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23 May 24. Qinetiq upgrades full-year outlook, shares surge. Defence technology firm Qinetiq surged on Thursday after lifting its full-year guidance as it reported a jump in underlying profit and revenue.
In preliminary results for the year ended 31 May, the company said underlying operating profit rose 20% to £215.2m, with revenue up 21% to £1.9bn.
The company said EMEA Services delivered “excellent” revenue growth at a stable margin, driven by strong execution of prior year orders and consistent operational delivery on its long-term contracts.
The Global Solutions business continued to be hit by “difficult” market conditions, in the US, however, resulting in lower revenue at a stable margin.
Chief executive Steve Wadey said: “I am pleased with our strong group financial results for FY24, delivered against the background of difficult market conditions in the US.
“These results have been achieved through the outstanding skills of our people, delivering highly relevant services and products critical to enduring national defence and security priorities.”
Wadey said the group enters this year with strong momentum and increasing spending in its major markets, giving Qinetiq confidence to increase it guidance for FY25 to high single-digit organic revenue growth compared to FY24, at a stable operating profit margin.
At 1000 BST, the shares were up 13.7% at 425.60p. (Source: Sharecast)
23 May 24. Qinetiq: orders and momentum pick up.
- Guidance for current year upgraded
- Share price up by 13 per cent
Things took a while to get going at defence technology specialist Qinetiq (QQ.) last year, most notably in the US where political wrangling over the federal budget slowed contract awards.
This provided a brief moment of concern for investors, not least because this is the market in which the company had splashed out $590mn (£483mn) on Avantus a year earlier – its biggest ever deal.
A stronger second half put some of those fears to rest, though, with the company reporting improved revenue growth in the second half and a big pick-up in orders. Avantus secured $977mn of orders during the year, a book-to-bill ratio of 1.2 times.
Qinetiq chief executive Steve Wadey expects this improvement to continue, with Avantus set to achieve mid single-digit growth this year, rising to double-digit levels from 2026 onwards. Qinetiq upgraded guidance for the current financial year. It now expects high single-digit revenue growth and a “stable” operating profit margin, which has hovered around the 10.5 per cent market for the past couple of years.
It also performed well on the cash front. Underlying operating cash flow increased by £50mn to £320mn last year. Net debt was cut by almost £56mn to £151.2mn, or 0.5 times Ebitda.
This gives it “optionality to invest in the business”, but also to return more cash to shareholders, Wadey said on an earnings call.
And although the integration of Avantus is now complete, hunting for other big deals doesn’t appear to be at the top of its priority list.
“Our near-term focus is absolutely on organic growth,” Wadey said, specifically hitting its stated goal of reaching £2.4bn of organic revenue and a 12 per cent margin by 2027. This means growing at a rate of about 8 per cent a year, or 11-12 per cent if small bolt-ons are factored in.
It also leaves the door open for more cash to be returned to shareholders. Qinetiq upped its full-year dividend growth rate to 7 per cent and in January announced plans to buy back £100mn-worth of shares over the next 12 months.
Qinetiq’s shares rose by 13 per cent after the results were published, bringing their year-to-date gain to 36 per cent. They now trade on 13.6 times earnings, in line with their five-year average. The shares have momentum, though, and more buybacks could be on the cards if no obvious use is found for the growing cash piles it is generating. Buy.
Last IC view: Buy, 337p, 16 Jan 2024. (Source: Investors Chronicle)
22 May 24. TAT Technologies Reports First Quarter 2024 Results. TAT Technologies Ltd. (NASDAQ: TATT) (TASE: TATT) (“TAT” or the “Company”), a leading provider of products and services to the commercial and military aerospace and ground defense industries, reported today its unaudited results for the three-month period ended March 31, 2024.
Financial highlights for the first quarter of 2024:
- Revenues for Q1 2024 increased by 35.3% to $34.1m compared to $25.2m in Q1 2023.
- Gross profit for Q1 2024 increased by 65.1% to $7.1m compared to $4.3m in Q1 2023.
- Gross Margin for Q1 2024 improved by 3.8bp to 20.7% of revenues, compared to 16.9% of revenues in Q1 2023.
- Adjusted EBITDA for Q1 2024 increased by 76.8% to $3.7m (10.8% of Revenues) compared to $2.08m (8.25% of revenues) in Q1 2023.
- Operating Income for Q1 2024 increased by 133% to $2.2m (6.5% of Revenues) compared to $0.95m (3.8% of revenues) in Q1 2023.
- Net income for Q1 2024 increased by 221% to $2.1m compared to a net Income of $0.6 m in Q1 2023.
- Cash flow from Operating activities was negative $3.5m in Q1 2024 compared to positive $1.7 m in Q1 2023.
Mr. Igal Zamir, TAT’s CEO and President commented on the results: “The first quarter of 2024 marked the seventh straight quarter of Revenue and EBITDA growth, demonstrating consistent demand for our solutions and the sustainability of our business model.
As we grow our business and further scale our capacity to meet near-term demand, we are prioritizing operational efficiency to reduce backorders, better navigate industry wide supply chain dynamics, improve customer satisfaction and maximize our profitability.
During the first quarter we secured orders and long-term agreements at a value of over $40 m, increasing our backlog and LTA Value of over $410m. This strength will drive continued momentum in our business and support our revenue growth plan for the rest of 2024 and for years to come.”
Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with GAAP, the Company also presents Adjusted EBITDA. The adjustments to the Company’s GAAP results are made with the intent of providing both management and investors a more complete understanding of the Company’s underlying operational results, trends and performance. Adjusted EBITDA is calculated as net income excluding the impact of: the Company’s share in results of affiliated companies, share-based compensation, taxes on income, financial (expenses) income, net, and depreciation and amortization. Adjusted EBITDA, however, should not be considered as alternative to net income and operating income for the period and may not be indicative of the historic operating results of the Company; nor it is meant to be predictive of potential future results. Adjusted EBITDA is not measure of financial performance under generally accepted accounting principles and may not be comparable to other similarly titled measures for other companies. See reconciliation of Adjusted EBITDA below.
About TAT Technologies LTD
TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing (“OEM”) of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.
TAT’s activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.
TAT’s activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT’s Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.
TAT’s activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT’s Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.
