Sponsored by TCI International Inc.
25 Nov 21. Astroscale Closes Its Largest Funding Round to Date, Bringing Total Capital Raised to U.S. $300m. Additional U.S. $109m in capital will accelerate in-orbit services technology development, facility expansion and global hiring. Astroscale Holdings Inc. (“Astroscale”), the market leader in satellite servicing and long-term orbital sustainability across all orbits, today announced it closed its Series F round with additional funding of U.S. $109m from a group of new investors led by THE FUND Limited Partnership in Japan, with participation from international investors including Seraphim Space Investment Trust plc (“Seraphim Space”) in the United Kingdom and DNCA Invest Beyond Global Leaders, a sub-fund of the umbrella structured fund “DNCA Invest” incorporated under the laws of the Grand Duchy of Luxembourg, managed by DNCA Finance, a Limited Partnership in France. This is the largest funding round in the company’s history and brings the total amount raised to U.S. $300m, affirming investors’ confidence in the rapidly expanding in-orbit servicing market.
“Since Astroscale’s inception in 2013, we have dedicated ourselves to solving the technological, economic and policy aspects of satellite servicing to build a sustainable infrastructure for a thriving space ecosystem,” said Nobu Okada, Founder & CEO of Astroscale. “This latest round of funding will dramatically accelerate our ability to make in-orbit servicing routine by 2030. It also shows that investors around the world, acknowledge the tremendous potential in the emerging in-orbit servicing market, which will revolutionise the future of space.”
The Series F funding round represents another significant milestone for Astroscale, and will rapidly advance the range of missions and services that the company is developing globally. The End-of-Life Services by Astroscale-demonstration (ELSA-d) mission successfully completed its first technical demonstration in orbit in August, and Astroscale is preparing for the “capture without tumbling” phase, which is expected to be completed by the end of the calendar year. In Japan, the Active Debris Removal by Astroscale-Japan (ADRAS-J) spacecraft, which was selected by the Japan Aerospace Exploration Agency for Phase I of its Commercial Removal of Debris Demonstration Project, will enter the assembly phase in early 2022. In the United Kingdom, the team was recently awarded a bid to study the removal of two defunct satellites from the UK Space Agency and is maturing the End-of-Life technology and capability towards a commercial service offering by 2024. The Astroscale U.S. and Israel teams are meeting milestones for the Life Extension In-Orbit (LEXI™) spacecraft and have successfully executed key tests.
The market opportunity for in-orbit servicing continues to develop and multiple sources project significant growth by the end of the decade. This includes not only end-of-life, active debris removal, in situ space situational awareness and life extension services, but many other capabilities that will actively contribute to the sustainable use of space and maximise the use of expensive satellite assets in a sustainable manner. This expansion of services will include in-orbit manufacturing, as well as satellite assembly, refuelling, recycling and more in the near future.
Multiple new investors highlight the importance of taking steps to develop servicing technologies and address issues of sustainability. The investment from Seraphim Space, the world’s first listed fund focused on space technologies and a globally recognised leader in identifying promising space companies, is a strong signal that Astroscale is leading the development of the servicing market. The investment from THE FUND, one of the leading independent cross-over growth capital organisations in Japan, represents a long-term commitment from local financial markets for sustainable space utilisation. Additionally, investment from AXA Life Insurance Co., Ltd. underpins the future potential of the space sector, including satellite services.
“The long-term sustainable health of the space sector is becoming ever more important with tens of thousands of satellite launches planned in the coming years,” said Mark Boggett, CEO of Seraphim Space. “Astroscale is already the category leader, the trailblazer in the global in-orbit servicing market. Its founder and CEO Nobu Okada is credited worldwide as a key figure in galvanising the space industry into action. The ball is now firmly rolling on regulation and self-regulation to protect the space environment. We believe that now is the optimum time to invest into this emerging market that will be worth billions over the coming decades.”
This funding round will allow Astroscale to pioneer safe and cost-effective space capabilities across the servicing ecosystem, expand regional facilities for mass production in Japan, the United Kingdom, and the United States, and support global growth. Since its last funding round in October 2020, Astroscale has increased its global team by more than 60 percent and now boasts approximately 250 team members around the globe.
