Share Name Share Symbol Market Type Share ISIN Share Description
Avanti Capital LSE:AVA London Ordinary Share GB0033869347 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 6.50p 0.00p 0.00p - - - 0 06:30:09
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 0.0 -0.2 -2.6 - 0.52

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Date Time Title Posts
10/10/201606:50AVANTI CAPITAL - moving strongly forward666
13/2/200511:34The Real Potential that is Avanti245
12/1/200410:45Avanti stitch up?38
23/10/200320:59The "expert" John Size1
03/10/200314:25AVANTI - Hot and ready to trot?99

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cjohn: The upshot is that for investors like me who don't already have shares there's only a modest gain to be had at the present Price. Some of the few pence difference between share Price and asset value will be eaten up by transaction cost in the return of capital. So I'm avoiding this one.
kylie69: Mblox stake shown as 51p a share, net current assets as at 30/6/13 17p per share,espresso stake 4p per share, cash from recent sale after payment of divi is 42p per share. Is the share price still too low?
fxdealer3: Do not believe these lies about asset value.True accounts (including huge goodwill of 5m) is shareholders funds of £10m @ 30/06/2012 Net tangible asset of £5m including cash of £1m + I have researched and they are materially overstated and very misleading.check companies registration office Historical valued and goodwill will not be realised in fire sale and many companies are carrying values at above market rates . Eclectic barslimited has net asset value of - £5m (minus ) at 31/12/2011 per co registration office There is a huge posion pill contract in Avanti Capital that the lower the share price goes then the larger the payback out to vested parties ( i think £2.75mprovision at 31/12/2012 ) so be very careful here Be very careful with these directors ......very high risk Pub sector is collapsing a Electric Bars limited is very high risk and will probably collapse within 24 months .. be warned on rns information being released by these guys especially re trading in eclectic bears no relation to audited accounts in co registration office especially ebitda and profit after tax for year ..go check u selves fx
hugepants: Any idea when mBlox release their results. I think it was about this time last year when the news articles started appearing. Also Motricity share price has recovered. I see they made a $100M acquistion.
hugepants: adam, Did you literally tell them they had their snouts in the trough? That could explain why they didn't get back to you. I think you're right though. I did send an email to Julian Fellerman a while back but got no reply. Not even an acknowledgment. Motricity are still capped at 3/4 of a billion dollars despite falling recently. I think Id be quite happy if mblox float at the same pre-float value as Motricity ($350,000). Even the current mblox book value is higher than the current share AVA price.
adam: I guess they are a competitor of sorts? Bango: Enabling commerce on the mobile web Bango at a glance + Play on growth of the mobile web + Growing App Stores earnings + Well funded + Maiden profit in 2010 - Share price assumes good growth - Original 2011 expectations reduced - Mobiles payments methods could move against Bango - Delays in migration from premium SMS
hugepants: Motricity share price well up again. Now 50% above IPO price and capped at over $600M (after raising $50M at IPO)
hugepants: I see Bango (BGO) is up nearly 50% in a couple of weeks. In fact share price has nearly quadrupled since beginnning of the year. They are also involved in mobile billing.