TAT’s activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps. (Source: PR Newswire)
21 May 24. Amid influence of Starlink, Thales buys Israeli company Get SAT.
“Requirements in the market are changing dramatically thanks to Elon Musk and SpaceX,” Aaron Brosnan, president of Thales subsidiary Tampa Microwave, said in an interview.
Call it a Musk effect: the success of constellations like SpaceX’s Starlink and Starshield has the Pentagon hungry for satellite communications (SATCOM) solutions with more capabilities, prompting firms like the French company Thales to shift their approach and even acquire new businesses, according to company executives.
“Requirements in the market are changing dramatically thanks to Elon Musk and SpaceX,” Aaron Brosnan, president of Thales subsidiary Tampa Microwave, said in an interview earlier this month on the sidelines of the SOF Week conference in Tampa. “Really now what the [US Defense Department] wants is terminals that can do any orbit, any network, any band, on the move.”
A response by Thales to that desire is to pitch the Ka-band Milli Sling Blade antenna manufactured by the Israeli company Get SAT. Thales acquired Get SAT in part for the rights to products like the Milli Sling Blade, which uses electronically steered phased array antenna technology.
“Thales confirms the acquisition of GET Sat,” a Thales official told Breaking Defense. “Get SAT will complement Thales’s existing global SATCOM business and enhance our secure satellite communications offering and leading position in communications integration.”
As opposed to when geostationary (GEO) satellites ruled the day, users now demand “lower latency, higher throughput, global coverage. And unfortunately, GEO can’t do that,” Brosnan said. “So that’s why Elon Musk picked LEO [low Earth orbit] and others have picked MEO [medium Earth orbit].”
A corresponding change is the desire for antennas that can communicate with more of those constellations, whether commercial or military. When users relied mostly on GEO satellites, Brosnan explained, GEO-focused parabolic antennas could easily connect to those satellites since they remained in a mostly fixed position. But fast-moving MEO and LEO birds require electronically steered arrays that can track those satellites, creating a need for a different kind of communications tech.
So, Thales is moving to field antennas that can meet the needs of satellites across multiple orbits. The company’s modernized outlook “moves us away from what was traditionally GEO-only parabolics towards electronically steered arrays, which is flat panel technology,” Brosnan said, pointing to the Milli Sling Blade on display at Thales Defense & Security’s SOF Week booth.
The particular appeal for special operators (not to mention the US Army which has long been seeking more mobile antennas) is that the flat panel tech can serve users like them who are constantly on the move, with software that can handle more mundane tasks and let operators focus on their mission. “Either [the terminal is] fixed and the satellite’s moving, or you put the terminal on a vehicle. Maybe the satellite’s fixed, but the terminal’s moving,” Brosnan said. “So now you have an on-the-move solution.”
Electronically steered arrays offer other advantages, Brosnan noted, like the ability to shape beams in a particular direction and guide the null of an antenna toward a jammer, minimizing interference as a result.
Another key innovation lies in the modems that modulate certain SATCOM signals, which are transmitted as specific waveforms. The Pentagon is working on developing more secure waveforms under an umbrella program dubbed the Protected Anti-Jam Tactical SATCOM family of systems, which encompasses ground- and space-based tech.
“If you use the right modulation techniques, you can basically almost hide the signal in the noise,” Brosnan said. “But also by spreading it and hiding it in the noise, you can be fairly unsusceptible to jamming.”
(Source: Defense News Early Bird/Breaking Defense.com)
22 May 24. Ondas Holdings to Acquire Airobotics for $15.2m. Ondas Holdings Inc. a provider of private wireless, drone and automated data solutions through its wholly owned subsidiaries, Ondas Networks Inc. and American Robotics, Inc., has entered into a definitive merger agreement to acquire AIROBOTICS Ltd., an Israeli developer of autonomous unmanned aircraft systems and automated data analysis and visualization platforms.
“I am thrilled to welcome Meir Kliner and the entire Airobotics team to Ondas,” said Eric Brock, Chairman and CEO of Ondas. “Airobotics brings Ondas incredible talent, along with the Optimus System, a proven, world class automated drone platform, which is highly complementary to AR’s market-leading Scout System”. The combination of Airobotics with American Robotics is a seminal event in the drone sector, creating a leading global provider of commercial drone solutions capable of scaling for customers. We believe the UAS industry will consolidate as the market transitions from development to growth. We will continue to position American Robotics to drive the technical and regulatory leadership required to lead this market.”
“We are excited to join the Ondas team where we will advance our mission to provide market-leading solutions to our customers,” said Meir Kliner, CEO & Co-Founder of Airobotics. “Combining with American Robotics offers massive benefits to our company and customers and will help accelerate our growth. Airobotics has developed a strong customer pipeline and is now positioned to leverage our investments in technology and the hard work of our team for growth. We look forward to working closely with our colleagues at American Robotics to maximize the potential of our companies and deliver for customers.”
Transaction Details
Each issued and outstanding share of Airobotics will be converted into, and exchanged for, 0.16806 shares of Ondas common stock. Ondas expects to issue approximately 2.8 m shares as consideration to the Airobotics shareholders (excluding approximately 1.7m shares underlying options and warrants to be outstanding following the acquisition), implying an acquisition value of approximately $15.2m as of Friday, August 5, 2022. The acquisition is subject to the satisfaction of numerous conditions, including the receipt of Airobotics’ shareholder approval in respect to the acquisition and the receipt of all material third party consents. The parties intend to complete the acquisition in the second half of 2022. We can provide no assurance that the acquisition will be completed as proposed or at all.
- Riley Securities, Inc., a leading full service investment bank and wholly-owned subsidiary of B. Riley Financial, Inc. (NASDAQ: RILY), is serving as exclusive financial advisor toOndas in connection with the acquisition of Airobotics.
Akerman LLP and Pearl Cohen Zedek Latzer Baratz are serving as legal counsel to Ondas, and Herzog Fox & Neeman and Erez Rozenbuch Advocates are serving as legal counsel to Airobotics. (Source: UAS VISION)
22 May 24. CAE announces re-baselining of its Defense business, Defense impairments, accelerated risk recognition on Legacy Contracts and appointment of Nick Leontidis as COO.
