12 Mar 20. Melrose’s GKN transformation pays off. Industrial turnaround specialist Melrose (MRO) follows a ‘buy, improve, sell’ strategy. The idea is to purchase underperforming manufacturing businesses, invest in them to boost productivity and then dispose of them for a profit, typically three to five years later. It acquired engineering company GKN for £8.1bn in 2018, inheriting £629m-worth of lossmaking contracts. Operational efficiencies and price increases saw these losses drop 11 per cent last year and this progress is reflected in Melrose’s full-year numbers. The group swung to a statutory pre-tax profit in 2019, while adjusted operating profit increased by over a third to £1.1bn, exceeding analysts’ expectations.
Despite the grounding of Boeing’s 737 Max jet, GKN aerospace sales rose 7 per cent and adjusted operating profit was up a quarter to £409m on the back of a 1.4 percentage point margin expansion. The North American business, which accounts for almost two-thirds of aerospace revenue, moved from a £43m loss in 2017 to a “small” profit last year. While the order backlog suggests continuing opportunities in civil aerospace, defence could become a more significant part of the sales mix as rising global military spending underpins demand.
Automotive and powder metallurgy sales were hit by the global downturn in the automotive market, with sales down by 6 per cent and 10 per cent, respectively. Despite the challenging backdrop, good cost control lifted the automotive margin by 0.3 percentage points to 7.7 per cent, closer to its 10 per cent target. The group has 11 automotive factories in China and so expects “some sort of hit” this year from the coronavirus outbreak. Around 10 per cent of manufacturing is done in China, of which 5 per cent remains in the country.
Free cash flow from continuing operations jumped by almost three-quarters to £290m during the year. Meanwhile, including £582m in lease liabilities, net debt dropped to £3.3bn – equivalent to 2.25 times adjusted cash profits (Ebitda).
House broker Investec expects adjusted pre-tax profit of £914m and EPS of 14.5p in 2020, rising to £1bn and 16.5p in 2021.
IC View
Melrose has been caught up in the wider coronavirus sell-off, but we continue to like its focus on eking out operational improvements regardless of market conditions. It has also proved more resilient in the 737 Max saga than some other industrial suppliers. Our buy tip is based on the long-term story, which we think remains intact despite the current market volatility. Buy.
Last IC View: Buy, 196.2p, 05 Sep 2019. (Source: Investors Chronicle)
12 Mar 20. Defend returns with Chemring. True, the description of Chemring as defensive may seem somewhat at odds with a tumultuous five years marked by profit warnings, a major rights issue, a Serious Fraud Office investigation and the temporary closure of a manufacturing facility following an accident. However, the shares’ strong momentum in the 12 months up to the recent market sell-off points to a marked improvement in prospects.
Chemring is pursuing a strategy of ‘less is more’. It has sold and closed a number of low-margin commodity businesses. Management is focusing on areas where it believes Chemring has a competitive advantage based on its intellectual property or where it is the sole supplier. Last year, operations were reorganised into two divisions. The sensors and information division accounted for 39 per cent of ongoing sales and 49 per cent of profit. It focuses on detecting explosive, biochemical and cyber threats. The lower-margin countermeasures and energetics division is focused on missile protection and rocket components.
While reported 2019 revenue was almost two-fifths lower than 2017 due to divestments, underlying operating profit was only down one-fifth, which reflected significant margin gains. Margin improvement is forecast to continue (see chart).
Improved working capital management has also helped reduce finance costs, which dropped from £6.1m to £4.6m last year. Meanwhile, Chemring has substantially reduced exposure to the Middle East, which has been the source of problems in the past.
The company has said it has yet to see any material impact from coronavirus, although it could cause supply-chain disruption. But, this aside, there are a number of reasons to feel positive about the outlook. Work from some major programmes (HMDS explosive detection and F-35 missile defence) is taking off, while prospects for the company’s Roke cybersecurity business look strong. Research firm Statista forecasts the global cybersecurity market to grow from $184bn (£141bn) to $248bn by 2023.
