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30 May 24. Cerberus Acquires Calspan’s Hypersonics and Test Systems Business Units from TransDigm and Forms North Wind, a Leading Independent Supplier of Hypersonic Test Infrastructure, Systems and Services. Cerberus Capital Management, L.P. (together with its affiliates, “Cerberus”), a global leader in alternative investing, today announced that it has acquired Calspan’s hypersonic and defense test systems business units from TransDigm Group (NYSE: TDG). In acquiring Calspan Aero Systems Engineering and Calspan Systems, Cerberus has established North Wind, an independent business centrally focused on the advancement of the United States’ hypersonic test capability through ground-based facility design, build and operations, testing, and analysis.
Headquartered in St. Paul, Minnesota, with decades of specialized experience as a trusted independent partner to the U.S. government’s Research, Development, Test & Evaluation (RDT&E) organizations, North Wind is uniquely positioned to serve the demands of its customers with high-quality, customized engineering services and integrated solutions.
The acquisition and subsequent formation of North Wind are led by Cerberus’ Supply Chain and Strategic Opportunities platform, which acquires and invests in companies addressing supply chain shortages, defined by critical long-term U.S. national security requirements, to help drive innovation, promote resilient infrastructure, and increase security for the United States and its allies.
Michael Palmer, Senior Managing Director on Cerberus’ Supply Chain and Strategic Opportunities platform, said: “We’ve been tracking this company for a while and admire their innovation and expertise in hypersonics analysis and testing. Enabling the U.S. to meet the great need for hypersonic capabilities, North Wind is an important investment. We couldn’t be more thrilled to execute against the team’s vision as a well-resourced standalone company.”
David Meier, who has been the President and CEO of Calspan Aero Systems Engineering since 2015, will lead North Wind as CEO. Stephanie Mumford, President of Calspan Systems since 2016, will serve as President of the North Wind Systems business unit headquartered in Newport News, Virginia. Dr. Anthony Castrogiovanni, a leading technologist in the hypersonics industry who has served as Calspan’s CTO since 2021 and previously founded ACEnT Laboratories, will assume the role of CTO for North Wind.
Mr. Meier added: “We’re excited to be joining forces with a like-minded partner in Cerberus to establish North Wind and drive the expansion and modernization of our nation’s valuable test infrastructure with a focus on hypersonics. With Cerberus’ support and dedicated resources, we’re confident that North Wind will thrive.”
About North Wind
North Wind is a leading independent supplier of complex hypersonic and Research, Development, Test & Evaluation (RDT&E) systems and services. Leveraging decades of specialized experience, North Wind delivers hypersonic and RDT&E capabilities through five complementary business segments: Applied R&D; Test Articles and Critical System Components; Test Facility Design & Build; Test Services; Flight Testing & Flight Systems. The Company’s offerings span the full life cycle of aerospace & defense and commercial systems, including end-to-end turnkey solutions. Learn more at www.north-wind.com.
About Cerberus
Founded in 1992, Cerberus is a global leader in alternative investing with approximately $65 billion in assets complementary credit, real estate, and private equity strategies. We invest across the capital structure where we believe our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com. (Source: BUSINESS WIRE)
30 May 24. Cuashub.com said today that ZeroMark Secures Seed Funding for “Handheld Iron Dome.” ZeroMark, a defense technology startup, has secured $7m in seed funding led by prominent venture capital firms Ground Up Ventures and Andreessen Horowitz. This investment will expedite the development of ZeroMark’s groundbreaking AI-powered auto-aiming system, which converts standard infantry rifles into highly effective counter-drone solutions, offering every soldier a “Handheld Iron Dome” capability.
“The proliferation of drone technology poses an evolving threat to our armed forces,” said Joel Anderson, CEO of ZeroMark. “Our mission is to empower every soldier with a cost-effective, highly portable counter-drone solution that delivers unparalleled performance. With the support of our investors, we are ready to deploy this critical capability and ensure our defenders maintain a decisive edge on the battlefield.”
ZeroMark’s cutting-edge technology revolutionizes modern warfare by integrating advanced computer vision and precision robotics with conventional firearms. This system is the only solution on the market that physically enhances the operator’s aim, enabling rapid and precise engagement of threats. By augmenting standard-issue rifles without compromising their functionality, ZeroMark’s approach increases the lethality and precision of armed forces while significantly improving operational safety and decision-making efficiency. This innovative technology ensures that the human remains in control, empowering soldiers to counter fast-moving, low-altitude drone threats effectively.
