AAC Clyde Space — Strong progress delivered in Q123

AAC Clyde Space (OMX: AAC)

Last close As at 17/07/2024

SEK42.70

−0.35 (−0.81%)

Market capitalisation

SEK246m

More on this equity

Research: Industrials

AAC Clyde Space — Strong progress delivered in Q123

AAC Clyde Space (AAC) has reported very strong progression in Q123, in part due to booking deferred revenues from FY22. Nevertheless, given the strength of both sales and EBITDA development taken together with a significant increase in the order backlog, our expectations of a transitional year for the company appear to be on track. With several more self-owned space data as a service (SDaaS) satellites expected to be launched in FY23, the development of the high-margin revenue stream should accelerate as the year progresses, improving cash flow. We maintain our estimates for FY23 and FY24, with both our DCF value of SEK8.2/share and a single-digit FY24 P/E of just 6.4x suggesting significant potential for investors.

Andy Chambers

Written by

Andy Chambers

Director, Industrials

Industrials

AAC Clyde Space

Strong progress delivered in Q123

Q123 results

Aerospace and defence

25 April 2023

Price

SEK1.35

Market cap

SEK276m

SEK10.3/$1, SEK12.8/£1

Adjusted net cash (SEKm) at 31 March 2023 (excluding leases of c SEK16.5m)

27.6

Shares in issue

204.8m

Free float

89%

Code

AAC

Primary exchange

Nasdaq First North Premier Growth Market

Secondary exchange

OTCQX

Share price performance

%

1m

3m

12m

Abs

(7.0)

(9.8)

(37.9)

Rel (local)

(13.5)

(10.0)

(36.7)

52-week high/low

SEK2.15

SEK1.22

Business description

Headquartered in Sweden, AAC Clyde Space is a world leader in nanosatellite end-to-end solutions, subsystems, platforms, services and components, including supply to third parties. It has production and development operations in Sweden, Scotland, the Netherlands and the United States, as well as a start-up in Africa.

Next events

AGM

25 May 2023

H123 results

24 August 2023

Analyst

Andy Chambers

+44 (0)20 3077 5700

AAC Clyde Space is a research client of Edison Investment Research Limited

AAC Clyde Space (AAC) has reported very strong progression in Q123, in part due to booking deferred revenues from FY22. Nevertheless, given the strength of both sales and EBITDA development taken together with a significant increase in the order backlog, our expectations of a transitional year for the company appear to be on track. With several more self-owned space data as a service (SDaaS) satellites expected to be launched in FY23, the development of the high-margin revenue stream should accelerate as the year progresses, improving cash flow. We maintain our estimates for FY23 and FY24, with both our DCF value of SEK8.2/share and a single-digit FY24 P/E of just 6.4x suggesting significant potential for investors.

Year

end

Revenue (SEKm)

PBT*
(SEKm)

EPS*
(SEK)

DPS
(SEK)

P/E
(x)

Yield
(%)

12/21

180.0

(27.0)

(0.14)

0.0

N/A

N/A

12/22

196.7

(23.8)

(0.11)

0.0

N/A

N/A

12/23e

355.1

0.6

0.00

0.0

N/A

N/A

12/24e

483.6

44.9

0.21

0.0

6.4

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Q123 sees momentum build

While the Q123 performance was probably aided by an element of catch up of deferred deliveries from FY22, it appears that underlying momentum is finally starting to pick up following the supply chain challenges. Sales revenue was up 80% and own work capitalised also strengthened, further reflecting the continuing investment in AAC’s own satellite assets to deliver SDaaS growth. All of the subsidiaries improved sales contributions, although Hyperion was exceptionally strong, and together with SpaceQuest and Omnisys delivered strong EBITDA performances. While AAC Clyde Space in Sweden and Clyde Space in Glasgow were more muted, we expect these to improve as the year progresses.

A year of transition is underway

By the end of the year AAC should have a deployed fleet of 11 owned satellites delivering an increased amount of high-margin SDaaS for customers. In addition, the order intake has been very positive so far this year, especially for Space Products, with much of the intake for current year delivery. The resultant order backlog at the end of Q123 is therefore another record high at SEK460m, up 7% since the start of the year despite the acceleration in quarterly sales. With the near-term financing needs met by expanding the overdraft facility to SEK30m from SEK5m previously, FY23 should see the group transition to profitability with improving cash flows as data sales increase.

Valuation: Moving to more positive metrics

As we mentioned in our last note the execution of the growth strategy that management expects to deliver SEK500m of revenues in 2024 is becoming increasingly relevant for valuation purposes. The progress in FY23 should progressively focus attention on the undemanding nature of AAC’s earnings and cash based ratings.

