Avanti Communications Share Discussion Threads

[philo124] 15/9/2014 07:33

Is this good?

[2vdm] 12/9/2014 08:17

RNS - having trouble finding this on ADVFN (keeps moving to an advert??), but for anyone else having the same problem, this is off AVN's website this morning:-
RNS Reach

"Avanti Communications Group plc (“Avanti”;) has announced a new contract with Orange Telkom Kenya, the national telecommunications operator of Kenya with over 2.8 million customers.

Orange Telkom Kenya will use Avanti’s products to provide high speed data communications services to a variety of government and enterprise customers throughout Kenya.

Vincent Lobry, Chief Executive of Orange Telkom Kenya, commented: “We are pleased to work with Avanti. The quality and flexibility of Avanti’s technology enables us to address many different types of customer requirements at scale and with significant cost benefits that will translate to a stronger value proposition to our customers. We look forward to growing our strategic collaboration with them and delivering excellent services to Orange Telkom Kenya’s nationwide customer base.”

David Williams, Chief Executive at Avanti Communications, commented: “We are delighted to be partnering with the most important telco in Kenya. Avanti’s products meet the needs of the most demanding operator, complementing existing networks and supporting customers beyond the reach of fibre. We look forward to expanding our collaboration in serving the people of Kenya with market leading products.”

[hpcg] 10/9/2014 21:28

Tank 6p? Did you not notice the tank from 750 to 150?

[jadeticl3] 10/9/2014 17:09

Money Week thought this company was a risky investment but suggested that we spend our money buying the share despite the risk as the upside was sizeable.

[pojscott] 10/9/2014 16:41

Something has made them tank!!!

[mjcferguson] 10/9/2014 13:27

The board would not have committed to a fourth Hylas satellite unless they were happy with the ramp up of sales.

[bulltradept] 10/9/2014 12:58

Spread is too large for me to attempt to trade it.

You mean low on declared volume. It could be larger, you just can't see it yet.

[gekks] 10/9/2014 12:57

It's on low volume.

[rimmy2000] 10/9/2014 12:56

is that why the price is tanking, mjcferguson?

[mjcferguson] 10/9/2014 12:44

Accounts are due on Monday 15th.I am confident that we will get some very positive news regarding the ramp up of sales.

[standish11] 01/9/2014 10:19

Perhaps speculative or knowledgeable buying ahead of Finals announcement on 15 Sept?

[wilksey1] 01/9/2014 09:24

not that i can tell no news on the avanti site

[monkeywrench] 01/9/2014 09:22

Agree, but have I missed something ?

[wilksey1] 01/9/2014 09:19

thats more like it

[buywell2] 13/8/2014 07:57

After dropping circa 50% since april





yorgi 12 Aug'14 - 21:45 - 1332 of 1332 0 0

Good to see AVN performing strongly today.

[yorgi] 12/8/2014 21:45

Good to see AVN performing strongly today.

[gwr7] 12/8/2014 20:07

"management does not appear to be worried about this high level of debt"

Quite right. It's the folk owed the money who will be worried ;-)

[yupawiese2010] 12/8/2014 17:27

Should You Buy Avanti Communications Group PLC?

By Motley Fool | Tue, 12th August 2014 - 14:16

After a disappointing start to the year, Avanti Communications' (LSE:AVN) investors were greeted with some good news yesterday.

The satellite operator revealed that the launch of its next communications satellite, HYLAS 4, will cost 15% to 20% less to build, insure and launch than initially expected. As a result, management expects that after completion of the satellite, the company will be "in a strong financial position".

Making progress city

HYLAS 4 is the last of Avanti's HYLAS four-satellite building program and is intended to provide communications coverage to sub-Saharan Africa. Avanti's first two satellites, HYLAS 1 and HYLAS 2 are already in position and, according to the company's management, will be "sold out" during 2016 owing to growth in demand. So, there is no denying that the demand for Avanti's services is high.

What's more, the HYLAS 3 communications satellite will be live for commercial service in 2016.

Nevertheless, investors remain sceptical. Indeed, there are few signs that Avanti will actually turn a profit any time soon, despite the apparent high demand for its services.

In particular, current City forecasts are predicting a pre-tax loss of just over £60m this year, followed by a pre-tax loss of £43m next year. Unfortunately, these forecasts could be revised lower as Avanti has already warned on profits once this year. During July the company warned that due to bond financing costs, unfavourable exchange rates and large set up costs the company's first half profit would come in below expectations.

Multiple concerns

Unfortunately, while there does appear to be a strong demand for Avanti's services, the company's financial position is worrying.

Net debt is rising rapidly and is expected to triple over the next few years, from £167m as reported at the end of the company's fiscal 2013, to £442m by 2016. Figures suggest that net debt to equity will stand at 3.4times by 2016. Although as mentioned above, management does not appear to be worried about this high level of debt.

Then there are interest costs, which are costing Avanti tens of millions. Indeed, while Avanti is currently forecast to turn a profit on an earnings before interest and tax basis by 2016, after deducing interest costs, the company will remain unprofitable unit 2017, or even 2018.

Reasons to be excited

Still, Avanti is providing what could be considered to be an essential service to millions throughout Europe and Asia. Further, the company has few rivals in the sector and over the long term, there's no denying that Avanti's services will be in demand.

That being said, Avanti faces multiple risks going forward, rising levels of debt is just one of the risks associated with blasting costly satellites into space. If things go wrong, Avanti could face a huge bill, which would only add to its troubles.

All in all, Avanti could have a bright future but there is plenty of uncertainty ahead.

[revoman] 12/8/2014 10:35

Yes it does Rogk. You either read it correctly or choose to mis-read it.

[martin3042] 12/8/2014 10:16

yes he isnt too good with figures.