Strategic Case Study Examination

May 2025 – August 2025

Pre-seen material

Leothayre

Context Statement
We are aware that there has been, and remains, a significant amount of change globally.
To assist with clarity and fairness, we do not expect students to factor these changes in
when responding to, or preparing for, case studies. This pre-seen, and its associated
exams (while aiming to reflect real life), are set in a context where current and on-going
global issues have not had an impact.

Remember, marks in the exam will be awarded for valid arguments that are relevant to
the question asked. Answers that make relevant references to current affairs will, of
course, be marked on their merits.

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©CIMA 2025. No reproduction without prior consent.
May-August 2025 Strategic Case Study Examination – Pre-seen Material

Contents
Introduction ............................................................................................................................ 2
Satellites ................................................................................................................................. 3
Satellite missions ......................................................................................................................... 6
Ground stations ........................................................................................................................... 9
Launching satellites ................................................................................................................... 10
Leothayre .............................................................................................................................. 12
Extracts from Leothayre’s annual report .................................................................................. 13
Leothayre’s Board of Directors .................................................................................................. 13
Board responsibilities ................................................................................................................ 15
Leothayre’s Principal Risks ........................................................................................................ 16
Extract from competitor’s financial statements........................................................................ 19
Share price history ..................................................................................................................... 21
News stories .......................................................................................................................... 22

Introduction
Leothayre is a quoted company that provides a range of solutions to customers’ needs for
small satellites that are generally located in low Earth orbit. Leothayre can assist with the
design of the satellites themselves and can support customers in reaching an agreement with
providers of launch facilities.
You are a senior manager in Leothayre’s finance function. You report directly to the Board and
advise on special projects and strategic matters.
Leothayre’s head office is located in Wexland, a developed country that has an active and
well-regulated stock exchange. Wexland’s currency is the W$. Wexland requires companies
to prepare their financial statements in accordance with International Financial Reporting
Standards (IFRS).

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Satellites
A satellite is an object in space that orbits around a larger object. Satellites can be natural,
such as the planets in the Solar System orbiting round the Sun, or they can be artificial, such
as communication satellites orbiting round the Earth.
There are approximately 10,000 active satellites in orbit around the Earth. That number is
expected to grow significantly over the next few years.
In the past, satellites were almost exclusively large objects that were launched into
geosynchronous Earth orbit (GEO). Geosynchronous satellites remain stationary in relation to
the Earth’s surface because their orbit takes the same 24 hours as the Earth’s rotation. They
maintain that position because the forces created by the satellite’s velocity and the Earth’s
gravitational pull are in balance. These satellites maintain their positions for a very long time
because there is no atmosphere in space and so there is nothing to change their velocity.

Small satellites tend to be launched into low or medium Earth orbit (LEO or MEO). LEO and
MEO satellites tend to be non-geosynchronous, which means that they move in relation to the
Earth’s surface while they orbit. A typical satellite in LEO circles the Earth several times each
day. These satellites are often at the very edge of the Earth’s atmosphere, which means that
they slow down gradually because of atmospheric resistance, allowing gravity to pull them
towards the Earth. They descend into thicker atmosphere as their orbits decay, which slows
them down still further. Eventually, friction from the atmosphere causes them to overheat to
the point where they disintegrate and their fragments fall to Earth.

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Small satellites have become increasingly popular. They are cheaper to build and launch than
large satellites. Orbiting in low Earth orbit makes communication much easier. Only 12% of
active satellites are GEO, 3% are MEO and 85% are LEO.
GEO satellites can have a mass of up to 6 tonnes and may be powered by arrays of solar
panels that span up to 50 metres.
Satellites can be classified by mass:
Large >1,000kg
Medium 500-1,000kg
Medium/Small
Mini 100-500kg
Small
Micro 10-100kg
Nano 1-10kg
Pico 0.1-1kg
Femto 0.001-0.01kg

Most recent growth has been in the markets for Nano and Micro satellites.
A class of nanosatellites has been developed called “CubeSats”. The standard CubeSat is a
cube measuring 10x10x10 centimetres. This is known as a “one unit” or 1U CubeSat.
CubeSats can also be designed in 1.5U, 2U, 3U, 6U and 12U sizes and shapes:

