12 May 2015 – Q3 trading update
In a trading update covering the three months to the end of March, the satellite communications group has conformed that it has moved into profitability at the EBITDA level with break even operating cash flow. In the first nine months of the financial year revenues have increased by 26% to $48.9m and the group has signed 72 new and extended contracts during the period. These are with both new and existing customers. The group also has a range of substantial opportunities in the pipeline, several of which are at an advanced stage having progressed through the sales cycle which can be a long process for new clients. The group had capital expenditure of $19.3m in the third quarter, mainly on the HYLAS 4 satellite but no material capital expenditure planned for the remainder of the financial year. It ended the period with $150.9m in cash and should have sufficient cash to comfortably meet all short-term financial commitments. With cash flow expected to grow swiftly as revenues exceed the largely fixed cost base we re-iterate our recommendation of BUY.