Creotech Instruments S.A. improves margin and increases total revenues by 20% in 2021

From January to December 2021, Creotech Instruments, a leading Polish manufacturer of satellite systems and components and advanced electronics, generated total revenues of over PLN 40m, achieving a 20% year-on-year increase. Over the reporting period, the company was able to improve the EBITDA margin adjusted for the net result on R&D activity to about 17%. The company’s robust financial performance came on the back of completed space technology and quantum computing contracts. Last year, the company carried out a successful IPO and made its debut on the Warsaw Stock Exchange’s (WSE) NewConnect market. Currently, the company is trying to raise additional capital under its new Public Offering of New Shares worth PLN 55.7m net. Creotech Instruments is planning to make its debut on the WSE’s regulated market in the first half of the year.

“We are consistently able to hit our growth milestones and thus improve our revenues and margins, with nearly all funds generated being allocated to R&D efforts. Thanks to this, in line with our plans, in 2021 we managed to improve our performance YoY. In the reporting period, we achieved over PLN 40m in total revenues (net sales revenues of approximately PLN 33m plus revenues from grants for R&D projects of approximately PLN 7m), representing a 20% growth relative to 2020. Our EBITDA exceeded PLN 3m. EBITDA adjusted for the net result on R&D activity stood at PLN 5.6m,” says Maciej Kielek, CFO and Vice President of the Management Board of Creotech Instruments.

Established in 2012, Creotech Instruments specializes primarily in the space sector and scientific instruments and is one of Europe’s first entities to develop and manufacture quantum computer components. Thus far, the company has developed 37 advanced systems for quantum applications delivered to nearly 50 scientific laboratories, such as the University of Oxford and Berkley. In 2021, Creotech raised an additional PLN 5m to develop quantum technology products. These funds originated from a grant provided by the National Center for Research and Development (NCBiR) for the R&D project: ‘Electronics in response to the challenges of Quantum Technologies’.

In 2013, Creotech Instruments partnered up with the Space Research Center and the European Space Agency, thus marking its first venture into the space sector. One of the company’s current programs is PIAST (Polish Imaging Satellites), a strategic project for the Polish defense sector. This April, the company has completed PIAST’s first review, the System Requirements Review. The goal of the entire project is to place three observation microsatellites in orbit around the Earth in 2024.

At the same time, the company is working on EagleEye, a project involving the development of an Earth observation microsatellite. The satellite is slated for launch to low Earth orbit in 2023-2024.

For two years now, Creotech Instruments has also been hard at work developing its increasingly prominent UAV segment. It is estimated that in 2026 the global drone market will be worth approximately USD 41.3bn.

On 25 April 2022, Creotech Instruments launched a Public Offering of its shares covering 99,140 to 396,558 series I shares with a nominal value of PLN 0.10 each and disposal of up to 100,000 existing shares. The sale of shares by key shareholders is related to their obligation to settle their liabilities to the Industrial Development Agency, the company’s first major external shareholder. The proceeds, up to PLN 55.7m net, will be used primarily to complete key R&D projects and increase the company’s production and sales capacities. According to the schedule, subscriptions in the Retail Investors Tranche will be open between 9 and 17 May 2022, while subscriptions in the Institutional Investors Tranche will run from 19 to 23 May 2022. The Lead Manager is Dom Maklerski Navigator S.A., with Noble Securities S.A. acting as co-manager responsible for, among others, coordinating the work of the Retail Syndicate. Details of the offering are available on the company’s website: https://creotech.pl/pl/, in the “Public Offering” tab or directly on the following website: https://creotech.pl/ipo/.

"The funds raised from the offering will primarily allow us to optimize and finalize space projects and increase our production capacity in this area to up to 20 satellites per year. This will position Creotech to upscale our business and thus boost our financial performance. The public offering precedes our planned share listing transfer from the NewConnect market to the WSE’s regulated market. Our entrance to the main market is scheduled for mid-2022."

Grzegorz Brona

President of the Management Board of Creotech Instruments S.A.