Satellite Solutions Wldwide Grp PLC Trading Update (2218J)
27 June 2017 - 4:01PM
UK Regulatory
TIDMSAT
RNS Number : 2218J
Satellite Solutions Wldwide Grp PLC
27 June 2017
Satellite Solutions Worldwide Group plc
("SSW" or the "Group")
Trading Update
Satellite Solutions Worldwide Group plc (AIM: SAT), the global
communications company specialising in rural and last mile
broadband, provides a trading update for the six month period ended
31 May 2017.
Trading in the period was in-line with management's expectations
with continued strong growth in the customer base and the
integration of recent acquisitions as part of the Group's growth
strategy.
Highlights
-- Total customers increased 14% since the start of the year to
90,000
-- Total revenue increased 261% to GBP20.6m
o Recurring revenue* increased 281% to GBP19.4m, representing
94% of total revenue
o Like for like organic revenue growth** of 13.1%
-- Gross margin expanded by 750 basis points to 37.0%
Trading Update
Group revenue increased by 261% to GBP20.6m over the same period
in the prior year (H1 16: GBP5.7m). Recurring revenue* increased by
281% to GBP19.4m (H1 16: GBP5.1m), representing approximately 94%
of total revenue. Like for like organic revenue growth** was 13.1%
in H1 17 compared to the same period in the prior year reflecting a
solid performance from the core business. Furthermore, the
contributions from recent acquisitions have enabled SSW to
consolidate its position in various growth markets such as the UK,
Australia, France and Norway.
The Group has continued to make good progress in expanding its
customer base, driven by the impact of acquisitions and net
additions to the core business. As a result, total customers have
increased from 79,000 at the start of the year to approximately
90,000 currently with progress across all of the Group's operating
hubs in the period, with particularly strong customer growth in
Australia.
Gross margin was 37.0% in the period (H1 16: 29.5%, FY 16:
34.0%) due to the improved revenue mix across the Group's hubs and
EBITDA*** was in-line with management's expectations.
Net debt increased from GBP9.4m as at 31 December 2016 to
GBP13.2m as at 31 May 2017, primarily as a result of the
acquisitions made in the period of BorderNET, NextNet and ASDN,
financed by the Group's debt facilities, and continued investment
in the Group's hubs. As at 31 May 2017 the Group had a cash balance
of GBP2.0m and GBP1.5m of headroom in the HSBC facility.
Outlook
The Board is confident that the solid performance of the core
business and recently completed acquisitions will continue for the
remainder of the current financial year and the outlook is
encouraging. The Group continues to evaluate acquisition
opportunities as part of its growth strategy and is confident of
achieving its previously stated target of 100,000 customers by year
end.
Andrew Walwyn, CEO of SSW commented, "Trading in the period was
strong due to accelerated customer sign up, higher retention rates
and increased data demands of existing customers. I believe these
growth trends will continue as consumers continue to demand ever
more digital services in the future. The first half of the year has
been mainly about consolidating our acquired customer base and
integrating systems across our networks. This momentum is expected
to continue into the second half, and I look forward to updating
shareholders in due course."
* Recurring revenue is defined as revenue generated from the
Group's broadband airtime and data contracts which are typically
two years or more in duration.
** Organic revenue growth compares current and prior period
revenue treating acquired businesses as if they had been owned for
all of both periods.
*** Earnings before interest, tax, depreciation and
amortisation.
For further information:
Satellite Solutions Worldwide www.satellitesolutionsworldwide.com
Group PLC
Andrew Walwyn, Chief Executive Via Walbrook PR
Officer
Numis Securities (Nomad Tel: +44 (0)20 7260
and broker) 1000
Oliver Hardy (Corporate
Advisory)
James Black / Jonathan Abbott
(Corporate Broking)
Walbrook PR (PR & IR advisers) Tel: +44 (0)20 7933
8780
Paul Cornelius / Nick Rome or ssw@walbrookpr.com
About SSW
Established in 2008, SSW specialises in the provision of rural
and last mile broadband services with customers across 31
countries. SSW's solutions target B2C and B2B users, and the
Company has products developed specifically for the broadcasting,
Police and Military markets. SSW operates a number of brands such
as Europasat (Europe), Breiband (Nordics) and SkyMesh (Australia)
and is now the fourth largest independent provider of satellite
broadband internet services in the world.
The 2015 listing on the AIM market of the London Stock Exchange
together with the support from Business Growth Fund and investors
in 2016 have put the Company in an excellent position to continue
strong organic growth in its subscriber base and recurring revenues
as well as execute on preferred acquisitions. The Directors believe
there is a major opportunity to continue this organic growth
strategy and as appropriate consider acquisitions throughout the
fragmented European satellite and fixed wireless broadband markets
and further afield.
Working closely with satellite owners and operators, SSW targets
customers in the 'digital divide' with solutions that deliver up to
30 Mbps satellite based broadband services or fixed wireless to
almost any premises, whether residential, commercial or industrial
across Europe and Australia, irrespective of location or local
infrastructure.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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