The use of standard sizes and shapes makes it relatively easy to adapt launch vehicles and
their deployment mechanisms to carry a payload of CubeSats. Most CubeSats are 3U, 6U or
12U.
PocketQube is an alternative standard to CubeSat, with satellites measuring 5x5x5
centimetres and weighing less than 0.25kg. That makes it possible to fit 8 PocketQubes into
the volume required by a single CubeSat. PocketQubes make it
possible for students and hobbyists to build their own satellites and
have them launched as part of a larger payload.
Most small satellites are shaped as cubes or cuboids, even if they
are not standard CubeSats or PocketQubes. Those shapes simplify
the integration of satellites with their launch vehicles and so reduce
launch costs.
Small satellites may be powered by batteries or by solar panels
attached to their casing, possibly hinged so that more panels can be
attached. Care must be taken in designing components to ensure that there will be sufficient

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power available to complete the satellite’s mission. Designs must also allow for the fact that
consuming power creates heat, which can damage the satellite and cause components to fail.

Larger satellites, including Micro satellites and above, tend to be more complex:

Launching and deploying larger satellites tends to be complicated. Apart from their size and
mass, these satellites have delicate external components that can be damaged during launch
and deployment.
The “wings” that carry the satellites’ solar panels are usually folded during launch and will
unfold once the satellite has been deployed. They may be motorised so that they can be turned
towards the Sun to increase their exposure to sunlight, and so generate as much electricity as
possible in order to power the satellite. Any damage to that mechanism could mean that the
satellite cannot generate sufficient electrical power to complete its mission.
Medium and large satellites are sometimes fitted with manoeuvring thrusters that can be used
to adjust their orbits after launch. These can be used to alter the coverage of sensors or to
move the satellite to a new orbit. In some cases, the thrusters are used to bring the satellite
back to Earth in a controlled manner if its orbit has started to decay and there are concerns
that it will shower a populated area with debris. Small satellites do not have room for thrusters
or for the fuel that they require to power them.

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Satellite missions

Satellites are used extensively for several different types of mission:

Communications Many radio frequencies require a direct line of
sight between the transmitter and the receiver.
That line of sight can be blocked by terrain or,
over longer distances, by the curvature of the
Earth.
Communication satellites enable the
transmission of data between locations that do
not have a direct line of sight. Data can be
transmitted from a ground station to a satellite,
which retransmits the signal to the receiving
ground station.
Communication satellites can be configured to
facilitate any form of communication that relies
on radio, including internet and other computer
data, telephone calls and television signals.
Communications can be enhanced by
launching constellations of satellites that can
communicate with one another, provided they
have a line of sight. That could enable a
ground station on one side of the Earth to
communicate with a ground station on the
other side. Messages can be relayed between
as many satellites as are necessary to allow for
reception.
It is possible to create a global communication
system by launching a constellation of small
satellites into low Earth orbit.
Depending on the need for speed of
transmission and coverage, constellations can
comprise tens, hundreds or thousands of
satellites.
Navigation Navigation satellites are large and located in
geosynchronous Earth orbit. Navigation aids,
located anywhere on the Earth’s surface,
measure the distances to three or more
satellites. Software then triangulates these
distances to determine a precise location,
accurate to within a few feet.
Satellite navigation can be used by all forms of
transportation, including aircraft, ships, trains
and road. Global Positioning Systems (GPS)
receivers can even be handheld, for use by
pedestrians.
Some systems can pass navigation information
to ground stations. For example, a shipping
company might receive real-time updates on
the location of its ships and their speed and
direction of travel.

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Earth observation Satellites in low Earth orbit can be equipped

with sensors that detect specific matters of
interest. For example, satellites can measure
the health of crops by scanning for different
light frequencies as they pass over large farms
and transmit the results to a ground station.
Large farming corporations might launch their
own satellites or farmers might pay a satellite
operator to scan their fields and deliver regular
reports.
The same principle can be used to create
satellites that can:
• monitor weather patterns.
• detect forest fires or volcanic eruptions.
• measure atmospheric conditions, including
air pollution.
• track the spread of urban development or
the extent of deforestation.