Investors in Astroscale Series F Round:
- THE FUND Limited Partnership
- Japan Growth Capital Investment Corporation
- DNCA Invest Beyond Global Leaders, a sub-fund of the umbrella structured fund “DNCA Invest”
- AXA Life Insurance Co. Ltd.
- Seraphim Space Investment Trust plc
- IE FAST AND EXCELLENT Investment Limited Partnership
- Innovation Engine New Space Investment Limited Partnership
- Innovation Engine POC2 No.2 Investment Limited Partnership
- EEI Fund 4 Investment Limited Partnership
- Y’s Investment Pte. Ltd.
- Solaris ESG Master Fund LP
- Prelude Structured Alternatives Master Fund, LP
- Chiba Dojo Fund II Investment Limited Partnership
- Yamauchi-No.10 Family Office
24 Nov 21. World’s biggest truckmaker steps out of the shadow of Mercedes. Investors have hardly given Daimler Trucks a second glance while upstart rivals have achieved huge valuations. In the early months of his 2012 re-election campaign, a jacketless Barack Obama stood in front of a natural-gas-powered truck at a plant in North Carolina. What the US needed, he told the crowd, was more such “American fuel-efficient trucks” to reduce the country’s dependence on oil, and protect its businesses from volatile commodity prices. The company that the president had chosen to visit, Daimler Trucks, was then and remains the leading heavy-duty vehicle manufacturer in North America, and the biggest in the world. It has been producing trucks for 125 years, and in the decade since Obama’s speech, has put more non-diesel vehicles on the road than most of its competitors, bar China’s BYD. Yet while upstart rivals Tesla and Nikola, neither of which have delivered a single zero-emissions truck to date, reached eye-watering market valuations in part because of their electric and hydrogen truck ambitions, investors have hardly given Daimler a second glance. “Sometimes we would have liked to have a little bit more of [the] limelight,” admitted Martin Daum, who was at Obama’s side at that event, and who has led the German truckmaker since 2017.
Being part of a group containing the far more glamorous Mercedes-Benz carmaker, he acknowledged, meant the division was often overlooked. This is about to change. Seeking to transform itself into a luxury, fully-electric carmaker, Daimler will spin off its trucks business on December 10, floating 65 per cent of the unit on the Frankfurt stock exchange. The business is likely to enter Germany’s flagship Dax index alongside its former owner, henceforth to be known simply as Mercedes-Benz. Unlike VW’s spin-off of its truck unit Traton in 2019, when the parent group kept close to a 90 per cent stake, Daimler Trucks’ large float exposes it to intense scrutiny. In particular, its lacklustre profit margins, rather than electrification plans, will “now be much more closely focused on”, said Kai Mueller, Barclays analyst. Investors, he added, know that in this industry, “scale is important but operational efficiency even more so”. Some of Daimler Trucks’ recent figures do not make the best reading. It sold almost 489,000 vehicles in 2019, more than its two nearest competitors, Volvo and Traton-owned Scania, combined. Yet these two rivals achieved operating margins of about 11 per cent in the last pre-pandemic period, while Daimler Trucks managed just over 6 per cent. The high costs of its European operations, which have dragged on earnings for several years, continue to weigh on the business. Barack Obama speaking at the Daimler Trucks Mt Holly manufacturing plant © John W. Adkisson/Getty Images The existing company structure meant management at the unit rarely had to answer for its underperformance, according to Michael Muders, a portfolio manager at Union, a Daimler group top-15 shareholder.
