Satellite Solutions sees FY results ahead of market views

Satellite Solutions Worldwide Group said due to the strong performance of the combined existing and acquired businesses, the financial results for the year to 30 November 2016 are expected to be ahead of current market views.

During the year, the company completed six acquisitions, secured £12m of new unsecured convertible debt funding from the Business Growth Fund and completed a successful equity placing, raising £12.1m to fund acquisitions.

"The on-boarding and integration of Avonline, Breiband and SkyMesh, which were acquired in July and August 2016, is on track," Satellite Solutions said in a statement.

"Organic growth is strong, particularly in Australia, where c.1,000 net new connections are now being added per month. Additionally, distribution partnership opportunities have been identified in both Scandinavia and Australia, which will be pursued in 2017."

OUTLOOK

"The Company enters 2017 with tremendous scope for both organic and acquisitive growth, both within existing markets and new territories.

"High levels of recurring revenue, increasing economies of scale and largely fixed overheads mean the Company is now structured to deliver significant revenue growth, high levels of operational gearing and strong cash generation over the next twelve months.

"The Company is on track to exceed its previously stated strategy of achieving 100,000 customers by the end of the 2017 financial period."