In principle, satellites can be used to study

almost any such natural or man-made
phenomena.
Research and development Satellites can be used to carry out a wide
variety of functions in support of pure and
applied research and development.
• Satellites can be equipped with telescopes
and sensors that can scan deep space,
free from the distortion caused by the
Earth’s atmosphere.
• Satellites can launch experimental space
vehicles in order to test propulsion systems
that are under development.
• Satellites can create alloys and other
materials or manufacture completely
spherical ball bearings. Such products can
be impaired by gravity when they are
manufactured on Earth.

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Orbits The mission determines the satellite’s desired

orbit.
Satellites in geosynchronous orbit can
constantly observe or communicate with the
same area on the Earth’s surface. That can be
vital for applications such as communications
or navigation satellites.
Satellites in non-geosynchronous orbits are
constantly moving in relation to the Earth’s
surface. That means that a single satellite can
cover a much larger area, but observation of,
or communication with, any given location will
be intermittent. If necessary, gaps in coverage
can be dealt with by launching constellations of
satellites at intervals but into the same orbits.
Satellites can be launched into any desired
orbit. Polar orbits pass over the Earth’s north
and south poles. The Earth rotates while the
satellites continue their orbits. That means that
a satellite can cover different parts of the
Earth’s surface with each orbit. That could be
useful for tasks such as survey missions.
Equatorial orbits follow the Earth’s equator.
Satellites circle the same places on a
continuous basis.
An orbit’s inclination is its angle in relation to
the equator. Zero inclination means that it
orbits directly above the equator. An inclination
of 90 degrees means that it passes over the
north and south poles. Orbits can be set at any
inclination between 0 and 90 degrees.
The Earth’s gravitational pull is greater at lower
altitudes, which means that a satellite must
maintain a higher velocity in order to remain in
orbit at lower altitudes. A satellite orbiting at
700 kilometres above the Earth’s surface will
travel at 28,000 kilometres per hour and will
take 100 minutes to orbit the Earth. At 36,000
kilometres, a satellite travels at 11,000
kilometres per hour and takes 24 hours for
each orbit.

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Ground stations
Regardless of their size, most satellite missions require some
form of communication with operators on the Earth. That
communication requires apparatus that can transmit or
receive signals to or from specific satellites.
The facilities that are used to provide contact are called
“ground stations”. These vary enormously in size and
complexity. The largest consist of arrays of satellite dishes
that can handle large volumes of data and also have the
power to send and receive signals to and from distant satellites in GEO.
Ground stations can be built into vehicles and used to
provide mobile satellite communications. For example, a
television broadcaster might use a truck equipped with a
dish and communications equipment to transmit live video
via satellite from a sports event back to the studio from which
it will be retransmitted to viewers.

Satellite antennae can be small enough to be built into

portable devices, including satellite dishes, supporting
equipment that can be carried in a backpack and handheld
Global Positioning System receivers that enable users to
navigate accurately.
The manner in which users will interact with satellites and
the capability of the equipment that they are expected to use
will be taken into account in the satellite’s design and the
planning of its mission. For example, it might be sufficient to place a CubeSat in LEO to provide
temporary internet access for engineers working at a remote building site for the duration of
the satellite’s life.

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Launching satellites

Satellites are launched into orbit using rockets which vary in size and maximum payload.
Some rockets can carry a single large satellite, while others may carry multiple medium-sized
satellites or many small satellites. There are several standard models of launch vehicle in
operation. These can be adapted to carry different payloads. If a rocket has spare capacity,
then it can be used to launch additional satellites. Alternatively, it may be necessary to load
ballast, such as concrete blocks, to balance the rocket and ensure a successful launch.
Satellite launches require careful planning to ensure that the rocket releases its payload at a
precisely determined point in space, with the correct velocity and orientation. Any error in
velocity will affect the satellite’s orbit and could result in it falling back to Earth. If the orientation
is incorrect, then the satellite’s sensors may be pointed out to space instead of towards the
intended location on Earth. Incorrect orientation could also prevent solar panels from collecting
sufficient light to produce power or could prevent clear communication with users.
Launches require complicated mathematical calculations that take account of gravity and the
Earth’s movement as it rotates on its axis and follows its own orbit around the Sun.

