k worth at the time). Sandra Nan is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 2.75 years. Reported Earnings • Sep 26
First half 2021 earnings released: UK£0.002 loss per share (vs UK£0.004 loss in 1H 2020) The company reported a solid first half result with reduced losses, improved revenues and improved control over expenses. First half 2021 results: Revenue: UK£8.24m (up UK£8.06m from 1H 2020). Net loss: UK£1.83m (loss narrowed 33% from 1H 2020). Over the last 3 years on average, earnings per share has increased by 115% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Reported Earnings • May 18
Full year 2020 earnings released: UK£0.01 loss per share (vs UK£0.019 loss in FY 2019) Full year 2020 results: Net loss: UK£8.80m (loss narrowed 8.5% from FY 2019). Over the last 3 years on average, earnings per share has increased by 110% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Anuncio • Feb 08
Toyo and Velocys Execute a Collaboration Agreement Velocys plc announced the signing of a collaboration agreement with Toyo Engineering Corporation (Toyo) to start the development of their commercial projects to produce Sustainable Aviation Fuel (SAF) and other renewable fuels in Japan. The agreement follows on from the successful work already conducted in 2020 between Velocys and Toyo at the biomass-to-jet-fuel demonstration facility in Japan. This included the provision of technical engineering and operational services, as well as the completed construction and delivery of Velocys' Fischer-Tropsch (FT) technology. As part of this new collaboration the parties have engaged in the preliminary engineering evaluation of the FT island in a joint effort to deliver a commercial scale biomass-to-jet fuel project in Japan. As previously announced, Velocys will grant an exclusive right for Toyo to secure and use the licence and technical services of the Velocys FT Technology for the commercial plant in Japan. An advance deposit of $4 million was received in 2019 of which $3.5 million remains in escrow, which will be offset against future revenues. addition, the collaboration will extend to include the supply of the Velocys FT technology in other SAF, e-Fuels and biomass-to-liquids projects in the Japanese market. This will be led by Toyo, including other partners introduced by Toyo. Subsequent project execution for SAF, e-Fuels and other renewable fuel projects will be delivered by Toyo and their partners, potentially in Japan and other regions, with Velocys providing technical engineering and operational services around the FT technology. Reported Earnings • Sep 19
First half earnings released Over the last 12 months the company has reported total losses of UK£7.96m, with losses narrowing by 21% from the prior year. Anuncio • Aug 19
Velocys plc Auditor Raises 'Going Concern' Doubt Velocys plc filed its Annual on Aug 12, 2020 for the period ending Dec 31, 2019. In this report its auditor, PricewaterhouseCoopers LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern. Anuncio • Jul 17
Velocys plc has completed a Follow-on Equity Offering in the amount of £20.999998 million. Velocys plc has completed a Follow-on Equity Offering in the amount of £20.999998 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 419,999,957
Price\Range: £0.05
Transaction Features: Regulation S; Rights Offering; Subsequent Direct Listing