GOMspace - Major order win – with strong future potential
GomSpace wins Indra project worth SEK ~ 147m Ideal order win; strong customer and future potential Support our expectations of FY’21 guidance upgrade SEK ~147m split over next three year (likely 25%, 50%, 25%) GomSpace won a major order, with Indra (leading global technology and consulting company) after ~2 year of working on securing the contract. The order, is exactly the kind of orders, we like to see GomSpace win at the current stage of the business, as it is from a quality customer and provide strong future potential. The order is for three satellites for a large scale development and demonstration project, with the first two being scheduled for delivery in 2022 and the last in 2023. As the project, is a demonstration project, GomSpace is developing the technology required by Indra and therefor the order is very engineering heavy, meaning a lower margin vs.
product sales (however, we do not expect a material margin dilution, as the majority of projects currently are engineering heavy). In terms of revenue, we estimate that ~25-30% will be recorded in FY’21 (as the engineering work has already commenced), ~50% in FY’22 and ~20-25% in FY’2023. Demonstration project – could lead to further orders With the current order, only covering a demonstration of what could potentially be a larger project, we see great potential for potential future orders from Indra to GomSpace.
These potential orders going forward would also potentially be higher margin, product orders, as the technology would be developed, meaning GomSpace would need a much lower degree of engineering to fulfill these orders. FY’21 guidance upgrade expected The new SEK ~147m, order, of which we estimate SEK ~ 37-44m will be registered in FY’21, has not been incorporated into the current FY’21 guidance, standing at FY’21 revenues of 210-235m (ABGSCe SEK 245m, cons. 231m).
We therefor continue to see that the following three elements strongly support an FY’21 guidance upgrade 1) the repor.
