GOMspace - Slow start to FY’21

Q1’21 sales down 13% due to few project deliveries. FY’21 Guidance reiterated, albeit strong order backlog We expect a negative share reaction Q1’21 sales negative impacted by component shortage GomSpace reported sales of SEK 35 (ABGSCe SEK 52m, cons. SEK 49m). From speaking with the CFO, we understand that Q1’21 has been negatively impacted by accruals and few projects being finalized and accounted for in Q1.

This is due to strong Q4’20 deliveries and a component shortage which has pushed some project deliveries. The company is trying to mitigate the risk of component shortage by increasing their number of suppliers. Furthermore some of the larger projects which were delivered in Q1, had been revaluated in terms of the required engineering (requiring more hours, but revenue for the project was unchanged), which lead to a significant dilution of the gross margin for the quarter (~3% down from 24% last year).

Order’s received in Q1’21 were up 29% GomSpace reported order intakes in Q1’21 of SEK 24m, up 29% y-o-y. They furthermore reported an order backlog of SEK ~190m at the end of March 2021, however, we also know they received the unseen labs order in April of SEK 35. 5m, indicating that GomSpace could be on track for a strong, but back-end loaded FY’21.

Overall, a slow start to Q1’21 While quarterly fluctuations are more or less customary at the current stage of which we see GomSpace (with quarterly report being very dependent on project deliveries in that given quarter), we do expect the share to see a negative reaction based on the Q1’21 report.