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Rockets require launch sites that have the necessary

infrastructure in place for assembly and launch. The launch site
will also be selected to take account of the satellite or satellites
that will comprise the rocket’s payload.
In order to reach orbit, a rocket must achieve sufficient altitude
to escape the Earth’s atmosphere. The rocket must also
achieve sufficient horizontal velocity to avoid being dragged
back to Earth by gravity.
One way to boost a rocket’s horizontal velocity is to launch in
an easterly direction and from as close to the Equator as
possible. The Earth rotates from west to east, so a rocket
launched in that direction will benefit from the velocity provided
by that rotation. The Earth’s circumference is longer at the
Equator, which means that launching towards the east from the
Equator will maximise that benefit.
It is possible to launch rockets in a westerly direction or from a launch site that is closer to
either of the Earth’s poles, but that will require additional power. If the rocket requires
additional fuel to reach orbit, then it will have less lifting capacity for satellites. It may then
become necessary to incur the expense of using a larger rocket.
The location and direction of launch also determines the
area into which debris and gasses created by the rocket
will return to Earth. Large rockets often have external fuel
tanks or booster rockets that are jettisoned during the
flight. They may also be separated into two or more
stages or sections. The first stage contains a large rocket
motor and fuel tanks. The stage breaks away and falls to
Earth when the fuel is exhausted during the initial launch
phase. The rocket in the second stage then ignites and
provides propulsion for the next phase and so on, until
the rocket reaches its intended altitude.
Spaceports are launch sites that serve large rockets. Most are located so that the risk of injury
or damage to property is minimised, with large items of debris being dropped into expanses
of ocean or uninhabited desert and kept clear of aviation flight paths.
Prevailing weather must be considered when selecting locations for spaceports. High winds
can affect a rocket’s trajectory while it is in flight, especially during the first few seconds after
launch. Local temperatures can also be an issue. It could, for example, be dangerous to fuel
a rocket on its launch pad in conditions of extreme heat or cold.
Spaceports must also be accessible to operators. There is very little point in locating a
spaceport in an area that has inadequate transport links for the delivery of parts, rocket fuel
and payload. There is also very little point in locating in countries that are politically unstable
or that have unsupportive governments.

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Leothayre
Leothayre was founded in 2004 and was quoted on the Wexlandian stock exchange in 2017.
The company provides a complete satellite service for clients, specialising in small satellites
from 1kg to 75kg. It provides a complete service to its clients, starting from an initial
consultation, continuing through to the launch and operation of the satellite, satellites or
satellite constellation.
• Leothayre’s engineers have the necessary knowledge and experience to analyse the
client’s mission and recommend suitable solutions. The mission determines the sensors
that the satellite must carry and sustain. That has implications for the size of the satellite
and the cost of launching it into orbit.
• Leothayre’s workshops have the staff and equipment that are required to design and build
small satellites. This is a specialised area. For example, all components must be certified
as suitable for space. Components that are robust and reliable on Earth can quickly
deteriorate because of the vacuum in space. The build must survive the launch and
deployment and any moveable parts, such as hinged solar panels and antennae, must
operate reliably in zero gravity.
Satellites must be thoroughly tested before launch to ensure that they will operate reliably
once in orbit. Leothayre has extensive test facilities that can test for the effects of vibration,
extreme heat and cold and vacuum.
• Leothayre does not operate its own rockets, but it has close working relationships with
several launch providers. It can negotiate launch slots on behalf of clients, ensuring that
satellites will be placed in the correct orbit in time to meet client deadlines. Alternatively,
clients can request completed satellites to be delivered to them so that they can make their
own arrangements for launching.
• Leothayre can provide ground stations that can control the mission once satellites are in
orbit. These are required to send instructions to satellites and to gather data collected by
their sensors. Leothayre owns and operates its own ground stations and can organise
additional support from third parties for missions that require specialised equipment.
A typical mission takes 12 to 18 months from initial consultation to launch. Repeat builds can
be quicker, taking as little as 4 to 6 months. The company has developed a basic satellite body
called Leothayre Standard, which is basically a CubeSat that can be supplied in 3U, 6U and
12U configurations. The design incorporates solar panel arrays and can be adapted to
accommodate almost any type of sensor specified by the client. It is quicker to adapt a
Leothayre Standard to meet a mission’s requirements than to design a satellite from scratch.
Leothayre has successfully launched 64 satellites, all of which were designed and
manufactured by the company. It also has a substantial number of orders awaiting fulfilment.
The company has made sales to clients in several different countries, thanks in part to its
excellent reputation for meeting deadlines and achieving mission objectives.

