(SGH.L) SatCom Group Holdings PLC Buy/Sell

RNS Number : 4888C
  SatCom Group Holdings plc
  13 November 2009
   

    
 Press Release   13 November 2009

SatCom Group Holdings plc

("SatCom" or "the Group")

Preliminary Statement of Results for the Year Ended 30 June 2009

SatCom Group Holdings plc, a distributor of satellite communications, announces its unaudited preliminary results for the year ended 30 June 2009.  

Financial Highlights 

 *  Turnover increased 43% to US$103 million (FY 2008: US$72.1 million)
 *  Group EBITDA increased by 13% to US$6.8 million (2008: US$6 million)
 *  Basic EPS  increased by 11.3% to 6.87 cents (2008: 6.17 cents)
 *  Final dividend proposed of 0.50 cents per share (2008: 0.40 cents). 

Operational Highlights 

 *  Addition of Inmarsat's Fleet Broadband to Company portfolio
 *  Investment in improved customer service via investing in a new facility in

Australia and relocating our 24/7 customer service centre and merging it

with that of SDN.

Chairman and Chief Executive Officer's Statement

HIGHLIGHTS

The Group has once again performed strongly, with revenues increasing in spite of the global downturn, though the economic climate remains challenging. However, the Mobile Satellite Services (MSS) sector continues to be both resilient and dynamic and looking forward, the Group is well positioned to take advantage of this.

The requirement for ever-increasing data speeds, both on land and at sea, has led to increased demand for both mobile and fixed satellite services and we have now added Inmarsat's Fleet Broadband to our portfolio, whilst our investment in the VSAT business via our subsidiary SDN, continues to bring returns. 

In pursuit of ever-better customer service in the markets we serve, the Group has continued its international expansion, investing in a new facility in Australia and relocating our 24/7 customer service centre and merging it with that of SDN. We have also invested in communications infrastructure to ensure that all Group locations are fully interconnected by a high-speed global network.

The attached accounts of SatCom Group Holdings Plc ("SatCom" or the "Group") show a significant year of revenue growth and continued growth in profitability. In the last year the Group has concentrated on integrating and growing the business during the difficult financial times of 2009. 

FINANCIAL PERFORMANCE

I am pleased to report that the Group's results show increases across the board when compared with 2008 numbers. The Group's turnover showed an increase of 43% to $103 million with both Mobile Satellite Services ("MSS") and VSAT sectors contributing strongly. The MSS sector showed growth in broadband products in both maritime and land based services. As expected, the blended gross profit margin reduced from 22.5% to 18.8% due to the increase in revenue from US Government contracts which is at lower margins. Overheads increased by 28%, due to a full year of SDN costs being included (2008: 2 months only). The Group EBITDA has increased by 13% to $6.8 million (2008: $6.0 million).

The basic earnings per share has increased by 11.3% to 6.87 cents (2008: 6.17 cents) and diluted earnings per share has increased by 14.6% to 6.75 cents (2008: 5.89 cents). The percentage increase in earnings per share has been affected by the increase in average number of shares in issue for the year as set out in Note 3 to these accounts. SatCom continues its progressive dividend policy and it is the Board's intention to propose a final dividend of 0.50 cents per share (2008: 0.40 cents). This dividend when added to the interim dividend paid in April 2009 will provide total income of 0.75 cents per share (2008: 0.60 cents) representing a 25% increase over 2008.

The Group continues to invest in the IT involved in delivering higher quality service to customers globally through our integrated billing system and global broadband infrastructure.  

In June 2009, the Group negotiated new facilities with HSBC which were used to redeem Convertible Unsecured Loan Stock totalling £3,000,000 and US$600,000. 

STRATEGY AND PROSPECTS

We have continued to develop our broadband range of products and services in both the MSS and VSAT sectors and expect these sectors to continue to grow. The Group is investing in value added products to complement these broadband products.

SatCom continues to look at possible strategic acquisitions if and when opportunities arise. 

We thank the Group's employees around the world for their efforts in the last year and also thank our customers for their business and look forward to working with them in 2010.

