Avanti Capital Share Discussion Threads

[business link] 04/10/2003 00:25

A tiny rise north!

[monomono] 03/10/2003 15:25

Someone asked a while back what had happened to VideoNetworks: one of ECI's investments. Below is an article from today's Times - guess it means that it is a write-off.

Mono
++++++++++++++++++++++++++++++++++++++++++++++++++


Media and Marketing



October 03, 2003

Brave attempt to relaunch on-demand television
By Raymond Snoddy, Media Editor



A NEW ambitious attempt is being made to re-launch on-demand broadcast television in the UK after it looked as if the project might be indefinitely postponed.
Apart from a service in Hull, the main hopes for establishing on-demand television-based entertainment down telephone lines in the UK rested with the London company Video Networks. The company, founded in 1992 by Simon Hochhauser, a former merchant banker, went London-wide with its service in 2000. But the economics did not add up and in last year's harsh investment climate Video Networks ran out of money and Hochhauser and most of the 400 staff departed.

Video Networks survived because one of its original shareholders, Digital Explosion, a company owned by Chris Larson, a founding Microsoft employee, pumped in more money in return for control.

Roger Lynch, the new chief executive, who ran Chello, the broadband subsidiary of the UPC cable group, has completed a restructuring of the company and is preparing for its main commercial launch in the middle of next year.

"What we are offering is personal television. It is television that allows you to choose what you want to watch," says Lynch, who will probably begin a "soft" launch of the service in the spring.

The Video Networks service offers films on demand from a library of about 1,000 shows, plus all the latest releases. Subscribers can also call up episodes of EastEnders or series such as Friends. The company hopes to be able to carry the main broadcast channels whose programmes will be kept on a server to be called up for several weeks.

"We do have the capability to work with broadcasters to make their content available after the broadcast and we are in discussions with them about that now," says Lynch.

Before the restructuring, Video Networks had about 10,000 subscribers but that number has shrunk to about 4,500. Some viewers were lost as a result of the move to the new network system, while others were put off by the decision to combine high-speed internet access and the television service in a more expensive £35-a- month package.

A recent successful trial was conducted at 12 telephone exchanges in northwest London where Video Networks has installed its own equipment. "We are in the process of expanding that network by putting equipment in 75 exchanges covering 1.1 million homes in London. That's our first step," says Lynch.

After previous losses of about £200 million, Lynch is cautious about over-expansion. The company will decide next year on how fast it should grow. The aim is first to cover all London before moving to suburban areas of the capital. Other cities would come later.

"I think it (broadband television) could be quite an important part of the media environment one day," says Lynch.

It is a view shared by John Pluthero, the man behind the launch of Freeserve when he worked at Dixons, the electrical goods chain. Pluthero, now chief executive of Energis, the telecommunications group, went to the recent Royal Television Society convention in Cambridge to "lob a handgrenade" at the broadcasters who he believes are complaisant about the longer-term impact of broadband television.

The broadcasters heard some forecasts that the penetration of broadband in the UK could reach 35 per cent by 2010. Pluthero believes that there are currently about one million BT customers with DSL lines and about one million broadband clients on cable. But he feels broadband penetration could reach double the 35 per cent forecast by the end of the decade.

His vision involves the development of smart networks in the home. Companies such as Microsoft, Sony and Cisco are developing home networking technology where all information and entertainment reaches a server in the home and is then re-routed to audio and video devices around the house. Such home networking could start rolling out in the next three years, he says, with more companies eventually distributing programmes.

The lower cost of storing information - about 5 per cent less from four or five years ago - is also making on-demand television a possibility. But to ensure it becomes a reality, personal computers, now largely located in studies and second bedrooms, will have to move into the living space as part of the domestic network. Once that happens, Prothero says: "You can call up your favourite episode of Porridge, the 1966 World Cup Final or whatever you want to watch and you run it off from the server. Broadcasters are talking about 2010. This could actually happen by 2006."

This is just the timescale for Video Networks to start making an impact if its ambitions are realised.

[modo] 03/10/2003 14:18

mmmm, the spread is widening a little - that's the only thing that puts me off these micro-caps.

Still, a few decent investments & some good news will sned these seriously upwards, I feel.

Modo

[modo] 03/10/2003 08:53

Certainly looks interesting.

I guess that as long as they choose wisely where to invest, and don't waste too much on goodwill, there could be considerable upside. I wouldn't expect anything overnight, but I bet the share price this time next year is much higher than this !(?)!

Modo

[business link] 02/10/2003 17:38

There is a lot of negative sentiment around regarding this stock at the moment, primarily from people who have bought in at a (much) higher price and are understandably not very happy.

However, for those of us that have just come across Avanti, it appears to have much to offer, at these very low levels.

Currently trading at a 36% discount against NAV, with £17.6M in the bank, AVA has moved into profit and has transformed itself into a private equity model based business.


The board is optimistic about the opportunities in the forthcoming year and with overheads trimmed to a minimum, I can see little downside here, but plenty of potential. A BUY in my opinion.

[growbag] 01/10/2003 11:20

Banj - I couldn't have said it better myself.

