Currency in SEK
Last close As at 04/02/2023
SEK1.62
▲ 0.17 (11.72%)
Market capitalisation
SEK332m
AAC Clyde Space is closing in on a historic milestone. It has delivered the IOD-3 Amber satellite to the Spaceport Cornwall facility in Newquay, where it is to be one of the first seven satellites launched to orbit from the UK. The delivery also comes at the start of what is expected to be a busy Q422 for AAC as it delivers a number of customer projects for operational deployment. As AAC starts to deploy its own satellite constellations revenue growth, profitability and cash flow should improve rapidly.
AAC Clyde Space |
IOD-3 Amber waiting for the green light |
Commencement of UK space launch nears |
Aerospace and defence |
12 October 2022 |
Share price performance Business description
Analyst
AAC Clyde Space is a research client of Edison Investment Research Limited |
AAC Clyde Space is closing in on a historic milestone. It has delivered the IOD-3 Amber satellite to the Spaceport Cornwall facility in Newquay, where it is to be one of the first seven satellites launched to orbit from the UK. The delivery also comes at the start of what is expected to be a busy Q422 for AAC as it delivers a number of customer projects for operational deployment. As AAC starts to deploy its own satellite constellations revenue growth, profitability and cash flow should improve rapidly.
Year end |
Revenue (SEKm) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/20 |
98.4 |
(26.7) |
(0.26) |
0.0 |
N/A |
0.0 |
12/21 |
180.0 |
(27.0) |
(0.14) |
0.0 |
N/A |
0.0 |
12/22e |
242.6 |
(21.2) |
(0.10) |
0.0 |
N/A |
0.0 |
12/23e |
372.0 |
11.5 |
0.05 |
0.0 |
24.6 |
0.0 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
IOD-3 Amber is a 6U satellite designed and built by AAC Clyde in Glasgow for Horizon Technologies to deliver Maritime Domain Awareness intelligence data using its AMBER payload. Developed as part of the Satellite Applications Catapult’s in-orbit demonstration programme, IOD-3 is intended to be the first of a constellation of more than 20 satellites. Horizon’s network will be used to fight piracy, illegal trans-shipments, illegal fishing and refugee smuggling, as well as detecting and tracking other RF emitters.
The ‘Start Me Up’ launch mission from Cornwall could come in the next few weeks using Virgin Orbital’s LauncherOne rocket system deployed from its Cosmic Girl 747, which arrived in the UK this week. It also carries Space Forge’s first spacecraft for which AAC Clyde Space companies have also supplied avionics. The launch should kickstart development of a sustainable, commercial small satellite launch market as part of the UK’s overall space strategy. It will include airborne horizontal launches as well as a vertical launch capability from two sites in Northern Scotland and the Shetland Islands.
Meanwhile, AAC continues to win new subsystem business for a variety of projects. Notably in the last few weeks it has won SEK22.5m of follow-on orders from Astroscale, which is developing a space debris removal service, ELSA-M (End-of-Life Services by Astroscale Multi-client). The latest Astroscale order, worth SEK10.6m, is for a Sirius mission computer for delivery in Q124. It follows a SEK11.9m order for its Starbuck power system announced on 22 September 2022.
As AAC develops its own constellations to rapidly grow its SDaaS (space data as a service) revenues, the continued validation of its subsystems and components on third-party spacecraft should also enhance organic development.
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