adam: I'm not sure exactly, though I think they are broadly termed aggregators. - what they say about themselves:- mBlox mBlox enables businesses to deliver and bill for mobile services and content around the world while simplifying the commercial and technical complexities involved. Specializing in global operator connectivity and mobile billing, we maintain connections to more than 600 mobile operators in 180+ countries through our carrier-grade network. Motricity mobile data solutions that enable wireless carriers and enterprises to deliver high-value, highly personalized mobile data services to their subscribers and consumers. Motricity breaks through the complexity of the mobile data ecosystem by providing a comprehensive suite of hosted, managed service offerings which enable wireless carriers and enterprises to deliver customized, branded mobile data experiences. Top highlights of our current business include the following: Clearly there is a wide disparity between the implied mBlox valuation in Avanti's books, not withstanding the further discount implied by the Avanti share price and that of Motricity. If you took Eclectic and other small holdings of Avanti as having no value then mBlox would be worth some $115m (assuming Avanti hold 6.5%). Versus $360m for Motricity. mBlox state they are cash flow positive and the largest mobile transaction network in the world. IF they were to float they would be worth more than Motricity presumably, but surely more than current book value. The update end of June should shed some light on the Eclectic business and of mBlox. Interims published three months ago were very upbeat Andrew Dark, the CEO of mBlox, commented, "In 2009, mBlox saw its 10th consecutive year of 30%+ volume growth globally for application-to-person messaging and we have also maintained our global leadership in processing premium transactions with a total retail value more than twice that of our next largest competitor. This demonstrates the immense power of SMS to deliver consumer value for businesses. We have seen growth in many sectors, including financial services, entertainment, transport and online service sectors. Although the SMS market in North America began later, the impressive and accelerating growth hints at the innovation and vast potential in the region. The dramatic increase in mBlox market share in France and growth in other territories demonstrates the value of our global presence and focused strategy." Eclectic Sales and profits were substantially ahead of last year both in total and like for like. Despite the strong performance for the same period last year the management team continues to drive performance. In summary for the six month period ended 31 December 2009, sales were £6.8 million (2008: £5.9 million), site EBITDA £1.9 million (2008: £1.5 million) and company EBITDA £1.1 million (2007: £0.7 million). Trading over the New Year was strong and management is optimistic about the outcome for the second six months continuing the trend seen in the first half. Edit - Probably worth noting that Motricity a post-money valuation (though I would not be surprised to see them do an SPO) whereas mBlox is pre IPO. However I think offset by apparent superior nature and scale of mBlox business and the fact they are cash flow positive- allegedly.
mark watsonmitchell: SQC Research recently published a profile on Avanti Capital - which concluded that the shares are undervalued and capable of an early rise in price. I present below that profile. Principal activities: The Company's principal activity is that of a private equity and ancillary services company. FT Sector: AIM EPIC Code: AVA Price: 163p 52 Week Trading: High: 172 .5p Low: 120p Shares issued: 10,373,592 (ordinary shares of 60p each) Market Cap: £16.91m Gearing: Estimated net cash of £14m Net Asset Value: The current balance sheet asset value is 190p a share SQC Valuation: SQC Research estimates NAV is 246p per share Results: Finals - October Interims - March AGM - November Marketability: 4 mrkt mkrs deal in up to 10,000 shares on a 7p spread Brokers: Collins Stewart Limited (020 7523 8300) Company Contact: Richard Kleiner, Joint Chief Executive and Chief Financial Officer, or Julian Fellerman, Joint Chief Executive (020 7070 7070) CONCLUSION 'A significantly undervalued Private Equity Vehicle' This Group has grown admirably out of the merger of two cash-rich Internet incubators. It is now gaining an impressive presence in the private equity sector. It operates in the sub £50m market where many of the larger venture capital groups no longer play. A strong balance sheet allows the Group to move rapidly as opportunities arise. Whilst its tax losses are so substantial that over the next few years many of the gains made will accrue in full. The current share price is trading at a substantial 34% discount to the SQC Research estimated net asset value of 246p per share. This gap of price-to-value could narrow at market-beating pace as the Group's profile improves. We consider that the shares could offer even greater upside from higher valuations of its portfolio and use of the £19m worth of tax losses. As the abilities of bosses Fellerman and Kleiner are exposed, further private equity deals will have a substantial impact on the NAV and consequently the share price. With about £14m of cash and a market cap of £16.9m we reckon that the £12m plus portfolio is in for just £2.9m. Given the current buoyancy of markets in small capitalisation stocks that 246p estimated NAV may well prove conservative. Furthermore we reckon that the effects of any share buy-backs will be instantly beneficial to both the NAV per share and the share price, thereby strengthening the upside potential. Without hesitation we set a six-month Target Price of 200p. COMPANY BACKGROUND