Chemring is also investing £50m in a Tennessee countermeasures facility, which underlines an anticipated pick-up in demand following a protracted lull since the withdrawal of troops from Iraq and Afghanistan. Meanwhile, the US Defense Authorization Act is expected to see budgets increase from $545bn this year to $747bn in 2024. The US accounts for 55 per cent of Chemring’s sales.
With 88 per cent of orders for 2020 secure, a focus on higher-margin work, and positive developments in end markets, we think investors would be well served to look beyond the possibility of coronavirus disruption. Priced at 16 times forecast earnings, the valuation does not look challenging to us. Buy.
IC View
With 88 per cent of orders for 2020 secure, a focus on higher-margin work, and positive developments in end markets, we think investors would be well served to look beyond the possibility of coronavirus disruption. Priced at 16 times forecast earnings, the valuation does not look challenging to us. Buy.
Last IC View: Buy, 202p, 16 Dec 2019. (Source: Investors Chronicle)
11 Mar 20. Magellan Aerospace Corporation Announces Financial Results. Magellan Aerospace Corporation (“Magellan” or the “Corporation”) released its financial results for the fourth quarter of 2019. All amounts are expressed in Canadian dollars unless otherwise indicated. The results are summarized as follows:
- Overview
A summary of Magellan’s business and significant updates
Magellan is a diversified supplier of components to the aerospace industry. Through its wholly owned subsidiaries, Magellan designs, engineers, and manufactures aeroengine and aerostructure components for aerospace markets, advanced products for defence and space markets, and complementary specialty products. The Corporation also supports the aftermarket through supply of spare parts as well as performing repair and overhaul services.
Magellan operates substantially all of its activities in one reportable segment, Aerospace, which is viewed as one segment by the chief operating decision-makers for the purpose of resource allocations, assessing performance and strategic planning. The Aerospace segment includes the design, development, manufacture, repair and overhaul, and sale of systems and components for defence and civil aviation.
Business Update
Magellan announced on January 13, 2020 an agreement with Collins Aerospace Systems for the supply of nose landing gear assemblies for the B737 aircraft. The assemblies comprised of complex machined titanium components will be delivered through 2024 from Magellan’s facility in Kitchener, Ontario. In order to provide the best solution for Collins Aerospace Systems, Magellan’s vertically integrated deliverable will utilize its global resources in Ontario, New York, India, and Poland.
- Results of Operations
A discussion of Magellan’s operating results for fourth quarter ended December 31, 2019
The Corporation reported revenue in the fourth quarter of 2019 of $246.7m as compared to $254.4 m in the fourth quarter of 2018. Gross profit and net income for the fourth quarter of 2019 were $34.0m and $9.4m, respectively, in comparison to the gross profit of $43.9m and net income of $29.6m for the fourth quarter of 2018.
Consolidated Revenue
Revenues in Canada increased 3.6% in the fourth quarter of 2019 as compared to the fourth quarter of 2018, primarily driven by increased volume for proprietary and casting products.
Revenues in United States decreased by 3.3% in the fourth quarter of 2019 compared to the corresponding period in 2018 when measured in Canadian dollars mainly due to volume decreases for single aisle aircraft and aeroengine parts, offset in part by higher spare sales.
European revenues decreased 9.9% in the fourth quarter of 2019 compared to the same period in 2018 primarily driven by lower repair and overhaul sales, volume decreases for wide-body aircraft and a slightly unfavourable foreign exchange impact.
Gross Profit
Gross profit of $34.0m for the fourth quarter of 2019 was lower than the $43.9m for the fourth quarter of 2018, while gross profit as a percentage of revenues was 13.8% for the fourth quarter of 2019, a decrease from 17.3% for the same quarter in 2018. The gross profit in the current quarter was mainly driven by volume decreases in certain programs, production inefficiencies in certain of our operating divisions, higher manufacturing costs and an accrual recorded in the fourth quarter in relation to the wind-down of the A380 program.