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Extracts from Leothayre’s annual report

Leothayre’s mission, vision and values

Our mission
Leothayre’s mission is to lead in the creation and operation of satellites that meet the needs
of clients for space-based facilities.

Our vision
Leothayre’s vision is to provide space-based facilities that can enhance the quality of life on
Earth.

Our values
• Leothayre chooses excellence in all decisions.
• Leothayre constantly innovates, anticipating client needs.
• Leothayre insists on fairness and respect in the workplace.
• Leothayre develops and maintains strong relationships with its clients.
• Leothayre acts with integrity and never promises more than it can deliver.

Leothayre’s Board of Directors

Fatma Ayoub, Non-Executive Chair
Fatma is an electronic engineer by training. She spent 20 years working for a major car
manufacturer, initially in manufacturing and latterly in research and development. She left the
manufacturer to take up the role of Head of Education with the Wexland Faculty of Engineers.
She was subsequently promoted to Chief Executive of the Faculty. She now combines her
position on Leothayre’s Board with a visiting lectureship in electronic engineering at Capital
University.
Fatma was appointed as Leothayre’s Non-Executive Chair in 2022.

Dr Robert Suwaj, Chief Executive Officer (CEO)

Robert has a doctorate in mechanical engineering. He was one of the first appointments when
Leothayre was founded in 2004. He has remained with the company since then, being
promoted to the Board as Operations Director and further promoted to CEO.
Robert was promoted to Leothayre’s Board as Operations Director in 2019 and was further
promoted to CEO in 2023.

Min-Chieh Tseng, Operations Director

Min-Chieh has a Master of Engineering degree in aeronautical engineering. She spent several
years working as a project manager for a quoted aerospace company. During that time, she
supported the development of an updated version of the company’s airliner. She joined
Leothayre to support the development of systems and mission management software. Min-
Chieh is now responsible for all aspects of scheduling and liaising with third parties in order to
ensure that production facilities are available and arrangements for launches are in place.

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Min-Chieh joined Leothayre’s Board as Operations Director in 2021.

Dr Alex Mhando, Technology Director

Alex has a doctorate in aeronautical engineering. He worked for Wexland Spaceport for 6
years after graduation. During that time, he focussed on the assembly and launch of rockets.
He joined Leothayre as a mechanical engineer, focussing on the integration of satellites with
their launch vehicles. Alex is now responsible for the oversight of all aspects of the design and
manufacture of satellites.
Alex was appointed to Leothayre’s Board as Technology Director in 2022.

Gamze Elmas, Chief Finance Officer (CFO)

Gamze has a degree in banking. She spent much of her career to date working for a major
international bank, specialising in negotiating loans for high technology startups. She joined
Leothayre as a senior financial manager to support the management of the company’s cash
flows and the funding of expansion.
Gamze joined Leothayre’s Board as CFO in 2020.

Mark Jones, Marketing Director

Mark has considerable experience of aerospace sales. He had a junior administrative role in
the Sales Department of a major aircraft manager. He demonstrated considerable talent and
was promoted through various levels until he was appointed a senior sales manager. His
responsibilities included heading the Sales Team responsible for the sale of cargo aircraft to
logistics companies.
Mark joined Leothayre as Marketing Director in 2021.

Professor Alice Alves, Senior Independent Director

Alice had a career in academia, teaching and researching economics at Capital University.
Her research interests included environmental studies and the tracking of urban expansion.
Her academic publications included studies that have made use of data provided by Leothayre
clients.
Alice joined Leothayre’s Board as Senior Independent Director in 2022.

Kawin Dhanakoses, Independent Non-Executive Director

Kawin had a career in politics, including several years as a member of Wexland’s parliament.
During that time, he took an active interest in industry and science. He sat on a number of
parliamentary committees, including the committee responsible for an investigation into the
potential environmental impact of Wexland Spaceport before permission for its construction
was granted.
Kawin retired from politics in 2020. He joined Leothayre’s Board as an independent non-
executive director at that time.

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Manal Al-Ramli, Independent Non-Executive Director

Manal worked for a major quoted civil engineering company, starting as a surveyor and rising
to a seat on the company’s Board as Director of Operations. She has retired from full-time
employment. She combines her seat on Leathayre’s Board with a directorship of Eastown
College, a further education college.
Manal joined Leothayre’s Board in 2020.