- Defense records $568.0m goodwill impairment, $90.3m unfavourable contract adjustments, and $35.7m impairment of related intangible assets
- Preliminary unaudited fiscal fourth quarter and full fiscal 2024 results and initial fiscal 2025 outlook provided
- Board approves NCIB for the repurchase of up to 5% of CAE’s common shares
- Fourth quarter and full year fiscal 2024 results to be disclosed after market hours on May 27
- Management to discuss financial results and outlook on May 28 earnings call
CAE (NYSE: CAE) (TSX: CAE) – CAE Inc. (CAE or the Company) today announced a re-baselining of its Defense business along with Defense impairments and unfavourable contract adjustments related to eight previously identified fixed-price legacy contracts (the Legacy Contracts).
CAE also announced the appointment of Nick Leontidis to the new position of Chief Operating Officer (COO) as part of a senior leadership reorganization to further strengthen its execution capabilities and drive additional synergies between CAE’s Defense & Security business and its Civil Aviation business. Mr. Leontidis was previously CAE’s Group President, Civil Aviation. As COO, he will have overall responsibility for both of CAE’s Civil and Defense business segments.
In the fourth quarter of fiscal 2024, CAE has recorded a $568.0m non-cash impairment of Defense goodwill and $90.3m in unfavourable Defense contract profit adjustments as a result of accelerated risk recognition on the Legacy Contracts. It also recorded a $35.7m impairment of related technology and other non-financial assets which are principally related to the Legacy Contracts.
“Because our Defense performance has fallen well short of our expectations, we have taken measures to re-baseline the business, including a leadership reorganization and further targeted operational changes at the segment and corporate executive management levels,” said Marc Parent, CAE’s President and Chief Executive Officer. “The impairments and the accelerated risk recognition on the Legacy Contracts are a disappointing but necessary step to account for the programmatic risks we previously identified and provide a clearer path to margin improvement amid compelling secular trends for Defense.”
To provide context for the impairments and accelerated risk recognition, CAE is disclosing preliminary summary tables of selected unaudited fiscal 2024 results for the fourth quarter and full year for Civil Aviation, for Defense & Security and on a consolidated basis, as well as a preliminary outlook for fiscal 2025. Civil, the larger of CAE’s two businesses, generated a record 27.3 percent adjusted segment operating income margin(1) in the fourth quarter and 13 percent adjusted segment operating income(1) growth for the year. CAE also had record Civil adjusted order intake(1) of $3.0 bn, including the sale of 64 full-flight simulators.
At the consolidated level, CAE generated over $400m of free cash flow(1) for a 1.5 times cash conversion rate(1) of net income and further solidified its financial position. Net debt-to-adjusted EBITDA(1) was 3.17 times at the end of the quarter and net debt-to-adjusted EBITDA excluding Legacy Contracts(1) was 2.89 times at the end of the same period. CAE expects improved results going forward, supported by continued growth in Civil and from the structural and organizational improvements in Defense and a growing backlog of high-quality, profitable programs. CAE will provide more detail with its full results to be disclosed on May 27 after market hours, and on the earnings conference call on May 28.
Senior leadership reorganization
CAE’s senior leadership reorganization takes advantage of the strength of the talent pool within the Company’s senior leadership ranks. As COO, Nick Leontidis will have overall responsibility for both of CAE’s business segments and will work closely with all five CAE P&L leaders, namely:
- Jason Goodfriend, Interim President and Chief Operating Officer, Defense and Security, USA,
- Marc-Olivier Sabourin, Division President of Defense and Security, International,
- Michel Azar-Hmouda, Division President, Commercial Aviation,
- Alexandre Prévost, Division President, Business Aviation,
- Pascal Grenier, Division President, Flight Solutions and Global Operations
Mr. Leontidis, a 36-year CAE veteran, has a proven track record of performance and headed both Civil and Defense programs during his career. As Civil group president over the last decade, he has led CAE’s Civil Aviation Training Solutions business to record heights, nearly tripling adjusted segment operating income over the period, to become the world’s largest aviation training solutions provider. Under Mr. Leontidis’s tenure, Civil has achieved operational excellence across a broad global enterprise, and consistently delivered CAE’s highest returns on investment through disciplined capital deployment in lockstep with customer demand.
Defense transformation
CAE’s Defense segment is in the process of an ongoing multi-year transformation which is expected to yield a substantially bigger and more profitable business and to provide an additional source of stable and predictable free cash flows with which to fuel attractive growth investments in CAE’s aviation training network. The secular growth backdrop for Defense remains compelling and this has translated into an approximate 20% adjusted Defense backlog growth over the last two years, which portends well for the future.
Additional information pertaining to Defense Legacy Contracts
Within Defense, there are a number of fixed-price contracts which offer certain potential advantages and efficiencies but can also be negatively impacted by adverse changes to general economic conditions, including unforeseen supply chain disruptions, inflationary pressures, availability of labour; all contributing to execution difficulties. These risks can result in cost overruns and reduced profit margins or losses. While these risks can often be managed or mitigated, there are eight distinct legacy contracts entered into prior to the COVID-19 pandemic that are firm fixed price in structure, with little to no provision for cost escalation, and that have been more significantly impacted by these risks (the Legacy Contracts disclosed in the third quarter of fiscal 2024). Although only a small number of contracts, they have disproportionately impacted overall Defense profitability. The Legacy Contracts include one that was inherited with CAE’s 2021 acquisition of L3Harris Technologies’ Military Training business and have completion dates mainly within the Company’s next two fiscal years.
The impairments and accelerated risk recognition on Legacy Contracts resulting in unfavourable contract adjustments are expected to allow CAE to develop a new baseline for future profitability. In addition to the aforementioned senior leadership changes at the business unit and corporate levels, CAE has continued to implement measures to further enhance risk management and execution over the past few years, including an increasingly disciplined and rigorous approach to the selection of bids and proposals and an enhanced focus on higher quality program pursuits. (Source: PR Newswire)
23 May 24. UK’s Rolls-Royce says confident on 2024 forecasts. Britain’s Rolls-Royce (RR.L), opens new tab said it was confident on meeting its 2024 forecasts as air travel continues to grow, demand for power for data centres picks up and the engineering group focuses on finding efficiencies and contractual improvements.
CEO Tufan Erginbilgic, the former BP executive who took over 18 months ago, has said he will transform Rolls-Royce, which makes engines for Airbus and Boeing’s wide-body jets, into a more competitive company.