“These guys did not sit in front of investors, it was always the Daimler chief financial officer, who said: ‘Of course the results are no good, but we are working on improving that’.” “There was no follow-through, no direct accountability,” said Muders, who is supportive of the spin-off, adding that given the healthy profits generated by Mercedes’ premium SUVs, “there was no need to be very aggressive and really turn the truck company around”. Talking to the Financial Times, Daum challenged the claim that the trucks division was always a burden on Daimler. But he has nonetheless been attempting to alter the perception that the heavy-duty behemoth is resistant to reform. “We’ve got all the ingredients,” he insisted during a four-hour pitch to investors this month, before senior executives answered questions from analysts and reporters on everything from school buses to software and battery technology. “In an average market environment, we want to aim for [profit margins of] 8 to 9 per cent,” he said, referring to the truck sector’s bumpy business cycle, which ebbs and flows with the global economy. “In sunny conditions, we aim to deliver more than 10 per cent.” Achieving that goal will hinge on whether Daimler Trucks can make big changes to sites in Europe, especially in its home country, Germany. In 2019, Mercedes-Benz Trucks, the company’s Europe and Latin America division, was barely profitable, with a margin of 0.4 per cent, compared with 11.5 per cent for North America. Even though demand has soared after the worst of the pandemic, the unit’s profit margin is a mere 4.5 per cent for the nine months to September. Karin Rådström, a former Scania executive who was brought in this year to turn round the division, is clear about the diagnosis. “Our costs,” she said, “are too high to carry the business.” Further job cuts in Germany, as part of a programme to reduce costs by 15 per cent across the group, will be necessary, said Rådström, as will slimming down the number of models. Daimler’s bigger challenge, however, will be convincing investors that it can master the post-diesel future, by accelerating the rollout of electric and hydrogen-powered trucks and buses. There are already about 40 Daimler electric trucks on the road in North America, with more than 1m miles on the clock in total. The company, which Bernstein estimates could be worth as much as €46bn post spin-off, has also formed a joint venture with Volvo to develop hydrogen fuel cell systems. The hype, however, is reserved for the much newer start-ups with their grand promises of transforming transportation. “David slays Goliath is always a better headline,” said Daum, pointing out that corporate clients need the “total cost of ownership” of zero emission trucks — the cost of buying and running the truck over its lifetime — to reach parity with diesel models before the market can really take off. Daimler does not expect that point to be reached before the second half of the decade, and even that timeline is dependent on regulatory conditions and the expansion of charging networks and fuelling stations. Daum, who has spent more than three decades in the business, knows the pitfalls of running ahead of consumer demand. “We had a fuel cell bus already 15 years ago,” he recalled. “Unfortunately, nobody wanted to buy it.” He does not directly criticise newcomers to the industry, but made a point of citing a question from a reporter in 2017, who asked why it would take until 2021 for Daimler to launch its battery-powered eActros when Tesla’s Semi truck would be built in 2018. “We launched our electric Actros in 2021,” he quipped. The Semi, meanwhile, has yet to hit the road. (Source: FT.com)
23 Nov 21. Arlington Capital Partners’ Portfolio Company, BlueHalo, Announces the Acquisition of Asymmetrik. Arlington Capital Partners (“Arlington”) today announced that its portfolio company, BlueHalo, a leading provider of advanced engineering solutions and technology to the national security community, has acquired Asymmetrik Ltd (“Asymmetrik”). Founded in 2008, Asymmetrik is a leading developer of software solutions and technology tools used to enable the Intelligence Community’s (“IC”) most advanced programs. With a strong presence in Ft. Meade, MD and Northern Virginia, Asymmetrik delivers leading Open Source Intelligence (“OSINT”) technologies to enable the collection and analysis of Publicly Available Information (“PAI”). The company has extensive experience developing applications across multiple domains including OSINT, AI/ML, cryptocurrency, block chain analytics, real-time streaming analytics, cybersecurity, and federated search. With over 120 employees based out of the company’s Annapolis Junction, MD headquarters, Asymmetrik has developed a robust suite of solutions which the company has successfully deployed across multiple agencies within the IC. BlueHalo is a rapidly expanding national security platform with market-leading capabilities spanning directed energy, cUAS, space superiority, space technology, advanced RF, autonomy, cyber, and SIGINT. The acquisition of Asymmetrik is highly complementary to BlueHalo’s Cyber and SIGINT franchise, providing differentiated software development capabilities underpinned by a culture of excellence in engineering. Further, this combination with BlueHalo creates a formidable player in OSINT technologies for the IC with a broad collection of products and capabilities that leverage PAI and complement National asset collection to create enriched data sets and actionable insights for intelligence professionals.