Jordan Odinsky, Partner at Ground Up Ventures, emphasized the critical need for companies like ZeroMark to protect freedom and democracy. “As a firm with deep roots in Israel, we have witnessed firsthand the critical need for companies like ZeroMark to provide superior precision hardware and software systems to those that protect and defend freedom and democracy,” Odinsky stated. “We are thrilled to lead this funding round, which will enable ZeroMark to have an outsized impact on the way the United States and its allies protect their citizens, law enforcement, and warfighters.”
Andreessen Horowitz (a16z), one of the world’s leading venture capital firms and the driving force behind the American Dynamism movement, also spearheaded the funding round. “Military precision is critical in the next generation of warfare. We’re proud to support ZeroMark as they build new technology to protect and serve armed forces on the battlefield,” said Katherine Boyle, a General Partner at Andreessen Horowitz. ZeroMark’s groundbreaking work has earned them a place in a16z’s American Dynamism portfolio.
The inclusion of NY Ventures in the funding round underscores the significance of ZeroMark’s technology and its potential impact on national security. “ZeroMark is pioneering a new era in defense technology with its AI-powered targeting system,” said Karan Mehta, Sr. Director at NY Ventures. “Its solution enhances the precision and safety of our armed forces while addressing critical gaps in defense capabilities. NY Ventures is proud to support a team that is having such a profound impact on national security.” ZeroMark’s commitment to making New York a leading hub for defense companies is a key factor in NY Ventures’ decision to invest.
The seed funding will expedite product development, enhance feature integration, and expand operational capabilities. ZeroMark’s technology can be seamlessly installed on any standard carbine or rifle without needing tools, offering real-time threat analytics, friend-or-foe identification, and automatic aim augmentation—crucial for maintaining tactical superiority in complex environments.
ZeroMark’s impressive momentum is driven by a team of experts and veterans from the military and technology sectors, including former special operators, leading computer vision and robotics engineers, and advisors with extensive government and security experience.
https://cuashub.com/en/content/zeromark-secures-seed-funding-for-handheld-iron-dome/?utm_campaign=C-UAS%20Hub%20General&utm_medium=email&_hsenc=p2ANqtz-98ra7SgQ_XpUGcsj_tnT_Z_1bZ2PSKM3SwuNLyJPQQW4Ld3x4SuoNVdad4tTKirpkVw8r0VqUznpl3bYwstUomj3Gk7xGM8Smc7Bt6H-Jk4pW-hRM&_hsmi=309394989&utm_content=309394989&utm_source=hs_email (Source: https://cuashub.com/)
29 May 24. Cohort rides defence spending wave. Cohort Plc [LON:CHRT], the AIM-listed defence company, has continued its forward advance. The Reading-based weapon systems manufacturer built on last year’s record performance and delivered results slightly ahead of expectations.
In its trading update to end-April 2024, Cohort said that trading performance for the year was slightly ahead of expectations on the back of a very strong order intake of GBP387m, up 77.5% year-on-year. This led, said the company, to a growth in revenue and profits
The company has also built up its cash armoury, increasing net funds from GBP15.6m in April 2023 to GBP23m. The company was expecting strong demand to continue in a growing market in last year’s results, and delivered a record closing order book of GBP518m, up 57.4% year-on-year. This order book gave Cohort’s management confidence that it would meet or exceed market expectations, as the order book underpins GBP180m, or 90% of current market revenue expectations.
As previously reported, Cohort’s divisions are: Mass, providing cyber defence and electronic warfare support to maritime and air assets; ELAC Sonar, providing passive and active sonar systems to submarines and surface ships; MCL a communications and surveillance specialist; SEA, focussing on maritime communications, torpedo launchers and decoys; EID a division that offers integrated communications systems to personnel deployed in the field; and Chess which provides tracking, fire control and anti-drone solutions for maritime and land platforms.
The defence company explained that its Sensors and Effectors division performed very strongly, especially its Chess and SEA subsidiaries, however, its Communications and Intelligence subsidiaries were a bit disappointing on the back of the UK Ministry of Defence slowing procurement in comparison with the previous years and the Portuguese military still dragging its feet on prearranged contracts.
Substantial Royal Navy order boosts Cohort results
The order book included a EUR16m (GBP13.6m) December follow-on 60-month contract win for ELAC to provide submarine sonar to the Italian navy, followed in January by a GBP15.1m win for SEA to supply torpedo launch systems to the Canadian navy. In March Chess won a GBP15.7m contract to provide surveillance systems for Australia’s Hunter class frigates and later that month Cohort’s SEA subsidiary won a chunky GBP135m naval countermeasures contract with the Royal Navy.
