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.