“Asymmetrik has built a world-class, mission-focused business on the foundation of its people and its culture. We could not be more thrilled to welcome the Asymmetrik team to BlueHalo as we bring our combined capabilities to bear solving some of the IC’s most challenging problems. The combination of Asymmetrik’s and BlueHalo’s deep technical capabilities, cultures of excellence, and focus on the mission will only further enhance our ability to serve our customers most important and complex needs,” said Jonathan Moneymaker, Chief Executive Officer of BlueHalo.
David Wodlinger, a Partner at Arlington Capital Partners, said “The market for OSINT technologies is expanding rapidly as customers seek to capitalize on the proliferation of open source data that increasingly is becoming foundational to the intelligence collection and analysis process. Asymmetrik is a standout performer in developing innovative software tools that advance the capabilities within this discipline and we are delighted to bring such an innovative company into BlueHalo.”
Amit Singh, Co-Founder and CTO of Asymmetrik, and Mike Frentz, Co-Founder and CEO of Asymmetrik, shared, “We are excited to welcome the next chapter of the Asymmetrik story under the banner of BlueHalo and provide our new and existing customers a more expansive set of tools, capabilities, and resources driving a tangible impact to the critical and ever-evolving mission at hand. We could not have found a better partner in BlueHalo where together, we will continue to tackle the most challenging problems our customers are facing.”
Henry Albers, a Vice President at Arlington Capital Partners, said “Asymmetrik has earned the trust of the IC’s most demanding customers by creating software that addresses the hardest challenges in OSINT collection and analysis. With access to BlueHalo’s extensive resources, infrastructure, and past performance, we believe the company is well positioned to capitalize on numerous growth opportunities.”
Sheppard, Mullin, Richter & Hampton served as legal counsel to BlueHalo. Chertoff Capital served as financial advisor and Holland & Knight served as legal counsel to Asymmetrik. (Source: BUSINESS WIRE)
23 Nov 21. Elbit Systems Ltd. (the “Company”) (NASDAQ and TASE: ESLT), the international high technology company, reported today its consolidated results for the quarter ended September 30, 2021. Management Comment: Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: “We are pleased with our third quarter results that demonstrated the successful execution of our strategy to build a diverse global footprint, which contributed to the 20% revenue growth, as well as successful implementation of efficiency measures that supported an improved operational performance. The third quarter results and sustained demand from our customers provide us with confidence in Elbit Systems’ long term strategy and future prospects.”
Third quarter 2021 results:
Revenues in the third quarter of 2021 were $1,363.6m, as compared to $1,134.2m in the third quarter of 2020. A major part of the growth was organic, in addition to the contribution of Sparton, which was acquired in the second quarter of 2021.
Non-GAAP(*) gross profit amounted to $370.7m (27.2% of revenues) in the third quarter of 2021, as compared to $302.3m (26.7% of revenues) in the third quarter of 2020. GAAP gross profit in the third quarter of 2021 was $363.2m (26.6% of revenues), as compared to $237.4m (20.9% of revenues) in the third quarter of 2020. The GAAP gross profit in the third quarter of 2020 was affected by non-cash expenses related to impairment of assets and inventory write-offs due to the impact of COVID-19, in the amount of approximately $60m.
Research and development expenses, net were $101.5m (7.4% of revenues) in the third quarter of 2021, as compared to $91.3m (8.0% of revenues) in the third quarter of 2020.
Marketing and selling expenses, net were $84.1m (6.2% of revenues) in the third quarter of 2021, as compared to $71.6m (6.3% of revenues) in the third quarter of 2020.
General and administrative expenses, net were $67.3m (4.9% of revenues) in the third quarter of 2021, as compared to $51.0m (4.5% of revenues) in the third quarter of 2020.
Non-GAAP(*) operating income was $123.0m (9.0% of revenues) in the third quarter of 2021, as compared to $93.1m (8.2% of revenues) in the third quarter of 2020. GAAP operating income in the third quarter of 2021 was $110.3m (8.1% of revenues), as compared to $23.5m (2.1% of revenues) in the third quarter of 2020.
