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GomSpace Group AB (publ)
8/23/2024
Welcome to today's presentation where we have the pleasure to present Gumspace. To help us through today, we are joined by you, Carsten Darkmann, CEO of Gumspace. Your Q2 24 hour interim report will be the subject today, fresh from the press this morning. And yeah, I think kind of delivering on all the goals you set out last year. So, but I think that will probably be the subject where you look back and take us where you are in that progress. As always, you can ask questions down in the box down below. We have a lot of questions in already, but do feel free to keep asking during the presentation. We will take it in the end. But for now, I think I'll hand the call over to you, Carsten.
Thank you, Mikael, and welcome everybody to our Q2 2024 update. Very happy to be here again. As Mikael said, please do ask questions. I'm very happy to try and answer all the questions I can, but let's try and do it. You do it to Mikael and we'll take it at the end. So today I will talk about our reporting, the guidance we gave last time. We just want to repeat that. We'll talk about the journey we are on. We'll of course talk about the Q2 results. That's what you're looking for as well. Reminder about Gumspace for those of you who might be new to the to the share and have an or and to Gumspace and have not yet really looked into the details. Exciting events. We have a couple of exciting events the last two to three weeks that I think is worthwhile highlighting and then a little bit of why would you invest in Gumspace? But let's first take clarity and communication. I said from the very beginning when I started here. This is really important to me. I believe strongly in this communication and clarity. So let's try and keep that track. First of all, when it comes to reporting, we changed last time and told you that for the first quarter and third quarter, you will have a trading update or trading safety. And of course, you need to get a new engagement instead simply to provide a faster service to you as investors. So we'll keep that up. You also saw for this one where we are half year report. It takes a little bit longer to do the issue of the press release a little bit earlier with the numbers. We were we were certain about at the time also as a service to you, so we get information to the market as quickly as possible. Okay, remind on the journey 2023 we had a lot of uncertainty. There was a lot of losses. We raised we had to raise capital simply to survive at that time. There's a lot of change and we're trying to clarify the situation. Where are we? Who do we want to be? Where are we heading? That was 2023 which we worked on there 2024. We are getting into the clarity. We know what we're doing. We have defined our business into our three business units. You know how to track our business. We have more stability cash flow is stabilizing. We have a cost that's better matching the current market level. We have of course you want to grow but first stabilize and then focusing on the right sales meaning we need sales with profitability in the end. What are we aiming at just so you don't forget product business is important to us. Good business different dynamics in terms of closing business production delivery. No engineering hours. No complicated contracts. We simply sell what we have that needs to grow into a business in its own right. You have our program business emissions where we're building a bigger satellite. It's much more complicated. This is also something that we will grow in its own right. I will have a lot of focus on selecting the right projects and we need to be patient. This takes time. We know we have good traction now as you've seen in in order in take that it takes time and in North America also capturing market share the biggest market in the world. We have a very very small share. There's absolutely no reason no reason whatsoever that we cannot grow this into something more than what it is today and this is what we're working on. Also here takes patients it takes time to build a market it takes time to close business and it takes time to close business that is bigger. The question which is very fair can we afford to be patient and like I said last time. Yes, we can so very very clear from my side. What are we aiming at? What are we executing on and I hope you'll appreciate that the results in the second quarter here is delivering exactly on that. So let's let's dive into the numbers free cash flow is positive in Q2 great. This was our really a focus. We're trying to to get into that being free cash flow positive for every quarter. We improved our cash position to 51 million so more money in the bank. Basically, that's good. Our order backlog had a an amazing jump up to now 299 million from 161 million to 85% increase. This is really really good. This is of course creating a platform for going forward. We have more certainty about what are we doing? What are milestones? What are the contracts and payments agreements we have in place with customers? So this is really good a very strong development. On the key order intake side of course that what has put this up to this level. There's unseen labs where we are now starting a contract building microsatellites for them. This is new remember the microsatellite market is new for us and it's quite unique that we actually get to two contracts at a time. We get that unseen labs idea partner for a long time. We're very committed to them and we will we will continue to grow with them and then we have a contract from Singapore, which is a new so this is really we have done business in Singapore before but it's the first time we land a contract of this size. They were visited at us last week. It has some milestone reviews. It was brilliant. We have a very very good connection