Avanti Capital was formed in 2003 as a result of the merger and consequent shutting down of two cash-rich Internet incubators, e-Capital Investments plc and Internet Incubator plc. The management team, Julian Fellerman, Richard Kleiner and Anton Bilton, have a fairly clean canvas upon which to work. Avanti Capital offers shareholders participation in private equity deals through a quoted vehicle. The initial purchase of the Po Na Na chain for £6m in August 2003 has gone very well with a substantial uplift in value already. The market capitalisation of £16.9m is largely backed by about £14m of cash. SQC Research considers that the other assets are significantly undervalued and are reasonably liquid. DIRECTORS Julian Fellerman - Joint Chief Executive Julian has many years of corporate finance, business advisory and management experience, gained within the environment of legal professional services. He has represented public and private small and medium sized companies, some of which have grown rapidly to become large corporates. He practised law for 14 years, latterly as a partner in Berwin Leighton Paisner. In June 2000, he resigned as a partner in that firm in order to establish Odyssey Partners with Richard Kleiner. In July 2001, Julian joined Avanti as a full time executive director. Julian holds an honours degree from Queen Mary College University of London and is a Solicitor of the Supreme Court and a member of the Law Society. Richard Kleiner - Joint Chief Executive and Chief Financial Officer Richard joined Avanti in July 2001, having established Odyssey Partners with Julian Fellerman the previous year. Richard has significant corporate finance, financial services, accounting and taxation experience, as well as a broad range of investment contacts. Until recently, Richard was the managing partner at Gerald Edelman, Chartered Accountants, where he has been a partner since 1986. Richard has a wealth of corporate finance and business advisory experience gained from over 20 years as a practising accountant, assisting small and medium sized companies from formation to listing on the public markets. Richard is a Fellow Member of the Institute of Chartered Accountants in England and Wales and is an Associate Member of the Life Assurance Association. Anton Bilton - Part-Time Executive Director Anton is founder and Chief Executive of the Raven Group, a private property group which specialises in the conversion of listed buildings and commercial property development and investment. The Raven Group currently has a significant development portfolio. Anton is a part-time Executive Director of Avanti Capital, having been involved with the Company since its inception in 1997. Anton is an Economics graduate of the City University, London. Jonathan Poole - Investment Manager Jonathan joined Avanti in April 2004 having worked extensively with the Company on its acquisition and restructuring of Barvest in 2003. Prior to joining Avanti, Jonathan was recruited by ING Barings to help establish and build their UK growth companies investment banking business where he advised small to mid-sized public and private companies on debt and equity financing, mergers and acquisitions and restructurings. Jonathan began his career with UBS Warburg in the investment banking division where he advised public European companies across a diversity of sectors. Jonathan is an associate member of the Securities Institute, has a first class honours degree from Durham University and is currently studying for an Executive MBA at London Business School. In addition, Philip Crawford (Chairman), Adrian Collins and William Crewdson are Non-Executive Directors of Avanti Capital and bring a wealth of investment and senior management experience to the Company across diverse business sectors. COMPANY ACTIVITIES Avanti Capital is a private equity company, with a strategy of investing in businesses, using a combination of debt and equity. The Company has an executive team with extensive experience of investing in and running companies across a wide range of sectors. THE AVANTI CAPITAL INVESTMENT PORTFOLIO Avanti Capital's investment approach is as follows: • principally European businesses and strong management with a proven track record; • wide ranging businesses, which show the potential for material growth in the short to medium term, including consumer brands, leisure, retail and specialist support services; • investment opportunities in both public and private companies whose assets are undervalued; and • where appropriate, the Company will seek to raise debt finance to part fund any investment. The Group's executive management team has widespread and extensive experience across a range of sectors. This experience enables it to quickly get a real in-depth understanding of investments and to identify those prospects which have the greatest potential for delivering substantial gains for shareholders. Avanti is able to make quick decisions - and its team makes it a priority in all investment opportunities to be responsive and to establish at an early stage an outline structure and fair value for any proposed deal. Po Na Na Po Na Na is the most significant investment made to date. In August 2003 Avanti bought the profitable rump of failed bar group Po Na Na, which when quoted had attained a capitalisation of £50m. The AIM listed operator went into administration on 1st May 2003. It had operated 58 bars and nightclubs at its peak, but had run into financial difficulties earlier in the year. In a buy-in/buy-out transaction, the Company had provided a facility of up to £7m of acquisition and working capital finance for the buy-out of up to 28 bars and nightclubs selected from the Po Na Na portfolio. The buy-out vehicle, Barvest Limited, was in a position to cherry pick