Company profile - ÅAC Microtec feature image - 28062019 - JPG

AAC Clyde Space

OMX: AAC

SEK516.6m market cap

SEK5.37 last close

Based in Sweden, AAC Clyde Space (formerly ÅAC Microtec) is a world leader in nanosatellite end-to-end solutions, subsystems and platforms. The company also supplies a range of technology components to other small satellite manufacturers globally.

Investment summary

Following the purchase of Clyde Space, ÅAC Microtec is at the forefront of the rapidly growing and revolutionary market for small satellites. As nanosatellite build rates and deployments rise sharply over the next decade, increasing systems supply and platform revenues should be enhanced by operational and service revenues. The new, experienced CEO needs to steer ÅAC Microtec through the ramp up phase. The rights issue raised SEK73m to pursue opportunities in New Space as they arise. Our reduced estimates reflect project delays indicated at the half year. The disclosure of a much increased order backlog and further major orders, including one from Eutelsat worth at least SEK21.4m, suggest growth is only deferred.

Y/E Dec
Revenue (SEKm)
EBITDA (SEKm)
PBT (SEKm)
EPS (öre)
P/E (x)
P/CF (x)
2017A 13.3 (21.4) (27.3) (75.00) N/A N/A
2018A 77.9 (28.5) (38.4) (49.70) N/A N/A
2019E 87.2 (13.6) (20.2) (22.37) N/A N/A
2020E 129.8 1.3 (3.9) (3.65) N/A N/A
Industry outlook

Of over 1,000 nanosatellites launched since 1998, AAC Clyde Space is represented on 30–40%. Over the next five years around 3,000 nanosatellites should be launched as technology development extends the applications for low earth orbit (LEO) constellations, especially for communications. AAC Clyde Space has the capacity in Glasgow and Sweden to facilitate such expansion as well as develop a ‘satellite as a service’ offering, while increasing sales of subsystems to third-party satellite providers.

Last updated on 06/12/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net debt (SEKm) N/A
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 19.3 39.5 43.0
Relative* 18.3 28.7 14.2
52-week high/low SEK6.0/SEK2.6
*% relative to local index
Key management
Luis Gomes CEO
Mats Thideman CFO
Rolf Hallencreutz Chairman of the board