The Speedcast International Ltd (ASX: SDA) share price is up 16% to $1.24 today after the satellite communications services provider told the market Peter Shaper and Joe Spytek will join its board as independent non-executive directors.
Normally news of new appointments to a company's board would not make much impression on an S&P/ ASX200 (ASX: XJO) member's share price, but Speedcast has a volatile recent track record. While both Mr Shaper and Mr Spytek have impressive CVs and extensive satellite communications industry experience.
However, the stock is down around 70% over the past year on the back of a couple of big profit downgrades that finished with the company reporting a statutory net loss of $175.5 million for the six months to June 30, 2019. Operating cash flow came in at $29.3 million.
Speedcast also had net debt of $625 million on 3.6x pro forma last 12 months' EBITDA as at June 30 2019. The leverage another factor rightly worrying investors.