Administrative and General Expenses
Administrative and general expenses as a percentage of revenues were 6.3% for the fourth quarter of 2019, higher than 5.6% in the corresponding period of 2018. Administrative and general expenses of $15.5m in the fourth quarter of 2019 increased $1.2m as compared to the fourth quarter of 2018 due to higher employee related costs, additional costs related to the Corporation’s newly acquired businesses, lower rental income and higher repairs and maintenance in the Corporation’s new Mississauga facility.
Other
Other of $5.5m for the fourth quarter of 2019 consisted of $5.2m foreign exchange loss compared to $0.5m gain in the same period of 2018. The movements in balances denominated in foreign currencies and the fluctuations of the foreign exchange rates impact the net foreign exchange loss or gain recorded in a quarter. In the fourth quarter of 2018, the Corporation recorded a net gain of $9.7m related to prior acquisitions.
Interest Expense
Total interest expense of $1.2m in the fourth quarter of 2019 was higher than the $1.0m in the fourth quarter of 2018 mainly due to higher accretion charge for lease liabilities as a result of adoption of the new lease accounting standard, partially offset by decreased discount on sale of accounts receivable due to reduced level of receivables sold in the current quarter.
Provision for Income Taxes
Income tax expense for the three months ended December 31, 2019 was $2.3m, representing an effective income tax rate of 19.6% compared to 23.3% for the same period of 2018. The change in mix of income across the different jurisdictions in which the Corporation operates impacts the change in the effective tax rate and the current and deferred income taxes expenses. (Source: Google/https://business.financialpost.com/)
10 Mar 20. Parsons Delivers Strong Fourth Quarter and Full Year 2019 Results on Solid Revenue Growth.
Q4 2019 Financial Highlights:
– Revenue increases 12% from Q4 2018 to $1bn, a company record
– Strong revenue growth driven by Federal Solutions organic growth of 14%
– Net income increases 84% to $14m and net income margin increases 50 bps to 1.3%
– Adjusted EBITDA increases 62% to $88m and adjusted EBITDA margin expands 260 bps to 8.5%
– Achieved notable recognition for corporate social responsibility initiatives
Fiscal Year 2019 Highlights:
– Revenue increases 11% from fiscal year 2018 to $4bn, a company record
– Net income decreases 46% to $121m and net income margin decreases 320 bps to 3%
– Adjusted EBITDA increases 32% to $325m, and adjusted EBITDA margin expands 130 bps to 8.2%
– Completed two strategic Federal Solutions acquisitions; OGSystems and QRC Technologies
– Trailing 12-month book-to-bill ratio of 1.1x
– Won large contracts in growing and enduring markets
Parsons Corporation (NYSE: PSN) today announced financial results for the fourth quarter and year ended December 31, 2019.
CEO Commentary
“We had a strong finish to 2019 and ended the year with record revenue and profitability results, along with solid cash flow over the second half of the year,” said Chuck Harrington, Chairman and CEO of Parsons Corporation. “We are delivering on the plan we outlined at the time of our IPO. We achieved strong organic revenue growth in our Federal Solutions business, produced significant margin expansion across the enterprise, invested in our people and technology, and leveraged our strong balance sheet to complete two strategic acquisitions. These acquisitions provided us with differentiated technology solutions and contributed to increased win rates and our ability to win larger prime contracts. We are excited about our future given our Federal Solutions portfolio is aligned with the National Defense Strategy and our Critical Infrastructure portfolio leverages our technology and operational expertise to deliver a smarter, safer, and more sustainable future.”
Fourth Quarter 2019 Results
Total revenue for the fourth quarter of 2019 increased to $1bn, a 12% increase over the prior year period and represents a new company record. Operating income was relatively equal to the fourth quarter of 2018 despite an additional $17m of IPO-related long-term incentive compensation expenses and $9 m of increased acquisition-related intangible amortization expenses. Net income increased 84% over the prior year period to $14m, and net income margin increased 50 basis points to 1.3%. Diluted earnings per share (EPS) attributable to Parsons was $0.14 in the fourth quarter of 2019 compared to $0.10 in the fourth quarter of 2018.
