11 July 2012 – trading update

A trading update has been provided for the year ended 30 June, showing ongoing progress.  Total revenues and operating income for the 12 months are expected to be £17.8m (2011: £6.1m).  Binding contracts for the sale of capacity in future periods have risen to £246m, an increase of £33m since the end of April.  The pipeline of potential sales stands at £502m.

The company estimates that it needs to add approximately £11m per month to its backlog in order to meet its objectives of selling all the capacity of HYLAS 1 within three years of service launch and HYLAS 2 within four years of service launch.  Having exceeded this target in the eight months since it was set, this appears to be realistic.  The Company’s second satellite, HYLAS 2, has completed its testing and has been shipped to French Guiana prior to its launch on 2 August 2012.  We are impressed with progress to date and rate the shares as a BUY.