AAC Clyde Space’s Q322 report showed improved momentum but also the deferral of project milestones into FY23 from FY22 as some satellite launches are delayed. We expect the positive momentum to continue in Q422, albeit at a lower level than envisaged at the half year. Growth should accelerate as AAC moves towards its FY24 targets. We feel that not only should the more positive cash flows and earnings performances appear more realisable, but we also expect risk to diminish as the software services element of the model grows.

Edison