AAC Clyde Space's (AAC’s) Q323 report was encouraging, although it benefited from a large element of licence income without which the underlying progress was disappointing. The reason for that was summer shutdowns at suppliers and customers with some key revenue recognition deferred. However, since the start of Q423 there has been a tremendous order inflow worth around SEK200m. Much of this will start in FY24, supporting the significant acceleration of revenues towards the SEK500m targeted. That...
Easing pressure from the anti-corruption campaign will result in stronger sales growth for medical products. Moreover, after years of persistent R&D efforts, many Chinese biopharmaceutical companies now expect a fruitful year of innovation in 2024. In addition, potential US interest rate cuts will also provide liquidity for R&D investment and support the development of biotech and CRO segments in 2024. We expect a brighter outlook in 2024. Maintain OVERWEIGHT.
AAC Clyde Space made strong progress in H123, with revenues up 65% and positive EBITDA. While the mix is not as expected due to delays to some programmes deferring the start of SDaaS revenues to H223, the recent rights issue enables the company to accelerate investment in its own SDaaS satellites for launch next year. As high-margin SDaaS revenues should accelerate from H223, we expect AAC to become increasingly profitable and cash generative.
AAC Clyde Space has confirmed the acceleration of the xSPANCION satellite project following completion of the capital raise, which has provided SEK35.9m of net new funds. This will provide liquidity to proceed with the final phase to build out 10 satellites, the first four of which are to be added to AAC’s own SDaaS fleet by the end of 2024. By that time we would expect AAC to be generating positive EBITDA and net cash flow as it continues to grow the high-margin data revenue streams.
AAC Clyde Space has announced a rights issue to raise SEK73.7m on a three-for-five basis at SEK0.60/share. The fully subscribed issue will raise c SEK60.6m net (after costs of SEK13.1m) for the company and is 65% covered by subscription commitments from several existing shareholders, potential investors and management. In combination with a secured SEK20m loan facility, the proceeds will be used to support working capital as AAC grows its space data as a service (SDaaS) business and funding for ...
AAC Clyde Space (AAC) has reported very strong progression in Q123, in part due to booking deferred revenues from FY22. Nevertheless, given the strength of both sales and EBITDA development taken together with a significant increase in the order backlog, our expectations of a transitional year for the company appear to be on track. With several more self-owned space data as a service (SDaaS) satellites expected to be launched in FY23, the development of the high-margin revenue stream should acce...
AAC Clyde Space continued to experience supply chain delays in Q422, which further constrained performance. An aborted acquisition also incurred an exceptional cost that depressed statutory profits. However, despite project delays, order intake has remained healthy. With an element of deferred revenue recovery adding to FY23 plans, management expects substantial growth, generating positive EBITDA and operating cash flow.
AAC Clyde Space’s Q322 report showed improved momentum but also the deferral of project milestones into FY23 from FY22 as some satellite launches are delayed. We expect the positive momentum to continue in Q422, albeit at a lower level than envisaged at the half year. Growth should accelerate as AAC moves towards its FY24 targets. We feel that not only should the more positive cash flows and earnings performances appear more realisable, but we also expect risk to diminish as the software service...
AAC Clyde Space is closing in on a historic milestone. It has delivered the IOD-3 Amber satellite to the Spaceport Cornwall facility in Newquay, where it is to be one of the first seven satellites launched to orbit from the UK. The delivery also comes at the start of what is expected to be a busy Q422 for AAC as it delivers a number of customer projects for operational deployment. As AAC starts to deploy its own satellite constellations revenue growth, profitability and cash flow should improve ...
AAC Clyde Space continued to be constrained by the supply chain issues that have persisted across the space industry in Q222. These have delayed project completions and deliveries and constrained revenue as milestones are deferred. However, with SEK145m of its robust SEK400m order backlog expected to be delivered in H222, including delivery for launch of a number of satellites, prospects remain encouraging. These should support the rapid acceleration of higher-margin Space Data as a Service (SDa...
