2021-11-25 AAC Clyde Space AB (publ)
Third quarter, July-September 2021 (compared with July-September 2020)
· Net sales increased 23% to SEK 33.7 M (27.3)
· Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to SEK -10.0 M (-2.2)
· Earnings before interest and tax (EBIT) amounted to SEK -16.8 M (-4.9)
· The loss after tax was SEK -17.6 M (-4.9)
· Basic and diluted earnings per share amounted to SEK -0.09 (-0.05)
· Cash flow from operating activities totalled SEK +16.4 M (+3.8)
· The order backlog increased 155% to SEK 406.3 M (159.4)
January-September 2021 (compared with January-September 2020)
· Net sales increased 69% to SEK 117.8 M (69.7)
· Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to SEK -14.0 M (-15.9)
· Earnings before interest and tax (EBIT) amounted to SEK -30.6 M (-24.4), excluding acquisition costs
· The loss after tax was SEK -31.2 M (-24.9)
· Basic and diluted earnings per share amounted to SEK -0.18 (-0.26)
· Cash flow from operating activities totalled SEK -33.8 M (-2.8)
Significant events in the third quarter of 2021
· AAC Clyde Space started AAC Space Africa to take part in Africa's growing space sector
· AAC Clyde Space was selected by OHB Sweden to deliver core avionics worth approx. 797 kEUR (approx. 8.2 MSEK) to ESA's Arctic Weather Satellite
· AAC Clyde Space recruited COO and HR Director, and extended the Executive Management Team
· AAC Clyde Space is to deliver the Sirius Command and Data Handling system to a new client. AAC will provide a standardized system in a contract valued at 320 000 EUR (approx. 3.3 MSEK)
Significant events after the end of the reporting period
· AAC Clyde Space AB won an order from U.S. Aegis Aerospace to supply its Starbuck power systems and battery solutions worth 500 kUSD (approx. 4.5 MSEK) for a satellite mission carried out on behalf of the U.S. Department of Defense (DoD)
· Chris Fauquier was appointed CEO for the US subsidiary SpaceQuest, after Dr. Dino Lorenzini who assumed a position as Group Chief Science Officer (CSO)
· AAC Clyde Space and its partners successfully completed the first phase of the xSPANCION project and introduced a second phase in the project valued at 5.6 MEUR (approx. 57.3 MSEK), to prepare for manufacturing
· AAC Clyde Space entered a Memorandum of Understanding with ORBCOMM and Saab to collaborate on developing the next generation of global maritime communication services based on a VHF Data Exchange System (VDES), under the brand name AOS
· AAC Clyde Space was contracted by OHB Sweden to deliver its Sirius command and data handling unit worth approx. 545 kEUR (approx. 5.6 MSEK) to ESA's Arctic Weather Satellite
Comments from the CEO
In the last quarter we have continued to drive progress on our growth strategy and key contracts in the face of late deliveries from major suppliers. As anticipated in our Q2 report, these delays have had an inevitable knock-on impact on project completion and our revenue recognition. This is reflected in slower growth in net sales (still up 23 percent from Q3 2020) and a fall in EBITDA to SEK -10M.
We remain with our revenue target of approximately SEK 200M in 2021 -and our target of SEK 500M by 2024.
In the meantime, we push forward with our growth strategy. In August, we launched our South African subsidiary, AAC Space Africa, giving us a strategic foothold in Africa's rapidly growing market for satellites and space services. The industry is expected to generate over USD 10 billion in revenue by 2024 as governments, companies and communities seek efficient ways to support development and build out crucial infrastructure.
Our decision to establish a base in South Africa follows several past initiatives in the African market and positions us to capitalise on this rapid growth. From here we will design, build, and deliver space missions and data to the continent - and develop advanced radio communications for the entire Group.
At the helm of AAC Space Africa are two pioneers of the African CubeSat industry, Dr. Robert Van Zyl and Francois Visser, who have taken up the roles of Managing Director and Technical Director, respectively. Together, they bring over 40 years of small satellite experience to the Group across various missions - including the first ever CubeSat launched by an African country.
Also, this quarter, we have made significant progress on key contracts that underpin our longer-term Group strategy.