Q123 delivers strong sales growth, positive EBITDA

The strong development of revenues and the positive EBITDA performance in Q123 was very encouraging in our view, following the challenges faced throughout FY22, largely due to supply chain constraints. Even if one assumed that all of the SEK13m Q422 sales shortfall was recovered during the period, underlying Q123 sales would still have been almost 50% higher year on year. The pace of deliveries picked up for Space Products and was accompanied by strong order intake, and activity for Space Missions is clearly healthy although masked by the development of satellites to support delivery of SDaaS services to its customers. While these high-margin SDaaS revenues are still restricted to SpaceQuest during Q123, the delivery of additional satellites should see these start to accelerate from Q223, especially at Clyde Space in Scotland. The failure of the first UK satellite launch in early January had no financial effect on the group despite the loss of Amber-1 satellite as well as delivered subsystems for other projects.

Exhibit 1: AAC Clyde Space Q123 results summary

£ months to 31 March (SEKm)

Q122

Q123

Q123 vs Q122

By business

AAC

10.84

11.38

5%

Clyde

14.13

14.38

2%

Hyperion

2.20

15.77

617%

SpaceQuest

5.64

12.35

119%

Omnisys

8.29

19.11

131%

AAC Space Africa

0.06

0.92

n,m.

Total group net sales

41.16

73.90

80%

By activity

SDaaS

4.01

4.52

13%

Satellite platforms

11.77

7.26

(38%)

Subsystems

25.38

62.12

145%

Total group net sales

41.16

73.90

80%

Other operating income

6.10

4.51

(26%)

Development work capitalised

5.34

8.69

63%

Total group income

52.59

87.11

66%

Raw materials and subcontractors

(15.27)

(31.82)

108%

Personnel costs

(32.56)

(40.06)

23%

Other external expenses

(8.52)

(11.48)

35%

Other operating expenses

(3.86)

(2.03)

(47%)

EBITDA reported

(7.62)

1.71

n.m.

Depreciation and Amortisation

(7.01)

(7.14)

2%

EBIT

(14.63)

(5.43)

(63%)

PBT

(12.49)

(5.91)

(53%)

Net income

(11.72)

(6.46)

(45%)

EPS (SEK)

(0.06)

(0.03)

(50%)

Adjusted net cash* (excluding leases) at period end

88.9

27.6

(69%)

Source: Company reports. Note: *Gross cash less drawn overdraft.

Q123 revenues were up 80% at SEK73.9m (Q122: SEK41.2m), with all of the group subsidiaries making positive progress. We believe this was also aided by an element of catch up from revenues deferred from last year due to supply chain issues that led to project delays.

Both AAC Clyde in Sweden and Clyde Space in Glasgow made only modest progress, with revenues rising 5% and 2%, respectively. However, it should be noted that activity at these operations is higher than third-party revenues indicate as the operations are building an increased number of satellites for the group’s own SDaaS offering.

In Q123 the first of two 3U satellites to provide AIS (automatic identification system) SDaaS to ORBCOMM, Kelpie-1, was deployed. It will start to generate data revenues in Q223, when Kelpie-2 is also expected to be launched.

The first of three 6U Epic VIEW satellites for delivering hyperspectral imagery data to the Canadian company Wyvern was also shipped during Q123. The satellite, EPICHyper-1, was subsequently successfully deployed on 15 April 2023 and the other two satellites to service the SEK100m contract should be deployed by the year end.

Hyperion, SpaceQuest and Omnisys all showed strong progress, with aggregate revenues rising by 193% to SEK47.2m (Q122: SEK16.1m). Hyperion was exceptionally strong, increasing revenues by SEK13.5m to SEK15.8m as it moved from a development phase into customer supply. SpaceQuest and Omnisys also more than doubled their contributions. The smaller South African start-up, AAC Space Africa, also made progress and contributed SEK0.9m during the period.

We note that all of the five main subsidiaries delivered sales between SEK10m and SEK20m.

EBITDA in Q123 turned positive at SEK1.71m (Q122 loss: SEK7.62m). There were no acquisition-related adjustments in either period. The improved performance reflected improved coverage of the additional investment in personnel costs and infrastructure during 2022 to support future revenue growth.

Exhibit 2: AAC Clyde Space EBITDA by subsidiary

SEKm

Q122

Q123

Change

AAC Clyde Space

(2.22)

(3.83)

73%

Clyde Space

(5.94)

(5.55)

-7%

Hyperion

(0.54)

5.01

NM

SpaceQuest

0.87

3.50

305%

Omnisys

1.30

3.28

152%

AAC Space Africa

(1.11)

(0.69)

-38%

Total

(7.65)

1.71

NM

Source: Company reports

AAC Clyde Space in Sweden delivered an increased loss and Clyde Space only modestly reduced its loss. There were substantial improvements at Hyperion, SpaceQuest and Omnisys, which achieved EBITDA margins of 31.7%, 28.3% and 17.2%, respectively.