the sites it wanted to acquire, whilst leaving behind the underperforming sites. The price paid by Barvest Limited was £6m and depended on the number of units assigned. Of this amount, Barvest paid £1m for tangible assets. The Company supported the management team, which invested £0.9m in the transaction. The Group invested £0.6m cash for 60% of the equity, with the balance being invested by way of a secured preferred loan note bearing a coupon of 37.5% per annum. It was anticipated that at some point a proportion of the note would be refinanced by way of a senior debt facility. That refinancing took place in April 2004 with Barclays Bank Leveraged Finance, which provided a facility of £4.5m. That transaction fell squarely within the Avanti criteria; the business is profitable at the operating level and has sound growth potential. The added ingredient is that the Company invested at a time when the sector was at a low point and has backed a management team with deep knowledge and experience in the business and the sector. During the 45-week period to the end of June 2004 the 28 acquired sites generated sales of £19m and an EBITDA of £2m. Based on an annualised EBITDA of between £2.3m and £2.5m the business should, from a cost of £5m, have an enterprise value of up to £15m and Avanti's 60% stake would produce a significant uplift as described in the valuation table on page 5. mBlox The second most significant investment in value terms is a stake in mBlox Inc, which is a leading European provider of SMS infrastructure services to the content and applications industry. Its customers use its standard and premium-rate outbound and inbound services to provide information, entertainment and communications services to consumers or enterprise staff. In June 2003 mBlox entered into a merger with US firm Mobilesys Inc., a leading US provider of SMS services to corporations, creating a financially strong international player from two complementary leading companies. As part of the transaction the combined company raised US$8m to finance planned expansion. The fund-raising round was led by Norwest Venture Partners, and participants included Novus Ventures, Duff Ackerman Goodrich and Bank of America Ventures. The Group owns 7.7% of the equity of the combined company, which today is considered to be the premier service provider of mobile messaging infrastructure in Europe and the United States. In June 2004, MBlox Inc. closed a further round of financing, raising US$10m in a Series C preference round. The Group invested US$1m in the round. At 30th June 2003, the book value of the Group's investment in mBlox was £1.25m, based on a post-money valuation of $28m following the merger with Mobilesys. Following the latest round, the Group's 7.7% stake of the fully-diluted equity has an implied book value of $4.7m (£2.6m). The results do not reflect this uplift in value. SQC Research considers that the real value of this investment is significantly greater than indicated by the implied value on the last fund-raising. Other Investments The Group's portfolio includes a number of legacy investments including: Callserve Communications Ltd; Digital Brain Ltd; Espresso Broadband Ltd; Legion International Ltd; and Uswitch Ltd. On the realisation front these legacy investments are being sold off when the opportunity arises. In February 2004 Business Serve was floated on AIM and Avanti sold its stake for 3x book value and in June 2004 Amino Communications was floated at a value of 4x Avanti's book value. SQC RESEARCH ESTIMATE OF PORTFOLIO VALUATION Asset Value per share Cash (less liabilities) 136p Mblox (at cost) 18p Mblox (SQC uplift) 20p Po Na Na (cost) 21p Po Na Na (uplift) 41p Other investments 6p Property 4p Total 246p * *excludes value of tax losses FIXED ASSET INVESTMENTS VALUATION POLICY Fixed asset investments, comprising equity shares and share options, are stated at the lower of cost and valuation and in accordance with the 'Guidelines for the valuation and disclosure of venture capital portfolios' published by the British Venture Capital Association on the following basis: (a) Early stage investments: these are investments in immature companies, including seed, start-up and early stage investments. Such investments are valued at cost less any provision considered necessary, until no longer viewed as early stage or unless a significant transaction involving an independent third party at arm's length, values the investment at a materially different value; (b) Development stage investments: such investments are in mature companies having a maintainable trend of sustainable profits and from which an exit, by way of flotation or trade sale, can be reasonably foreseen. An investment of this stage is periodically revalued by reference to open market value. Valuation will usually be by one of four methods as indicated below: • At cost for at least one period unless such a basis is unsustainable; • On a third party basis based on the price at which a subsequent issue of capital is made involving a significant investment by a new investor; • On an earnings basis, but not until at least a period since the investment was made, by applying a discounted price/earnings ratio to profit after taxation, either before or after interest; or • On a net asset basis, again applying a discount to reflect the illiquidity of the investment. (c) Quoted investments: such investments are valued using the quoted market price, discounted if the shares are subject to any particular restrictions or are significant in relation to the issued share capital of a small quoted company; (d) Share options are subject to vesting and other conditions set out in the various option agreements. The valuation is based on the intrinsic value of all share options that have vested. This is