The Royal Navy contract includes the provision and support of SEA’s Trainable Decoy Launcher System, known as Ancilia, which delivers effective and rapid protection against modern anti-ship threats and sophisticated systems and tactics. It will be installed across a range of the Royal Navy’s surface ships. Its design builds on SEA’s deep knowledge of existing systems in service with the Royal Navy.
Andy Thomis, Cohort’s CEO said at the time: “This is a significant win for SEA and the group, and the project will deliver greatly enhanced protection for the Royal Navy’s surface ships against new and potent threat technologies. Over the life of the project, we estimate it will sustain employment for 150 skilled and professional people in North Devon, and export success could see this increase further still.”
Rise in global defence spending
Thomis explained that Cohort continues to see good demand for our products and services from both domestic customers 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.
With an encouraging pipeline of order opportunities for the current year, providing a positive outlook for organic growth in the years ahead, things are looking good for Cohort. (Source: https://www.thearmchairtrader.com/)
29 May 24. The ELT Group continues its expansion with the 100% acquisition of ELTHUB. This latest development enhances the position of the group within the Space and Electro-Optics sectors.
Elettronica SpA, a company that is now known in the market under the brand name of ELT Group, acquires 100 per cent of ELTHUB, of which it already owned 70 per cent and which already works within the Group in the division called New Tech Lab.
The acquisition which has just been concluded aims to give a new impetus to the production site located in Abruzzo, and has been contributing to the ELT Group’s Research and Innovation activities for the last two years.
With a value proposition already strongly oriented towards the Research and Development of innovative solutions in the defence and security fields, ELTHUB has already brought to the Group expertise in the microelectronics and biodefence sectors and a track record in the space sector, where it has been working for many years on microsatellites for military and civil experiments. The company has also developed innovative product lines in terms of sustainability, such as hydroponic technologies for military and civil use also food 3D printers. The company also has assets such as microelectronics laboratories, a clean room certified up to class 10 (ISO 4), and a machine shop with rapid prototyping capability.
The acquisition is part of the Group’s growth plan with the aim of creating a true centre of competence in Abruzzo in the Space EW and Land segments, in addition to its current business lines. Further impetus will be given to the research, development and production of EW systems for Space and Land through a line of products related to Electro-Optics, C-IEDs (Counter Improvised Explosive Devices) and anti-drone systems, which represent a strategic enabler in the field of security and protection. The expected aim is to double the turnover and personnel of this subsidiary within the next three years.
“This operation – states CEO and Chairman Enzo Benigni – is part of the trajectory of the Tenet 2030 strategic plan, which is redesigning the perimeters and ambitions of the company, particularly in the Land segment, with renewed C-IED countermeasures systems and C-UAS (Counter Unmanned Aerial System) anti-drone systems, and Space, where the company has been working over the last three years on the spatialisation of the portfolio of EW, electronic intelligence and jammer systems, having already taken an EW payload into LEO orbit in 2023. The Land and Space segments represent a challenging frontier for the military and civil sectors, to which we dedicate investment and research, creating today a centre of competence in Abruzzo for new and traditional businesses, generating value and growth.
28 May 24. Drone-As-First-Responder Firm Aerodome Raises $21.5m in Series A Funding. Aerodome, a supplier of Drone-As-First-Responder (DFR) technology, announced that the company has raised $21.5 m in Series A funding to continue building DFR solutions and growing its engineering and go-to-market teams. CRV led the round with participation from Andreessen Horowitz (a16z), Karman Ventures, Immad Akhund (CEO, Mercury), and Ford Street Ventures. The company raised its seed round in October 2023, led by a16z and 2048 Ventures, bringing its total funding to $28 m.
The money will also go toward expanding Aerodome’s headcount, which currently sits around 30 people.
“Upon experiencing Aerodome’s technology firsthand on a fly-along, I immediately recognized its potential to have a scalable impact on public safety and its ability to save lives,” said Saar Gur, General Partner, CRV and Aerodome’s newest board member. “Speed is of the essence in emergencies. Aerodome doesn’t just provide police agencies with ROI, it also gives them an insanely valuable source of real-time intelligence to first responders out in the field.”
Co-founded by Aerodome CEO and reserve police officer Rahul Sidhu and Aerodome Chief Architect Kenaniah Cerny, the company is ushering in a new era of DFR with a turnkey solution that is faster, safer, and more energy efficient than others on the market. By providing a fully automated and remote air support operating system, Aerodome equips agencies with a highly advanced, 24/7 solution that reduces the need for patrol officers to respond to calls by 15 percent while offering 80 percent faster response times.