In February, AAC Clyde Space expanded its existing overdraft facility from SEK5m to SEK30m. The move should provide sufficient liquidity for working capital to an appropriate level for increasing level of activity as AAC delivers against its order backlog. Having drawn SEK11.5m of the facility, gross cash and cash equivalents at the period end were SEK39.1m (FY22: SEK52.1m). Adjusted net cash was thus SEK27.6m (excluding lease liabilities of c SEK16.5m).

Exhibit 3: AAC Clyde Space order backlog development

Source: Company reports

As well as the positive trading performance, the group also continued its strong order intake during the quarter. This was reflected in the order backlog, which despite the higher revenues booked, increased by 7% during Q123 to a new record of SEK460m, driven by the strong Space Products order intake during the period.

Since our last note in March, new business wins have continued. Business won during Q123 includes:

A follow-on order worth SEK2.6m from Space Forge, which also lost a demonstration platform on the Virgin launch. The second platform should be deployed in H223.

Participation through AAC Hyperion as part of a consortium selected by the European Defence Fund to develop Naucrates, a satellite weighing less than 100kg to be placed in geosynchronous equatorial orbit (GEO) for space situational awareness.

A contract worth c SEK6.1m for reaction wheels to be used on a number of small satellites from a US blue-chip company.

AAC SpaceQuest is to procure and resell c SEK16.6m of products to another US blue-chip company over the next 12 months.

A significant order for satellite subsystems worth c SEK23.8m from a US development company supplying spacecraft and other multi-mission systems to be delivered in FY23.

Outlook

We have not changed our estimates for FY23 or FY24 as we are encouraged by the momentum seen in Q123. We expect revenues to accelerate as AAC deploys more self-owned and operated SDaaS satellites to increase its fleet for SpaceQuest customers, ORBCOMM, Wyvern as well as the new VDES maritime communications system. By the year end 11 AAC satellites will be delivering SDaaS to customers, compared to five at the beginning of FY23. These satellites should generate revenues from around one month after deployment after a short period of commissioning. The high margins SDaaS provides should see a rapid acceleration to sustainable financing with the extended overdraft supporting near-term liquidity requirements.

Valuation

In terms of valuation, our capped DCF has improved modestly to SEK8.2 per share from SEK8.0 previously. Unlike many of its peers in the space tech segment, AAC appears to be moving towards self-sustaining cash generation from next year. If it does achieve this, the extreme valuation gap should start to erode, with the undemanding FY24 P/E multiple on our estimates likely to be subject to a positive rerating.

The sensitivity of the value to terminal growth rates and WACC is shown in Exhibit 4 below, with the WACC calculated at 12%. The returned value is SEK8.2/share (SEK8.0/share previously).

Exhibit 4: AAC Clyde Space DCF sensitivity to WACC and terminal growth rate (SEK/share)

WACC

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

Terminal value growth rate

0%

16.0

13.6

11.8

10.3

9.2

8.2

7.4

6.7

6.1

1%

18.4

15.4

13.1

11.3

9.9

8.8

7.9

7.1

6.4

2%

21.8

17.6

14.7

12.5

10.9

9.5

8.4

7.6

6.8

3%

26.8

20.9

16.9

14.1

12.0

10.4

9.2

8.1

7.3

Source: Edison Investment Research estimates

Exhibit 5: Financial summary

SEKm

2020

2021

2022

2023e

2024e

Year end 31 December

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Net sales

 

 

98.4

180.0

196.7

355.1

483.6

Own work capitalised and other operating income

21.1

30.9

47.0

45.3

56.3

Group income

119.5

210.8

243.7

400.4

540.0

EBITDA

 

 

(17.5)

(12.4)

(30.0)

21.9

71.5

Operating Profit (before amort. and except).