AAC Clyde Space (AAC) made good progress in FY21 with sales up 83% to SEK180m, driven by the strong initial contributions of recent acquisitions. Continued supplier issues delayed project execution mainly at Clyde Space in Glasgow and led to a c SEK20m shortfall, leaving group sales 11% below our expectations. However, the adjusted EBITDA loss was better than we anticipated at SEK12.3m. In addition, the order backlog remained close to record levels at SEK407m and the year-end adjusted net cash b...
AAC Clyde Space (AAC) made good progress in FY21 with sales up 83% to SEK180m, driven by the strong initial contributions of recent acquisitions. Continued supplier issues delayed project execution mainly at Clyde Space in Glasgow and led to a c SEK20m shortfall, leaving group sales 11% below our expectations. However, the adjusted EBITDA loss was better than we anticipated at SEK12.3m. In addition, the order backlog remained close to record levels at SEK407m and the year-end adjusted net cash b...
AAC Clyde Space continues to make progress, although supplier issues constrained Q321. Management has developed a detailed growth plan to take sales from the SEK500m level targeted for FY24 to c SEK2.3bn by 2030, double our previous long-term model assumptions. We increase our loss estimates for FY21 partly due to accelerated investment and the supply chain delays. Our FY22 EBITDA is reduced by 8% to SEK23.5m. The investment is to support the higher growth, which increases our longer-term estima...
AAC Clyde Space continues to make progress, although supplier issues constrained Q321. Management has developed a detailed growth plan to take sales from the SEK500m level targeted for FY24 to c SEK2.3bn by 2030, double our previous long-term model assumptions. We increase our loss estimates for FY21 partly due to accelerated investment and the supply chain delays. Our FY22 EBITDA is reduced by 8% to SEK23.5m. The investment is to support the higher growth, which increases our longer-term estima...
AAC Clyde Space is making strong progress, with healthy contributions from the three recent acquisitions helping to mitigate ongoing supply disruption, which continues to defer project completions. While this means current year revenue performance will be some 10% below our prior estimate, management indicates that the company is still on track to turn EBITDA positive next year and to attain the sales target of SEK500m in FY24. We maintain a cautious approach to valuation for a company yet to be...
AAC Clyde Space is making strong progress, with healthy contributions from the three recent acquisitions helping to mitigate ongoing supply disruption, which continues to defer project completions. While this means current year revenue performance will be some 10% below our prior estimate, management indicates that the company is still on track to turn EBITDA positive next year and to attain the sales target of SEK500m in FY24. We maintain a cautious approach to valuation for a company yet to be...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
On the day the Queen visited its Glasgow operations, AAC Clyde Space announced it had won its largest SDaaS (space data as a service) contract to date. The SEK100m (£8.4m) four-year contract from Canadian company Wyvern follows an agreement to supply three 6U satellites on a build-own-operate basis announced in March. Together with other recent major contract awards, the deal underpins management’s confidence in its order pipeline indicated at the Q121 result and supports the move to SEK500m rev...
AAC Clyde Space has delivered a strong Q121 with revenue growth of 55% and a substantial reduction in EBITDA losses. The ongoing activities continued to develop, positively augmented by initial contributions from the 2020 acquisitions of Hyperion and SpaceQuest, both of which continue to deliver positive EBITDA. With Omnisys acquired in April alongside the SEK100m fund-raising, AAC Clyde Space remains well positioned to execute its growth strategy in the New Space market.
The acquisition of Omnisys Instruments was completed on 30 April 2021. The combination of existing cubesat knowledge with microwave sensing technology should allow AAC Clyde Space to extend its product and service offering in the high growth, space-based weather and climate data market. We have adjusted our estimates to reflect the purchase of the already profitable business and the contingent fundraise of SEK100m (gross). AAC Clyde Space continues to execute its growth strategy and appears to b...
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