Board responsibilities
Robert Suwaj
Chief Executive Officer
Min-Chieh Tseng Alex Mhando Gamze Elmas Mark Jones
Operations Director Technology Director Chief Finance Marketing Director
Officer (CFO)
• Liaison with • Research and • Financial • Sales and
launch partners development reporting customer
relations
• Health and • Satellite design • Management
safety accounting • Public relations
• Manufacture of
• Human resource satellites • Treasury
management

Board committees
Audit Risk Remuneration Nomination
Fatma Ayoub
Non-Executive Chair ♦ ♦ ♦
Alice Alves
Senior Independent Director ♦ ♦ ♦
Kawin Dhanakoses
Independent Non-Executive Director ♦ ♦ ♦
Manal Al-Ramli
Independent Non-Executive Director ♦ ♦ ♦

Leothayre’s Chief Internal Auditor reports to the convener of the Audit Committee.

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Leothayre’s Principal Risks

Risk impact Risk mitigation
Leothayre is a young business that The Management Team pays close
competes in a relatively young and attention to the maintenance and
developing industry. It is difficult to forecast improvement of internal reporting systems.
future growth with any confidence. These are updated to ensure that they are
consistent with business processes.
The Management Team pays close
attention to changes in the market for
satellites and also for launch and mission
services.
The regulatory framework of the space Leothayre takes great care to comply with
industry is changing constantly. It could all applicable regulations.
change significantly before agreed The Management Team plays close
regulations are enforced. attention to ongoing developments and
works with government agencies and other
regulators to shape the future development
of regulation.
Satellites can fail before their missions are Leothayre’s satellites are tested extensively
completed. during construction, using apparatus that
can simulate the conditions that will be
encountered at the time of launch and
during their exposure to conditions in
space.
Ownership of satellites is transferred to
customers at the time of delivery to the
launch site. Customers bear the risks of
satellite malfunction during launch and in
orbit, unless it can be demonstrated that
there was negligence in construction.
Leothayre is heavily dependent on The company is working to keep as much
suppliers for the delivery of components fabrication work in-house as possible.
and assemblies. Any delays could threaten
mission plans.
Leothayre depends heavily on a small The company works closely with clients to
number of clients to maintain revenues and ensure that their needs are kept under
profitability. The loss of a client or any constant review. Staff working on contracts
adverse change in a client’s performance are expected to pay close attention to
could prove harmful. progress and to address any potential
overruns as a matter of some urgency.
Various macro-economic factors can have a Leothayre pays close attention to global
significant impact on business. These and regional developments that might affect
include political uncertainties that might its business.
affect the ability of government agencies to Clients are expected to make stage
invest in space missions and economic payments when satellites reach agreed
uncertainties, including exchange rates that points in construction.
might affect costs and revenues when they The company has an active Treasury
are converted to W$. Department that is responsible for the
active and passive management of
currency risks.

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Leothayre Group
Consolidated statement of profit or loss
for the year ended 31 March
2025 2024
W$ million W$ million
Revenue 1,782 1,683
Operating costs (1,126) (1,155)
Operating profit 656 528
Finance costs (450) (350)
206 178
Tax expense (31) (27)
Profit for the year 175 151

Leothayre Group
Consolidated statement of changes in equity
for the year ended 31 March 2025
Share Retained
capital earnings Total
W$ million W$ million W$ million
Opening balance 800 3,580 4,380
Profit for year 175 175
Dividend (65) (65)
Closing balance 800 3,690 4,490

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Leothayre Group
Consolidated statement of financial position
as at 31 March
2025 2024
W$ million W$ million
Assets
Non-current assets
Property, plant and
equipment 7,770 6,885
Goodwill 1,100 1,100
Other intangible assets 428 388
9,298 8,373
Current assets
Inventory 147 138
Trade receivables 14 12
Bank 551 346
712 496

Total assets 10,010 8,869

Equity
Share capital 800 800
Retained earnings 3,690 3,580
4,490 4,380

Liabilities
Non-current liabilities
Borrowings 4,500 3,500

Current liabilities
Trade payables 986 964
Tax liability 34 25
1,020 989

Total equity and

liabilities 10,010 8,869

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Extract from competitor’s financial statements

Orbalinc is a direct competitor to Leothayre. It competes for the same contracts and has been
in business for slightly longer.
Orbalinc’s head office is located in Wexland.

