Satellite Solutions Wldwide Grp PLC Trading and Acquisitions Update (3438Q)

TIDMSAT

RNS Number : 3438Q

Satellite Solutions Wldwide Grp PLC

29 November 2016

Satellite Solutions Worldwide Group plc

("SSW" or the "Group")

Trading and acquisitions update

Trading ahead of expectations

Satellite Solutions Worldwide Group plc (AIM: SAT), the global communications company specialising in rural and last mile broadband, provides a trading update for the financial year ended 30 November 2016.

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 expectations.

During the year, the Company completed six acquisitions, secured GBP12m of new unsecured convertible debt funding from the Business Growth Fund and completed a successful equity placing, raising GBP12.1m to fund acquisitions.

Acquisition update

The on-boarding and integration of Avonline, Breiband and SkyMesh, which were acquired in July and August 2016, is on track. 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.

Andrew Walwyn, CEO at SSW commented, "The rapid and successful integration of the acquisitions which we have completed around the world, both big and small, show the robustness of our systems and management's ability to control growth. Our focus on increasing revenues, cost control and, most importantly, cash generation, is already starting to be shown in these results.

"We have enjoyed a tremendous 2016: customer numbers have more than trebled, new products have increased the scale of the opportunity, and we have started to create a truly global operating footprint. Given the plans that we have in place, I look forward to an even better 2017."

For further information:

 
 Satellite Solutions Worldwide    www.satellitesolutionsworldwide.com 
  Group PLC 
 Andrew Walwyn, Chief Executive   Via Walbrook PR 
  Officer 
 
 Strand Hanson (Nominated         Tel: [phone] 
  Adviser)                         3494 
 Andrew Emmott / Ritchie 
  Balmer 
 Arden Partners plc (Broker)      Tel: [phone] 
                                   5900 
 Catherine Miles / James 
  Felix / Ciaran Walsh 
 Oakley Capital (Financial        Tel: [phone] 
  Adviser) 
 Chris Godsmark / Victoria 
  Boxall 
 
 Walbrook PR (PR advisers)        Tel: [phone] 
                                   8780 
 Paul Cornelius / Nick Rome       or [e-mail] 
 

About SSW

Established in 2008, SSW specialises in the provision of rural and last mile broadband services with customers across 32 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.

Last year's listing on the London Stock Exchange together with the support from Business Growth Fund and the investor community this year 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 its preferred acquisition partners. The Directors of SSW believe there is a major opportunity to continue this organic growth and as appropriate consider acquisitions throughout the fragmented European satellite broadband market 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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November 29, 2016 02:00 ET (07:00 GMT)