with our customer here and this is very much built on trust in in both directions. And as you may know, I've lived in Singapore year also and I was good to see familiar faces coming last time. So this is very good and it's really helping us to stabilize the business. And hey guys I for approved a government export loan to what's Indonesia for a big contract that we have signed a commercial terms, but the contract is still subject to final. A negotiation and approval for the between Denmark and Indonesia for the financing. I for has approved this this is great. This great with me be closest. This is what we want to of course everything is set up. But this another milestone in this it means gump space is now recognized by I for by the Danish government to be a valid and credible exporter of our technology. This makes this is really really important. That means we can go to other places as well. We have a good dialogue with I for we are known at I for and we can do more business like this into the future so great for the short term. That's what we needed for Indonesia equally great for the future. Okay. So a couple of numbers tiger usually do I'm going to do this a little bit slower because there's a there's a some changes here want to highlight to you take a look at the order in take so order and take in a quarter of us. 199 million. Very good. Look at the graph and compare to last quarter 2 so now we have plus 200 million look at the Q2 last year minus 200 million what was that? This was remember what we did we said we only want to do profitable projects. This is where I canceled a number of orders that we had where we were not making money. We were either break even or losing money. I could simply see we're not going to lose money so look at the difference now. We now have programs that we are actually making money on there is profit in these programs. This is what we want and we let go of 200 million last year where we were not making money. Maybe we lose money imagine if we hadn't done that and even still be successful today. That would mean we would need 50 people more meaning adding to our cost base meaning adding to the instability and the constant need of having to close more and more business. I pick difference good decision. So I have to say that person goes good decision and now we on the right track here to to profitability. Revenue is good stable. We want to this will this will go on. We'll talk about that later, but of course right now stabilize the ship. Get the water out make sure that we are floating with setting ourselves in the right direction and then slowly will pick up speed. There will be some waves in the process, but we can manage that now. It also a great improvement minus 8 million last year. We had minus a lot more not even going to save the number because I can't read it on my screen, but it was. It's much better. It's still not positive. This is some way to go, but it's okay. It's not my focus right now. My focus is auto intake managing the cash flow next on the agenda is revenue and then we will move to watch a more positive every time and profitability employees. We have increased from 132. I think previous quarter 250 so we are taking people in why we actually do it because we have we have more work to do than we have resources right now. So this is a suppose a positive thing in the workload going up and of course we need to make sure we can still deliver on our promises. We don't want to grow. We are very careful about it. We don't want either to go to happy out on hiring. We really want to take in the good people that we need to execute and then prepare for for 2025. Okay. What a backlog another investor service by the way, because we're not required to deliver this, but I want you to see this because it helps understand the business unit and the diamond dynamics as I already said the order back backlog has gone up 161 million to 299 great. The main change is obviously in the programs section where we build a full satellites is gone off a lot with the two orders. A product that gone down a bit if you look at it the first the first quarter we had 16 million in order intake on products and then in the second quarter we have 12 different somewhat disappointing and less than what we had anticipated. Okay, so be it they go up and down. It's not a it's not an exact science. But obviously it's well compensated by the larger order in taking program. So that's okay. And you also see that in North America actually was progress on a total order backlog up to 7 million. Closing note on the product business. It was a bit slow in the second quarter, but hey look at I send out announcement out yesterday in the first 7 weeks. So about a little bit more than halfway into the third quarter. We are 24 million. Hello. That's pretty good. So we are double up already from the second quarter. So there's some fluctuations. We don't totally control, but we are we are trending where we where we want to be. Cash flow. Um. Plus 7 or 6.6 to be accurate in May and second positive free cash flow in this quarter. We were a little bit negative in the first quarter. We had a nice positive in the in the in the last year. Here look at the last 12 months of free cash flow plus 10 million look at the previous 12 months minus 164 million again. I repeat. This is a focus. Get the right business adjust the cost base which we have done and manage the cash manager cash manager cash and this is what we do all the time every day every week people getting a bit tired of me here, but we're not going to stop this is really important. It also means it creates that stability. Yes, there will be some fluctuation. Yes, some quarters would be better than others, but we're not going to lose. What's the lowest bar 60 million sec in one? Quarter we're not going to lose that not anymore. We have stabilized that and