Avanti Communications Share Discussion Threads

[hywel] 19/4/2007 15:55

Sorry Sir L, not had time to read them yet, the day job and Imperial Energy getting in the way.

[sirlurkalot] 19/4/2007 12:02

Anyone else got any thoughts on this company? I sent out the reports to get a discussion going!

[aa29] 17/4/2007 13:19

Received safely, thank you.

The Charles Stanley valuations were interesting to read. I hadn't realised they could potentially also sell the same satellite capacity several times for standby Business Continuity services.

We have current AVN price basically confirmed by Charles Stanley (as per your thread header). I am a likely seller of ASG as these types of product usually take longer than anticipated to succeed (which is the ASG track record so far).

[piedro] 17/4/2007 13:05

SirLurkalot,

Thank you.

It would seem that your breakfasts are just as serious.

My thoughts?.........give me a couple of days!

[sirlurkalot] 17/4/2007 12:35

I've sent out the reports to those who asked for them, but I don't want to go on sending them out so the offer to do so is now closed. Has anyone who received them got any thoughts on them?

[sirlurkalot] 16/4/2007 19:32

Good to see someone's still having serious lunches, Piedro! I've got your address.

[piedro] 16/4/2007 19:00

Been out to lunch.

Me too if you are still on...

Thank you.
Lol.....

[sirlurkalot] 16/4/2007 17:17

Ok ET, got your address too.

[sirlurkalot] 16/4/2007 16:21

OK AA, got you as well. Edit it off

[aa29] 16/4/2007 16:20

thanks in advance

[sirlurkalot] 16/4/2007 16:02

OK hywel, got your's so edit it off. I'll send them out tomorrow as one email to everyone who replies on this thread.

[dgriffin100] 16/4/2007 15:30

Tomorrow morning will be just fine.

Thanks
Griff

[sirlurkalot] 16/4/2007 15:26

Ok, got your full address now DG, you can edit it off. I'll wait a few hours before sending the reports in case anyone else wants them. Maybe I'll send them tomorrow morning if that's OK.

[sirlurkalot] 16/4/2007 15:19

DG,

yahoo.com or yahoo.co.uk or yahoo.somethingexotic?

[sirlurkalot] 16/4/2007 15:11

Pietro,

Of course you and everyone else are welcome here. If you or anyone else wants a pdf of the latest Charles Stanley report (dated 21 March 07) as well as the ABN ones from last year which are pretty useful, reply on this thread with your email address (in the format yourname at yahoo.com to avoid the harvesting bots)

[piedro] 16/4/2007 13:32

SirLurkalot,

I hope you do not mind my joining your non-shouting thread.
Perhaps less windy with edited RNS's.

[sirlurkalot] 16/4/2007 07:57

Here's the company's website

[sirlurkalot] 16/4/2007 07:48

Story in The Times


April 15, 2007
Satellite firm heads for the launchpad
Avanti's demerger tomorrow allows David Williams to pursue his sky-high ambitions. By Paul Durman

WITH the flotation of shares in Avanti Communications tomorrow, David Williams and David Bestwick will move one step closer to their dream of becoming Europe's newest satellite operators.

It is fair to say that the commercial satellite business is not well understood.

"The satellite industry holds fears for people," said Williams. "When we say we would like to take £80m, stick it in a big pipe full of petrol and light a match, people say: 'Oh my God. That sounds very risky.'"

And of course there are risks. Avanti's Hylas satellite, currently being built by EADS Astrium, will employ new and unproven technology that could malfunction, suffer delays or pose insurance problems.

The opportunity for Avanti is to take advantage of the growth in data and video communication, particularly the huge demand for bandwidth needed for internet video and high-definition television (HDTV). "[Industry analyst] Euroconsult reckons that Europe will run out of satellite capacity in 2015, largely because of the increasing demand from video," said Williams. "HDTV consumes between five and ten times the bandwidth of standard TV."

While demand is strong, the supply side of the equation also looks promising. Avanti believes it has snared the last free satellite licence in Europe. That licence, awarded in August 2005 by Ofcom, Britain's communications regulator, gives Avanti enough capacity to broadcast up to 240 HDTV channels.

This coup provided the catalyst for Avanti's demerger from its parent, a small quoted company called Avanti Screenmedia. It has also helped the firm to raise the money it needs to build its satellite and prepare for its launch, scheduled for December 2008.

Avanti is betting that the enhanced efficiency of its Hylas satellite will allow it to be a low-cost supplier, offering capacity at a fraction of the price in some parts of Europe.

Williams even expects to be able to offer satellite broadband internet access at a comparable price to conventional broadband provided over copper-wire phone networks. This will enable Avanti to seek customers among the estimated 10m Europeans who live in remote areas beyond the reach of fixed-line telecoms networks.

Avanti's story starts a decade ago, when Williams was working as a banker, raising finance for a satellite project called Europe Star.

"I realised it was possible for a small company to get a satellite licence," said Williams.

As he set to work developing his own plans, Williams met Bestwick, an astrophysics engineer who had started a satellite consulting business. The two began working together in 2000, combining their companies two years later.

They spotted there was an unused satellite licence that had belonged to British Satellite Broadcasting, the failed television company that was folded into Sky.

"It seemed to have been forgotten," said Williams.

The problem was that Williams and Bestwick needed a fully-funded business plan to stand any chance of getting the licence. They began a satellite capacity broking business to build some credibility. When this did not work out, they stumbled into the screenmedia business - providing business television and advertising, often via satellite, to retailers that were installing large-screen television in their stores.

The growth of the media business enabled Avanti Screenmedia to list on the Alternative Investment Market in July 2004.

The final breakthrough came when European governments recognised the importance of ubiquitous broadband.

Having worked with Astrium to develop Avanti's plans, Williams said: "The ESA [European Space Agency] became willing to support us in research and development. With the support of the British government, we put together a project that would inject £23m of government money into seeing this new technology deployed, on the basis that it would enable the peoples of Europe to receive ubiquitous broadband."

With this commitment in his pocket, Williams was able to request a licence from Ofcom.

The contract with the ESA enabled Avanti to raise £25m from its shareholders to cover the rest of the cost of designing and building Hylas.

Avanti still needs to raise another £35m, including £20m to cover launch costs. The company is working on a debt placing that Williams said is attracting "strong interest".

It's another demand on a small management team already weighed down by the machinations of a demerger. Perhaps because of this, recent results have been disappointing in both screen media and communications.

This will be of no lasting concern to Avanti shareholders if Williams and Bestwick can deliver on their promises. The lowly initial valuation of Avanti - estimated at £55m by its broker - will soon rise if it starts pulling in tens of millions of pounds in annual income.

[currypasty] 16/4/2007 07:43

2.38 - 2.42

This is soon going to be worth more than previous total company !

[currypasty] 16/4/2007 07:25

Chief Executive of Avanti, David Williams, added that "We have three core
markets for satellite services. We already have business on Hylas in broadband
and in corporate networks, so I am delighted to report progress in the third,
wholesale video".



The contract is worth an initial #528,000 but incorporates a ramp up to #4.8
million to provide for the anticipated growth in demand for Satweb's services.

[currypasty] 16/4/2007 07:16

now 230 - 236

looks like this part of the Company is going to be most Exciting !