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The Markets
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Telecoms

Satellite Solutions to beat expectations as acquisitions bear fruit

“The financial results for the year to 30 November 2016 are expected to be ahead of current market expectations”

A particularly strong second half of the year for Satellite Solutions Worldwide Group PLC (LON:SAT) will help it to beat expectations in its current financial year, the broadband specialist said on Tuesday.

Back in its half-year report, Satellite told investors that it was on track to hit the expected numbers, but it has hailed the impact of its acquisitions as well as the overall performance of its existing business since then.

“The rapid and successful integration of the acquisitions which we have completed around the world, both big and small, show the robustness of our systems and management's ability to control growth,” said chief executive Andrew Walwyn.

“Our focus on increasing revenues, cost control and, most importantly, cash generation, is already starting to be shown in these results.”

The Avonline, Breiband and SkyMesh businesses acquired in the summer are settling in well, while organic growth – particularly in Australia – has been strong too, the Oxfordshire-based firm said.

Satellite has long talked about hitting the 100,000 customers milestone by the end of its next financial year, although it now expects this to happen a little faster than even it had first hoped.

As for next year’s outlook, the board still sees “tremendous scope” for more growth and reckons the business is now ready to deliver a “significant" upturn in its revenues.

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