Avanti Communications Share Discussion Threads

[phillis] 12/2/2014 11:17

The Company has just shy of $80m in hand to finance capex and interest payments of about $6m pa

As SK points out there should be some winding in of working capital

Turning the corner with what sounds like an excellent product/service package

[vyke82] 12/2/2014 10:40

Great RNS such low rise. Buy, buy!

[opodio] 12/2/2014 09:32

EK shorting AVN again I heard.

[ricardo125] 12/2/2014 09:27

Well I sold on the day of the bond refinancing - it was the final straw for me - Avanti just aren't bringing in the kind of money I had been hoping for. I'm glad I sold now - this is neither a dead duck nor a money spinner imo, it's just going to drift along in my opinion while the directors continue to take a decent remuneration for what I regard as failure.

[megabear] 12/2/2014 09:23

Does anyone know if the backlog actually grew on a constant currency basis or just because of the change to reporting in dollars? Looks more like grew because of change to dollars.

[willessa] 12/2/2014 09:15

They need to grow income from $25m to $66m just to break even for the half year, that is a 164% increase needed.

You cannot just say EBITDA is $1m positive and ignore the interest to pay and the capital to be paid back.

Whilst I wouldn't probably short, this is not looking great.

[simon cawkwell] 12/2/2014 09:03

Woozle1,

That's not the half of it. What do you think of the debtors level?

[bulltradept] 12/2/2014 09:03

OK Yorgi, let's see. :-)

[woozle1] 12/2/2014 09:01

I see revenues are up but as I suspected the company is giving favourable working capital terms and the cash is still going out of the door. DW did the same with the screenmedia business where in an attempt to demonstrate growth he landed the business with unfavourable contracts. We also don't know whether the current contracts are profitable.

The other concern is that I would expect the gross margin to be growing as the operating leverage kicks in and it is not. That needs to be addressed.

W

[wilksey1] 12/2/2014 08:44

i see some of the drift wood has come ashore right on que

[zipstuck] 12/2/2014 08:28

Cash burn is $37m pa on financing alone

[simon cawkwell] 12/2/2014 08:26

I am reliably assured that these results imply a rights issue is imminent. I sold again at 230p.

[ttny2004] 12/2/2014 08:15

Paul Walsh certainly is a huge leap in faith. Got great track record and reputation. He would not get involved if he believed company would fail!

[ttny2004] 12/2/2014 08:14

Think results are very encouraging. Turnaround and setting us in right direction.

[gekks] 12/2/2014 08:13

Results show the demand for KA band, and ability of Avanti to deliver - and with Paul Walsh taking charge soon, even better

[yorgi] 12/2/2014 08:11

Ill let the market answer that Bulltradept :-)

[divinausa1] 12/2/2014 08:08

says that every year Check it...

wants the shares to stay cheap

motives?

[bulltradept] 12/2/2014 07:53

Yorgi, where's the sales guidance though? John doesn't seem to know..

[philo124] 12/2/2014 07:53

No BBC or ITV stations in southern Spain now.

[yorgi] 12/2/2014 07:49

Yes I noticed that Wilksey a good customer to have.

[wilksey1] 12/2/2014 07:46

agree with you there yorgi but its how will the market see it. they answered my question for me in the results bbc are using avanti.

[bulltradept] 12/2/2014 07:35

"Predicting growth in new markets is an imprecise science"

So, let me get this right John, are you saying you've no idea of the kind of growth there could be, or could there be no growth?

[yorgi] 12/2/2014 07:33

It looks to me as if AVN has answered it critics with some excellent results.

[bulltradept] 12/2/2014 07:30

12 February 2014

Avanti Communications Group plc

Interim Results Announcement

London - 12 February 2014. Avanti Communications Group plc (AIM: AVN, "Avanti" or "the Company"), the satellite operator, has published today its unaudited interim results for the six months ended 31 December 2013.

Key developments

-- Revenues up 81%
-- 40 new contracts in the period of which 14 are increased order sizes
-- Continuing sales momentum with high quality global telco and media customers
-- Artemis satellite acquisition completed, spectrum transferred and marketing of service commenced

-- $370m bond placed on competitive terms to re-finance and extend maturities
Financial highlights

-- Revenues increased by 81% to $25.0 million (2012: $13.8m million)

-- Positive EBITDA of $1.0 million (2012: $7.4 million negative)

-- Cash at period end of $78.3 million (2012: $81.8m)

-- Backlog at 31 December 2013 of $455 million

-- Strong sales momentum in all product categories

Commenting, John Brackenbury, CBE, Avanti Chairman said:

"Revenues almost doubled in the period showing that we are building strong sales momentum. The efficiencies generated by the use of Ka band, and the Quality and Flexibility of our design have generated enduring competitive advantages for Avanti. Predicting growth in new markets is an imprecise science, but we are now exporting to 88 countries and to 122 customers including some of the best names in telecoms, media and specialist satellite service providers, giving a strong basis for confidence."