In November, we kicked off phase two of the xSPANCION project: a transformational three-year project to design and develop an innovative satellite constellation service.
xSPANCION is co-funded by public and private partners, including the UK Space Agency via the European Space Agency, and will revolutionise our Space Data as a Service (SDaaS) offering. The technology and processes we are developing will reduce the cost of every message collected, every image captured. This in turn will allow us to share space data and services with customers quickly and at significantly lower cost, supporting those business cases that to date have not been economically viable. It will also catalyse a new generation of applications not previously possible.
The launch of Phase 2 follows the successful completion of the preliminary design review and means we can continue the project at full speed. This phase includes detailed design of constellation-ready spacecraft, development of digital production processes, constellation operations capability as well as licensing, regulation, and more efficient launch coordination to deliver a step-change in our capability to deliver constellations. We also continue discussions with selected customers to enter agreements for data delivery from the constellation, which is expected to be operational by 2024.
In another key milestone, we entered into a Memorandum of Understanding (MOU) with Saab and ORBCOMM to create the first dedicated, global maritime communication system. Based on a VHF Data Exchange System (VDES), it will enable, for the first time, ship-to-ship and ship-to-shore communication anywhere in the world.
This will not only improve the safety of seafarers but will also contribute to a greener shipping industry - a critical part of the climate change mission. For example, with up to 32 times more bandwidth than the current, widely used Automatic Identification System (AIS), VDES can be integrated with e-navigation systems to enable savings in fuel and emissions of up to 25 percent.
Our work with Saab and ORBCOMM to establish the next generation of maritime communications has been underway since August 2020, but the formalisation of this cooperation, now branded 'AOS', creates an important platform on which to fine-tune our efforts and develop value-driven commercial and government applications for VDES. We plan to have our first VDES satellite up in space next year.
We continue to cement our leading position in space-based weather data with a follow-on order from OHB Sweden to deliver further core avionics for the ESA Arctic Weather Satellite. This raises the total order value from this flagship project to SEK 138M - including weather sensors. We are proud to have such a central role in a mission that will improve Arctic and global weather forecasts for the benefit of both people and businesses.
AAC now spans six companies on three continents. As we continue to grow, we're strengthening our management team to provide better support to our employees, our customers and our shareholders. This quarter we welcome into the Group Stefania Mandirola as Chief Operating Officer and Kulwinder Bhumbra as HR Director. Together, they bring years of valuable experience that will be key to supporting our future ambitions.
Finally, we remain committed to helping to solve the challenges we face as an industry,
in particular the issue of space debris which is now approaching critical levels. We are working with UK-based Space Forge to supply designs and core avionics for a reusable satellite platform.
Not only will this help to reduce space debris, but this revolutionary project also aims to take advantage of the conditions in space - such as zero gravity and lack of contaminants - to enable space-based manufacturing of certain materials and objects that cannot be made as easily on Earth.
Essentially, the platform is designed to be a mini-factory in space, creating everything from next-generation composites and alloys to pharmaceuticals. At the end of its life, it returns to Earth for recovery, refurbishment and eventual relaunch.
Projects like this help to create a sustainable space industry and push the boundaries of how space can be used to improve life on Earth. They will continue to be a priority for us, as we integrate our capabilities and expanded geographical presence to win larger and more complex contracts.
Following this active period of acquisition, integration and expansion, we are now planning
the next exciting phase of AAC Clyde Space's growth, with a focus on building and launching our own constellation of satellites to establish a leading position in the supply of space data as a service.
Our intention is to build constellations focused on sectors such as weather, climate and maritime services providing our partners and clients with more accurate and timely data. We have put together a detailed plan to build the constellations and create the team and infrastructure to market and sell our data services. On the back of this plan, we expect AAC Clyde Space will be generating sales of around USD250 million a year by 2030, with about USD150 million coming from Space Data as a service.
We will continue to update stakeholders on these plans and have just launched our new corporate website (www.aac-clyde.space) and are about to publish our latest edition of SPAACE TALK, detailing some of these initiatives.
FOR MORE INFORMATION:
Please visit: www.aac-clyde.space or contact:
CEO Luis Gomes [email protected]
CFO Mats Thideman, [email protected], mobile +46 70 556 09 73
Regulation No 596/2014 on market abuse (MAR). The information was submitted for publication, through the agency of the contact person set out above, at 8:30 CET on 25 November 2021.
