Creotech Instruments posts PLN 33.2m in revenue after three quarters of 2023


Creotech Instruments has released its financial results for the first three quarters of 2023. According to the report, the company achieved a total revenue of PLN 33.2m during this period, which represents a 45% increase year-on-year. Out of this total, product sales revenue accounted for PLN 22.5m, marking a 64% rise from the corresponding period in the previous year. Following its development strategy, which includes ramping up R&D efforts in key projects and preparations to launch a new production facility, the incurred expenses impacted the EBITDA, resulting in -PLN 4.4m after three quarters. As of 30 September 2023, the company’s cash reserves totaled PLN 24.7m. A notable increase in cash reserves is anticipated in Q4, following October’s successful public offering, wherein the company raised approximately PLN 60m gross. In Q3 2023, Creotech announced its strategy for financing space projects, aiming to become the leading provider of microsatellite technology in the EU for defense and commercial projects in the forthcoming years. Pivotal to this goal is the commercialization of its proprietary HyperSat microsatellite platform, the cornerstone of the EagleEye mission scheduled for 2024. The HyperSat platform is also integral to several other missions, including for ESA – Twardowski, EU – REACTS, and strategic defense projects in Poland – a project for the Armaments Agency and the PIAST mission.

The substantial progress Creotech Instruments has made in recent years now positions the company to initiate its first large-scale projects, with plans to pursue them at both national and European levels. For national public and defense needs, Creotech is currently finalizing Phase A of a project for the State Treasury’s Armaments Agency, and the PIAST mission is progressing as planned. In the European market, the REACTS project, where the company leads the satellite segment and coordinates the efforts of major European firms like Airbus and OHB, stands out as a key initiative. In the lunar exploration arena, ESA has chosen Creotech’s consortium for Phase 0/A of a lunar mapping mission, marking it as Europe’s most significant endevour of this kind in two decades.

“A highlight of Q3 2023 for Creotech Instruments was adopting a strategy aimed at establishing ourselves as the top supplier of microsatellite platforms in the EU for both defense and commercial projects. We plan to realize this objective mainly through the ongoing commercialization of our HyperSat microsatellite platform. Furthermore, the approximately PLN 60m gross secured through our successful public offering in October will facilitate the necessary investments to manage the increasing number of significant projects where Creotech plays a vital role. We are nearing the completion of Phase A for the Armaments Agency and are prepared to initiate the subsequent stages of this large-scale project, valued at over EUR 100m. This week, we also signed a contract for the REACTS project, where we lead the crucial satellite segment, setting a European standard for deploying operational satellites into orbit within less than 72 hours in response to crisis situations. These projects are strategic for both Poland and the entire European Union. The coming year will see some projects moving into production phases, expected to lead to substantially higher revenue than we have seen to date,” remarks Grzegorz Brona, PhD, President of the Management Board of Creotech Instruments S.A.

In July, Creotech Instruments unveiled its financing strategy for space projects utilizing its HyperSat microsatellite platforms. Their ambition to rise as the leading microsatellite tech provider in the European Union in defense and commercial projects revolves around a three-pronged investment plan: diversifying the product portfolio, including rescaling the HyperSat platform to 200 kg, augmenting production capabilities, and reinforcing the sales division. The investments will be financed partly through the funds raised from the successful public offering in October, where the company grossed about PLN 60m.

At the new production facility in Piaseczno, advanced construction work is currently underway, with completion slated for late 2023 or early 2024. The new complex, spanning approximately 2,800 m2, dedicates around 2,000 m2 to specialized electronic production and satellite assembly. This investment is projected to enhance production capacity and substantially automate assembly and integration processes. The completion of all works, including the launch of two clean rooms with a combined area of 250 m2, is planned for Q1 2024.

“In anticipation of participating in the subsequent phases of Creotech Instruments’ major projects, we have stepped up efforts to initiate our new, more extensive, and modern production facility. The Piaseczno complex significantly elevates our production capabilities, enabling us to meet the comprehensive requirements of further project phases, such as the project for the Armaments Agency, and potentially others like Camilla or similar large-scale initiatives The commercialization of our HyperSat microsatellite platform is on track, and the augmented production capacities will be crucial in the latter half of 2024, when we foresee a surge in commercial orders following the successful EagleEye mission. Our largest proprietary project is advancing steadily, with the integration of the satellite with SpaceX’s Falcon 9 rocket anticipated in Q2 2024,” adds Grzegorz Brona.

HyperSat is the first satellite platform in Poland, developed entirely by Polish engineers. Modular in design, it allows for the scalable design and production of satellites weighing from 10 kg to several dozen kilograms. These satellites serve various purposes, including image reconnaissance, telecommunications, and navigation from low Earth orbit. Creotech Instruments has been developing HyperSat since 2017 with the support of experts from EAS. The platform aligns with European design and construction standards for satellite systems (ECSS). The platform forms the foundation for missions like EagleEye, scheduled for 2024. The company’s satellite will be launched into space atop a SpaceX rocket.

In July 2023, Poland made a strategic move to boost its national contribution to the ESA budget by an additional EUR 295m in 2023-2025. The mechanism of the national contribution to ESA allows for recouping almost all of the funds paid in the form of projects and orders from ESA for domestic companies. Over the past decade, Creotech has successfully executed more than 25 space projects in conjunction with ESA, thereby becoming one of the largest Polish contractors and the first choice in Central Europe for key Agency projects. Currently, the company is in talks with ESA regarding several other space missions, all based on its proprietary HyperSat microsatellite platform.


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