“As the second officer in the country to launch a DFR program, I wanted to build a more advanced, automated solution that would reduce the strain on officer resources,” said Sidhu, also a former paramedic, crew chief, and pilot. “Our DFR 2.0 solution is a true force multiplier, since it only requires a single operator overseeing multiple drones at once. Our air traffic awareness system acts as a better observer than human pilots – capable of tracking planes, helicopters, other drones, and even birds in all directions, which saves precious time and resources for agencies.”
In just a year since its founding, Aerodome has secured contracts with police departments, nearly doubling its earnings projections for Q1 of 2024. Aerodome attributes its rapid growth to its advanced DFR system that is fully remote and automated, multi-station, and multi-drone. Agencies are using the Aerodome DFR system to accomplish an average 86-second response time to 911 calls, versus the average 7-8 minutes of many precincts reliant on traditional response measures alone. Additionally, with an average of two deaths per year from aviation-related crashes, plus widespread pollution from helicopters, DFR continues to offer a safer, more environmentally conscious supplement to police helicopters.
“Aerodome’s willingness to engage with our staff on the unique characteristics of our jurisdiction, and future directions with which to grow DFR capabilities, has led to high levels of confidence between our Department and their company,” said Lieutenant Robert Mitchell at Hawthorne Police Department. “We were happy to partner with Aerodome. They did what they said they were going to do, and more.”
Aerodome has also secured a new exclusive partnership with Hextronics, a world leader in enabling drone autonomy. Hextronics is supplying a drone dock that is purpose-built for DFR with a rapid, automated battery-changing system, HVAC system, and the ability to operate remotely in any condition.
Response time is Aerodome’s immediate value prop for potential clients. Sidhu says the drone’s average time to arrive on the scene is 85 seconds — a big improvement over the five or 10 minutes experienced in many locales. It might not sound like a lot, but this is one of those cases where a few minutes could mean the difference between life and death.
Aerodome doesn’t make the drones itself, at least not currently, Sidhu specifies. Instead it partners with hardware makers. In the wake of ongoing governmental scrutiny against DJI over alleged ties to the Chinese government, many jurisdictions are looking to work exclusively with American manufacturers.
Sidhu concedes, however, that DJI continues to be far ahead of the pack when it comes to certain aspects of surveillance.
“I call it the license plate test,” he said. “If you pop a drone up to 400 feet, DJI — in a very stable way — is able to read a license plate. American drone companies will struggle at that distance.”
Essentially, if the client wants to use DJI drones, they’ll work with DJI drones.
Skydio, perhaps the best-known American drone maker in the DFR space, has declined to partner with Aerodome, likely because it’d rather compete directly with its own in-house offering. The category has grown increasingly important for Skydio after it pivoted away from consumer drones, partially inspired by DJI’s addition to the government entity list.
Aerodome’s system is triggered by a 911 call. If it determines that a drone is necessary, it’s able to send one to the location in less than three minutes, owing to its decentralized launch facilities. Sidhu balks at the mention of “autonomy,” however.
“That implies some regulatory scrutiny, when you say things are autonomous,” he said. “I would say they’re ‘automated.’”
Here that means that the systems are able to “automatically” fly from the launch pad to the scene. A human is in the loop, mostly in a supervisory role and as a fail-safe, taking over control of the system if things get hairy; it’s something on which the FAA understandably insists.
Aerodrome isn’t disclosing the precise number of clients it’s currently working with. Sidhu says it’s working with four cities in Los Angeles County, with additional customers in the Bay Area, New Mexico and “other states.” (Source: UAS VISION/TechCrunch)
28 May 24. L Squared Capital Partners Announces Pending Sale of Raptor Scientific to TransDigm Group Incorporated for $655m. L Squared Capital Partners (“L Squared”) announced today that TransDigm Group Incorporated (NYSE: TDG) (“TransDigm”), a leading global producer, designer and supplier of engineered aerospace components, systems and subsystems, has entered into a definitive agreement to acquire Raptor Scientific, a global leader in complex test and measurement solutions for advanced Defense, Space, and Aerospace applications, for $655 m in cash. The transaction is subject to customary closing conditions and the receipt of regulatory approval.
Raptor Scientific was founded by L Squared with the thesis of investing in the attractive Aerospace and Defense (“A&D”) test & measurement market. Since 2019, Raptor Scientific has built out a suite of complementary capabilities leveraging advanced test and measurement technologies. Under L Squared’s ownership, Raptor Scientific grew revenue from ~$9m to ~$90m. This performance was driven by a world-class management team, recruited by L Squared, and through strategic investments in go-to-market, human capital, and product development.