Orbalinc Group
Consolidated statement of profit or loss
for the year ended 31 March
2025 2024
W$ million W$ million
Revenue 2,566 2,272
Operating costs (1,667) (1,575)
Operating profit 899 697
Finance costs (500) (470)
399 227
Tax expense (64) (36)
Profit for the year 335 191

Orbalinc Group
Consolidated statement of changes in equity
for the year ended 31 March 2025
Share Retained
capital earnings Total
W$ million W$ million W$ million
Opening balance 1,000 3,990 4,990
Profit for year 335 335
Dividend (85) (85)
Closing balance 1,000 4,240 5,240

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Orbalinc Group
Consolidated statement of financial position
as at 31 March
2025 2024
W$ million W$ million
Assets
Non-current assets
Property, plant and
equipment 8,741 8,424
Goodwill 1,200 1,200
Other intangible assets 612 526
10,553 10,150
Current assets
Inventory 115 107
Trade receivables 22 18
Bank 629 557
766 682

Total assets 11,319 10,832

Equity
Share capital 1,000 1,000
Retained earnings 4,240 3,990
5,240 4,990

Liabilities
Non-current liabilities
Borrowings 5,000 4,700

Current liabilities
Trade payables 1,012 1,108
Tax liability 67 34
1,079 1,142

Total equity and

liabilities 11,319 10,832

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Share price history

Leothayre’s beta is 1.15.

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News stories

Happy Comic
Readers’ questions
Question: How many stages does a rocket have?

Max, age 9
Answer: Most of the rockets that are used to launch satellites into
orbit have two stages. The first stage must be powerful enough to
carry the rocket and its payload through the thickest part of the
Earth’s atmosphere.
The first stage can either be a large rocket, with the second stage
and payload stacked on top, or it can take the form of booster
rockets attached to the side. The first stage will normally burn for
2 minutes, after which it will separate and leave the second stage
to ignite and carry the payload into orbit.
The second stage can be smaller than the first because the rocket
will be lighter after the first stage has consumed its fuel and
separated. There will also be less drag because the atmosphere
will be thinner at higher altitude.
The stages are large. They fall back to Earth once they have burnt their fuel and detached
themselves from the rocket. The second stage might spend some time in orbit before it
returns, depending on its speed and direction of travel after its satellite payload has been
deployed.
Question: Rockets always look really tall in photographs. How tall are they and how do
they get something that big to the launch platform?
Matilda, age 11
Answer: The average height of a rocket that can reach low
Earth orbit is 58 metres. The average weight of such a rocket is
just over 1,000 tonnes, including its payload and the fuel
required for the launch.
Most rockets are too large to be transported in one piece to the
spaceport from which they will be launched. They are usually
delivered to the site in stages or sections that can be stacked
and assembled vertically in an assembly building close to the
launch platform. The payload of satellites is then loaded.
The rocket is assembled on a moveable platform that can be
rolled, with considerable care, to the launcher. The rocket is
fuelled and made ready for launch. The whole process of final
transportation and launch depends on the weather, particularly wind speed.

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Question: Are rocket launches bad for the environment?

Vijay, age 12
Answer: Rocket launches look spectacular, but there is a
reason for that. Most of the mass in a rocket that is sitting
on the launch pad is in the form of fuel. The fuel has to
burn rapidly in order to create massive amounts of thrust
from the rocket engines. That creates large quantities of
greenhouse gasses and soot.
The pollution created by rockets is potentially more
harmful than that from other sources because rockets deposit these harmful materials in
the upper atmosphere, where they cause a disproportionate amount of damage.
Some rockets jettison stages before all of their fuel has been burned. That can lead to
clouds of toxic vapour falling to Earth, potentially harming plants, animals and people
over a wide area.
Remember that CubeSats are usually added to rocket payloads, alongside the large
satellites that are the primary purpose of the launch. The space industry launches as
many satellites as possible. A large rocket can carry up to 30 CubeSats so any damage
to the environment should be evaluated on the basis that several missions might be
launched at once.
Question: What happens to old satellites after they stop working?
Francine, age 11
Answer: That is a very important question. Satellites can
remain in orbit for many years, even those in low Earth orbit.
Everything in orbit travels at immense speed, which means that
even a small part that breaks away from a satellite or that is
jettisoned in orbit during launch can destroy an operational
satellite. Collisions between satellites can cause both to break
up and leave lots of fragments in orbit. Collisions are rare, but
they do happen and the likelihood increases as the number of
items in orbit rises.
The most serious problem with old satellites is that they often contain batteries or fuel that
can explode, breaking them into small pieces and making the problem of “space debris”
or “space junk” even more serious. It is estimated that 10-15 large items break up in orbit
every year.
It is possible to design satellites so that they fall out of orbit at the ends of their lives.
Unfortunately, that increases both construction and launch costs significantly.

