Avanti Communications Share Discussion Threads

[standish11] 01/7/2009 09:04

A pity tht the launch is put back to Q2 2010 but that seems to be the only negative aspect.

[sharestriker] 01/7/2009 08:52

thanks 5dally for the post found the answer to my question
The Company has signed an agreement with Arianespace for a launch window of Q2 2010 (the earliest available launch window with Arianespace).

[5dally] 01/7/2009 08:45

Avanti Communications Group plc



Placing of £31.5 million, ESA Contract Extension, Launch Risk Reduction and Trading Update




Highlights

£31.5 million raised through new and existing institutional investors

£10.7 million cost contribution to upgrade from the European Space Agency

Upgrade of launch service provider to Arianespace

Full year results will be significantly ahead of expectations for both revenue and net profit




Background and details of the Placing




Avanti Communications Group plc (AIM: AVN) ("Avanti" or the "Company"), the satellite operator, is pleased to announce a placing ("Placing") of 14,000,000 new ordinary shares of 1p each in the Company ("Placing Shares") with new and existing institutional investors at 225p per Placing Share. The Placing raised £31.5 million (before expenses) to fund the upgrade of the launch service provider for the launch of its HYLAS satellite to Arianespace. HYLAS will be the first superfast broadband satellite to be launched in Europe. The upgrade of the launch service provider greatly enhances the certainty over timing and success of launch and is expected to result in an acceleration in Avanti's success in pre-selling capacity as well as some new strategic developments.




In addition to the £31.5 million raised through the Placing, the Company announces today that it has received a contribution to the upgrade costs of €12.5 million (£10.7 million) from the European Space Agency ("ESA") (using British Government budget) by way of an extension to the existing ESA contract which originally provided £24 million towards the costs of HYLAS (the "ESA Contribution"). The increased ESA Contribution does not bear any repayment terms and will have the effect of increasing the Company's shareholders' funds, strengthening Avanti's balance sheet. The combined proceeds of the Placing and the ESA funds are £42.2 million.




Although Avanti's previous choice of launch service provider is expected to succeed, risks relating to schedule and launch heritage are greater and this has resulted in negative perception amongst some customers and potential investors which will now be removed. Arianespace is the most successful launch agency in the world with the longest unbroken record of success. This is likely to facilitate new contract wins as well as the development of new projects. The Company has signed an agreement with Arianespace for a launch window of Q2 2010 (the earliest available launch window with Arianespace).




The HYLAS project is in advanced stages now with payload traffic testing, construction and ground systems completed and the Company is now entering the launch preparation phase which is anticipated to be complete in early 2010. The Company has made significant progress on the commercial front as well. Avanti has signed agreements with 47 distributors in 11 countries who have already committed to 13% of HYLAS capacity at launch.




In addition to the launch service upgrade, the funds raised will allow Avanti to develop new projects to pursue its strategy of becoming a multi-satellite operation. Specifically, the Company is in an advanced stage of due diligence regarding a government offer for the provision of low cost debt finance for a second satellite which would provide extra capacity in Europe and elsewhere for launch in Q4 2011. The upgrade to the HYLAS launch enhances the probability of this financing transaction reaching successful completion during calendar 2009.




The potential demand for satellite broadband services is vast and the Company is well positioned to capitalise on this opportunity. Terrestrial broadband networks have left an estimated 24 million homes and SMEs unserved in Europe. Avanti estimates that over 70 million homes are unserved at speeds over 2Mb. The British Government's Digital Britain's report released in June 2009 further strengthens Avanti's prospects and it was important in this context to add to certainty of launch success.




Avanti continues to benefit from strong co-operation from its lenders who were most helpful in amending the existing debt facility to accommodate the change in launch services provider and associated matters.




Avanti has entered into a placing agreement with Cenkos Securities plc, pursuant to which Cenkos Securities plc has, on behalf of Avanti, conditionally placed the Placing Shares with institutional investors.




Application will be made for the Placing Shares to be admitted to trading on AIM and it is anticipated that admission will become effective and that trading in the Placing Shares on AIM will commence on 3 July 2009.