Adjusted EBITDA including noncontrolling interests for the fourth quarter of 2019 increased 62% over the prior year period to $88m. Adjusted EBITDA margin increased 260 basis points to 8.5% due to higher margins in both business segments.
Adjusted EPS increased to $0.48, compared to $0.40 in the fourth quarter of 2018.
Fiscal Year 2019 Results
Total revenue for fiscal year 2019 increased to $4bn, an 11% increase over fiscal year 2018 and represents a new company record. Operating income decreased $113m in fiscal year 2019 primarily due to a portion of a non-recurring gain associated with a legal matter decided in the Company’s favor in fiscal year 2018, additional IPO-related long-term incentive compensation expenses, acquisition-related intangible amortization expenses and transaction-related costs, offset by income from acquisitions and increased margins on existing contracts. Net income decreased 46% over the prior year to $121 m, and net income margin decreased 320 basis points to 3%. Diluted earnings per share (EPS) attributable to Parsons decreased to $1.30 primarily due to the same factors as described above, additional shares issued in the Company’s IPO, and the remaining amount of income associated with the above mentioned legal matter. These factors were partially offset by income tax benefits associated with the establishment of $94 m of deferred tax assets during fiscal 2019 resulting from Parsons’ conversion from an S-Corporation to a C-Corporation and increased margins on existing contracts.
Adjusted EBITDA including noncontrolling interests for fiscal year 2019 increased 32% over the prior year period to $325m. Adjusted EBITDA margin increased 130 basis points to 8.2% due to higher margins in both business segments.
Adjusted EPS increased to $2.04, compared to $1.99 in fiscal year 2018.
Information about the Company’s use of non-GAAP financial information is provided on page eleven and in the non-GAAP reconciliation tables included herein.
Segment Results
Federal Solutions Segment
Fourth quarter 2019 revenue increased $98m, or 24%, compared to the prior year period. The increase was driven by organic growth of 14% and $40m from acquisitions.
Fourth quarter 2019 Federal Solutions Adjusted EBITDA including noncontrolling interests increased by $22m, or 102%, compared to the prior year period. Adjusted EBITDA margin increased to 8.5%, or by 330 basis points from the fourth quarter of 2018. The increases were driven primarily by contributions from our acquisitions and higher margin growth on existing contracts.
Fiscal year 2019 revenue increased $409m, or 28%, compared to the prior year period. The increase was driven by organic growth of 6% and $317m from acquisitions.
Fiscal year 2019 Federal Solutions Adjusted EBITDA including noncontrolling interests increased by $47 m, or 39%, compared to fiscal year 2018. Adjusted EBITDA margin increased to 9.0%, or by 70 basis points from fiscal year 2018. The increases were driven primarily by business acquisitions, an increase in business volume on existing contracts, and higher profit margins driven by significant incentive fee recognition.
Critical Infrastructure Segment
Fourth quarter 2019 revenue increased $11m, or 2%, compared to the prior year period. The increase was driven primarily by growth on existing contracts.
Fourth quarter 2019 Critical Infrastructure Adjusted EBITDA including noncontrolling interests increased by $12m, or 36%, compared to the prior year period. Adjusted EBITDA margin including noncontrolling interests increased to 8.4%, or by 210 basis points from the fourth quarter of 2018. These increases were driven primarily by improved contract performance execution and cost reductions.
Fiscal year 2019 revenue decreased by $15m, or 1%, compared to the prior year period. The decrease was due to $55 m of revenue recorded in the second quarter of 2018 as a result of the aforementioned non-recurring legal matter decided in the Company’s favor. Excluding the legal matter, revenue increased by 2% primarily due to growth on existing contracts.
Fiscal year 2019 Critical Infrastructure Adjusted EBITDA including noncontrolling interests increased by $32 m, or 25%, compared to fiscal year 2018. Adjusted EBITDA margin including noncontrolling interests increased to 7.5%, or by 160 basis points from fiscal year 2018. These increases were driven primarily by additional business volume, a decrease in IG&A, primarily due to cost reductions, and an increase in equity in earnings of unconsolidated joint ventures.
