Satellite Solutions Worldwide Group PLC (LON:SAT), which specialises in providing broadband services in rural areas, has seen an acceleration in the customer sign-up rate.
The group, which has a stated target of achieving 100,000 customers by the end of the year, revealed in a trading update covering the six months to the end of May that customer numbers are now around 90,000, up 14% since the start of the year, with particularly strong growth in Australia.
Trading in the first half of the company’s financial year was strong and in line with management’s expectations.
Total revenue soared 261% to £20.6mln from £5.7mln the year before, helped by the contribution of recent acquisitions; even so, like-for-like organic revenue growth was 13.1%.
Recurring revenue rose 281% year-on-year to £19.4mln from £5.1mln the previous year, and accounts for 94% of total revenue.
Gross margin in the reporting period improved to 37.0% from the 34.0% seen in the preceding 12-month period.
Underlying earnings, or EBITDA, were in line with management’s expectations.
Net debt increased from £9.4mln as at 31 December 2016 to £13.2mln as at 31 May 2017, primarily as a result of the acquisitions made in the period of BorderNET, NextNet and ASDN, financed by the group's debt facilities, and continued investment in the group's hubs.
As at 31 May 2017 the group had a cash balance of £2.0mln and £1.5mln of headroom in the HSBC loan facility.
"Trading in the period was strong due to accelerated customer sign up, higher retention rates and increased data demands of existing customers. I believe these growth trends will continue as consumers continue to demand ever more digital services in the future,” said Andrew Walwyn, chief executive officer of Satellite Solutions.
“The first half of the year has been mainly about consolidating our acquired customer base and integrating systems across our networks. This momentum is expected to continue into the second half, and I look forward to updating shareholders in due course," he added.