“We are grateful to Derek Coppinger and the entire Raptor Scientific executive team for their leadership that drove this highly successful outcome,” said Sean Barrette, Chairman of the Board of Raptor Scientific and Partner at L Squared. “Raptor Scientific was founded with the mandate to accelerate the growth of advanced A&D test and measurement technologies that support national security assets. These unique capabilities protect our freedom in a variety of operational theaters. We believe that TransDigm is the ideal new partner for Derek and the Raptor Scientific team as they continue this important mission.”
“I greatly appreciate the support and resources the L Squared team have provided over the years as we built Raptor Scientific into a leading provider of complex test and measurement solutions supporting the Defense, Space, and Aerospace industries,” said Derek Coppinger, CEO of Raptor Scientific. “We are excited to begin our next chapter of growth with TransDigm, who is well positioned to provide us with the additional resources and scale necessary to accelerate our momentum and drive future success. The world-class and dedicated employees of Raptor Scientific deserve the highest recognition for building this superior organization which supports our customers and warfighters every day. For that I am truly grateful.”
L Squared and Raptor Scientific were advised on the transaction by Harris Williams & Co., Vedder Price P.C., PwC, and CSP Associates.
About L Squared Capital Partners
L Squared Capital Partners is a private equity investment firm with over $2bn of equity commitments under management and is headquartered in Newport Beach, CA, that seeks to make long-term investments in leading growth companies that operate in targeted sectors: Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. L Squared’s unique investor base of family offices and institutions enables the Firm to focus on long-term value creation driven by revenue and earnings growth, not financial engineering, or market timing. The principals of L Squared have worked together for over 15 years and have over 125 years of combined experience investing in growing private companies. For more information, please visit www.LSquaredCap.com.
About Raptor Scientific
Raptor Scientific is a global leader in complex test and measurement solutions for advanced Defense, Space, and Aerospace applications. The Raptor platform results from the prior acquisition and integration of five companies: Space Electronics, Sensor Concepts, TestVonics, King Nutronics, and MEDTHERM. Raptor Scientific’s core capabilities include an extensive range of test and measurement instrumentation and services, including Radio Frequency Systems; Physical Property Systems; and Pressure, Air Data, & Temperature Systems, that are critical to technological advancement and national security of the U.S. and its allies. (Source: BUSINESS WIRE)
28 May 24. Cerberus Acquires Controlling Interest in Leading Government Aviation Services Provider M1. Cerberus Capital Management, L.P. (together with its affiliates, “Cerberus”), a global leader in alternative investing with a dedicated investment platform focused on supply chain integrity and national security, today announced that it has acquired a controlling interest in M1 Support Services (“M1” or the “Company”).
Founded in 2003, M1 is a premier provider of aircraft Maintenance, Repair, and Overhaul (MRO), modification, flight training, logistics support, and supply chain management services to the U.S. Government for critical military aircraft and aviation programs. The Company has established an excellent track record of contractor performance and an uncompromising commitment to safety.
Under Cerberus’ ownership, M1 plans to build on its strong foundation by further investing in the Company’s infrastructure and the expansion of its capabilities to meet the mission-critical aviation requirements of the United States and its partner nations around the world.
In connection with the transaction, George Krivo, long-time aerospace and defense industry executive, has been appointed Chief Executive Officer of M1. M1’s Co-Founders, Kathy Hildreth and Bill Shelt, will remain investors in M1 and continue to support the business as active members of the Board of Directors.
Ms. Hildreth and Mr. Shelt said: “We are very excited about partnering with Cerberus to usher in the next chapter of growth for M1. Cerberus shares our ‘Mission First’ approach, has extensive expertise in our industry and across national security domains, and a reputation for supporting operational excellence and long-term growth.”
Following more than two decades of active service in the United States Army, Mr. Krivo has spent nearly 20 years as a senior executive across aerospace and defense services companies, including as CEO and COO of DynCorp International, a global leader in aviation and logistics support services and former Cerberus portfolio company. He also held numerous executive positions at DRS Technologies and Science Applications International Corporation.
Mr. Krivo said: “Bill and Kathy have established M1 as a trusted partner recognized for delivering the highest levels of service, performance, and safety on complex programs of national importance. I am honored to be joining M1 to lead the business into the future. With a deep and growing pipeline, an exceptional team, and Cerberus’ full support, we have great potential to extend M1’s impact and reach.”
Craig Brooks, a Senior Managing Director who leads private equity investments for multiple investment platforms at Cerberus, added: “M1 has a strong reputation and is well positioned to capitalize on significant growth opportunities. We look forward to bringing our deep operating and industry experience to help M1 expand and serve critical requirements for the United States and its allies.”