The group on Thursday stuck to its guidance for underlying operating profit to come in between 1.7 billion pounds and 2 billion pounds this year, up as much as 25%.
“We have had a strong start to the year, despite continued industry-wide supply chain challenges. This builds on our record performance in 2023 and provides further confidence in our guidance for 2024,” Erginbilgic said in the statement.
Strengthening Rolls-Royce’s balance sheet, which was battered during the pandemic when planes stopped flying, has been part of Erginbilgic’s plan.
In Rolls’s civil aerospace unit, its biggest, the company said flying hours, a measure of how much airlines use its engines, returned to 100% of 2019 levels in the first four months of the year and could finish the year at up to 110% of 2019 levels.
The company said it had recently been upgraded by credit rating agencies and had reduced its debt by repaying a 550m euro bond from its cash.
(Source: Reuters)
Commenting on Rolls-Royce’s AGM statement, Julie Palmer, Partner at Begbies Traynor said: “Rolls-Royce’s AGM update today may not have heralded immediate financial gain for investors, but it’s a clear sign that CEO Tufan Erginbilgic’s revival strategy is taking flight.
“The company’s solid start to the year, marked by a return to pre-pandemic levels of engine flying hours in Civil Aerospace, is a testament to the effectiveness of its turnaround. Much of this has been driven by Asia’s market recovery and a growing fleet, while strategic initiatives in its Defence and Power Systems division are also contributing to the company’s positive trajectory. Profits are up and it’s a sign of confidence that the company is sticking to its guns with its 2024 guidance, all while navigating the industry’s supply chain turbulence and reducing its levels of gearing. The spotlight this week has also been on developments regarding Rolls-Royce’s venture into small modular reactors, but let’s not overlook today’s news that the company has been selected to supply technology for the new ‘Doomsday plane’ – demonstrating trust in its cutting-edge capabilities and defence technology.Despite the challenges ahead, including tough restructuring decisions, Rolls-Royce’s ongoing transformation is laying the groundwork for a robust future. The Civil Aerospace division is flying high with a surge in engine orders, and the company is on course to realise a £200 million annualised benefit by 2025, which should support its ambitions well into 2024 and beyond.”
23 May 24. COHORT PLC(“Cohort” or “the Group”) Full Year Trading Update.
Performance slightly ahead of expectations
Record closing order boo
Cohort, the independent technology Group, today provides an unaudited trading update for its financial year ended 30 April 2024.
Summary
- Trading performance for the year ended 30 April 2024 is slightly ahead of expectations, with growth in revenue and profits compared to the year ended 30 April 2023.
- Strong net funds of c.£23m, ahead of expectations (30 April 2023: £15.6m; 31 October 2023: £13.3m).
- Very strong order intake of c.£387m (2023: £218m)
- Record closing order book of c.£518m (30 April 2023: £329.1m) including the £135m Royal Navy countermeasures contract awarded to SEA in March 2024
- Order book underpins c.£180m (90%) of current market revenue expectations for the year ended 30 April 2025 (2024: £145m, 84%).
FY24 year-end update
Following a strong second half profit performance, Cohort has delivered results slightly ahead of expectations for the year. The Group has seen robust growth within the Sensors and Effectors division, offset by somewhat weaker trading seen within the Communications and Intelligence division.
Sensors and Effectors saw robust growth across all its constituent businesses but particularly within Chess and SEA. Chess continued its growth trajectory following its turnaround performance last year, with SEA continuing to secure and deliver on large naval orders.
In Communications and Intelligence, as expected, UK MOD product orders decreased from the high levels seen in 2022/23, whilst we continued to see contract delays within Portugal.
The closing net funds position was ahead of expectations and arose from favourable timing of working capital flows and delayed capital expenditure due to adverse winter weather, on our new facility in Germany, which will now take place in the 2024/25 financial year.
The order intake is c.1.9x the annual revenue (2023: 1.2x). Following significant contract awards during the year, the order book exceeded half a billion pounds for the first time, with on-order revenue now extending to 2037. The order intake performance was c.80% higher than last year.
The year end order book underpins c.£180m (90%) of the current consensus market revenue expectations for 2024/25, an improvement on the year just finished.
Outlook for FY25
Cohort continues to see good demand for our products and services from both our domestic customers, especially the UK, and from export customers. The drivers for increased investment in defence have amplified during the year, with the ongoing conflicts in Ukraine and the Middle East, coupled with tensions in the Indo-Pacific region leading to increased global defence spending.
The Royal Navy’s recent order for the Ancilia Trainable Decoy Launcher System, was a significant milestone for the Group. It represents a strong vote of confidence in the product; a fully UK designed and built solution for which we see encouraging export prospects. As stated in our announcement of 26 March 2024, this together with other recent order wins, is expected to materially enhance the Group’s earnings.
We have an encouraging pipeline of order opportunities for the current year, providing a positive outlook for organic growth in the years ahead. Overall, our expectations for the coming financial year remain unchanged.
Notice of FY24 results
It is the Group’s intention to issue its preliminary announcement for the year ended 30 April 2024 in late July 2024.
Andrew Thomis, Chief Executive of Cohort, said: “Cohort’s performance was slightly ahead of our previous expectations for the year with growth in revenue and profits. Following strong order intake, we have a record closing order book with encouraging prospects for further orders. Our strong closing net funds position provides a robust platform from which to invest in the business and, potentially, acquisitions. We expect to continue our organic growth in 2024/25 and beyond.”
21 May 24. Cuashub.com said today that Taiwanese C-UAS Startup Completes Series A Funding Round. Tron Future Tech, a Taiwanese startup established in 2018, has swiftly become a prominent player in Taiwan’s low Earth orbit (LEO) satellite and Counter-Unmanned Aircraft Systems (C-UAS) markets. The company’s proprietary Active Phased Array (AESA) radar technology is at the heart of this success. Recently, Tron Future announced it has raised NT$900m (approximately US$32.4m) in a Series A funding round. This round was led by Taiwania Capital and the CID Group, with participation from Industrial Technology Investment Corp. (ITRI’s venture capital arm), Taya Venture, and Taiwan Cooperative Venture Capital.
With this influx of capital, Tron Future plans to scale up its production capacity to support expansion into the US, European, and Japanese markets. The aim is to meet the rising military and civilian demand for protecting critical infrastructure from drone incursions. Wang Ju-jiu, the founder and CEO of Tron Future, stated that the company’s current production capacity already satisfies Taiwan’s long-term C-UAS needs in times of crisis.