we have a decent bank account was about 50 million. So we have some buffer if things are going up and down. It's okay. We can handle it and there will also be some fluctuations between deliveries and cash flow from the customer and payment plans. It's okay. It's part of running a business. But I would say we on a pretty good trend here in the right direction. Oh, and I should also say we're keeping our guidance for positive free cash flow for the second half of the year. Reminder and gumspace for those of you who haven't been here before or maybe listen in for the first time. So we were founded in 2007. We've been on that NASDAQ since 2016. We are a global really well-known brands. We have a lot of mission experience means we have flown a lot of satellites one of the biggest satellite launches in the world where customers are launching our technology. We have a lot of products from our products business flying every day and they will get back to that in a second because more more wet into space recently. We live in all ball and we have one of the largest facilities in Northern Europe for building the small satellites. We have a global footprint. We have customers in more. We have customers in more than 60 countries. That's a lot. So we are all over the world. We have business in North America and South America in Asia. We have business in Africa the Middle East. We have business everywhere really good. We are global brand this make matters. What are we building we are building these smaller satellites the so-called CubeSats which are sort of from 5 kilos up to maybe 2025 a little bit more and then we are entering into this new business which are microsets microsets a bit bigger 50 to 150 kilos. First ones we can take off and lift by hand the second ones we need perhaps a little lifting device in our a IV room which you see in the back. This is where we assemble a satellite in a dust free environment. Why are we moving there? Why is the market moving towards that? They're not leaving the small sets that will continue but they're moving into the slightly bigger satellites to get more energy more power and more room for adding advanced payload. So they simply a return on investment is bigger. You get a better performance out of that. We are in that business. Now this is good. The products the product business unit. These are these small components are used to compare it to its like battery packs for your laptop. It's a hard disk. It's a microprocessor board. This is what we do just for laptop or it's or just for satellites very good business for us and we are also we doing this for the CubeSats or smaller satellites a product can be reused in a microsatellite. Hey exciting events. Let's see what has happened outside of talking numbers, but there's things that are happening, which is worthwhile noticing to very unique anniversaries. We have had recently. We have one which is the so called comics for satellite. We launched two satellites actually 6 years ago together with the Danish government and the Danish defend defense. They have now flown for 6 years. We've learned a lot. We have done weather observation. We have done imaging the defense Department. Danish defense has been working with this really really great. We have learned a lot as a company because we've been not able to run a lot of tests verify things make observations. And this the good the sad story is it's dying very sad actually because it's a baby for us. It's going through the atmosphere is probably already. It's already crossed and it will burn up as they do when they go into the atmosphere. But we are very happy that the flow for this long. That was not known when we launched it. So now we know that this is a really really good platform that we have and it works very well. There's another anniversary 5 years of our first bro satellite bro satellite at the satellites. We sell to our dear partner in France unseen labs. We have been with them for a very long time. We launched their very first satellite 5 years ago. Big anniversary celebration. It's still working and oh by the way make the link market hint. How long time does a satellite work about 6 years when was the anniversary for unseen labs about 5 years you connect the dots. I leave that to you. We have a significant footprint with the latest space. A space X launch we launched 3 satellites on that platform. Unseen labs had 2 satellites are over flying now and then we launched a satellite for Indonesia. It's called kaka one. I think we leave kaka means satellite in in Bahasi. We launched that as part of the contract a discussion we've had with Indonesia and he'll pause and say this is part of an original agreement that we signed in December as we announced it that we would launch a first satellite as fast as possible for It's operational and it will we will use it. Of course in Indonesia will also use it for learning for training for saving up the operational readiness that needs to happen as part of the big program. And this is something that we have agreed as also on a on a list in a side contract. We've done we do this now even though we're still waiting for the big contract a big contract. It needs to have the full financing. Including financing from Denmark so that is still in negotiation but this first part we have agreed separately. We don't need you. We need to launch this to keep our timelines. It's flying we have a connection to it and right now it's going through the so-called. The ops face a call it means there's a 2 3 4 weeks depending a bit of setting it up folding out the wings getting connection and then before it starts becoming operational and we can start taking pictures with it. Great achievement but wait this more it's not only a 3 satellites that successfully were launched. We actually had it's close to every satellite you can see it here on the picture on