Caledonia Investments plc, which owns existing ordinary shares of 1p each representing approximately 24.4 per cent. of the existing issued share capital of the Company, has committed to subscribe for 2,711,111 Placing Shares under the Placing, and has also agreed to the amendment of the Company's existing debt facility, in which it participates as a lender. The commitment in relation to the Placing by Caledonia Investments plc and its agreement to the variations to the facility agreement constitute related party transactions under the AIM Rules. The Directors of the Company (other than William Wyatt who is connected with Caledonia Investments plc) consider, having consulted with Cenkos, that the terms of the transactions with Caledonia Investments plc are fair and reasonable insofar as the Company's shareholders are concerned.




Trading Update




Avanti is pleased to report that its financial results for the full financial year to 30 June 2009 will be significantly ahead of expectations for both revenue and net profit as a result of better than expected trading and careful financial management.




David Williams, Chief Executive of Avanti commented:




"The market for Avanti's services is far stronger than even we expected and is further strengthened by the British Government's Digital Britain report. Our success in pre-sales has been pleasing but there are some significant potential government and commercial customers whose commitment can only be secured early by reducing the perception of launch risks. The prospects of securing highly efficient financing for our second satellite are strong as we progress towards the end of due diligence with our government sponsor, and we hope to conclude a transaction which would be highly accretive to shareholders before the end of the year. Therefore for several reasons the upgrade to our launcher increases the quality of our project strongly.




"We are delighted with the support received from current investors and to welcome so many new, blue chip institutional shareholders to our share register in this significantly oversubscribed transaction. This is a strong indicator of the strength of our business."

[5dally] 01/7/2009 08:44

Lovely ;-)

[sharestriker] 01/7/2009 08:36

Is the launch now expected in a years time?

[dil] 01/7/2009 08:19

Launch been put back to Q2 2010.

[jonnyno1] 01/7/2009 08:03

excellent

j.

[terryebby] 23/6/2009 17:58

Despite recessionary pressure, smaller companies are alive and kicking.

09/06/2009 James Crux

Three ventures, each registering on my radar recently with eye-catching contracts, are worth following.

Most exciting of the three, having cheered with numerous contracts this year (and batted away a cheeky unsolicited bid), is broadband satellite operator Avanti Communications, whose shares have recently moved skywards to 246.5p.

Piloted by the entrepreneurial David Williams, this fixed satellite services provider is benefiting from high demand for satellite broadband across Europe and contracts aplenty are coming its way.

Having built a subscriber base with rented satellite capacity, the real excitement surrounds this year's launch of the company's own satellite, named 'HYLAS'. Currently under construction, HYLAS will be the first 'superfast' broadband satellite launched in Europe and once in orbit, Avanti will transfer leased capacity to its own satellite.

Deal momentum is mounting, with May wins ranging from a communications services win (backed by the EU) involving the improvement of the safety and security of freight operations in the North Sea region. This followed a deal to supply broadband and business continuity products to Cactuss (a provider of IT systems integration services to the government and others in Kosovo), a European Space Agency project award, as well as two new distribution deals in Italy.

Avanti shares, which have lifted from a 52-week nadir of 154p, should have much further to go as its satellite launch date nears and further contracts come to fruition. Cenkos is targeting 592p for the shares and believes sales could build from £6.9 million this year to £11.9 million next, ahead of £32.8 million in 2011, from which Avanti could be clearing almost £6 million of profit pre-tax. On that basis, the shares represent an attractive long-term lock away.

[thisissimon] 22/6/2009 23:02

checking out the potential competition to this company I came across this company - 4RF (it's in NZ but it's more the technology I'm interested in).
They use microwave band radio to transmit IP stuff.


Anyone know much about this and the likely competition to Avanti's solution?

[5dally] 22/6/2009 10:53

This is looking very healthy this morning :-)

Mostly buy's today.....:-)

[sharestriker] 22/6/2009 10:09

if the the launch date is missed this year then there maybe an opportunity

[5dally] 22/6/2009 09:53

Maby I have missed my chance to top up cheaper........happy to add 'tho :-)

[5dally] 21/6/2009 16:45

terryebby Have seen the same said many times,,,,,will be topping up on any dips :-)