Given the rapidly evolving geopolitical landscape, Wang highlighted that regions such as the Middle East, Central and Eastern Europe, and India exhibit the highest demand for C-UAS solutions. Since 2020, Tron Future has expanded its global C-UAS market presence, establishing partnerships with defense sector entities in the Middle East, India, and Southeast Asia. Tron Future swiftly entered the satellite communications and remote-sensing markets just two years after its founding. Additionally, the company quickly ramped up to meet Taiwan’s counter-drone demand as Chinese drones continued to disrupt Taiwan’s island outposts. Tron Future’s C-UAS solution, featuring the in-house developed AESA radar T.Radar Pro, passive radar T.Sensor, and T.Jammer, has already been deployed in partnership with Taiwan’s armed forces. Besides protecting military facilities, Tron Future’s C-UAS solution will also be implemented in the Hsinchu Science Park to safeguard key semiconductor players like TSMC.
(Source: https://cuashub.com/)
21 May 24. Avon Protection Reports Half Year Results.
*Record $199m order book
- Significant strategic wins and orders in the first half and since H1 period end, including:
o New contract award worth up to £38m for the UK MoD General Service Respirator and filters
o New rebreather contract from the German Navy
o US DOD $14m ACH (Advanced Combat Helmet) GEN II order
o $36m Next Generation IHPS (Integrated Head Protection System) delivery order from the US Army Transformation on track – excellent strategic progress
- IHPS successfully reached full run rate for delivery orders
- Consolidation of helmet manufacturing sites progressing as planned: o Building production capacity for DOD programmes in Cleveland, Ohio o First lot of ACH Gen II helmets finished in Cleveland and approved by DCMA5 for ballistic testing o EPIC helmet finishing in Cleveland successfully ramped up to meet customer demand Group operational KPIs improving
- 23% productivity improvement6 vs H1 2023
- 45% reduction in scrap6 across all factories vs H1 2023
- Group inventory turns6 increased 37% to 3.11x (H1 2023: 2.27x) Gaining momentum
- On track to meet medium term goals set out in Capital Markets Day
- Continuous Improvement results so far give us confidence we can achieve or exceed our operational targets
Confident in the outlook for H2, issuing updated FY 2024 guidance:
- Revenue growth c.10%
- Adjusted operating profit margin 10%
- Transformation investment c.$15m
- Cash conversion over 100%
- Net debt: EBITDA <1.5x, new $137m financing facility successfully agreed
Jos Sclater, Chief Executive Officer, commented: “We are making excellent progress towards our medium-term goals and are increasingly excited by the growing momentum in our transformation programme. The results in H1 demonstrate that our strategy is working and pace is increasing, though we still have a lot to do. The work we have done so far to drive improvement has revealed further opportunities for operational improvement; this reinforces our confidence that we will deliver our medium-term goals. We are seeing a growing awareness of the importance of high-quality protection against chemical warfare and head injury. In particular, Russia’s deployment of chemical weapons in Ukraine has highlighted the need for effective respiratory protection. As the leading supplier of mission-critical head and respiratory protection to the US Department of Defence and other NATO countries, we are well positioned to help protect the people who are protecting us. More broadly, I am very pleased that we now have a much stronger business that is delivering on major programmes and is improving fast. We have moved quickly into execution phase of our STAR strategic plan and are already seeing productivity improvement, new contract wins and further innovation to revolutionise our world leading product portfolio.”
21 May 24. Avon Protection increases order intake by 50%.
Stronger cash generation helps defence equipment supplier to cut net debt
- Adjusted tax profit up 66 per cent
- $23mn of stock converted into cash
Things are looking up at Avon Protection (AVON). The maker of protective helmets and respiratory gear reported momentum in sales, margin and cash generation, although perhaps most encouraging was the 50 per cent increase in its order intake to $190m (£150m).
This shows that for all of the turmoil it has suffered in the past two-and-a-half years, key customers remain happy with its products.
Avon Protection reported an increase in adjusted pre-tax profit by two-thirds to $8.8mn, although adjustments including $5.3m of restructuring charges meant a reported loss of $1.5m. The costs relate to the consolidation of helmet manufacturing sites in the US.
Other improvements made to production processes mean losses due to scrapped helmet products have dropped from nearly $1mn a month to around $100,000-$150,000, according to chief executive Jos Sclater.
Avon has become more efficient in terms of inventory turn, converting $23m of stock into cash during the half. This helped to boost cash inflow from continuing operations to $23.4m, compared with an outflow of $15.7m in the same half last year. Net debt was cut by around 20 per cent to $76.5m.
“We’re on much firmer financial footing,” said Slater. “We’ve gone in the space of a year from being quite stretched to very secure.”
Although maintaining our hold call six months ago now looks overly cautious given the subsequent 75 per cent rally in the company’s share price, the turnaround has been achieved at speed. It was also far from guaranteed, given Avon’s recent history.
However, the rally means Avon’s shares now trade at 27 times earnings and, although broker upgrades could follow given a more confident outlook, the recovery already looks priced in. Hold. Last IC view: Hold, 770p, 21 Nov 2023. (Source: Investors Chronicle)
21 May 24. Dowlais Group plc Trading update. Start of the year broadly in line with expectations: Driveline, China and Powder Metallurgy growth ahead of market, ePowertrain challenged by BEV market volatility. Dowlais Group plc (“Dowlais” or the “Group”), the specialist engineering group focussed on the Automotive sector, provides a trading update for the four-month period to 30 April 2024 (“the period”) ahead of its Annual General Meeting to be held later today. The Group has continued to execute well on its strategic priorities, with continued focus on delivering operational efficiencies, amidst challenging market conditions. The Group delivered £1.7bn of adjusted revenue1 in the period, a year-on-year decline of 1.9%, as revenue growth ahead of the market in Powder Metallurgy, Driveline and our China joint venture (JV) was more than offset by weakness in the ePowertrain4 product group of the Automotive business. Translational foreign exchange headwinds were £90m, resulting in a year-on-year reported adjusted revenue decline of 6.6%. Encouragingly, despite market volatility, adjusted operating margins of 6.1% in the period were up 30bps over the same period of the prior year, with margin expansion achieved in both Automotive and Powder Metallurgy. Business Unit performance Automotive In the period, Automotive saw year-on-year adjusted revenue decline of 3.3%, as growth in Driveline and China was more than offset by revenue decline in ePowertrain.