(22.2)

(21.9)

(40.5)

8.3

56.4

Intangible Amortisation

(3.3)

(0.9)

(1.2)

(10.7)

(13.6)

Exceptionals

(12.1)

(15.8)

(25.4)

(16.7)

(16.7)

Other

0.0

0.0

0.0

0.0

0.0

Operating Profit

(37.5)

(38.6)

(67.0)

(19.2)

26.1

Net Interest

(1.3)

(4.2)

17.9

3.1

2.1

Profit Before Tax (norm)

 

 

(26.7)

(27.0)

(23.8)

0.6

44.9

Profit Before Tax (FRS 3)

 

 

(38.8)

(42.8)

(49.1)

(16.1)

28.2

Tax

0.5

3.3

2.6

0.8

(1.4)

Profit After Tax (norm)

(26.4)

(24.9)

(22.5)

0.6

42.7

Profit After Tax (FRS 3)

(38.3)

(39.5)

(46.5)

(15.3)

26.8

Average Number of Shares Outstanding (m)

102.3

173.8

196.9

204.8

204.8

EPS - fully diluted (SEK)

 

 

(0.26)

(0.14)

(0.11)

0.00

0.21

EPS - normalised (SEK)

 

 

(0.26)

(0.14)

(0.11)

0.00

0.21

EPS - (IFRS) (SEK)

 

 

(0.37)

(0.23)

(0.24)

(0.07)

0.13

Dividend per share (SEK)

0.0

0.0

0.0

0.0

0.0

EBITDA Margin (%)

-17.8

-6.9

-15.2

6.2

14.8

Operating Margin (before GW and except.) (%)

-22.5

-12.2

-20.6

2.3

11.7

BALANCE SHEET

Fixed Assets

 

 

523.0

681.0

728.6

740.1

765.1

Intangible Assets

494.3

639.5

665.5

660.9

669.0

Tangible Assets

16.2

26.4

48.6

65.0

82.4

Right of use asset

12.5

15.1

14.6

14.1

13.7

Investments

0.0

0.0

0.0

0.0

0.0

Current Assets

 

 

113.3

193.4

152.8

142.7

191.6

Stocks

12.8

13.2

20.2

35.5

45.9

Debtors

9.5

23.0

24.5

39.1

50.5

Cash

62.4

96.1

52.1

25.5

61.2

Other

28.5

61.1

56.0

42.7

33.9

Current Liabilities

 

 

(56.1)

(129.2)

(170.2)

(198.5)

(245.1)

Creditors

(56.1)

(128.5)

(170.2)

(198.5)

(245.1)

Short term borrowings

0.0

(0.6)

0.0

0.0

0.0

Long Term Liabilities

 

 

(14.4)

(16.6)

(17.8)

(18.1)

(18.6)

Long term borrowings

(0.3)

0.0

0.0

0.0

0.0

Lease liabilities

(12.9)

(15.1)

(16.5)

(17.0)

(17.4)

Other long term liabilities

(1.2)

(1.5)

(1.2)

(1.2)

(1.1)

Net Assets

 

 

565.8

728.6

693.5

666.3

693.0

CASH FLOW

Operating Cash Flow

 

 

(14.6)

(37.3)

(13.7)

17.1

100.5

Net Interest

(0.2)

(0.2)

18.8

4.0

3.0

Tax

0.4

2.1

1.3

(0.0)

(2.2)

Capex

(17.2)

(29.2)

(40.9)

(48.6)

(66.4)

Acquisitions/disposals

(6.2)

2.6

(43.6)

0.9

0.9

Financing

49.2

94.1

33.3

0.0

0.0

Dividends

0.0

0.0

0.0

0.0

0.0

Net Cash Flow

11.4

32.0

(44.7)

(26.6)

35.8

Opening net debt/(cash) excluding lease liabilities

(51.6)

(62.2)

(95.5)

(52.1)

(25.5)

HP finance leases initiated

0.0

0.0

0.0

0.0

0.0

Other

(0.8)

1.3

1.3

0.0

0.0

Closing net debt/(cash) excluding lease liabilities

(62.2)

(95.5)

(52.1)

(25.5)

(61.2)

Net financial liabilities including lease liabilities

(49.3)

(80.4)

(35.6)

(8.5)

(43.8)

Source: Company reports, Edison Investment Research estimates


General disclaimer and copyright

This report has been commissioned by AAC Clyde Space and prepared and issued by Edison, in consideration of a fee payable by AAC Clyde Space. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by AAC Clyde Space and prepared and issued by Edison, in consideration of a fee payable by AAC Clyde Space. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2023 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on AAC Clyde Space

View All

Latest from the Industrials sector

View All Industrials content

Industrials

AAC Clyde Space — Acquisition of Spacemetric

Industrials

Argent Industrial — Cash flush

Industrials

Severfield — Poised for expansion

Research: Real Estate

Target Healthcare REIT — Growth from a firm base

Target Healthcare REIT’s decision to rebase the quarterly DPS targeted for H223 (-17% to 1.4p per quarter) established full DPS cover from a base that we forecast will grow, driven by indexed rental growth. The yield remains attractive and rather than the rebase signalling new challenges, operational performance continues to strengthen.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free