The interim report and further information are available at https://investor.aac-clyde.space/en/financial-reports
ABOUT AAC CLYDE SPACE
AAC Clyde Space specialises in small satellite technologies and services that enable businesses, governments and educational organisations to access high-quality, timely data from space. Its growing capabilities bring together three divisions:
Space Data as a Service - delivering data from space directly to customers
Space missions - turnkey solutions that empower customers to streamline their space missions
Space products and components - a full range of off-the-shelf and tailor-made subsystems, components and sensors
AAC Clyde Space aims to become a world leader in commercial small satellites and services from space, applying advances in its technology to tackle global challenges and improve our life on Earth.
The Group's main operations are located in Sweden, the United Kingdom, the Netherlands, South Africa and the USA, with partner networks in Japan and South Korea.
AAC Clyde Space's shares are traded on Nasdaq First North Premier Growth Market. Erik Penser Bank AB, e-mail [email protected], telephone +46 8 463 83 00, is the Certified Adviser. The share is also traded on the US OTCQX-market under the symbol ACCMF.
2022-12-08 AAC Clyde Space
Astroscale Ltd. has extended its order from AAC Clyde Space for its end-of-life space debris removal service, ELSA-M, with additional hardware and functionality valued at GBP 0.611 M (approx. SEK 7.7 M). The order follows orders announced earlier in 2022 for a Sirius computer and a Starbuck power system totalling GBP 1.8 M (approx. SEK 23.0 M).
2022-12-02 AAC Clyde Space AB (publ)
AAC Clyde Space has won a contract to maintain radiometers in the telescopes of the Atacama Large Millimeter/submillimeter Array (ALMA) in Chile. The contract runs for five years and is worth 574 kEUR (approx. 6.2 MSEK).
2022-11-24 AAC Clyde Space AB (publ)
The previous owners of Omnisys Instruments AB convert the remaining third of their warrants into shares in AAC Clyde Space. Consequently, AAC Clyde Space has issued 5,780,845 shares, bringing the total number of shares in AAC Clyde Space to 204,811,821.
2022-11-24 AAC Clyde Space AB (publ)
AAC Clyde Space has delivered the first Kelpie satellite to Cape Canaveral, Florida, in preparation for its planned launch onboard the SpaceX Transporter 6 mission expected in December 2022. The 3U EPIC nanosatellite will deliver data to the U.S. company ORBCOMM Inc., a global provider of Internet of Things (IoT) solutions, under an exclusive Space Data as a Service (SDaaS) deal. It is planned to be followed by the launch of a second Kelpie satellite in the first half of 2023.
2022-11-24 AAC Clyde Space AB (publ)
2022-11-08 AAC Clyde Space AB (publ)
AAC Clyde Space has won a contract to continue to operate the SeaHawk satellite for one more year, a contract that may be extended up to two years further provided that the spacecraft continues to deliver data. The one-year contract has a value of 175 kUSD (approx. 1.9 MSEK).
2022-11-03 AAC Clyde Space AB (publ)
AAC Space Africa, part of the AAC Clyde Space group, is bringing in-house the manufacture and distribution of the Pulsar range of satellite communication systems after licensing the technology.
2022-11-03 AAC Clyde Space AB (publ)
AAC Clyde Space and its partners, have agreed to move into the final phase of the xSPANCION project, the demonstration phase. This will begin with a phase 3A focused on scaling constellation production capacity and delivering data services to users. This value of this phase is 3.3 MEUR (approx. 35.8 MSEK), of which the UK Space Agency, through the ESA's Pioneer Partnership Projects, will contribute 1.6 MEUR (approx. 17.9 MSEK).
2022-11-02 AAC Clyde Space AB (publ)
On Friday November 4, the Swedish spacecraft MATS, carrying AAC Clyde Space solutions, is planned to launch onboard a Rocket Lab Electron launch vehicle from the Mhia Peninsula, New Zealand.
2022-10-12 AAC Clyde Space AB (publ)
AAC Clyde Space's has shipped the small satellite IOD-3 Amber™ to the launch site Cornwall Spaceport where it has been prepared for launch on a Virgin Orbit launch vehicle, the first ever launch from UK soil. The launch is planned to take place before year-end.
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