The Driveline product group continued to perform well, with revenue growth ahead of the market5, benefitting from its broad portfolio and scale across customers, platforms and geographies. ePowertrain adjusted revenue declined largely driven by increased volatility in BEV production volumes. Revenue from our China JV operations grew slightly ahead of the Chinese market6 as it continued to gain market share with local OEMs. Adjusted operating margins further improved, driven by the recovery from customers of inflationary costs incurred in the prior year as well as ongoing performance initiatives. Year-to-date new business bookings are in line with expectations, balanced across a mix of platforms and continue to underpin expectations for long term profitable growth. Powder Metallurgy Powder Metallurgy had a strong start to the year, with year-on-year adjusted revenue growth of 4.0%, outperforming the market. Revenue growth was driven by improved performance in its ICE related business, as it benefitted from restocking in the period, and growth in the nonICE related portfolio. Adjusted operating margin improved, driven by the additional volume and improved performance in the North American sites. Outlook Overall, the Group has started the year broadly in line with expectations despite the increased volatility of production schedules for certain BEV platforms which have impacted the ePowertrain product group. While current industry forecasts expect an improvement in the second half, after a weak first half, some uncertainty remains. Consequently, the Group anticipates revenue for 2024 to be slightly below prior year at constant currency, with performance more weighted to the second half. Based on these assumptions the Group remains confident in its ability to achieve operating margin expansion and grow free cash flow for the full year. The Group’s interim results will be announced on 13 August 2024. Liam Butterworth, CEO of Dowlais, said: “This performance demonstrates the resilience of Driveline, whose powertrain agnostic characteristics and broad diversification make it well placed to succeed. I am also encouraged by the strong performance of our JV in China, where we grew ahead of the market and of Powder Metallurgy. These successes were tempered by challenges in the ePowertrain product group. We achieved a 30bps increase in our adjusted operating margins, driven by retrospective recoveries and ongoing performance initiatives. Our teams continue to capitalise on opportunities as we remain focused on delivering shareholder value.”
12 May 24. EchoStar “…bankruptcy the most likely outcome.” EchoStar, the Charlie Ergen-owned pay-TV and satellite operator, is struggling. CEO Hamid Akhavan told analysts in the company’s post-results call with analysts that the company has $1.98bn of debt maturing in November of 2024, and is forecasting negative cash flows for the remainder of the calendar year. Current trading is not helping. It reported a decline of 8.5 percent for its Q1 core business, with declining subscribers at Dish Network (down 348,000 subs) and Sling TV (down 135,000 subs). The total number of payTV customers served between Dish and Sling TV stood at just under 8.2m accounts.
In EchoStar’s latest 10Q obligatory filing to the SEC, the company stated, “Because we do not currently have committed financing to fund our operations for at least 12 months [there are] substantial doubt exists about our ability to continue as a going concern. We do not currently have the necessary cash on hand and/or projected future cash flows to fund fourth quarter operations or the November 2024 debt maturity.”
Akhavan told analysts that the company was working on a variety of avenues to refinance its obligations and improve its cash position. “The complex and delicate nature of this process demands time and confidentiality. We will certainly have more to share in due course. Our recipe is very simple, candidly. Can we push the maturities [of our debt] out … so that we have enough cash to operate the business? We’re very bullish about our prospects for operating the business if we have the capital to execute that. While we’re working on that financing, we aren’t sitting on our hands”
Ergen (the executive chairman) for the second time was not present on the call with analysts.
A report from analyst Craig Moffett at MoffettNathanson states that he saw foresees EchoStar filing for bankruptcy in the next 4 to 6 months. Moffett admitted that EchoStar’s spectrum had an enormous value, but he did not see likely buyers such as AT&T, Verizon or T-Mobile being in a position to buy extra spectrum.
MoffettNathanson was highly negative on EchoStar, not for the first time, and wrote, “There are only three potential bidders, two of whom have badly overburdened balance sheets. There is no longer Dish itself as the marginal bidder. And the time value of money is a real consideration; a liquidation would potentially take a very long time. In fact, it’s not even clear that spectrum sales of any size would be allowed.”
Also in negative territory is EchoStar’s cellular business (Boost Mobile) which lost 81,000 subscribers ending the quarter with 7.3m subscribers and a 7 percent decline Y-o-Y.
17 May 24. Is the cybersecurity sector shrinking?
The cybersecurity space is beginning to show some hallmarks of the 2000 dot-com bubble but it looks like investors, particularly large-scale investors, have learned valuable lessons over the last twenty years.
As artificial intelligence dominates the top of the list of the most interesting trading themes, cybersecurity is not far behind. Be it security breaches from unpopular governments or cyber threats from oddly named hacker groups (my personal favourite: Muddled Libra. And no, I did not invent that, they are a real group), as technology becomes more sophisticated so does the need for cyber protection.
This cybersecurity market is currently valued at around $200 bn but is expected to more than double before the end of the decade.
What is similar to the dot-com bubble is an abundance of smaller to medium-sized unproven players. Previously NASDAQ-listed ZeroFox Holdings [NASDAQ:ZFOX] is a good example, which I will elaborate on later.
At the same time, the massive amount of R&D and intellectual capital invested in these companies will eventually create the future Metas, Googles, and Amazons. There are gems to be had, and large digital companies as well as tech private equity seem to be particularly good at singling them out.
Private equity vs digital company buyers
Here are a couple of examples. The aforementioned ZeroFox, a provider of external cybersecurity was listed on NASDAQ in the summer of 2022 valued at around $1.4bn. Yet less than a year later shares dropped 50% as the company remained unprofitable even as revenue increased by almost 100%.
Spring forward to April this year and ZeroFox has been sold to Texas-based technology private equity firm Haveli Investments for $350m in cash, subsequently delisting from NASDAQ. If you are wondering what Haveli will do with ZeroFox, a possible path it could take would be similar to Thoma Bravo, a Chicago-based PE firm active in enterprise software.
