On 10 December 2018, Sky And Space Global Ltd (ASX: SAS), a company providing telecommunication services has announced regarding its signing of the memorandum of understanding with Global Teleservices India and BT Latam Brasil.
With Globe Teleservices (GTS) India, the company has entered a Binding Reseller Memorandum of Understanding agreement. Global Teleservices India has a global exposure as it provides telecommunication services in Hong Kong, Dubai, and Singapore. As per the MOU signed between GTS and SAS, GTS will act as a key reseller of the SAS solutions in India and outside India to distribute a minimum number of devices and services. Also, GTS will be supporting the global growth strategy of SAS by establishing local and international reseller networks. Also, GTS will also validate the potential of the SAS’s platform to reach even in the remote area and also satisfy the need of various organizations in these remote areas.
SAS signs another binding memorandum of understanding with BT LATAM Brasil which is a Brazilian telecommunication company. Under this agreement, BT LATAM Brasil will satisfy a minimum number of devices and services. Just like GTS, BT LATAM Brasil is also supposed to support SAS in its growth strategy. Also, it needs to scrutinize the potential of its proprietary communication platform to satisfy the need of various companies located in remote areas.
The performance of the company is negative since inception which is -66.46%. The company’s performance in 10 years was -66.46%. The five years performance of the company was 16% after which the company has given a negative return. Since last year, the performance of the company is -62.58%.
For the financial year ending 30 June 2018, the company incurred a loss of $8,323,983. The balance sheet of the company appears to be healthy. However, year on year increase in accumulated losses creates a negative impression on investors. The company holds a net current asset of $22,910,349 which indicates that the company is in a position to meet its long-term obligations. Further, the company maintains a total current asset worth $10,120,802 and total current liabilities worth $ 1,745,386 which is proof that the company can manage its working capital as well as its short-term obligations. The total shareholder’s equity is worth $22,910,349.
There was a net cash outflow of $4,710,206 from the operating activities of the company. Here, the primary source of cash outflow was through the payment made to the suppliers and the employees of the company. The other source of cash outflow was the payment made in the form of income tax.
The net cash outflow was of $9,948,365 from the investing activities of the company. Here, the primary source of cash outflow was due to the purchase of plant and equipment and payment in the form of development expenditure.
There was a net cash inflow of $13,858,808 from the financing activities of the company. Here, the primary source of cash inflow was due to the income generated through the issue of shares and options.
By the end of FY2018, the net cash available with the company was $8,888,289.
By the end of the trading on 10 December 2018, the market price of the share was A$0.056 with the stock holding a market capitalization of A$107.06 million.
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