Source - RNS
RNS Number : 2218J
Satellite Solutions Wldwide Grp PLC
27 June 2017


Satellite Solutions Worldwide Group plc

("SSW" or the "Group")


Trading Update


Satellite Solutions Worldwide Group plc (AIM: SAT), the global communications company specialising in rural and last mile broadband, provides a trading update for the six month period ended 31 May 2017.


Trading in the period was in-line with management's expectations with continued strong growth in the customer base and the integration of recent acquisitions as part of the Group's growth strategy.



·  Total customers increased 14% since the start of the year to 90,000

·  Total revenue increased 261% to £20.6m

Recurring revenue* increased 281% to £19.4m, representing 94% of total revenue

Like for like organic revenue growth** of 13.1%

·  Gross margin expanded by 750 basis points to 37.0%


Trading Update

Group revenue increased by 261% to £20.6m over the same period in the prior year (H1 16: £5.7m).  Recurring revenue* increased by 281% to £19.4m (H1 16: £5.1m), representing approximately 94% of total revenue. Like for like organic revenue growth** was 13.1% in H1 17 compared to the same period in the prior year reflecting a solid performance from the core business. Furthermore, the contributions from recent acquisitions have enabled SSW to consolidate its position in various growth markets such as the UK, Australia, France and Norway.


The Group has continued to make good progress in expanding its customer base, driven by the impact of acquisitions and net additions to the core business. As a result, total customers have increased from 79,000 at the start of the year to approximately 90,000 currently with progress across all of the Group's operating hubs in the period, with particularly strong customer growth in Australia.


Gross margin was 37.0% in the period (H1 16: 29.5%, FY 16: 34.0%) due to the improved revenue mix across the Group's hubs and EBITDA*** was in-line with management's expectations.


Net debt increased from £9.4m as at 31 December 2016 to £13.2m as at 31 May 2017, primarily as a result of the acquisitions made in the period of BorderNET, NextNet and ASDN, financed by the Group's debt facilities, and continued investment in the Group's hubs. As at 31 May 2017 the Group had a cash balance of £2.0m and £1.5m of headroom in the HSBC facility.



The Board is confident that the solid performance of the core business and recently completed acquisitions will continue for the remainder of the current financial year and the outlook is encouraging. The Group continues to evaluate acquisition opportunities as part of its growth strategy and is confident of achieving its previously stated target of 100,000 customers by year end.


Andrew Walwyn, CEO of SSW commented, "Trading in the period was strong due to accelerated customer sign up, higher retention rates and increased data demands of existing customers. I believe these growth trends will continue as consumers continue to demand ever more digital services in the future. The first half of the year has been mainly about consolidating our acquired customer base and integrating systems across our networks. This momentum is expected to continue into the second half, and I look forward to updating shareholders in due course."


* Recurring revenue is defined as revenue generated from the Group's broadband airtime and data contracts which are typically two years or more in duration.

** Organic revenue growth compares current and prior period revenue treating acquired businesses as if they had been owned for all of both periods.

*** Earnings before interest, tax, depreciation and amortisation.



For further information:


Satellite Solutions Worldwide Group PLC

Andrew Walwyn, Chief Executive Officer

Via Walbrook PR



Numis Securities (Nomad and broker)

Oliver Hardy (Corporate Advisory)

James Black / Jonathan Abbott (Corporate Broking)

Tel: +44 (0)20 7260 1000



Walbrook PR (PR & IR advisers)

Tel: +44 (0)20 7933 8780

Paul Cornelius / Nick Rome

or [email protected]



About SSW

Established in 2008, SSW specialises in the provision of rural and last mile broadband services with customers across 31 countries. SSW's solutions target B2C and B2B users, and the Company has products developed specifically for the broadcasting, Police and Military markets. SSW operates a number of brands such as Europasat (Europe), Breiband (Nordics) and SkyMesh (Australia) and is now the fourth largest independent provider of satellite broadband internet services in the world.


The 2015 listing on the AIM market of the London Stock Exchange together with the support from Business Growth Fund and investors in 2016 have put the Company in an excellent position to continue strong organic growth in its subscriber base and recurring revenues as well as execute on preferred acquisitions. The Directors believe there is a major opportunity to continue this organic growth strategy and as appropriate consider acquisitions throughout the fragmented European satellite and fixed wireless broadband markets and further afield.


Working closely with satellite owners and operators, SSW targets customers in the 'digital divide' with solutions that deliver up to 30 Mbps satellite based broadband services or fixed wireless to almost any premises, whether residential, commercial or industrial across Europe and Australia, irrespective of location or local infrastructure.


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