ÅAC Microtec

OMX: AAC

SEK423.3m market cap

SEK4.4 last close

Based in Sweden, ÅAC Microtec is a world leader in nanosatellite end-to-end solutions following the January 2018 merger with Clyde Space in Scotland. The merged company also supplies a range of technology components to other small satellite manufacturers globally.

Investment summary

Management states that Q119 results were broadly according to plan, although on an underlying basis (excluding prior period acquisition costs) both net sales and EBITDA were slightly lower. ÅAC made modest progress, but Clyde saw a reduction due to business mix combined with lower platform sales in the period. Now that financing is being addressed by the underwritten rights issue, the main challenge for management is to execute on the growing backlog. Given the lumpy nature of revenues in the current low-volume platform environment, we maintain our estimates as we expect volumes to grow as the year progresses.

Y/E Dec
Revenue (SEKm)
EBITDA (SEKm)
PBT (SEKm)
EPS (öre)
P/E (x)
P/CF (x)
2017A 13.3 (21.4) (27.3) (86.17) N/A N/A
2018A 77.9 (28.5) (37.2) (55.34) N/A N/A
2019E 120.8 0.9 (8.5) (11.68) N/A N/A
2020E 200.4 33.6 27.5 35.92 12.2 12.0
Last updated on 23/05/2019
Industry outlook

Of over 1,000 nanosatellites launched since 1998, ÅAC Clyde 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. ÅAC Clyde 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 23/05/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (SEKm) 5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (20.2) 40.3 (28.0)
Relative* (16.2) 40.6 (28.4)
52-week high/low SEK7.0/SEK2.6
*% relative to local index
Key management
Mats Thideman CFO
Rolf Hallencreutz Chairman of the board