[terryebby] 21/6/2009 16:00

MIDAS UPDATE: Avanti advances 29%...and should fly even higher

Last week, the Government issued its long-awaited Digital Britain report, explaining how it intended to bring super-fast broadband to UK residents.
The report admitted that
2.75 million homes, covering 11 per cent of the population, can access the internet only at painfully slow speeds and more than a million homes have virtually no access at all.
Avanti Communications hopes to help these people, meeting a need that will intensify as the UK switches to digital broadcasting and internet use expands.
Avanti sells satellite broadband services to telecoms companies, which use them to supply homes and businesses. Currently, Avanti leases capacity from other satellite groups but it intends to launch its own satellite, Hylas, later this year and a larger one, Hercules, in the next few years.
The market for satellite broadband products in Europe is estimated at more than 24 million as it is probably the most costeffective way to provide fast e-communication for people living in rural areas.
Midas recommended Avanti in early May, when the shares were 184p. They have since risen almost 29 per cent to 2361/2p. The increase follows a series of positive developments for the company. It has signed contracts to supply satellite broadband as far afield as Italy and Kosovo, it is working with authorities in Scotland and Northumberland, and it is even working in the North Sea to help track shipping there.
Midas verdict: When a share price rises by almost a third in seven weeks, it is tempting to take profits. Cash-strapped investors may wish to sell some of their holdings - otherwise it is worth holding out for further gains. Brokers believe these shares could be worth nearly 600p in the next couple of years, which makes them an attractive buy even after the recent price hike.

[5dally] 17/6/2009 13:13

Avanti welcomes Digital Britain push
Business Financial Newswire
broadband satellite, operator Avanti Communications has welcomed the government's Digital Britain initiative.

It believes that terrestrial infrastructure has persistently over-promised and under-delivered to rural communities and it does not see this changing.

Chief executive David Williams said: "Satellite broadband is the only technically proven and economically viable solution to the problem of the 10% of population identified by the Digital Britain report and we welcome the announcement that the provision of service to these consumers will be accelerated by government intervention and funding, which we expect to benefit our HYLAS satellite."

[terryebby] 15/6/2009 10:32

i expect a very big day tomorrow when the Digital Britain report comes out

[5dally] 15/6/2009 07:32

Contract win (Avanti Comm)





TIDMAVN

RNS Number : 8636T
Avanti Communications Group Plc
15 June 2009

?
Date: 15 June 2009
On behalf of: Avanti Communications Group plc ("Avanti" or "the Company")
Embargoed until: 0700hrs




Avanti Communications Group plc
Contract Win


Avanti Communications Group plc (AIM: AVN), the broadband satellite
operator, has been awarded preferred bidder status (subject only to completion
of standard contract documentation) for the rollout of broadband services via
satellite to Byrness and surrounding areas in Northumberland. The programme will
provide access to high speed broadband services to a rural village currently
unable to receive services via any terrestrial alternatives. Avanti will provide
services to the village and surrounding area for an initial two year period,
with services being migrated to the HYLAS satellite following its launch.


The project is part funded via The North East Regional Portal (part of the ONE
North East Regional Development Agency) and has been awarded through the ADIT
Broadband & ICT Services Framework.


David Williams, Chief Executive of Avanti, said:


"I am pleased to be able to help more rural communities to join the digital
economy. In the light of the objectives of the Government's Digital Britain
project, it is clear that satellite technology is now delivering large scale
solutions, with much more to come when our HYLAS satellite launches.


"We are already doing this for many regional government agencies around the
United Kingdom. Satellite is clearly the only economically viable solution for
high speed, high download broadband in the 10% - 15% of the population where
population density is low or cable networks are weak."

[terryebby] 09/6/2009 13:54

Growth Company investor have rated AVN their Number 1 Pick of the AIM market

[5dally] 29/5/2009 09:59

Neary all buy's again this morning:-)

[5dally] 28/5/2009 16:22

Looking at the rest of the market this is doing very very well today :-)

[thekobbler] 28/5/2009 08:42

what, no news of a contract win - we're doomed ;-)

[terryebby] 27/5/2009 19:32

still a long way to go before we hit 592p so I would nto worry to much about your avarage price !

[yorgi] 27/5/2009 17:37

Well i am only half pleased i have to admit i would (for selfish reasons) like to have seen a fall as i will have more cash in a day or two to make another buy

[5dally] 27/5/2009 17:17

Another strong finish :-)