Fourth Quarter 2019 Key Performance Indicators
- Book-to-bill ratio: 0.9x on net bookings of $903m. Trailing twelve-month: 1.1x on net bookings of $4.2bn.
- Total backlog: $8bn, a 1% increase over the fourth quarter of 2018.
- Cash flow from operating activities: Fourth quarter 2019 cash flow of $90m was less than anticipated, but the Company generated strong cash flow of $269m in the second half of 2019. For fiscal year 2019, cash flow from operating activities was $220m compared to $285m in fiscal year 2018.
- Debt: total and net debt were $249m and $67m, respectively. The Company’s net debt to trailing twelve-month adjusted EBITDA leverage ratio at the end of the fourth quarter of 2019 was 0.2x. The Company defines net debt as total debt less cash and cash equivalents.
Fourth Quarter 2019 Significant Contract Wins
Parsons continued to gain momentum in the cyber market. One quarter after winning its largest single award cyber contract in its history, the Company was awarded four additional strategic cyber contracts. Parsons also was awarded two large Critical Infrastructure joint venture projects.
- Awarded a $90m cyber contract with a classified customer.
- Awarded three additional cyber contracts valued at $77m in total for classified and unclassified federal customers to provide various services including secure and resilient architecture development, secure communications, cyber risk and threat assessment for the enhancement and resiliency of weapon systems and special security capabilities required in dynamic operational space missions.
- As part of a joint venture (JV) team, Parsons was awarded an $805m contract for the Glendora to Pomona segment of the Foothill Gold Line light rail extension project that will benefit travelers across the LA Metro service area. Parsons is a 25 percent joint-venture partner and is providing design and construction management services.
- As part of a JV team, Parsons was awarded a $194m contract for the 14-mile extension of the Greater Minneapolis, MN, LRT System. Parsons is a 35 percent joint-venture partner and is providing design and construction management services.
Environmental, Social and Governance (ESG) Initiatives
Corporate social responsibility is an integral part of Parsons’ culture and reflects the Company’s dedication to its core values and fulfilling its customers’ missions. During the fourth quarter 2019, our employees continued to exemplify their passion and commitment to making the world a better place.
- Parsons’ employees participated in community service events that benefited organizations such as Tragedy Assistance Program for Survivors (TAPS), Special Operations Charity Network, Special Operations Warrior Foundation, Girls Lead the Way, and numerous other charitable organizations.
- As the lead Designer for Georgia’s Northwest Corridor project in Atlanta, Parsons was part of the joint venture team that received the prestigious National Award of Merit from the Design Build Institute of America and the 2019 Global Roads Achievement Award from the International Road Federation. The project has had a positive impact on the community and region, reportedly reducing one-way commutes by as much as 45 minutes, and in turn reducing carbon emissions and spurring local economic growth through innovative advanced transportation management systems.
- The Regina Bypass, Saskatchewan’s largest infrastructure project, opened to traffic with a focus on improving safety, mobility, and reducing carbon emissions and fuel consumption. The bypass also supports continued growth of the Global Transportation Hub and alleviates issues caused by population growth and congestion.
- The Company recently sponsored a Parsons Technology Innovation Challenge Showcase where high school students in the Washington, D.C. area were mentored by Parsons Technical Fellows and awarded scholarships for developing next generation ideas that make the world a better place. Winning projects included a solution that automates healthcare records, the development of a community water purification system, a virtual reality swim training system, and the creation of a healthcare marketplace. Parsons regularly hosts a variety of STEM (Science, Technology, Engineering and Mathematics) programs to promote innovative technology ideas from our future leaders. (Source: PR Newswire)
10 Mar 20. Bluestone Investment Partners Announces Investment in Continental Mapping Consultants, LLC. Continental Mapping marks Bluestone’s seventh investment in the Defense, Government, and National Security Market. Bluestone Investment Partners, LLC (“Bluestone”), a McLean, Virginia-based private equity firm, is pleased to announce the completion of an investment in Continental Mapping Consultants, LLC (“Continental Mapping” or the “Company”). Based in Sun Prairie, Wisconsin, Continental Mapping is a rapidly growing geospatial data analytics and mapping solutions provider to Defense, intelligence, federal and state government agencies, and commercial customers. The Company combines remote sensing technologies, proprietary technology, automation tools, commercial cloud services, and artificial intelligence capabilities to deliver products and solutions to its clients.
