Author: Scanway
Publication date:
Scanway has published its results for the third quarter of 2023, in which it generated total revenue of 2.6 million PLN, representing a 130% increase year-on-year. The leading company in the field of space-based observation technology and industrial vision-based quality control continues its dynamic growth on a year-to-date basis as well, with total revenue for the first three quarters of 2023 amounting to PLN 4.9 million, twice as much as in the corresponding period of the previous year. This significant growth in revenue is attributable to the ongoing commercialisation of the business lines developed by Scanway, namely industrial projects and space-related activities. The Company’s backlog, comprising signed and ongoing contracts, stood at PLN 4.7 million at the end of the third quarter. Scanway intends to complete and settle a significant portion of this backlog by the end of 2023.
– Over the past quarter, we have focused on further scaling our business, both in the area of industrial projects and our space operations. Our goal remains to achieve dynamic revenue growth through the commercialisation of existing and new products for which we have identified strong market demand in both the short and long term. We are seeing this increased demand not only in the EU market but also globally, including at the SmallSat Conference in Utah this August – the largest event in the small satellite industry in the US – where we were the first Polish company ever to present our solutions. We are continuing the business discussions initiated there, and these reaffirm our conviction regarding the very good prospects for the industry and the extent to which our offering meets the expectations of various customer groups requiring high-end optical equipment for Earth imaging from space. We have already set up a special-purpose vehicle in the US so that we can respond even more effectively to this interest – comments Jędrzej Kowalewski, Chairman of the Management Board of Scanway S.A.
The Company’s total revenue, calculated as the sum of net sales revenue and subsidies received, primarily from the PIAST and EagleEye projects within the space sector, amounted to PLN 2.6 million in the third quarter of 2023, representing a year-on-year increase of 130%. Projects for the industrial sector accounted for 75% of revenue, whilst the space sector accounted for 25%. EBITDA for the period in question stood at PLN -0.46 million, compared with PLN 0.42 million in the third quarter of the previous year. The company recorded a net loss of PLN -0.67 million, compared with a profit of PLN 0.35 million in the corresponding period of the previous year. Cash flow from operating activities amounted to PLN 0.02 million, and cash and cash equivalents as at 30 September 2023 rose to PLN 6.4 million, largely due to the recognition of proceeds from the public offering carried out in June this year, in which Scanway raised PLN 9.0 million gross.
Cumulative total revenue for the first three quarters amounted to PLN 4.9 million, representing a 102% year-on-year increase. Projects for the industrial sector accounted for 80% of revenue, whilst the space sector accounted for 20%. EBITDA for the period under review stood at PLN -0.41 million, compared with PLN 0.21 million in the previous year. The company recorded a net loss of PLN -0.96 million, compared with a profit of PLN 0.11 million in the previous year. Cash flow from operating activities was positive, amounting to PLN 0.48 million. The backlog, comprising signed and ongoing contracts, stood at PLN 4.7 million as at 30 September 2023.
– Our total revenue more than doubled after the first three quarters of 2023, amounting to PLN 4.9 million, with a direct margin of PLN 1.8 million. We have also begun to step up our investments thanks to the funds raised through the public offering successfully completed in June this year; whilst this is currently at the expense of profitability, we are generating a positive gross margin on every product sold. This year, the industrial line will account for the majority of our sales; however, given the progress made on our projects in the space sector and the discussions we are currently holding with the ESA, with national institutions and commercial firms, and bearing in mind the information regarding the increase in Poland’s contribution to the ESA by 295 million euros for the years 2023–2025, these proportions are likely to change in the coming years. In the explanatory notes to the document published by the Ministry of Infrastructure and Transport (MRiT) concerning the allocation of the national contribution to optional ESA programmes, Scanway was listed as a potential consortium partner in several missions and programmes with a total value of approximately €9.0 million. Furthermore, it is worth highlighting our order book at the end of the third quarter, which stood at PLN 4.7 million. We intend to convert a significant portion of these signed and ongoing contracts into revenue, which will be recognised in the fourth quarter of 2023. – adds Jędrzej Kowalewski.
Scanway develops and commercialises two business lines: products for the space sector (optical instruments for Earth observation and satellite self-diagnostics) and for industry (vision systems). Thanks to the STAR VIBE mission and the launch in early 2023 of a satellite equipped with a vision system and an optical telescope developed and manufactured in the company’s laboratories, Scanway has established flight heritage – confirming the reliability and functionality of its solutions in space conditions. The Polish satellite regularly captures new images of Earth, and the Company receives the best images from space ever obtained by Polish research instruments. Upcoming projects utilising Scanway’s optical payload include the commercial OTTER and XD missions, which are due to be launched into orbit by the end of 2023. The final dates will be set by the clients; for OTTER, this is the DLR (German Aerospace Centre), and for XD, an entity from the Asia-Pacific region. Scanway is also a key consortium partner in Poland’s largest space projects, including the EagleEye mission scheduled for 2024 and the PIAST mission scheduled for 2025.
As part of its industrial solutions, Scanway specialises in developing proprietary vision systems for the quality control of finished products, raw materials and the production process. The Company’s product range contributes to the implementation of the Industry 4.0 philosophy through the automation and optimisation of quality control processes in sectors such as packaging and printing, the automotive industry, the food industry and the pharmaceutical sector. The hyperspectral technology used by Scanway enables continuous 100% quality control of products on high-throughput production lines, which, amongst other things, helps to reduce the customer’s production costs.
In June this year, the company successfully carried out a public offering comprising 200,000 Series C ordinary bearer shares; the gross value of the offering was 9.0 million PLN, and demand for the shares exceeded the offer size several times over. The funds raised from the public share offering will be allocated to the development of the advanced machine vision division, as well as the satellite instrument production line and the vision systems production line, supporting Scanway’s operations in two segments: the industrial and space sectors. Scanway made its debut on the NewConnect market on 11 October 2023.