the difference between the market value of shares at the balance sheet date and the exercise price. A review of permanent diminution in value is undertaken by reference to funding, investment or offers in progress after the balance sheet date. No adjustment is made for any uplift in value after the balance sheet date. CAPITAL RESTRUCTURING Shareholder Structure In October 2003 the Company carried out a 1 for 60 share consolidation resulting in the number of shares in issue being reduced from 620,367,657 to 10,339,460. In order to reduce the heavy financial burden of maintaining the share register of in excess of 16,000 members, the Company in December 2003 carried out a further share reorganisation resulting in a reduction in the numbers of members to about 2,600. Institutional holdings now account for around 35% of the share capital with Laxey Partners, Gartmore, Jupiter, ING Barings and Aberdeen being notable names. Growth in the institutional element of the shareholder base is likely to continue. Warrants In June 2004 the Company made an offer for the outstanding warrants which were exercisable at 105p. Under the offer warrant holders were given the opportunity to surrender all warrants held in return for a cash payment of 50p for each warrant. The warrant offer was 100% successful and there are now no warrants outstanding. Given, at the time of the offer, the warrants were substantially 'in the money', both in terms of share price and net asset value, the warrant cancellation has produced a material benefit to the existing shareholders in terms of net asset value per share. The benefit to shareholders is demonstrated by comparing what the fully diluted net asset value of each share would have been had the warrants been exercised, 175p, compared with net asset value of each share as at 30th June 2004 of 190p after the warrant surrender. Share Buy-Back Programme At the forthcoming AGM (11th November), subject to the usual Court approval, the Company will be seeking shareholder approval to eliminate the deficit in reserves and to authorise the Company to 'buy-back' its own shares. The impact of such a 'buy-back' programme, if it was enacted, would be to increase the NAV per share. LATEST RESULTS (Finals – 19th October 2004) The results for the year ended 30th June 2004 reported a profit of £716,000 (2003: £450,000) before exceptional items and excluding the Barvest consolidation. The loss for the year before taxation of the group amounted to £671,000 (2003 - profit £47,000) and the loss for the year after taxation and minority interest of the group amounted to £912,000 (2003 - profit £47,000) which was equivalent to a loss of 8.79p per share (2003 – profit of 0.001 per share) and the net assets of the group, excluding minority interests, were £18.6m (2003 - £19.5m). Net assets ended the year at £19.8m (excluding negative goodwill), following the cash cancellation of all outstanding warrants avoiding the possibility of substantial dilution from 'in-the-money' warrants, which was worth 190p per share. During the last year the Group made its first private equity investment in backing the buyout of the Po Na Na bars and clubs (Barvest). These results reported that Barvest enjoyed an impressive turnover of £18.9m and EBITDA of £2m for the first 45 weeks of trading since the acquisition of the Po Na Na bars and clubs. The Barvest profit before tax for that period was £0.4m. The other main investment in the Group's portfolio gained a useful uplift in value following the US$10m fundraising for mBlox Inc, which saw additional investment by the Group of US$1m. Two exits from the legacy portfolio helped the Company to show a profit on the disposal of investments during the year of £432,000. The Company has taken the costs of its much needed restructuring in this reported trading period. The exceptionals concerned the capital restructuring (as detailed above), costing some £1.5m, and the write-down of the legacy portfolio of about £400,000. At the November 2004 AGM the Board will seek authority to purchase its own shares up to a maximum 10% of the current issued ordinary share capital and at certain minimum and maximum prices. Following all of the restructuring of the Company's share structure it is impressive to see the continued strengthening of its institutional shareholder base. Richard Kleiner, Joint CEO, commented upon the results, "This has been an exciting and transforming year for Avanti Capital. We have started to grow our portfolio of investments by identifying quality, undervalued assets where we believe our expertise will create greater shareholder value." FINANCES Avanti is well positioned for opportunistic deals given its cash resources and is actively seeking further deals. As at 30th June 2004 the stated net cash was £14.1m. The Group has tax losses of some £19.7m that are available indefinitely for offset against future taxable gains on investments made by the Group. SHAREHOLDERS The Company now has some 2,600 shareholders. There are 10,373,592 ordinary shares of 60p each in issue. The Board together with family and friends hold in excess of 15% of the equity, whilst institutional holders control in excess of 35% of the share capital. Major Shareholders (as at 19th October 2004): Laxey Partners Ltd holds 2,105,780 shares, representing 20.37% of the equity; P J Crawford (Dir), holds 315,000 shares (3.04%); R H Kleiner (Dir), holds 216,720 shares (2.10%); and J M Fellerman (Dir), holds 189,000 shares (1.82%). OBJECTIVES AND STRATEGY The transformation of the business model of the Group is now complete. The Group is established as a private equity business, with a strategy of accepting corporate finance mandates, which do not detract from the Group's principal focus.
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