About M1 Support Services
M1 Support Services is a leading MRO partner with expansive capabilities in aviation support services, logistics, information technology, training services, supply chain management, acquisition and facilities and equipment maintenance. The company provides responsive, high quality technical solutions to a wide range of Federal Government customers including the United States Air Force, United States Army, United States Navy, Veterans Administration, Department of Interior, General Services Administration, Internal Revenue Service, Drug Enforcement Administration, NASA, and the Federal Aviation Administration.
About Cerberus
Founded in 1992, Cerberus is a global leader in alternative investing with approximately $65 bn in assets complementary credit, real estate, and private equity strategies. We invest across the capital structure where we believe our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.
(Source: BUSINESS WIRE)
29 May 24. Kromek Group plc (“Kromek” or the “Group”) FY 2024 Trading Update. Expected to report record revenues; EBITDA to be ahead of market expectations. Kromek (AIM: KMK), a leading developer of radiation and bio-detection technology solutions for the advanced imaging and CBRN detection segments, provides the following update on trading for the 12-month period ended 30 April 2024.
As announced in its interim results, Kromek started the second half of FY 2024 with increasing commercial momentum whilst delivering on multi-year contracts. Both the advanced imaging and CBRN detection segments showed increased commercial traction and the Group expects to report record revenues for FY 2024.
Kromek is also experiencing improvements in its gross margin due to the product mix sold. The Group continues to exert tight cost control whilst driving further operational efficiencies, particularly within its advanced imaging manufacturing process. Consequently, Kromek expects to report positive EBITDA for FY 2024, and ahead of market expectations.
Further details will be provided at the time of the full year results, expected to be released in September 2024.
29 May 24. Kromek shares enjoy boost on projection of improved annual results. Kromek Group PLC on Wednesday said it expects to deliver full-year earnings ahead of market expectations, thanks to improvements in both commercial momentum and gross margin in the second half.
Shares in the Sedgefield, England-based detection technology supplier were up 11% to 7.50 pence each in London on Wednesday morning, following the announcement.
Kromek, as highlighted in its interim report, started the second half with increased momentum “whilst delivering on multi-year contracts”. Both the advanced imaging and chemical, biological, radiological and nuclear – or CBRN – detection segments showed increased commercial traction.
As such, Kromek expects to report “record revenues” for the year ended April 30. The year previously, it had reported revenue of GBP17.3 m, up 44% from GBP12.1 m in financial 2022.
The group also noted improvements in its gross margin “due to the product mix sold”. It said that it continues “to exert tight cost control whilst driving further operational efficiencies”, particularly within its advanced imaging manufacturing process.
Accordingly, Kromek expects to report positive earnings before interest, tax, depreciation and amortisation for the financial year just ended, and ahead of market expectations, though it didn’t specify what these were. Last year, it reported an adjusted Ebitda loss of GBP1.0 m, versus GBP1.2 m the year prior.
Kromek plans to release its full-year results in September. (Source: Alliance News)
22 May 24. Tron Future completes Series A financing to expand product line. Taiwanese startup founded in 2018, Tron Future Tech, has announced the completion of Series A financing of TWD900 m. The company specialises in counter-uncrewed aerial systems (C-UAS) technology, low-orbit satellite communication systems and synthetic aperture radars.
This round of funding was jointly led by Taishan Investment and Warwick Venture Capital. Innovative Industrial Technology Transfer Co., Ltd. (Industrial Research Institute Yard Company), Daya Venture Capital and Heku Venture Capital also participated in the investment.
After completing the fundraising, the company will invest in expanding its product line and production capacity. Tron Future also intends to increase its involvement in critical infrastructure protection markets in Japan, Europe and the United States.
The company’s C-UAS technology has been deployed in partnership with Taiwan’s armed forces and will also be deployed to protect the Hsinchu Science Park. (Source: www.unmannedairspace.info)
27 May 24. Drone Delivery Canada and Volatus Aerospace Announce Merger. Drone Delivery Canada Corp. and Volatus Aerospace Corp. have announced that they have entered into a business combination agreement to combine the companies in a merger of equals transaction, with the combined company to continue under the name ‘Volatus Aerospace Corp.‘ and, subject to approval of the TSX Venture Exchange, continue trading under the ticker “FLT”.
Under the Merger, which the boards of directors of both companies have approved, the combined company will be led by a board of directors and management team of experienced drone technology industry and business leaders, bringing together the cultures, strengths, and capabilities of both companies.
