Satellite Solutions Worldwide Group PLC (LON:SAT), which specialises in rural and last-mile super-fast broadband, said it is on target to reach 100,000 customers by the year-end as it revealed the financial boost given by the recent round of acquisitions.
It has made three buys across two existing hubs, which have helped boost revenues to £20.6mln in the six months ended May 31 from £5.7mln previously. Recurring sales were £19.4mln, while like-for-like top line growth was a steady 13%.
The company posted underlying earnings (EBITDA) of £2mln for the period, compared with a loss £500,000 this time last year.
The firm has a revolving credit facility of £5mln, which it can deploy for further purchases and to fund its working capital requirements.
Deals will help get the company across the 100,000 customer threshold, although it shouldn’t take much to hit that number as SSW’s subscriber base currently stands at around 90,000.
“Trading in the period was in line with management's expectations; I am pleased that we are seeing accelerating customer sign up, higher retention rates and increased data demands,” said chief executive Andrew Walwyn.
“I believe these growth trends will continue as demand for digital services shows no sign of stopping.
“[The first half] has been about consolidating our acquired customer base and integrating systems across our networks. This momentum is continuing into the second half and we remain firmly on track to reach our target of 100,000 customers by year end.”
CEO comfortable with City forecasts
There were a number of significant landmarks passed after the period-end including the £8mln share placing that bankrolled the acquisition of wireless provider Quickline Communications.
CEO Walwyn said business had made a good start to the second half of 2017, with continued double digit like-for-like revenue growth for the two months to July 2017.
“We are continuing to evaluate all operational aspects of our businesses, particularly in driving improvements in gross margins and overhead efficiencies in the short to medium term,” he added.
“We are comfortable with market expectations for the full year.”
The shares, up 7% in the last 12 months, marked time at 7.55p a share.