the right how many different satellite from other vendors that were there. Competitors other partners I believe there is a piece of gum space it almost every one of those single satellite so not only did we launch 3 satellites but our product subsystems the hot disc the battery packs. Where somehow included in all of these other satellites as well so from how much technology flew from gump space the answer is a lot. So this is really good very good news. Now why invest in in gump space we've been through that one before and I will do it again because I think it's important. First of all this a demand very clear there is a compound average gross of 19% so it's a growing market check. The demand is evolving it's starting very much from NASA isa the space agencies funding this for science and research where we also been involved with. And here a mission that's going to fly for 2 years beyond the sun and more. But we see more commercial commercial applications coming in and even more even more so now the government the sovereign state the desire for every government to actually control. And own the assets that are gonna monitor what's happening in Denmark what's happening around Greenland or if you're Ukraine was happening Ukraine what's happening everywhere. We want to be somewhat independent states even though we're together in EU and NATO and we believe in being together we still want to have some control that is a driving factor that we see. We have in the lower right hand corner of the existential societal issues as we call it global climate infrastructure redundancy we can go space you can go fiber there's a need for that and like I said the national security is a big trend here. So market trends are good customers are there the business cases the use cases are there why are we competing okay well we've been here for a long time. We've been around for 17 almost 18 years we want to be oldest companies in new space and we have a very strong technology platform and flight heritage which I just shown you how much technology was actually flying so it means we have a lot of experience with having technology in space I can tell you it's not the same as building it on ground and thinking it works it's not until you launch it that you you start running. Last one journey to profit this is what we're talking about here I told you what we're focusing on. We have done we started a turn around in my book in my timeline beginning of last year we have stabilized the cash flow as I have documented to you our market cap has grown that's up to you how what you think we deserve or what what you are how you value the company. We have a strength in our leadership team and we have a very strong structure in place to to execute so market is good trends are good. We have the experience in the heritage to do it and we are in a very good track in terms of executing. Revenue and a bit new a little service announcement here so you saw the revenue was for the first half 116 million. I am expecting that we will deliver for the full year more than what we did last year last year was a record year of 236 million with the order back that we have taken in now we have a more certainty that we believe we're going to do better than last year. Profitability it will also come but like I said first order intake cash flow now we start turning to revenue and as that starts growing the habit will follow so it's not a focus in and of itself we need to manage the first three ones first. A summary here so. Cash and profitability first I can say it's seven times and then you all remember it so this is what we're focusing on product revenue expand North America profitable programs we keep that focus you need to clarity and we need the accountability do we have the accountability yes we have skilled people with industry knowledge we have our founders are still here so we have this whole accumulated knowledge since 27 actually goes even back to 2000. So I found us has been in this for 25 years so we have that knowledge we have the heritage it's still here with us and we have very strong executives now in place that has executed before in similar environments and they are accountable and we have really a clear accountability Frank Chauvin is responsible for North America. Oliver Shiva for programs and Henrik has to offer products so for me it's very easy to follow up because I know exactly who's needs to do what and they know what they have to deliver good stuff. Alright trying to wrap it up here as a summary positive free cash flow check very very strong order intake I'm very happy with that in the second quarter it's it was not easy it's a long it's a long long process and we are prevailing here. I be expecting the revenue for 2024 to suppose surpass that of last year I for has acknowledged come space as a as a worthy company for for export credit and help with financing that's great we have the first satellite launched for the Indonesian customer check. And OK you want to know more I will give you an update at the end of the quarter as promised before on on a bigger contract. And we maintain our guidance for positive free cash flow for the second half of 2024. With that I repeat for you the question that you might ask me but can we afford to be patient cost and it takes time and yes we can. Thank
you. Perfect let's jump into some questions. The first one is around your your one of your big owners Peter Hartley's when he invested in comics he stated that comp was well in line with some of his other business. Does he have a part in decision making or does it have or does he have a positive impact on all the intake that doesn't mean that some of his connection can can have actually helped you so so it's a little bit of a comment on. Yeah whether he's how active he is in the management of the company and whether you can use some of his network.