By joining forces, Volatus and Drone Delivery Canada plan to immediately begin commercialization efforts, which is intended to enhance shareholder value by forging a robust, financially sound enterprise focused on immediate and long-term revenue with a clear path to sustainable growth and market leadership. Subject to customary closing conditions, the Merger is expected to close in the third quarter of 2024.
Pursuant to the Merger, Volatus shareholders will receive 1.785 (the “Exchange Ratio”) Drone Delivery Canada voting common shares (each, a “Drone Delivery Canada Share”) for each Volatus common share (a “Volatus Share”) held (the “Consideration”). Upon closing of the Merger, existing shareholders of Volatus and Drone Delivery Canada will each own approximately 50% of the combined company (based on the current issued and outstanding shares of each of the companies).
Strategic Rationale
To date, Drone Delivery Canada has invested $40m into building strong, competitive drone cargo solutions that are now ready to go to market. By focusing on drone services, training, and equipment sales, Volatus is well-positioned to leverage these technologies and bring them to market. As regulations begin to enable the commercialization of drone cargo and remote drone operations, Volatus has been planning to commercialize its efforts in Advanced Air Mobility, adding to its go-to-market strategy.
Without technology such as Drone Delivery Canada’s remote operations centre; Flyte management software; DroneSpot infrastructure; and cargo-focused, commercialized aircraft, the path to competitively enter the Advanced Air Mobility market would require significant research and development (“R&D”) investment for any drone-based services company.
The combined company, with its shared decades of technology and aviation experience as well as strong financial and operating metrics, is expected to have a leading presence globally as a diversified technology and service leader to drive both short- and long-term growth opportunities in existing and new markets. Further, it is expected that the combined company will be able to achieve material cost synergies to support near-term profitability and enhance its margin profile as its revenue profile continues to grow.
Steve Magirias, Chief Executive Officer of Drone Delivery Canada, commented,
“Drone Delivery Canada has been searching for the right partner to join us on our growth journey and we are confident that Volatus is a great fit, from a management vision point of view, industry know-how, and experience. We were initially attracted to Volatus’ strong reputation in the industry, admirable fiscal management through a challenging capital markets environment, and vision towards generating diversified lines of revenue.”
Ian McDougall, Chair of Volatus board of directors, commented,
“We are thrilled to announce this transformative merger with Drone Delivery Canada. Merging with Drone Delivery Canada will enhance our ability to offer cutting edge technology and services to our clients and help position the combined company as a global leader. Volatus sees a tremendous opportunity to commercialize Drone Delivery Canada’s advanced technologies, through our network of partners, Fortune 500, international mining, oil and gas, and utilities clients, further positioning the combined company as a global leader in drone technologies and services.”
Glen Lynch, Chief Executive Officer, President and Director of Volatus, commented,
“We believe that the strategic impact will be significant right out of the gate, and allow us to drive innovative technology advancements and offer our clients industry leading technology and service.”
Leadership and Governance
Following the closing of the Merger, the board of directors of the combined company will consist of seven (7) directors, comprised of three (3) directors from Volatus including Ian McDougall who will act as the Chair of the combined company, two (2) independent directors from Drone Delivery Canada, and two (2) independent directors to be mutually agreed upon at a future date.
Management of the combined company will include executives from both Volatus and Drone Delivery Canada, with Volatus’ current Chief Executive Officer, President and Director, Glen Lynch, assuming the role as Chief Executive Officer of the combined company, and Drone Delivery Canada’s current Chief Executive Officer, Steve Magirias, becoming the Chief Operating Officer of the combined company.
Benefits to Drone Delivery Canada Shareholders
- Pro forma ownership of 50% in the combined company is expected to provide immediate exposure to Volatus’ revenue profile and near-term cash flow generation with attractive long-term growth potential from Drone Delivery Canada’s portfolio of proprietary technology
- Greater access to new geographies and sectors
- Enhanced ability to realize value from an existing proprietary drone technology portfolio via a stronger financial position of the combined company, which is expected to achieve profitability in the near-term
- Accretive to Drone Delivery Canada on key financial and operating metrics
- Significant value upside as the combined company advances its business plan and achieves profitability
Benefits to Volatus Shareholders
- Pro forma ownership of 50% in the combined company is expected to provide Volatus shareholders exposure to Drone Delivery Canada’s advanced operational and proprietary cargo drone technology and remote operating capabilities to enhance Volatus’ existing service offerings
- Market expansion opportunity through enhanced geographic diversification, and entrance into new end markets including the emerging cargo sector, which is expected to have significant long-term upside
- Presents opportunity to leverage the Volatus management team’s strong commercial expertise to ensure optimal commercialization of Drone Delivery Canada’s technology and product portfolio
- Enhanced capital markets profile, supported by Drone Delivery Canada’s strong shareholder base
- Significant re-rating potential as the combined company advances its business plan and achieves near-term profitability
Further Information
Further information regarding the Arrangement will be contained in the joint information circular that Volatus and Drone Delivery Canada will prepare, file and mail in due course to their respective shareholders in connection with the special meetings of each of the Volatus and Drone Delivery Canada shareholders to be held to consider and vote on the Arrangement.
