Share tips: A buy signal from a global satellite giant

The value of the shares in this global satellite services provider may have halved over the past two years. But the dividend yield makes it a buy, says Paul Hill.

Satellite communications giant Inmarsat provides 24-7 global coverage via its fleet of 11 geostationary satellites to ships, aircraft, the armed forces, oil prospectors and many others working in even the remotest of regions. Customers include CNN, the BBC, disaster relief charities and British Airways.

The firm also maintains the Global Maritime Distress and Safety System (a worldwide ocean search and rescue service), that all ships over 300 tons have to join. For 2011, the company achieved sales of $1.4bn and earnings before interest, tax, depreciation and amortisation (EBITDA) of $854m boosted by a $204m non-recurring gain from US wireless carrier Light Squared.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.