In my experience the only thing that ever seems to motivate decisions at Avanti/ECI/Cambury or whatever the $%^& they're called now, is what's in the best interest of the Directors - so I wonder what's in it for them with this share consolidation plan - As Regalrealm114 says, maybe they think it'll make it more attractive to bids (and nice payoffs for the board.

No longer a penny by name, but always a penny share by nature.

[regalrealm114] 27/9/2003 09:45

In the same boat growbag,
This happened to me with Birchin International after they consolidated they changed there name to Parkrow Group then sold out for a pittance leaving me well out of pocket. Can see the same happing here?.
all the best E.

[yasmina] 26/9/2003 14:05

Ready to move up!!!

[growbag] 25/9/2003 11:20

Not convinced by the share consolidation. At the current prices (say 2p offer) I needed the shares to rise to 4.5p to break even. With the consolidation the shares would be about £1.20 or so. To break even then I obviously need the share price to reach about £2.80. Same proportion I know. But it sounds a hell of a way further!

Even with NAV around £2.00 per share, Avanti is never going to get back to those levels. THe growth story never caught on - let alone the trading at a discount to NAV story.

Guess I'm going to have to face it. I'm f%^$£ed.

[hectorp] 25/9/2003 09:57

Wait till consolidation before buying ( get better spread currently 12.5%).
Not definitely buying , but will have a better look at these.

[mart] 25/9/2003 09:21

What are the implications for the warrants I wonder?

[rhiannon] 25/9/2003 08:59

NO CATCH.wdik

[abbo64120] 25/9/2003 08:51

Where's the catch?

[yasmina] 25/9/2003 08:50

LONDON (AFX) - AIM-listed private equity group Avanti Capital PLC said it
swung into a pretax profit of 47,000 stg in the year to June from a loss of 3.4
mln stg a year earlier, largely due to cost cutting, and announced a 1-for-60
share consolidation.
"Avanti has completed its transformation (into a private equity group) - we
have made our first investment which we believe will create shareholder value,
have continued to manage our cash effectively and have reduced our overhead base
significantly," said joint chief executive Julian Fellerman.
In August, the company provided finance of up to 7.0 mln stg for the buyout
of up to 28 bars and nightclubs from the bankrupt Po Na Na portfolio.
Fellerman said: "Deal flow has risen subsequent to the Po Na Na transaction,
and whilst we remain excellently positioned to invest, we will continue to take
a measured approach to any potential opportunity."
The share consolidation, if approved by shareholders, will seet the group's
shares in issue cut to about 10.3 mln from about 620 mln currently and the price
on AIM would be re-based on a pro rata basis and the nominal value of each
ordinary share will increase from 1 pence to 60 pence.
"In the directors' opinion, the shares should no longer be perceived as a
'penny share', the consolidation should reduce share price volatility as there
will be significantly fewer shares in issue, and, may result in a narrowing of
the spread between the bid and offer price for each ordinary share," the group
said.

[madskt] 25/9/2003 08:44

share consolidation also ...
60:1

[yasmina] 25/9/2003 08:17

* Transformation to a private equity model based business now complete.

* Corporate finance generating additional revenue for the Group.

* Cash resources safeguarded - #17.6 million in the bank.

* In August first transaction as a private equity model entered into.

- Avanti has provided up to #7 million of acquisition and working
capital finance to fund the purchase of up to 28 Po Na Na bars
and nightclubs.

[yasmina] 25/9/2003 07:56

25 September 2003

Avanti Capital Plc

Results for the year ended 30 June 2003

Avanti Capital Plc (the "Group") the AIM quoted private equity company,
announces results for the year ended 30 June 2003.
2003 2002
#000 #000

Profit/(loss) before exceptional items 450 (312)
Profit/(loss) before taxation 47 (3418)
Diluted earnings per share 0.001p (0.65p)
Net assets 19,500 19,000

3.14p per share 3.06p per share

HIGHLIGHTS

[yasmina] 25/9/2003 07:55

EXCELLENT RESULTS :

25 September 2003

Avanti Capital Plc

Results for the year ended 30 June 2003

Avanti Capital Plc (the "Group") the AIM quoted private equity company,
announces results for the year ended 30 June 2003.
2003 2002
#000 #000

Profit/(loss) before exceptional items 450 (312)
Profit/(loss) before taxation 47 (3418)
Diluted earnings per share 0.001p (0.65p)
Net assets 19,500 19,000

3.14p per share 3.06p per share

HIGHLIGHTS

[yasmina] 23/9/2003 00:14

18 MIO in cash and awaiting interim results end of September!!!

[growbag] 22/9/2003 16:03

They don't have £18m now. Just spent £8 acquiring Po Na Na.

[thezapper] 17/9/2003 20:10

THis looks interesting - Could be a big rise coming up over the next few days?

[utsushi] 11/9/2003 21:05

touch2002

Could be a primary Aspinall risk (Aspinalls online PLC 15p to 0.17p) or a secondary D.Phelps risk (Po na na Group PLC 170p to zero)...take your pick, decent volume but this one looks vunerable, short term...

[touch2002] 11/9/2003 10:48

would make sense if he hekld any shares to speak of, but isn;t he just stuffed with options?

would need to be a fair bit cheaper to get me shouldering 'aspinall specific' risk again!

touch