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Wexland Business News

Central City University’s space-rating degree is out of
this world
Central City University has announced the provision of a
new MSc degree in space construction. The new degree
is intended primarily to support the needs of the growing
satellite construction industry for engineers who can
design and build devices that can survive and operate
reliably in orbit.
Building satellites requires advanced engineering skills,
which is hardly surprising given that they must survive the
rigours of being launched into orbit and function perfectly after being deployed. Once in
orbit, they must operate in microgravity, which can affect the operation of mechanical
devices. They are also exposed to huge temperature changes if their orbits take them into
and out of direct sunlight, with no protection from the Earth’s atmosphere. Being outside
the atmosphere also leads to the exposure of electronic components to potentially
destructive cosmic rays.
The failure of a single component can be sufficient to cause a satellite to fail and bring its
mission to a premature end. Even the simplest item can pose a risk. For example,
fasteners, such as screws and nuts and bolts, must be made from metals that can
withstand the vacuum of space. Metals that are not space-rated can deteriorate and
disintegrate far more quickly in orbit than they would on Earth.
Satellite manufacturers specify space-rated products when they order components and
materials. They also subject assemblies to vibration and vacuum tests at various stages of
the build. The pace of development makes it difficult to be certain that nothing will go
wrong once the satellite reaches orbit.

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Wexland Daily
Will it rain on my farm within the next 90 minutes?
Farmers pay close attention to the weather for all sorts
of reasons. A prolonged heat wave or period of
constant rain can affect the growth of crops and the
profitability of their farms. Weather forecasts provided
by the Wexland Met Office are freely available online
or from print and broadcast news reports.
Unfortunately, these do not always reflect the very
latest conditions and may not be sufficiently localised
to be certain what that day’s weather will be on the farm.
Some activities require much more precise weather forecasts than can be obtained from
the Wexland Met Office. For example, a rain shower during the harvesting of a crop can
affect the moisture content of the grain and might reduce its selling price. Large farming
corporations often pay for localised weather forecasts from satellites in low earth orbit.
Those forecasts can provide accurate weather forecasts that enable decisions to be taken
with confidence. Delaying the harvest by 12 hours might improve the farmer’s yield.
Farmers are not the only ones who require personalised weather forecast. Builders might
obtain one before they pour concrete foundations for a major construction project. Oil
companies have satellites check the weather at sea before committing to towing an oil rig
to a new site.

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Wexland Business News

Wexland’s Government signs “Space Junk Charter”
Wexland’s Government has become the latest to sign the
“Space Junk Charter”. Signatories agree to commit
themselves to make their best efforts to encourage the
responsible use of space.
The Charter does not have the backing of law. Legislation
would be difficult because governments have no
jurisdiction in space, even in low Earth orbit.
The charter does offer standards that companies involved in the construction and launch
of satellites are encouraged to adhere to:
• The final stage of the launch vehicle will be designed to remain intact, with no
detachable parts left in orbit during satellite deployment.
• The trajectory of the final stage will result in it falling out of orbit shortly after
deployment of the payload. The final stage will be designed to disintegrate harmlessly
during its return to Earth.
• Satellites will be designed to minimise the risk of explosion of batteries, fuel and any
other volatile payload.
Space junk is a problem. There are approximately 35,000 objects measuring 10cm across
in Earth orbit and 950,000 objects between 1 and 10cm.
It is estimated that there are 10,000 operational satellites in orbit, but that number is
expected to increase to 70,000 over the next decade. That growth can be attributed to
reductions in launch costs and increasing numbers of applications for satellite technology.

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