Pentagon supplier targets AIM
May 31 2005
A leading reseller of satellite telephones, predominantly used by the US military in conflict, is plotting a path to AIM. UK-based SatCom plans to join the market this month, with a value of £15 million, primarily in order to acquire competitors in this fragmented sector.
In its present state, SatCom has been operating for four years. The company, set up by chief executive Mark White, has seen revenues grow from $6.4 million (£3.5 million) in the year to June 2002 to $37.1 million in 2003-04.
Ernst & Young is nominated adviser and Teather & Greenwood broker to the company, which notched up $2.5 million in earnings before interest, tax, depreciation and amortisation last year. In the eight months to February, revenues hit $29.6 million, producing a $1.9 million operating profit.
White, with 15 years’ industry experience, says ‘we don’t want that much money at the moment. However, we may raise funds when we make an acquisition,’ adding that it was ‘too early to say’ when that might be.
A ‘one-stop shop’, SatCom supplies terminals and airtime from all three of the major satellite operators: Thuraya, Iridium and Inmarsat, which is used by the US Government, SatCom’s major customer. White says a terminal costs $750 and airtime is charged at 58 cents a minute for communications between satellite devices.
Data communications is becoming an increasingly important sector and the arrival of Thuraya has caused prices to ease in recent years. Users can now buy handheld sets.
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