Let me put it this way I see. I'm very pleased that Peter Hartley says here I've run listed companies before it's very unique to have Peter Hartley so I speak to him and I think you can read some of the articles he's very he's a very wealthy man. Up there with Sir Richard Branson and some of the others so he's approached to this is more from a philanthropic perspective you want to do a good business but he feels because he has made all of this money is a very unique thing and he started with nothing. He feels an obligation to invest so that's why he's in this area is Peter involved in the daily business no he's not because he's an investor like like you are so he cannot be involved and the other thing is guys he's he's pretty busy he's not gonna. He's not gonna spend time here but but what is a positive side on this is that he does always there so when we had the ship is starting to stabilize and we're sailing in the right direction and when we're ready and we need to move on Peter Hawke is there this is very unique and actually you should be happy as as rest of shareholders that we have this very unique investor.
And the next question is that this you have been in in public companies before you know when you hit a new milestone and deliver them we want more so and I know of course. You can't probably tell us much here because you're not allowed to guide into the future before you have told the market but the great you have a cheap positive cash flow but it's difficult to maintain. But it's difficult to maintain if the earnings are negative and that's that that I will agree on when do you expect positive earnings?
Yeah, so I told you the story of what we're focusing on first it's stabilizing stabilizing issue. Look at it as a ship which sales it's going down. It's sinking if you go to the captain and say so give me an essay. I made on when when you're floating again. I said I don't really know but what I can tell you we need to do is that get the water out if you started out in that school. Somebody needs to roll so we get so we can glide over the waves and not take in too much water and others are looking at the sale so I can tell you what each what you need to do and this is what we're doing now we need to focus on the cash flow. We are we need to close more business. We are now we're turning to revenue. And once we grow the order backlog and the revenue comes up profitability will come so I think I have laid out for you the track we are on and I think rather than asking when I think it's more question of saying are we on the right track and the answer is yes we are.
Yeah, and then there was also a question about the gross margin because. People can also do their own calculation you know they can follow your own intake they can start calculating your your revenue. That easy and then if we get if we have an idea about the gross margin and some of the fixed cost base you know then that will be the indication but. And it's not directly asking what what targets you have for the gross margin but what do you see this business being able to deliver in gross margin and I know it's not easy because. It is actually not been a very profitable business this one so I think it will be hard to probably pick something out but. Thinking of gross margins in a high tech business you know with a lot of knowledge incorporated in the products what what are the levels you are. Should you should see in this industry or if you can give some indications.
Well first of all. Job number one make sure that it's positive which we did over this year because it was minus 5% compared to last year same time right now we are plus 31% so it's going in the right direction I would maybe look at it a little bit differently. I have a good idea what I think we need to make but if I tell you that then then our customers will know how we're pricing things so that's not a good idea for you either having said that. If you look at the industry and I know some of you are doing a lot of analysis look at the comparable companies around the world we are probably. I say probably we are probably the nearest to profitability company in the space that we are in there are others that I might be bigger might have some bigger market shares etc but not nobody's making money. Go look up turn or be told or just bought by love read Martin they've been in chapter 11 for a long time we're not we are OK right so profitability is there I think a couple of things I've given to you the product business is a good business. This this good this good margin right the program business is can inherently be larger it's more complex so you have a higher risk also it takes longer time so it's a different service kind of margin so. Research a bit what is a service which should a service margin be when you do this kind of thing and then you have some ideas but step number one. The current profit growth property needs to be positive that number one and that's that we're trending in the right direction there.
