Moving towards high growth and high earnings
GomSpace wants to move from a high growth/low earnings technology focused stage to a high growth/high earnings stage. Management plans to do this by utilising the company’s technological platforms and strengths, moving into more constellation manufacturing (e.g. a potential Indra order of +200 satellites, to be delivered between 2024-2027, if won) and by extending its service-oriented offerings. Currently GomSpace’s revenue split is 30/70 manufacturing (high margin) / engineering (low margin, but provides technology for the company). The company’s vision is to reach a 60/40 split between 2022 and 2026.
Improved sales mix and scale to drive margin improvements
The vison for an improved sales mix, combined with the company’s high expectations for future market growth to drive scalability (it expects the total addressable market to increase by 100% between FY’22 and FY’24 vs. ABGSCe GomSpace revenue growth of 67.5%), provides an attractive 5-year horizon for EBIT margin improvements.
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