Thoma Bravo was involved in three of the five largest cybersecurity acquisitions in 2023. In August it completed a $2.3bn deal for identity and access management company ForgeRock and then in October its subsidiary Proofpoint bought UK-based cloud email security provider Tessian. Although the value of the deal was never disclosed, at that time Tessian was valued at around $500m. The same year Thoma Bravo sold US cybersecurity company Imperva to French aerospace and defense firm Thales for $3.6bn.
Don’t forget the digital specialists
Apart from the PE-powered merry-go-round of sales and acquisitions, the second type of M&A activity in this sector comes from large digital players buying up smaller players to expand their cybersecurity offerings.
The single biggest deal last year was digital communications giant Cisco [NASDAQ:CSCO] buying cybersecurity firm Splunk for $28 bn, the largest investment in Cisco’s history. This move was followed up in April this year by Cisco releasing HyperShield, a new security architecture product that uses AI to protect clouds, data centres, and IT environments. Splunk was not Cisco’s only target, the company is also in the process of taking over Armorblox, Oort and Lightspin.
The trend continues. According to specialty magazine Security Week, in March alone there were 27 cybersecurity-related mergers and aquistions. This constitutes a slowdown from last year when the total number of M&A deals in this sector hit 400 but industry insiders believe that as the overall financial situation picks up in the US and Europe the number of deals will increase.
It seems that cybersecurity has a long way to go before this sector is truly consolidated. (Source: https://www.thearmchairtrader.com/)
20 May 24. Houlihan Lokey Advises TSPi. Houlihan Lokey’s Government Technology and Services team announced that Technology Solutions Provider, Inc. (TSPi) has been acquired by Abt Global (Abt). The transaction closed on May 9, 2024.
Headquartered in Reston, Virginia, TSPi is a leading provider of IT modernization solutions, specializing in agile low-code/no-code application development and cloud technologies across major platforms, including Pega, Salesforce, Appian, Amazon Web Services, and Google Cloud. The company is notably one of only a few Pega Government Elite partners and has been recognized by Google for its partnership within the federal space. TSPi has developed a franchise position leading digital transformation and data science initiatives for some of the nation’s largest federal assistance, conservation, and climate resilience programs that directly support farmers, ranchers, and other stewards of agricultural lands. The company is recognized as an exceptional employer in the area, securing The Washington Post’s Top Workplace awards each of the past three years.
Headquartered in Rockville, Maryland, Abt is a global consulting and research firm that combines data and bold thinking to improve the quality of people’s lives. Abt partners with clients and communities to advance equity and innovation—from creating scalable digital solutions and combatting infectious diseases to mitigating climate change and evaluating programs for measurable social impact.
Houlihan Lokey served as the exclusive financial advisor to TSPi and marketed, structured, and negotiated the transaction on behalf of the company.
20 May 24. Sidus Space Reports First Quarter 2024 Financial Results and Provides Business Update. Sidus Space, Inc. (NASDAQ:SIDU) (the “Company” or “Sidus”), a Space and Data-as-a-Service satellite company, announced its financial results for the first quarter ended March 31, 2024.
“During the first quarter of 2024, we successfully launched and deployed our first LizzieSat from the SpaceX Transporter-10 Rideshare Mission, representing the first of several satellites we are planning to launch into Low Earth Orbit. With this new launch, the first commercial satellite designed, manufactured and operated by the company, we have demonstrated our expertise in vertical manufacturing integration as well as our ability to successfully deploy and operate a 275lb satellite with multiple technologies supporting a broad range of applications and customers. This unprecedented success lays the foundation for our continued growth as we prepare for LizzieSat-2 and 3, which are manifested for launch with SpaceX in the fourth quarter of this year,” said Carol Craig, Founder and CEO of Sidus.
“Successfully launching LizzieSat into orbit was a key milestone for Sidus and a vital element of our strategy to position our company as a leader in the Space ecosystem. Our Space-based Data-as-a-Service business model that is enabled by our LizzieSats has the capacity to scale rapidly and generate meaningful, high-margin revenue as we continue deploying additional LizzieSats into orbit,” Ms. Craig concluded.
Operational Highlights for the Quarter Ending March 31, 2024:
- Successfully launched and deployed first ever hybrid 3D printed, Artificial Intelligence (AI) enhanced micro satellite on SpaceX Transporter-10 rideshare mission
- Established two-way communications with LizzieSat™ SCN 59132
- Teammate on winning Solis Applied Science team for National Geospatial-Intelligence Agency IDIQ research and development contract with $794 m ceiling
- Awarded contract for technology hosting payload contract with ASPINA
- Announced publication of new U.S. patent application for LizzieSat platform
- Completed contract to deliver onboard computing flight hardware with final revenue payments
- Unveiled cutting-edge multi-material 3D printed space hardware division
- Achieved AI and hardware contract revenue milestones
- Secured NOAA approval to provide imaging services to government and commercial customers
Subsequent Operational Highlights:
- Completed commissioning Phase and began operating as a fully functional satellite ID# 59132
- Began activation of customer payloads including NASA ASTRA
- Executed subcontract with Intuitive Machines as a Teammate on the NASA Lunar Terrain Vehicle Services (LTVS) contract
- Delivered Electronic LCS Cabinets to Bechtel as Part of NASA’s Mobile Launcher 2
- Expanded sales reach by executing agreement with Orbital Transports for global market reach
- Awarded additional contract with HEO, a Leading Provider of Non-Earth Imaging and Data, for NEI Payload and Data Services on LizzieSat-3
- Unveiled Commercial Mission Control Center for expansion across Space ecosystem
Corporate Governance and Capital Formation Highlights:
- Appointed Bill White as Chief Financial Officer
- Appointed Richard J. Berman to Board of Directors
- Raised Gross Proceeds of $15.2m through the Exercise of Warrants and Two Equity Offerings
Financial Highlights for the First Quarter Ending March 31, 2024:
Total revenue for the three months ended March 31, 2024, totaled approximately $1.1m, a decrease of $1.2m compared to total revenue for the three months ended March 31, 2024. This decrease was primarily driven by the timing of fixed price manufacturing milestone contracts related to delivery of hardware as directed by the contract requirements. Additionally, timing of satellite contract payments from existing customers varies for each calendar year. Due to customer driven delays, both manufacturing and satellite milestone payments shifted to the right and are expected to increase in the second half of the year.