Financial expenses, net were $13.5m in the third quarter of 2021, as compared to $9.7 m in the third quarter of 2020.
Other income, net were $0.3m in the third quarter of 2021, as compared to other income, net of $0.5m in the third quarter of 2020.
Taxes on income were $8.3m in the third quarter of 2021, as compared to $2.2m in the third quarter of 2020.
Equity in net earnings of affiliated companies and partnerships was $3.0m in the third quarter of 2021, as compared to $4.9 m in the third quarter of 2020.
Non-GAAP(*) net income attributable to the Company’s shareholders in the third quarter of 2021 was $103.1m (7.6% of revenues), as compared to $72.7m (6.4% of revenues) in the third quarter of 2020. GAAP net income attributable to the Company’s shareholders in the third quarter of 2021 was $91.9m (6.7% of revenues), as compared to $17.0m (1.5% of revenues) in the third quarter of 2020.
Non-GAAP(*) diluted net earnings per share attributable to the Company’s shareholders were $2.33 for the third quarter of 2021, as compared to $1.64 for the third quarter of 2020. GAAP diluted earnings per share attributable to the Company’s shareholders in the third quarter of 2021 were $2.08, as compared to $0.38 in the third quarter of 2020.
The Company’s backlog of orders as of September 30, 2021 totaled $13.6bn, similar to the backlog as of June 30, 2021. Approximately 72% of the current backlog is attributable to orders from outside Israel. Approximately 40% of the backlog is scheduled to be performed during the remainder of 2021 and 2022.
Cash flows provided by operating activities in the nine months ended September 30, 2021 were $157.0m, as compared to $106.7m for the nine months ended September 30, 2020.
Issuance of Notes. On July 7, 2021, the Company raised an aggregate amount of NIS 1.9bn (approximately $575m) from the issuance of three trances of notes. In the third quarter of 2021 the Company entered into swap transactions to convert the series B notes in the amount of NIS 1.5bn (approximately $457m) to USD with a fixed annual interest rate of 1.92%.
Impact of the COVID-19 Pandemic on the Company: The Coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization in March 2020. COVID-19 has had significant negative impacts on the worldwide economy, resulting in disruptions to supply chains and financial markets, significant travel restrictions, facility closures and shelter-in place orders in various locations. Elbit Systems is closely monitoring the evolution of the COVID-19 pandemic and its impacts on the Company’s employees, customers and suppliers, as well as on the global economy.
As we last reported on August 12, 2021, we have been taking a number of actions to protect the safety of our employees as well as maintain business continuity and secure our supply chain. We also reported on a number of activities where we are leveraging our technological capabilities to assist hospital staffs and other first responders protecting our communities from the impact of the pandemic. All of these actions remain ongoing.
We have implemented a series of cost control measures to help limit the financial impact of the pandemic on the Company, in parallel to the measures we are taking to maintain business continuity and deliveries to our customers. We also are working on efficiency initiatives with a number of our suppliers. We continue to evaluate our operations on an ongoing basis in order to adapt to the evolving business environment.
During 2020 and the first nine months of 2021 our defense activities, which account for most of our business, were not materially impacted by the pandemic, although some of our businesses experienced certain disruptions due to government directed safety measures, travel restrictions and supply chain delays.
We believe that as of September 30, 2021, Elbit Systems had a healthy balance sheet, adequate levels of cash and access to credit facilities that provide liquidity when necessary. We have given high priority to cash management and adequate cash reserves to run the business.
The extent of the impact of COVID-19 on the Company’s performance depends on future developments including the duration and spread of the pandemic, the measures adopted by governments to limit the spread of the pandemic, including implementation of vaccinations, and resulting actions that may be taken by our customers and our supply chain, all of which contain uncertainties. As noted in our annual report on Form 20-F, the preparation of financial reports requires us to make judgments, assumptions and estimates that affect the amounts reported. For our financial results for the quarter ended September 30, 2021, we considered the economic impact of the COVID-19 pandemic on our critical and significant accounting estimates. The expected impact of the COVID-19 pandemic did not have a material effect on our judgments, assumptions and estimates reflected in the results. However, our future results may differ materially from our estimates. As events continue to evolve in connection with the COVID-19 pandemic, the estimates we use in future periods may change materially.
