AAC Clyde Space targets profitable growth with expansion of its own satellite fleet
The space technology and services company AAC Clyde Space AB aims to grow its Space Data as a Service (SDaaS) business, by accelerating the development of its next generation space data services. It is to finance such an acceleration, that the Board of Directors resolved on a rights issue as communicated on June 6, 2023.
The acceleration will take place by advancing the xSPANCION project at a higher pace to enable the Group to reap specific business opportunities in earth observation farming data, which are arising as increasingly Digital Agriculture platforms and governments adopt satellite data and some of the older generation satellites used to deliver this data, are being phased out. With the satellites in the xSPANCION project, AAC Clyde Space can deliver multispectral data for the agricultural sector at a very competitive price, with margins that are higher than in other parts of its business.
"A very attractive business opportunity has presented itself as some key older satellites are being retired and we see an increased use of this data by Digital Agriculture platforms and governments. With the xSPANCION project in its later stages, AAC Clyde Space is well positioned to take advantage of the situation for the benefit of both data users as well as the Group and its shareholders," says AAC Clyde Space CEO Luis Gomes.
AAC Clyde Space has a strategic ambition to increase its operations in SDaaS, a segment with net margins of approximately 30-40 per cent. In 2022, SDaaS generated Group revenues of SEK 16.9 million from four satellites while the SDaaS order stock at year-end amounted to SEK 166.8 million. Over the next 18 months, AAC Clyde Space aims to add another seven satellites to its proprietary constellation, transforming the company into a space-based data company. In parallel, the company is building the four new satellites to provide multispectral data.
"This transformation is key for us to deliver on our targets of continued positive EBITDA in the coming years, and SEK 500 million revenue 2024. We expect 2023 to be a value inflection point in our strategy of profitable growth", says Luis Gomes.
In the xSPANCION project, a total of 10 novel spacecraft will be manufactured, of which four will be launched within the project's framework. The UK Space Agency, through the ESA's Pioneer Partnership Projects, is co-funding the Group's investments in the project. In line with previous plans, the remaining satellites in the xSPANCION project will be sold to customers for their choice of use and payload.
On June 6, 2023, AAC Clyde Space announced a rights issue to raise a maximum of SEK 73.7 million before transaction costs, subject to approval by an extraordinary shareholders meeting on June 26, 2023. After the announcement, the Company has received questions from several shareholders. In response to these questions, AAC Clyde Space would like to clarify that the business, according to the current business plan, is financed 12 months into the future. The board and management have committed to subscribe for shares for a total of SEK 4.7 million in the rights issue. Dino Lorenzini will carry his pro rata share.