Mobile Satellite Firm Satcom Plans June IPO In London
LONDON -(Dow Jones)- Mobile satellite services operator Satcom Group Holdings PLC said Monday it is seeking a listing on London's Alternative Investment Market in June and is planning to complete at least one acquisition before the end of 2005.
The firm sells both satellite terminals and handsets as well as offering access to the main suppliers of satellite air time. It counts among its clients the U.S. government and military, media organizations such as CNN and Time, as well as non-governmental organizations and aid agencies.
It is fairly unusual in that it deals with all three of the major satellite operators - Inmarsat Venture Ltd. (IMR.YY), Thuraya and Iridium Satellite LLC (IDM.XX) - which together account for 85% of the market for mobile satellite services.
"This market is very fragmented. We want to make acquisitions and would hope to have completed at least one within six months," said Martin Ward, Satcom chief financial officer.
He said the mobile satellite industry is $1 billion in size globally and that Satcom is well positioned for rapid growth.
Ward said the company is a profitable, cash-generative business with no external debt and it isn't planning to raise any cash in the IPO.
But, he said a stock market listing will both raise the company's profile and provide it with access to the capital markets to help with planned acquisitions.
The amount of stock which will be in free float following the June IPO has yet to be determined.
All of Satcom's administration is dealt with from the U.K., while the majority of its sales originate in the U.S. It also has a Hong Kong office.
Ward said that for the eight months to the end of February, Satcom had earnings before interest, tax, depreciation and amortization of $2 million on revenue of $29.6 million and said the company is on track to meet analysts' forecast of $3 million EBITDA by the end of its financial year on June 30.
Approximately 15% of Satcom's revenue comes from hardware sales while the majority comes from talk time, Ward said.
Satcom was purchased in 2001 by its current management from a U.S. security company, Kroll-O'Gara, which no longer exists, having been broken up.
Teather & Greenwood is acting as a broker for Satcom, and Ernst & Young is its nominated adviser.
Company Web Site:http://www.simreg.com
-By Corey Boles, Dow Jones Newswires; +44 207 842 9254; corey.boles@dowjones.com
(END) Dow Jones Newswires"
Posted to the site on 30th May 2005