Cost of revenue decreased 29% for the three months ended March 31, 2024, to approximately $1m as compared to approximately $1.4m for the three months ended March 31, 2023. The decrease in cost of revenue is primarily driven by the reduction of total revenue.
Gross profit margin decreased to 8% for the first quarter of 2024 as compared to 40% for the first quarter of 2023 due to the higher percentage of material costs as compared to labor for manufacturing contracts and the shifting of the satellite milestones due to customer delays along with the change in calculation of COGS.
Selling, general, and administrative expenses for the first quarter ended March 31, 2024, totaled approximately $3.6m as compared to $3.5m for the same period the prior year. The slight increase was primarily due to fundraising expenses from two capital raises in Q1 2024 and an increase in Mission Operations support expense related to ground support required for tracking and communicating with our first satellite, partly offset by a reduction in D&O insurance expenses, marketing and investor relations expenses.
Adjusted EBITDA loss, a non-GAAP measure, for the three months ended March 31, 2024, totaled $2.7m as compared to an Adjusted EBITDA loss of $2.6m for the same period the prior year. Total non-GAAP adjustments for interest expense, depreciation and amortization, acquisition deal costs, severance costs, capital markets and advisory fees, equity-based compensation, and warrant costs are provided in the reconciliation table listed below.
Net loss for the three months ended March 31, 2024, was $3.8m as compared to a net loss of $3.4m for the same period the prior year.
Balance Sheet:
At March 31, 2024, the Company had cash of $6.2m as compared to $1.2m at December 31, 2023. During the quarter, the Company received gross proceeds of $15.2 m through the exercise of warrants and two offerings.
Current liabilities decreased by approximately $4.0m to approximately $8.2 m as of March 31, 2024, from approximately $12.2m as of December 31, 2023. The decrease was primarily attributable to a decrease in accounts payable and other current liabilities and our asset-based loan liability.
Total stockholders’ equity increased to $17.2m as of March 31, 2024 as compared to $7.1 m as of December 31, 2023.
As of May 20, 2024 the Company had 4,081,344 Class A common shares and 100,000 Class B common shares. (Source: BUSINESS WIRE)
17 May 24. Boeing shareholders vote to re-elect CEO Calhoun to board. Boeing Co (BA.N) shareholders voted to re-elect outgoing Chief Executive Dave Calhoun to the planemaker’s board at the company’s annual meeting, as per a preliminary tally. Proxy adviser Glass Lewis had last month recommended shareholders vote against the reelection of Calhoun and two other Boeing directors, citing dissatisfaction over the efforts to transform the safety culture at the planemaker. (Source: Reuters)
16 May 24. Boeing-Spirit acquisition may risk US aerial defence supply chain. The US defence community expressed fear that they will lose a critical point of the air systems supply chain should Boeing subsume Spirit Aerosystems for its commercial enterprise.
Since Spirit AeroSystems confirmed it began discussing the prospect of Boeing acquiring the company in March 2024, the potential deal has haunted US defence and government circles.
While an agreement still hangs in the balance, US politicians are watching closely to see whether the acquisition will have an adverse reaction on the defence capabilities that Spirit offers as a critical supplier in the supply chains for military aerial systems.
As both a defence and commercial company, Spirit supports a range of programmes including the B-21 Raider strategic bomber, the Bell V-280 tiltrotor aircraft, the CH-53K King Stallion transport helicopter as well as numerous Bombardier business jets.
Even though Boeing is a notable aerial systems contractor in its own right within the US defence industrial ecosystem, some observers are still weighing the prospect that it intends to leverage Spirit largely for its commercial enterprise.
The company also has an international presence, having announced the establishment of a design centre in Malaysia according to a statement at the end of February on the opening day of the Singapore Air Show. It is said that Spirit’s Malaysian engineering team is already a significant player in the design of commercial aircraft, including the A350XWB section 15 freighter, A350XWB ultra long range and a key partner to A220 wing programme.
The Senator for Kansas, Jerry Moran, in a Senate Defense Appropriations Committee hearing on 15 March 2024, inquired into the situation of the Wichita-based supplier, which he said employs 13,000 workers from his state. (Source: airforce-technology.com)
17 May 24. Houlihan Lokey Advises General Dynamics. Houlihan Lokey announced that General Dynamics Corp. (NYSE:GD; General Dynamics) has sold its Italian subsidiary, General Dynamics Mission Systems–Italy (GDMS–Italy), to Maticmind, an Italian system integrator controlled by CVC Capital Partners (CVC), with Cassa Depositi e Prestiti Equity (CDP Equity) a minority shareholder. The transaction closed on 26 April 2024.
Headquartered in Rome, Italy, GDMS-Italy specialises in the design, architecture, integration, and implementation of highly complex information technology, communications, security, and surveillance systems in the defence, energy, and critical infrastructure end markets. With important partnerships with NATO and several ministries of defence, GDMS-Italy has more than 60 years of success in delivering turnkey systems globally, with operations in Italy, Turkey, and Brunei.
General Dynamics, headquartered in Fairfax, Virginia, provides mission-critical solutions for defence, intelligence, and cybersecurity customers in all domains. General Dynamics employs approximately 12,500 people worldwide.
Maticmind is an Italian system integrator in the information and communication technology sector. The company provides solutions for networking, cybersecurity, digital workplace, data centre, cloud, enterprise applications, and automation/IoT. In August 2022, Maticmind was acquired by CVC, with a minority stake acquired by CDP Equity, an Italian sovereign fund.
Houlihan Lokey served as the exclusive financial advisor to General Dynamics and assisted in structuring the transaction process as well as marketing and negotiating the transaction.
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SPX CommTech, part of SPX Technologies Inc, innovates specialised technologies within the Radio Frequency (RF) spectrum to ensure a smarter, more secure future for all. Formed by TCI and ECS, SPX CommTech’s Battlespace portfolio enables defence and security teams to detect, defeat and exploit RF signals to enhance communications intelligence (COMINT) and counter unmanned aerial systems (Counter-UAS). Additionally, its Tactical Data Link portfolio allows intelligence gathering agencies, special forces, emergency response, and security teams to securely and reliably transfer video and data between enabled-aircraft and ground teams over long distances for airborne Intelligence, Surveillance, Reconnaissance (ISR).
For more information visit www.tcibr.com and www.enterprisecontrol.co.uk
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