I know I couldn't ask you to to guide into the future so but I try. Yeah there's a. With the audience you have reported the forthcoming growth looks just substantial that's for the ask us own. I'm not putting that on you I able but a very good question I able to finance that growth from from operations. Is there a big enough prepayments and so on so that you're able to finance this.
Yeah so so that's a very good question and there's so let me divide it up into a sort of two sides of that question there is are we getting sufficient cash from the contracts we sign. To run those programs that we commit to all the products sales with the committee or the answer is yes because that's linked to the profitability. If the programs or the products that we sell are profitable inherently the cash is there then we truly need to manage the cash flow which can be a little bit different from the revenue you see so the answer is. Yes everything we take in we can sustain then there's another question of growth often gross is associated with. I take a hundred million sec in so I can build a new satellite kind of system because I think this is going to be the great future that's a different thing and I think that was the other side of that question. We will get to that so is there sufficient cash from the will be closing yes because we're closing profitable business do we need more cash if you really want to step into another area yeah we probably do but. It's not the focus right now we're stabilizing the ship we want to be able to sell before we jump into the next stone. And we're heading in the right direction
yeah I think the question was the first part you know whether whether you can finance the growth part you know sorry there. The bigger that you contract your finance
by themselves and find finds inherent part yes perfect yeah.
And then there's a very direct question I don't know if you can answer that is there any plans of a targeted. What you say mission to to to to to to put your satellite into surveillance of Ukraine Ukraine you know I'm targeting anything to try and get directly into to supervising that area.
Yeah so what's important to understand is that the gump space business cases that we deliver technology and satellites for service providers on nation so we are not in enough ourself. Launching and running a service on a satellite that's not our business case others are doing that I've engaged in conversation and I think especially you. I'm assuming this question is tied to the funding that the Danish government is given and yes of course we are being asked and we are engaged there. We're not we're not we're not a company to launch ourself but we will definitely partner up with with companies who are then operating satellites. We'd love to help I think again here the government are doing a great job we need them to be a little bit faster. Do you can't call on a Friday and say I want a satellite on on Monday that's not how it works so we need to have this more long term plan. And we definitely engaged with that to to make sure that the same thing doesn't happen in two years to say oh shit would have been my friends would have been nice if he launched that satellite two years ago or started it right so this is what we're working on.
Perfect and then there's a question I can't remember whether you actually mentioned this is the Indonesian satellite in the Friday the 16th launch and when is the expected final signing on the Indonesian agreement. I think the latter part you have kind of indicated the timeline on what you should expect but the first one was the Indonesian part of this launch.
Well it's a it's a it's an Indonesian satellite that we have launched which is now flying and it's owned by the Indonesian state. So this is up and flying and as I said it's the first part of the West part of our strategy to launch one satellite quickly so we can use that for for learning and preparation there's a whole. Imagine a lot of people sitting in a room with a lot of screens seeing all the ships sailing in around in the oceans around Indonesia with little dots on them understanding what they're doing this it is all this needs to be built up and we can use this for satellite to setting that system up. So when the remaining 19 are launched in some years down the road then they're ready to go. So this is the first part of the agreement in Tunisia in terms of signing or it will be signed a commercial agreement but in terms of the final financing I would give an update at the end of the quarter.
Yeah perfect I think we all I think we all let you that on the on all the Indonesian question. In. Is it a fact that it is a fact that on scene level was the critical infrastructure in the North Sea and Arctic in general any communication with the Danish defense but I have any open communication with them.
Yes yes yeah quite quite frequently so there are a lot of discussions it's a try again I'll just say speed is of essence and that we're here we're ready I know our different companies in the industry and the network are ready so it's really a question of the Danish defense and the Danish government to move this faster the funding is there now but we need to make decisions soon I've engaged us absolutely.
And then a second question about the artist we as we know we have a we have a goal of surveilling artists and with this and I don't pronounce the satellite name but you already talked about it you had up does that open up for for closer cooperation to satellites or maybe it will affect your cooperation with is a S.A. I.C. in the United States.