* Non-GAAP financial data:
The following non-GAAP financial data is presented to enable investors to have additional information on the Company’s business performance as well as a further basis for periodical comparisons and trends relating to the Company’s financial results. The Company believes such data provides useful information to investors by facilitating more meaningful comparisons of the Company’s financial results over time. Such non-GAAP information is used by the Company’s management to make strategic decisions, forecast future results and evaluate the Company’s current performance. However, investors are cautioned that, unlike financial measures prepared in accordance with GAAP, non-GAAP measures may not be comparable with the calculation of similar measures for other companies.
The non-GAAP financial data includes reconciliation adjustments regarding non-GAAP gross profit, operating income, net income and diluted EPS. In arriving at non-GAAP presentations, companies generally factor out items such as those that have a non-recurring impact on the income statements, various non-cash items including significant exchange rate differences, significant effects of retroactive tax legislation, changes in accounting guidance, financial transactions and other items not considered to be part of regular ongoing business, which, in management’s judgment, are items that are considered to be outside of the review of core operating results.
In the Company’s non-GAAP presentation, the Company made certain adjustments, as indicated in the table below.
These non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures. Investors should consider non-GAAP financial measures in addition to, and not as replacements for or superior to, measures of financial performance prepared in accordance with GAAP.
23 Nov 21. Rheinmetall takes over activities of unmanned air vehicle maker EMT. As part of its digitization strategy, Rheinmetall AG of Düsseldorf is taking over the activities of EMT, a well-known German unmanned aerial vehicle maker. An agreement to this effect has now been signed by both parties. Headquartered in Penzberg in Bavaria, the company EMT Ingenieurgesellschaft Dipl.-Ing. Hartmut Euer mbH develops, produces and maintains unarmed tactical aviation systems for reconnaissance missions. EMT’s most important customer is the German Bundeswehr, which is currently introducing the company’s newly developed LUNA NG reconnaissance system. LUNA NG is a key element in networked C4ISTAR communication and reconnaissance and is destined to play a vital role in tactical data transmission.
Expected to take effect at the end of December 2021, the takeover is an asset deal. In addition to the normal board decisions, the transaction still requires final approval from the competition authorities. The parties to the transaction have agreed not to disclose the purchase price.
LUNA NG provides the Bundeswehr with a key capability, making it an important building block on the path to digitizing Germany’s armed forces. It forms the basis for new applications and development activities, e.g., manned/unmanned teaming. In addition, AI capabilities and applications (for automated data evaluation, for instance) can be further expanded as well as tested and directly integrated.
For military customers, the agreed takeover by Rheinmetall assures an extremely high degree of security and dependability with respect to long-term care, maintenance and continued development of this high-performance system, coupled with service for other unmanned aerial systems used by the armed forces. During deployed operations, the LUNA family will give Rheinmetall’s international customers the ability to evaluate the evolving military situation in optimum fashion, furnishing tactical information that enables them to protect their forces on the ground to the maximum degree.
Strategic orientation: a complete outfitter for the armed forces – driver of digitization
The transaction reflects Rheinmetall’s strategy of expanding its portfolio of systems and equipment to meet the complete needs of its military customers.
At the same time, this approach ensures that important defence technology capabilities will be maintained in Germany.
As a driver of digitization of the armed forces, this move strengthens Rheinmetall’s position in the defence technology sector. Merging the Group’s expertise with that of EMT enhances Rheinmetall’s ability to take charge of central elements of the networked digital communication and reconnaissance capabilities of the armed forces of Germany and its allies.
In the detection and engagement sequences of the modern digital battlespace, information collected and distributed by unmanned aerial systems plays a vital role in military decision making at the tactical, operational and strategic level.
EMT locations to be maintained and integrated into the Group structure
Rheinmetall plans to take over in their entirety EMT’s highly developed capabilities and expertise. The Group intends to maintain the company’s four locations in Bavaria and Schleswig-Holstein and to integrate the current staff into the Rheinmetall workforce.
