Avanti Communications Share Discussion Threads

[5dally] 13/7/2009 15:31

Well I for one hope it's not a bid on the way,,,,far to low an share price for a company with this potentional IMO

[pelleeds1980] 13/7/2009 15:28

There was bid interest a while back that put a rocket up the share price I seem to recall?

[5dally] 13/7/2009 15:27

Up 31p now,,,,,,,I have a feeling there may be a bid coming,,,,,alway's thought this would happen at some point but not this early,,,,what do others think ?

[yorgi] 13/7/2009 14:29

Looking very strong today.....some more good news maybe

[aa29] 13/7/2009 10:56

(5dally - 13 Jul'09 - 09:25 - 589 of 593

£2.7999 to buy now and such a quiet BB)


A popular BB usually means a sell signal for me

[5dally] 13/7/2009 10:29

Yes cestnous I think you are right... on both accounts

[terryebby] 13/7/2009 09:54

with brokers and journalists telling the World the price target is £6 and upwards, there is going to be plenty of action here in the next few months

[yorgi] 13/7/2009 09:34

Yes 5dally it is strange how quiet this BB is when it is an exciting company with great prospects. I have been in a few weeks only wish I had sooner when I first started looking at it.

[5dally] 13/7/2009 09:25

£2.7999 to buy now and such a quiet BB

[5dally] 11/7/2009 08:00

None the less this has done very well in a market that has been pure S$%t these past weeks :-)

[chrissey] 10/7/2009 16:46

looks like the gain has been given back!

[pelleeds1980] 10/7/2009 16:44

Brought us down at the end I see

[5dally] 10/7/2009 16:17

For a stock that is doing so well the thread is very quiet

[pelleeds1980] 10/7/2009 16:17

Nice finish to the week here this is going to get better and better clearly a well run outfit and getting contracts with the big boys

[5dally] 10/7/2009 16:10

WOW another good rise today :-)

[terryebby] 09/7/2009 09:18

stock is tight as a drum. clearly the oversubscirption on the placing is following through into market demand

[5dally] 09/7/2009 08:24

That's some hike in share price this morning :-)

[5dally] 06/7/2009 08:48

All buy's this morning :-)

[flyingswan] 05/7/2009 18:33

5th June 2009 Analyst: Thomas Jones
[e-mail]
020 7562 3371



Avanti Communications*
Hylas launch service upgrade, Placing and Trading Update – Reiterate 'Buy' at 257.5p; Target Price: 694p



Key Data
EPIC AVN
Share Price 257.5p
Spread 255p – 260p
Total no of shares 44,922,065 (including 3,213,562 in Employee Benefit Trust)
Market Cap £115.67 million
12 Month Range 154p – 270p
Market AIM
Website www.avantiplc.com

Sector Telecommunications
Contact David Williams (CEO)
020 7749 1600
Broadband satellite company Avanti Communications announced on 1st July that it has raised £31.5 million via an oversubscribed placing (14 million new shares at 225p each) and received a further £10.7 million grant from the European Space Agency to fund the upgrade of the launch service provider for the launch of its Hylas satellite to Arianespace, the most successful launch agency in the world with the longest unbroken record of success. Although the company's previous choice of launch service provider was expected to succeed, risks relating to schedule and launch heritage were greater, leaving some significant potential government and commercial customers whose commitment can only be secured early by reducing perceived launch risks. This move therefore de-risks the proposition although it is – superficially – dilutive.

With the Hylas project at an advanced stage – with payload traffic testing, construction and ground systems completed, Avanti has also revealed that it is progressing towards the end 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. Further news on this has the scope to drive significant increases in our valuation over the coming months.

In the nearer-term, results for the year to 30th June 2009 are expected to be "significantly ahead of expectations for both revenue and net profit as a result of better than expected trading and careful financial management" and whilst this is undoubtedly a further positive, we have always emphasised that the value in Avanti lies in the longer-term revenue generating capability of the company's satellite projects. In this regard, significant commercial progress has already been made in terms of the Hylas project – with agreements signed with 47 distributors in 11 countries who have already committed to 13% of Hylas capacity at launch. With the upgrade to Arianespace expected to result in an acceleration in Avanti's success in pre-selling capacity, we believe our assumption of 20% capacity utilisation on launch is looking particularly conservative.
The earliest available launch window with Arianespace was Q2 2010 and an agreement has now been signed for this. Particularly as a result of the increase in launch service costs and the resultant placing our discounted cash flow derived target price for Avanti's shares has been reduced to 694p. However, as the Hylas project continues to develop and Avanti de-risks additional satellite projects, we consider our target price is likely to be increased materially. With demand for satellite broadband in Europe strong and growing, Hylas set to be the first superfast broadband satellite to be launched in the continent and having very little competition in the niche rural broadband market, we continue to regard the outlook for Avanti as very positive. At 257.5p, we reiterate our stance of buy.


Forecast Table
Year to 30th June Turnover
(£ million) Normalised Pre-tax Profit (£ million) Normalised Earnings Per Share (p) Price Earnings Ratio Dividend Per Share (p) Dividend Yield (%)
2007A 2.56 (3.15) (8.75) - 0.0 -
2008A 5.92 (1.36) (3.60) - 0.0 -
2009E 7.00 (1.00) (3.61) - 0.0 -

*The SF t1ps Smaller Companies Growth Fund, operated by a subsidiary of Rivington Street Holdings, the ultimate owner of GE&CR, owns shares in Avanti.

[argy2] 02/7/2009 12:58

TW tips/ramps AVN just days after taking part in a placing at 225p...now there's a surprise!

[cestnous] 01/7/2009 10:31

And director buys to top it off. Brilliant.

[5dally] 01/7/2009 09:27

The target price is something to smile at too ;-)off out for the day now

[cestnous] 01/7/2009 09:04

That has to be one of , if not the best RNS's that I have ever read.