John Allen, co-founder and Managing Partner of Bluestone said, “We are excited about our partnership with Continental Mapping. The Company has a 20-year track record of successful delivery of complicated solutions, a great leadership team, a talented and technically differentiated workforce, and attractive clients. We look forward to helping the Company accelerate its growth and expand its capabilities.”
“Our management team and 170 employees are energized about the next phase of growth for Continental Mapping. We look forward to leveraging the experience of Bluestone’s principals to build our business through organic expansion and acquisitions,” said Dave Hart, Chief Executive Officer of Continental Mapping.
Founded in 1999 by Chris Gross, President, and Dave Hart, Chief Executive Officer, Continental Mapping initially provided photogrammetric solutions to local clients in Wisconsin. Through investment in people, technologies, and capabilities, the Company grew to support operations for multiple government and commercial clients around the world. Today, the company maintains over 125 active production improvement tools, utilizes advanced artificial intelligence capabilities, and employs a highly credentialed employee base in Sun Prairie, St. Louis, MO, San Antonio, TX, and Northern Virginia.
Holland and Knight LLP acted as Bluestone’s legal adviser in the transaction. Dixon Hughes Goodman LLP provided quality of earnings services for Bluestone. Morrison and Foerster LLP served as legal adviser to Continental Mapping. KippsDeSanto & Co. served as the investment banking adviser to Continental Mapping. Senior financing for the transaction was provided by EagleBank.
About Bluestone Investment Partners
Bluestone is a private equity firm investing exclusively in lower middle-market companies primarily in the defense and government services arena. Bluestone’s principals have a long and successful track record owning, operating, investing in, and advising companies in the defense and government services sector. Additionally, many of Bluestone’s investors are industry luminaries who have successfully built, grown, and sold businesses to leading strategic buyers and private equity investors in the sector. Bluestone aims to leverage the industry expertise of its partners and investors to support both organic and acquisition-oriented growth strategies. Few private equity firms offer the combination of industry-focused intellectual and investment capital that Bluestone has assembled.www.bluestoneinv.com.
About Continental Mapping Consultants, LLC
Established in 1999, Continental Mapping provides geospatial analytics to intelligence community, defense, federal government, state agencies, and commercial clients. The Company has provided products and solutions involving over 180 countries and on all seven continents. The Company was recently recognized for the second year in a row by Inc. magazine as one of the nation’s fastest growing companies. The Company is headquartered in Sun Prairie (Madison area), Wisconsin. www.continentalmapping.com (Source: PR Newswire)
10 Mar 20. Ultra Electronics records higher revenue, profit. Several new defence contract awards and increased work on military aircraft helped fuel growth at Ultra Electronics last year, according to the British company. Revenue rose 7.7% to GBP825.4m (USD1.1bn) in 2019, while underlying operating profit went up 4.9% to GBP118.2m (USD153m), Ultra said on 10 March. The company’s orderbook expanded 4% to GBP1bn (USD1.3bn).
“I’m pleased to say we delivered robust revenue growth, driven by both buoyant market defence spending, particularly in North America, and demand for our technologies and capabilities, which are proving important in addressing today’s evolving threat environment,” Ultra CEO Simon Pryce said. (Source: Jane’s)
09 Mar 20. Strong 2019 performance for GKN Aerospace.
- Strong results in 2019 ahead of expectations
- Reorganisation to create a stronger, simpler, more competitive business is on track
GKN Aerospace delivered a strong performance in 2019, with sales up 7% and operating margin up to 10.6% (from 9.9% in 2018), coupled with new contract wins, breakthrough technology developments and more than £50m invested in key sites.