No the two things are not related to S.A. I.C. is is a service provider to the to the U.S. government who is building a technology on with satellites as well want to deliver those services and technology to the U.S. government's got nothing to do with with his other satellite have we learned from the satellite the comics five which is the really eating yak which is and I was not correctly pronounced but that's a that's a Greenland ish for satellite every and I might be corrected. And I I stand corrected if it's not we have learned a lot and it has been flying over arctic's and the Danish defense have learned so this has been a pre pre runner for understanding what do we need to do and now it's time to to plan that network and start putting some actions in place by the government and by the Danish defense we're not we're not the stove factor here we know how to do it and we are ready.
Any update on projects article from in there and intro on the progress for the first side satellite to be sent up in the in the first first part of 25.
Yeah, I will answer on that we are we're executing on that project as as plant in terms of what's the start of the business case. I think you can read in the news how that's that's evolving and definitely on track for the ambitions to launch this network of monitoring airplanes for safety and also for fuel efficiency but we are we on track with the customer right now so there's nothing nothing more to report there.
If the contract on the satellite from Indonesia is not signed yet who pay right now for the cost of the ongoing work and the satellite who was sent out there have you covered that part.
We have an agreement with the Indonesian government for that satellite which means we we have an agreement for how they're going to pay etc. So yes, there is a funding for that we have covered some of the cost of self initially and now that it's launched then of course we're expecting the Indonesian government to pay as per agreement.
And then the question could you face capacity challenges when the Indonesian deal goes through will it cost prolonged delivery times for other customers and could this impact your potential maybe for taking in new deals.
No, we have it's right behind me here. We have a big we have one of the biggest assembly sites. We have all the capacity everything we need in terms of the material as we grow and we see business coming in we are we are expanding our very skilled. Staff for for these assemblies so we can gear up accordingly so we are not we are not in a situation we are limited by physical surroundings that we can only have three at a time we could have 10 1215 at a time if you wanted to search a staffing situation and the staffing like for any other activity that we do. As a business is evolving so the answer is no that's not a problem
and something I actually asked about the financing part when when that was asked the staffing you know we are talking about. Tight tight labor market in Denmark and I know this is a very, very specialized labor force you are looking for and I think you're lying in a in a very good area for that but your feel of the potential for staffing up and being able to get the right people I guess that that must also be something that after the stabilization you would need to look at whether that's whether that could be something that could be as a roadblock to you.
Yeah, so we're doing a couple of things we are hiring internationally so actually you've seen we've grown 18 people since last time we reported they come from all over the world come from Latin America, Southern Europe, Central Europe, we also remember we have a an office in Luxembourg so we're also hiring people there so it's not just about hiring in all. I will say though as a service information it's very interesting to see that a year or more ago I know the reputation around gump space let's be honest it wasn't great in a local area what's going to happen of course there was uncertainty that was understood. That has changed we are on the right track and actually people want to come work for us so we are getting surprisingly many applications right now for the open positions we have much more than we did earlier so I think the positive trend to the communication here which giving a sort of service to us investors we're also giving a service to future employees saying come work with us this is a fun place to be and actually be okay we're on a good track.
And the last question is a little bit broad one can you tell anything about the cooperation with is a icy I am now soon need to learn to pronounce those four words it's a pretty old one is this.
Pauletta Michael. Talk
a little bit about this cooperation is there anything new or maybe a little bit in general terms.
Yeah what I want to what I want to highlight is an announcement that was made some months back where I see signed a contract with Pentagon for the AI platform so I see is working on creating a platform processing platform for space they signed an agreement with Pentagon and in that headline there was no announcement it was actually as a I see it says together with gum space as a I see has won this contract with Pentagon. And I think this is what I'm going to say about us of course the collaboration is continuing this is not a short game this is not it's not a game for Friday we go into these contracts it's a long game but we're playing that long game as well and it's definitely I've worked in the US market before it's worth while playing the long games over there because once you get a hold of some of those contracts might take you some years it can be very lucrative.
I think that was the last question I will let you off the hook and thank you to everybody for listening in and thank you to you for casting for taking us through a result and again Congrats with those and answering questions.
Thank you very much thank you for listening I appreciate it always fun to to tell us to tell you where we are thank you bye bye.