Last close As at 05/08/2026
PLN725.00
▲ −8.00 (−1.09%)
Market capitalisation
PLN2,541m
Research: Industrials
Creotech Instruments continues to invest in its growth strategy targeting both the spacetech and quantum computing markets. The first report under IFRS, Q123 results saw positive development of revenues but higher costs leading to increased quarterly losses. Encouragingly, net cash flow was positive with adjusted net cash of PLN33.3m at Q123. Progress has been underpinned by new development contracts with the potential to extend existing markets or increase addressable segments.
Written by
Creotech Instruments |
Positive progress in Q123
Aerospace and defence |
Spotlight – Flash
30 June 2023 |
Share price graph
Share details
Business description
Bull
Bear
Analysts
Creotech Instruments is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||
Creotech Instruments continues to invest in its growth strategy targeting both the spacetech and quantum computing markets. The first report under IFRS, Q123 results saw positive development of revenues but higher costs leading to increased quarterly losses. Encouragingly, net cash flow was positive with adjusted net cash of PLN33.3m at Q123. Progress has been underpinned by new development contracts with the potential to extend existing markets or increase addressable segments.
|
Historical financials
Source: Company reports. Note: Using Polish accounting standards; IFRS adopted for FY23. |
Q123 results
In Q123, total sales rose by 26% to PLN10.5m, with strong growth in space projects (+35% to PLN4.2m) and Quantum Systems (+71% to PLN2.9m). The smaller data activities grew 17% to PLN0.7m, while the electronics contract manufacturing operation saw a 6% drop in sales to PLN2.8m. Space reduced its EBITDA loss modestly while Quantum Systems fell to a small PLN0.1m loss. The electronics manufacturing operation continued to make a positive contribution, although it was almost a third lower at PLN1.3m. Overall total EBITDA swung from a positive PLN0.9m to a PLN0.5m loss. Depreciation doubled, largely due to the new premises the company occupied on a leasehold basis in FY22. In addition, employment costs rose by 36% to PLN5.6m as the workforce was increased to meet expected activity growth, with other operating expenses up by 68% at PLN5.6m. As a result, the group Q123 EBIT loss increased to PLN2.4m.
Recent significant contract wins
In Q223, Creotech has announced several significant development contract awards. On 24 May, it reported that as the leader of a consortium that includes Airbus Defence and Space, it had signed an agreement with the Polish Armament Agency for the initial phases of the ‘industrial feasibility study’ of a potential project to develop a constellation of optoelectronic Earth observation satellites. The value of these initial phases – to be carried out this year – is c PLN6.5m, most of which should accrue to the company.
Creotech has also been successful in winning lead positions in development projects in the quantum computing segment, which should enable it to extend its offering into the developing markets for quantum key distribution and optical space communications. Both were awarded by the ESA ,with Creotech’s share worth c PLN0.4m. On 24 May, it won the lead to design and manufacture prototypes of large-area detectors based on superconducting nanowire technology. This followed the award to a Creotech-led consortium including Airbus Defence and Space to develop a single-photon detector with high-quantum efficiency.
|
|
Research: Investment Companies
Henderson International Income Trust (HINT) offers a diversified investment solution for those seeking capital growth and income opportunities outside the UK, where dividend income is relatively concentrated. Recent relative performance has improved, as underweights to the US and to IT and other growth stocks, which have previously hurt performance, are now boosting relative returns and should leave HINT well placed to cope with the persistently uncertain global environment. Overweights to European financials, energy and luxury goods producers have also been working well. HINT has a long-term objective to grow its dividend. Consistent with this, dividends have grown steadily since inception, and HINT’s dividend yield of 4.3% is competitive, ranking equal highest among its AIC peers.