You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Inmarsat

Written by:
Ian Forrest, investment research analyst at The Share Centre, picks satellite communications group Inmarsat as stock of the week.

Last week Inmarsat delivered an encouraging set of results as it reported its full year operating profits rose by 9.5% with revenues up by 4.3% to $1,329m. The company operates global communication satellite systems with customers including major corporations in the maritime, media, oil and gas, construction and aeronautical industries, as well as government and military.

The firm’s largest division, maritime, continues to experience tough market conditions, as does the enterprise division; however the government and aviation divisions have driven group revenues forward. Investors should appreciate these reassuring results following its poor update to the market at the beginning of 2016.

While the group has had a difficult period lately, we believe that longer term attractions with the shares still remain for investors. The group’s deployment of three Ka-band satellites, which aim to deliver seamless global coverage at speeds of up to 50MB/s to the firm’s customers, should help the group to maintain a competitive edge with faster broadband speeds. Interested investors should note that orders from the Aviation division are growing and government spending is once again picking up.

We continue to recommend Inmarsat as a ‘buy’ for investors seeking a balanced return and willing to accept a medium level of risk.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
home survey
The pros and cons of overpaying your mortgage

You’ve made it on to the property ladder and you may now be considering overpaying your mortgage to erode the...