EMT’s activities will henceforth form part of the Group subsidiary Rheinmetall Technical Publications of Bremen. As an approved aviation organization, for over ten years Rheinmetall Technical Publications has taken care of Germany’s “Kleinfluggerät Zielortung” (KZO) target location UAV, assuring its operational readiness as well as performing other specific tasks.
EMT: One of Germany’s leading makers of unmanned aviation systems Originally known as Elektro-Mechanische Technologien GmbH, EMT was founded in 1978 in Gauting near Munich. Customers of this approved aviation organization for unmanned tactical aerial systems include the Bundeswehr as well as the armed forces of foreign states. The company’s staff of just under 200 employees are located at four different sites around Germany: Penzberg in Upper Bavaria (EMT´s head office since 1987), Iffeldorf (Upper Bavaria), Abenberg (Central Franconia) and Osterrönfeld in Schleswig-Holstein. The company has been in self-administered insolvency since December 2020.
Unmanned aviation systems from EMT are designed to carry various payloads for short and medium ranges of up to 100 km. Its best-known products are the very short-range ALADIN drone and the – likewise unarmed – LUNA tactical reconnaissance system, which the Bundeswehr has been using in aerial reconnaissance operations ever since 2000 in Kosovo, Macedonia and Afghanistan as well as in Mali since 2016. In the meantime, introduction is underway of the LUNA NG, an enhanced-performance successor system slated to replace the small KZO unmanned aerial vehicle developed by Rheinmetall in the nineties.
EMT’s array of unmanned flight systems encompasses solutions for military and civil-sector applications alike. Flight control software for each aviation systems is also available, including customized periphery for an exceptionally wide range of operational scenarios, including reconnaissance, search and rescue as well as critical asset and infrastructure security.
23 Nov 21. TT Electronics plc (“TT”, “the Group”), a global provider of engineered electronics for performance critical applications, publishes the following trading update on the Group’s performance in the four-month period ended 30 October 2021 (“the Period”). The strength in the Group’s performance has continued with year-to-date organic1 revenue growth of 10 per cent, as expected. Revenue in the four months to October is 11 per cent higher than the previous year on a constant currency basis and 8 per cent higher on an organic basis.
Our order intake continues to run well ahead of strongly growing revenue with book to bill of 140% and we have delivered additional contract wins in the period. As a result, the Group’s order book is at record levels and provides excellent visibility into 2022, underpinning our growth expectations.
Second Half Cost Pressures & Progress on Self-Help
Global supply chain constraints have continued in the second half and in some areas have tightened, principally impacting Power and Connectivity. The increased material and freight costs are being broadly offset by efficiencies and price management and supported by the self-help programme which continues to progress well and we remain on track to deliver the anticipated run-rate benefits of £11-12m in 2023.
Positive dialogue continues with regulators in a number of jurisdictions. The product line is established to meet potential demand but as yet no further orders have been received.
The ongoing strength of demand and supply chain constraints mean that we continue to hold higher levels of inventory. Despite this, we expect the year end leverage position to improve compared to leverage at the half year.
Given the strong growth in our revenues, we expect to deliver adjusted operating profit of circa £35m for the current financial year, despite the significant cost headwinds referred to above.
The orderbook strength, customer wins and benefits of our self-help programme position us well for 2022.
Richard Tyson, TT Chief Executive Officer commented: “I’m really pleased with the trading performance in the business. Customer demand and order intake has been very strong in the period, across all our divisions reflecting customer wins and market demand for our design-led solutions across structural growth markets. I am proud of how our people are managing the supply chain challenges and increased cost headwinds.
We expect to deliver further margin improvement this year as we continue on our path to double digit margins.”
TCI International, Inc., is a wholly-owned subsidiary of SPX Corporation. TCI provides turn-key solutions for spectrum management and monitoring, direction finding, geolocation and communications intelligence to civilian, government, military and intelligence agencies as well as antennas for communications and high-power radio broadcasting. TCI is headquartered in Fremont, California, USA. For more information, visit www.tcibr.com.