Avanti Communications Share Discussion Threads

[currypasty] 16/4/2007 08:16

Opening up at 228

[sirlurkalot] 16/4/2007 08:08

Avanti's first HYLAS satellite is expected to be launched by the reliable Ariane rocket in 2Q10. There are plenty of brokers notes and other company news on

In their 5 Nov 09 note, Growth Equities comment:
"In a results statement released on 22nd September 2009, the company affrmed that "the sales pipeline is strong" and our discounted cash fow model suggests Hylas alone has a net present value (at a 10% discount rate) of £235.66 million – equating to 525p per diluted Avanti share. We then assume the launch of a further two, larger, satellites in a two year time-frame, the estimated cash flows of which we apply risk weightings of 85% and 90% to respectively, in addition to a 10% discount rate, in order to reflect their stage of development (e.g. no procurement having taken place or forward sales achieved). Avanti has, however, announced that it has been offered financing by government sponsors for at least one new satellite – with an investment bank retained to help it close this - and the slight difference in risk weightings is reflective of this situation. Under our model, these then add 116p and 77p to the valuation respectively but as development progress is made, our heavy risk weightings will be reduced and our valuation is thereby likely to increase significantly during the next 24 months. It is worth noting that the resultant 718p per share valuation includes nothing for the company's orbital licences, which have a clear value to industry competitors. Indeed, Avanti's attractiveness was highlighted in February when the company confirmed it had received an unsolicited preliminary approach regarding a possible offer for the company. This was rejected, with the board stating they believe Avanti "has excellent prospects as an independent group". With the shares at 385p we agree and, with a current target price of 718p, our stance is buy."

In their 24 April 09 note, house broker Cenkos comment:
"Avanti's business case is beyond doubt, which is why the current share price offers exceptional value. The NPV of the cashflows of a fully operational HYLAS 1 are £164m or 592p per share. At the same time, the downside risk is largely offset by assets including insurance of £89m, licences that we estimate to be worth £25m and manufacturer warranties in case of delay or underperformance of €13m."

[currypasty] 16/4/2007 08:04

Admission of the Company's shares to trading on AIM

Avanti Communications (AIM: AVN.L), the UK provider of satellite communications
services, announces that the Company's shares have today been admitted to
trading on AIM.

The Avanti Communications Group currently provides satellite telecommunications
services in Europe using leased satellite capacity. In December 2008, it expects
to take delivery for launch of its own satellite, HYLAS. HYLAS uses unique
technologies to provide highly flexible and cost effective satellite capacity.
In the future, Avanti Communications intends to sell wholesale HYLAS capacity to
telecommunications and media network operators. The Board believes that the
European broadcast and fixed satellite services market is a very attractive
market given its high barriers to entry, high demand for capacity and,
currently, the highest average prices in the world.

Key Strengths (see below for further detail)
* A flexible and efficient satellite system;
* Low cost advantage;
* A large and growing market;
* Significant barriers to entry;
* Experienced management team; and
* Strategic relationships.

David Williams, Chief Executive of Avanti Communications, said:

"Following the demerger from Avanti Screenmedia, we are delighted that Avanti
Communications shares have this morning been admitted to AIM. Obtaining a
separate listing gives us an improved profile from which to build our wholesale
satellite services and expand our customer base. As satellite spectrum is a
finite resource and market demand is high, we expect these factors to provide
significant advantages as we continue to build a large and valuable business."