Drone Volt

The FY22 lowered EPS forecast is mainly linked to the postponed contract of the 500 Hercule 20 and 200 Hercule 10 drones from its main customer Aquiline Drones. As the current 600 Hercule 2 contract has been delayed in deliveries, we expect this contract to be the focus for FY22 (with 389 drones to be sold left), hence pushing back the other contract to FY23 at least. There could be potential upside coming from the Hungarian customer or from the success of the commercialisation of the LineDrone, which would be highly lucrative.

The NAV has been slightly lowered due to the adjusted cash position of Drone Volt at the end of the year. In our previous estimates, the cash received from the sale of 50% of Aerialtronics (€7.5m) had been integrated into the FY21 results. We have now smoothed the cash reception into FY22 and removed some fees from the cash received.

Due to the delay in the execution of the Aquiline Drones contract, we have pushed back our sales estimates. This has impacted our cash recognition which has impacted our FCF. In addition, the FCF has been lowered in FY21 due to rising inventories as the components for the 600 Hercules 2 contract have already been acquired. Nevertheless, we are still expecting a positive FCF by FY23.