All shareholders are urged to read the information circular once it becomes available as it will contain additional important information concerning the Arrangement. The Business Combination Agreement will be filed on the SEDAR+ profiles of Volatus and Drone Delivery Canada on the SEDAR+ website. (Source: UAS VISION)
28 May 24. Revenue at Denmark’s largest defense company, Terma, has grown by 17% compared to last year and profit before tax has increased by 33%. At the same time, the company, headquartered in Lystrup, Denmark, announces a new growth strategy that will include several acquisitions of “significant size” to double revenue in three years.
Denmark’s largest defense company continues its impressive growth journey with the latest financial statements. Revenue reaches DKK 2.6 bn. This is a growth of 17% compared to last year, while profit before tax ends at DKK 228 m – an increase of DKK 57 m compared to last year.
This means that Terma’s revenue has increased by 45% in 5 years, and profit before tax has more than doubled in the same period.
“I am very proud of the great result that Terma’s more than 1700 employees have delivered. Terma has gone from being a supplier of partial solutions and components to a unique platform that can take a leading role and deliver complete solutions – both to the Danish defense and other allied customers. Thus, Terma is now also much stronger and ready to take on the important task of strengthening Denmark and Europe’s security,” says Jes Munk Hansen, CEO of Terma.
New growth strategy: Revenue to double in three years
Along with the financial statements, Terma also launches a new and very ambitious growth strategy. The goal is to double Terma’s turnover over three years. This will be achieved both through organic growth, but acquisitions in particular will be the way forward:
“The security situation in Europe requires a strong Danish defense industry. Terma is at the forefront of this, and there is a need for us to expand our capabilities. We have concrete plans for significant organic growth in the coming years, but Terma’s growth will be primarily through acquisitions of relevant companies in the defense industry. The goal is to strengthen Terma and Denmark’s ability to develop and produce relevant capabilities ourselves,” explains Jes Munk Hansen, adding:
“We are already in close dialog with a number of exciting companies of significant size. Therefore, the first acquisitions may already fall into place this calendar year.”
The future holds even more artificial intelligence and cybersecurity
However, it is not only acquisitions that Terma is investing in. According to Jes Munk Hansen, Denmark’s largest defense company has also invested heavily in research and development, especially in artificial intelligence (AI) and cybersecurity:
“Digital warfare will only grow, and we at Terma have been aware of this early on. In recent years, we have therefore invested in and developed AI solutions that can significantly increase surveillance and security. At the same time, cybersecurity must be implemented in all solutions and products today, and here we are also well along,” says Jes Munk Hansen.
F-35 still the biggest
The first of Denmark’s new F-35 fighter jets arrived at Skrydstrup Air Base last year, and as a supplier to the program, which is the world’s largest industrial project, it’s not surprising that F-35 production is still a major focus for the company:
“Our factories in Grenå and Lystrup produce more than 80 different parts for the F-35 aircraft, which today is the first choice of fighter aircraft for the vast majority of Denmark’s allies. There is great professional pride in sending our contribution to Lockheed Martin’s factory in Fort Worth, Texas, where the aircraft are assembled,” Jes Munk Hansen concludes.
28 May 24. Elbit Systems Ltd. (“Elbit Systems” or the “Company”) (NASDAQ and TASE: ESLT), the international high technology defense company, reported today its consolidated results for the first quarter ended March 31, 2024.
Order backlog at $20.4bn; Revenues of $1.6bn;
Non-GAAP net income of $81m; GAAP net income of $74m;
Non-GAAP net EPS of $1.81; GAAP net EPS of $1.65
Management Comment: Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: “The significant increase in our order backlog, which surpassed $20bn, highlights the relevance of Elbit Systems’ portfolio of advanced technological and operationally proven solutions in light of the increase in defense budgets world-wide, which positively impacts the revenues and growth of the Company.
Elbit Systems is continuing to implement its long-term strategy and plans, while strengthening its global presence and maintaining its commitments to customers.”
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