© GomSpace Electronics Production | September 28, 2018
GomSpace Group with new long term ambitions
ComSpace Group AB has revised the company’s long-term ambitions to reflect the strong underlying market potential and growth prospects. The new targets reflect the company’s ambitions and focus for the coming five year period.
Sales in GomSpace keeps solidifying the business case by a strong order intake and continued build-up of a strong sales pipeline, in which between 500 to 700 satellites have been identified from current customers, the company states in a press release. The opportunities for migrating space technology from high cost solutions to low cost solutions keep unfolding. Nanosatellites can perform complex tasks currently carried out by larger and costlier traditional satellites, but are much less expensive to produce which opens up for new customer segments and application areas. The strong growth since the IPO in June 2016, with a CAGR of 79% (91% without elimination), has accelerated investments in production capacity, project management and product development. GomSpace is currently finalising the development of a number of new products and has prepared for scaling up and industrialising the production. The company has invested in a new production facility, initially allowing for production of one satellite a week and with a capacity of producing one satellite a day. Significant scale benefits are expected to be achieved in the transition phase, moving from single satellite production, to industrialized assembly of larger quantities, the company states. A strategy and business plan review has been conducted in order to fully grasp the market potential and newly identified application areas and solutions for GomSpace’s products. In short, GomSpace’s revised long-term ambitions include sales above SEK 1.5 billion (EUR 145.67 million) in 2023, supported by the strong underlying market. GomSpace is also targeting a gross margin exceeding 50%, in the medium term.