RICHARD VOS                                MARK WHITE

CHAIRMAN                                 CHIEF EXECUTIVE OFFICER

      For further information:
 SatCom Group Holdings plc
 Mark White, Chief Executive Officer   Tel: +44 (0) 1722 439 206
 mark.white@satcomgroup.com                 www.SatComgroup.com 

 Martin Ward, Chief Financial Officer  Tel: +44 (0) 1722 439 201
 martin.ward@satcomgroup.com                www.SatComgroup.com 

 Arden Partners plc 
 Fred Walsh / Matthew Armitt    Tel: +44 (0) 207 398 1651
 fred.walsh@arden-partners.com   www.arden-partners.co.uk

Media enquiries:
 Abchurch
 Heather Salmond / Mark Dixon    Tel: +44 (0) 20 7398 7729
 mark.dixon@abchurch-group.com     www.abchurch-group.com 

      

Consolidated income statement for the year ended 30 June 2009

                                                      2009        2008
                                                     $'000       $'000
 Revenue
 Continuing operations                             103,728      72,070

 Group revenue                                     103,728      72,070
 Cost of sales                                    (84,195)    (55,825)

 Gross profit                                       19,533      16,245
 Administration expenses                          (13,729)    (10,731)

 Operating profit
 Continuing operations                               5,804       5,514

 Group operating profit                              5,804       5,514
 Interest receivable and similar income                  5          81
 Finance costs                                     (1,043)       (998)
 Profit on ordinary activities before taxation       4,766       4,597
 Taxation                                            (668)       (918)
 Profit for the financial year                       4,098       3,679

 Attributable to:
 Equity holders of the parent company                4,098       3,679
                                                     4,098       3,679

 Earnings per share
 Basic                                          6.87 cents  6.17 cents
 Diluted                                        6.75 cents  5.89 cents

There were no recognised gains or losses other than those shown in the consolidated income statement.

Consolidated balance sheet as at 30 June 2009

                                         2009      2008
                                        $'000     $'000
 Assets

 Non-current assets

 Goodwill                              18,739    18,045
 Intangible fixed assets                2,831     1,406
 Property, plant and equipment          2,709     1,775
                                       24,279    21,226
 Current assets

 Inventories                            5,880     5,475
 Trade and other receivables           19,307    17,523
 Bank balances and cash                 2,774     2,097
                                       27,961    25,095
 Current liabilities
                                        3,599       658
 Financial liabilities
 Convertible unsecured loan stock       1,223     6,451
 Trade and other payables              21,417    19,277
 Current tax                            1,442     1,028
 Obligations under finance leases         143       197
                                       27,824    27,611
 Net current (liabilities) / assets       137   (2,516)

 Non-current liabilities
 Financial liabilities                  7,930     4,977
 Convertible unsecured loan stock           -       898
 Obligations under finance leases          76       137
                                        8,006     6,012

 Net assets                            16,410    12,698

 Shareholders' equity
 Share capital                          6,053     6,053
 Share premium account                  4,845     4,845
 Merger reserve                      (10,884)  (10,884)
 Retained profits                      16,396    12,684

 Total shareholders funds              16,410    12,698
                                       16,410    12,698

Consolidated statement of changes in equity for the year ended 30 June 2009

                                 Share Capital  Share Premium   Merger reserve       Contingent  Retained profits   Total
                                         $'000           $'000           $'000    Share Capital             $'000   $'000
                                                                                          $'000
 Restated Balance at 30 June             6,053           4,845        (10,884)              500             9,321   9,835
 2007

 Changes in Equity for 2008
 Profit for the year                         -               -               -                -             3,679   3,679
 Dividends paid                              -               -               -                -             (316)   (316)
 Adjustment to contingent share              -               -               -            (500)                 -   (500)
 capital for consideration paid
 in cash 

 Balance at 30 June 2008                 6,053           4,845        (10,884)                -            12,684  12,698

 Changes in equity for 2009

 Profit for the year                         -               -               -                -             4,098   4,098
 Dividends paid                              -               -               -                -             (386)   (386)

 Balance at 30 June 2009                 6,053           4,845        (10,884)                -            16,396  16,410

       
               
      Consolidated cash flow statement for the year ended 30 June 2009

                                          2009                    2008
                                   $'000        $'000      $'000          $'000
 Net cash generated from                          5,677                   4,585
 operating activities

 Cash flows from investing
 activities

 Interest received                     5                      81
 Purchase of intangible fixed    (1,854)                   (673)
 assets    
 Purchase of property, plant     (1,480)                   (366)
 and equipment
 Acquisition of subsidiary (net    (694)                 (4,649)
 of cash acquired)

 Net cash used in investing                     (4,023)                 (5,607)
 activities

 Cash flows from financing
 activities

 Dividends paid                    (386)                   (316)
 Redemption of Convertible       (6,257)                       -
 Unsecured Loan Stock ("CULS")
 Increase / (Decrease) in short      488                   (267)
 term borrowing
 Net increase in long term         5,394                   2,885
 borrowing
 Capital element of finance        (216)                   (142)
 lease rental payments

 Net cash generated by                            (977)                   2,160
 financing activities
                                                    677                   1,138
 Net increase (decrease) in
 cash and cash equivalents
 Cash and cash equivalents at                     2,097                     959
 beginning of year

 Cash and cash equivalents at                     2,774                   2,097
 end of year

      NOTES

1.    This preliminary announcement was approved for issue by a duly appointed and authorised committee of the Board of Directors on 12 November 2009.

