Creotech Instruments presented its results for Q3 2023, in which it generated PLN 33.2 million in total revenue, up 45% year-on-year, of which PLN 22.5 million was revenue from product sales, 64% more than in the same period last year.
In line with the company’s development plan, including the intensification of R&D work in key projects and preparations for the launch of a new production plant, the costs incurred affected EBITDA, which amounted to PLN -4.4 million after three quarters. Cash as at 30.09.2023 amounted to PLN 24.7 million. A significant increase in cash will occur in the fourth quarter of this year, in which the proceeds from the IPO, which was successfully completed in October, will be booked. The company raised approximately PLN 60 million gross from the IPO.
In Q3 2023, Creotech announced a space project financing strategy under which it intends to become the leading provider of microsatellite technology in the EU for defense and commercial projects in the coming years. The commercialization of Creotech’s proprietary HyperSat microsatellite platform, which is the basis for the EagleEye mission planned for 2024, is expected to contribute significantly to this goal. The HyperSat platform is also the basis for a number of other missions, among others, for the European Space Agency (ESA) – Twardowski, the EU – REACTS, as well as strategic defense projects in Poland – a project for the Armament Agency and the PIAST mission.
The significant development of Creotech Instruments in recent years enables the company to start implementation of its first large projects, which it intends to continue at the national and European level. For national public needs and defense projects, Creotech is currently finalizing Phase A of a project for the State Treasury – Armament Agency, and work on the PIAST mission is progressing according to plan. In the European market, the key project is REACTS, in which the company, a leader in the satellite sector, coordinates the activities of the largest companies from Europe, including Airbus and OHB. Within the lunar program, the ESA selected the Creotech consortium for Phase 0/A for the lunar mapping project, the most important European mission of its kind in 20 years.
“These are strategic projects, both for Poland and for the European Union as a whole. Next year will be the moment when some of the projects will start to move to the production phase, and this should result in the recognition of revenues on a significantly higher scale than so far,” says Grzegorz Brona, President of the Board of Creotech Instruments.
In July, Creotech Instruments presented a strategy for financing space projects related to the use of HyperSat microsatellite platforms manufactured by the company. In order to become the leading supplier of microsatellite technology in the EU for defense and commercial projects, Creotech intends to implement an investment plan in the coming years covering three key areas: expansion of the product portfolio, including scaling the proprietary HyperSat platform to 200 kg, increasing production capacity and strengthening its sales department. Sources of funding for the investment will include funds obtained from the IPO in October.
Advanced construction work is currently underway at the new production facility in Piaseczno, which is scheduled for completion at the turn of 2023 and 2024.
“In order to participate in further phases of Creotech Instruments’ large-scale projects, we have intensified work related to the launch of a new, larger and more modern production facility. The complex in Piaseczno significantly increases our production capacity, allowing us to meet all the requirements for the contractor of further phases of projects such as the project for the Armament Agency, and potentially Camilla or others of similar scale.
“Commercialization of our HyperSat microsatellite platform is progressing and additional production capacity will be key in H2 2024, in which we expect commercial orders to accelerate, following the successful EagleEye mission. Work on our largest in-house project is progressing, and integration of the satellite with the Falcon 9 rocket from the US company SpaceX, is expected in Q2 2024,” adds Brona.
HyperSat is the first satellite platform in Poland and developed from scratch by Polish engineers, consisting of modules of individual subsystems. It allows for the scalable design and production of satellites weighing from 10 kg to several dozen kg, and in the future up to 200 kg, with a variety of purposes, including image recognition, telecommunications or navigation from low Earth orbit. HyperSat has been under development by Creotech Instruments since 2017 and was developed with the support of ESA experts, and is compliant with the European Requirements for the Design and Construction of Satellite Systems (ECSS). The platform is the basis for, among other things, the EagleEye mission, which will be executed in 2024. The satellite prepared by the company will be launched on a rocket from SpaceX.
In July 2023, Poland took a strategic decision to increase its national commitment to the ESA budget by an additional €295 million between 2023 and 2025. The mechanism of the national contribution to the ESA allows for the recovery of almost all the funds paid in the form of projects and orders from the ESA for national companies. Over the past 10 years, Creotech has carried out more than 25 space projects together with the ESA, becoming one of the largest Polish contractors and the company of first choice in Central Europe for the agency’s key projects. The company is currently in talks with the ESA for several other space missions based on its proprietary HyperSat microsatellite platform.
