31 May 2017 – trading update
The group has issued a trading update for the nine months to 31 March confirming that trading has been very challenging over the last year or so. Weak macro-economic conditions, notably in Africa, the uncertainty created by Brexit and volatility in the industry have meant that trading conditions have been very difficult although the group is winning new contracts once again. The launch of the next satellite, HYLAS 4, is now very close and this should have a positive effect on the perception of the business as it completes satellite coverage of the EMEA region. Although a degree of optimism is returning, it will be some time before this is reflected in the financial results of the company and the shares are likely to continue to languish. It is too early to buy these but existing holders may as well HOLD.