2.    Basis of preparation

The financial information set out in this announcement is unaudited and does not constitute statutory financial statements for the year ended 30 June 2009 or 30 June 2008 within the meaning of Section 434 of the Companies Act 2006. The audit report on the full financial statements has not yet been signed.

3.    Earnings per share
        

The calculations of basic and diluted earnings per share are based on the following data:

                                                           2009           2008
                                                          $'000          $'000

 Profit for the purpose of basic earnings per             4,098          3,679
 share
 Effect of dilutive potential ordinary shares:
 Interest on convertible loan notes                          42            421

 Profit for the purposes of diluted earnings per          4,140          4,100
 share
                                                  No. of shares  No. of shares

 Weighted average number of ordinary shares in       59,628,644     59,628,644
 issue during the year

 Effect of dilutive potential ordinary shares:
 Staff options                                          510,305        306,278
 Convertible loan notes                              1,153, 846      9,615,685

 Diluted weighted average number of ordinary         61,292,795     69,550,607
 shares in issue during the year

      4.    Segmental analysis

For management purposes, the group is currently organised into 4 geographical operating divisions - European Union, United States, Asia and Rest of World. These divisions are the basis on which the Group reports its primary segment information.

        Segmental information on a Group basis is set out below:
             
                                       European Union              United States             Asia             Rest of World        Group
                                    2009      2008       2009       2008        2009       2008      2009      2008        2009        2008
                                  $000's    $000's     $000's     $000's      $000's     $000's    $000's    $000's      $000's      $000's
 Revenue

 Revenue by 
 destination

 Sales to third
 parties                          14,418    12,526     64,507     36,073      18,109     18,504     6,694     4,967     103,728      72,070
                                --------  --------  ---------  ---------  ----------  ---------  --------  --------  ----------  ----------

 Revenue by origin
 Total sales                       6,403    13,619     58,065     27,757      62,207     44,990     1,873     2,409     128,548      88,775
                                 (3,213)   (6,441)    (1,120)               (20,248)    (8,289)     (239)      (34)    (24,820)    (16,705)
 Inter-segment sales

                                                                 (1,941)
                                --------  --------  ---------  ---------  ----------  ---------  --------  --------  ----------  ----------
 Sales to third parties            3,190     7,178     56,945     25,816      41,959     36,701     1,634     2,375     103,728      72,070
                                --------  --------  ---------  ---------  ----------  ---------  --------  --------  ----------  ----------

 Results

 Segment profit                    1,042       136      1,121        977       4,198      4,473     (348)       147       6,013       5,733
                                --------  --------  ---------  ---------  ----------  ---------  --------  --------
 Common costs                                                                                                             (209)       (219)
                                                                                                                       --------   ---------
 Operating                                                                                                                5,804       5,514
 profit

 Net interest                                                                                                           (1,038)       (917)
                                                                                                                       --------   ---------
 Group profit before taxation
                                                                                                                          4,766       4,597
                                                                                                                       --------   ---------
 Other 

 Capital additions                   366       122        434        184       2,635        846         -         -       3,435       1,152
                                     139       150        360        151         576        205         1         -       1,076         506
 Depreciation and amortisation
 Net assets

 Segment net assets                1,009     1,010      (820)    (1,188)      12,587      9,690     (346)       111      12,430       9,623
                                --------  --------  ---------  ---------  ----------  ---------  --------  --------
 Unallocated                                                                                                              3,980       3,075
 assets
                                                                                                                       --------   ---------
 Total net assets                                                                                                        16,410      12,698
                                                                                                                       --------    --------

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RNS Number : 0250B SatCom Group Holdings plc 19 October 2009

19 October 2009

SatCom Group Holdings Plc

("SatCom" or "the Group")

Notification of results and trading update

SatCom Group Holdings Plc (AIM: SGH), a leading reseller of mobile satellite communications equipment and airtime, is pleased to announce that it intends to release its preliminary results for the year ended 30 June 2009 on 13 November 2009. SatCom currently anticipates that revenues for the full year will be slightly ahead of market expectations. The Group's adjusted profit before tax figure is anticipated to be significantly ahead of the same figure in 2008, although marginally below current expectations.

RNS Number : 6271X SatCom Group Holdings plc 18 August 2009

18 August 2009

SatCom Group Holdings Plc

("SatCom" or "the Group")

Holdings in Company

SatCom Group Holdings Plc (AIM: SGH), a leading reseller of mobile satellite communications equipment and airtime, has been informed that Henderson Global Investors shareholding in SatCom now falls below 3 per cent. and as such Henderson Global Investors no long has a notifiable interest in SatCom.