During the year, GKN Aerospace confirmed its market leadership in business jets empennages and components with a contract for a large workshare on the all-new Gulfstream G700 Business Jet, including design and manufacture of empennage and floorboards and production of fuselage panels. In addition, Aerion Supersonic selected GKN Aerospace as a supplier on the AS2 supersonic business jet. GKN Aerospace will design the empennage and the electrical wiring and interconnection systems (EWIS).
GKN Aerospace’s continued investment in technology also reinforced its position as a key partner to several major aerospace customers. In the Civil Airframe market, GKN Aerospace’s advanced composite leadership saw it manufacture and deliver the first components for Airbus’ Wing of Tomorrow programme, including a revolutionary 4-metre demonstrator tool. In Engines, GKN Aerospace accelerated the production of a ground-breaking Fan Case Mount Ring, the largest purely additive aerospace part ever produced, which reduces titanium waste, CO2 emissions, and production time and costs.
GKN Aerospace further strengthened its additive manufacturing leadership position within Civil Airframes and Defence Airframes, winning key roles on collaborative R&D programmes DAM and AIRLIFT in the UK and announcing a new world-leading additive pilot production cell at Oak Ridge National Laboratory in the US.
GKN Aerospace continued its strategic expansion in the growing Asian market, announcing a new facility in China and starting production in its new wiring site in Pune, India. Over £50m was committed to new investment productivity across key European and US facilities, including Cowes, Luton and Portsmouth in the UK, and Garden Grove in the US.
Completing a landmark year, GKN Aerospace also announced a reorganisation to create a stronger, simpler, more competitive business, organised around three business lines: Civil Airframes, Defence and Engines. The restructuring is well on track and will continue in the next 18 months.
Hans Büthker, CEO GKN Aerospace said: “GKN Aerospace made strong progress in 2019. We achieved better than expected operational and financial results, capitalising on a good mix of commercial and defense programs, and operational improvements. The reorganisation to create One GKN Aerospace has so far been really well received by our customers. Our technology leadership in composites, additive manufacturing and electrification offers significant opportunities to play a leading role in the reduction of carbon emission of the aerospace industry and we will continue to work on the roll-out of our sustainability strategy in 2020 as we continue to shape the future of flight.”
04 Mar 20. Schauenburg Ventures Invests In NewSpace Systems. Schauenburg Ventures SA (Pty) Ltd., the South African arm of German based Schauenburg Ventures, has invested in NewSpace Systems (Pty) Ltd. as of January 29, 2020. Schauenburg Ventures SA (Pty) Ltd. was established to enrich the product portfolio of the Schauenburg International – Africa Group, as well as Schauenburg Ventures, the focus primarily being on corporate ventures involved in highly innovative technologies that are available internationally as well as in South Africa.
This share acquisition of NewSpace Systems (NSS) fits strategically with Stratosat Datacom (Pty) Ltd. within the SCHAUENBURG International Group, which provides turnkey satellite and wireless converged communication network solutions into Africa. Stratosat was one of the main contractors for the Meerkat project in the Karoo with the Department of Trade and Industry.
NSS is a leader in the area of Microsatellite Attitude Control Solutions. With a focus on innovation and optimization, NSS delivers on high performance, reliability and cost efficiency, which has made it extremely successful in the international, operational, satellite constellation market. To date, NSS has supported more than 50 international customers, including 11 of the National Space Agencies.
James Barrington-Brown, CEO of NewSpace Systems, said this investment from SCHAUENBURG will enable the accelerated growth of NewSpace Systems by supporting additional product development and the establishment of new facilities, which is needed to accommodate the firm’s rapidly growing customer base.
Frederik de Ridder, Principle at Vaalbara and Interim Chair of the NSS Board of Directors, stated that the company views this as a pivotal moment in the growth, technological leadership and success of NewSpace globally. With this new investment and support from SCHAUENBURG, NSS can tackle bigger challenges as well as find new ways to add more value to the satellite sector.”
Florian Schauenburg, CEO of SCHAUENBURG International Group, offered that this investment in NewSpace delivers an interesting opportunity and strategic complement for the group. The investment gives the company further access to this interesting technology segment with high potential for future business in the new generation of satellite technology. (Source: Satnews)