Avanti Communications (AVN)

Business description

Avanti Communications is a London-based fixed satellite services (FSS) provider. It sells satellite data communications services to service providers to key markets in Enterprise, Broadband, Carrier Services and Government. It has Ka-band capacity on four satellites, with two launches due in 2017.

Stock data

Market cap.£19.1m
Last close11.75p
High / Low (52 weeks)97.2p / 11.2p
Stock market listingLN
Forecast net debt (US$m)746.2
Forecast gearing ratio (%)646
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual4.4(42)(87.9)
Relative *7.2(42.1)(89.2)

* % Relative to local index

Other companies in sector Show

Investment summary

Avanti has completed a refinancing of its operations with the bondholders providing up to $242m of additional liquidity. It allows Avanti to pursue its strategy and more than double capacity by launching HYLAS 4 later in 2017. Reduced guidance of 35% sales growth implies a longer journey for equity holders, but at least that continues. The H117 results confirmed previous management comments about revenue growth constraints due to uncertainty and FX headwinds.

Last updated on 04/04/2017

Y/E Jun Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2015A 85.2 13.9 (73.3) (61.4) N/A N/A
2016A 82.8 6.1 (67.0) (49.3) N/A N/A
2017E 84.2 12.3 (85.9) (55.6) N/A 1.1
2018E 127.4 67.6 (92.5) (56.7) N/A 0.3

Last updated on 29/03/2017

Latest research

Calling ground control

Flash note | Aerospace & Defence | 29/03/2017

Preparing for launch

Update | Aerospace & Defence | 02/03/2017

Waving not drowning

Flash note | Aerospace & Defence | 20/12/2016

Valuing the other

Flash note | Aerospace & Defence | 27/05/2016

Satellites tracking well

Flash note | Aerospace & Defence | 16/05/2016

Major contract win

Update | Aerospace & Defence | 09/05/2016

New customer in Turkey

Flash note | Aerospace & Defence | 29/02/2016

Bouncing signals

Initiation | Aerospace & Defence | 04/02/2016

Latest video

Executive Interview - Avanti Communications

Industry outlook

Avanti is building a Ka-band satellite network to service broadband connectivity for underserviced markets and remote locations in EMEA. In these markets it has been a first mover and it currently owns and operates three satellites in geostationary orbit. The company's increasing focus on Africa is a reflection of the expected rapid growth of demand for data transmission in the region. The potential in the market appears to be validated by recent competitor announcements of future deployment of Ka-band capacity servicing Africa.

Last updated on 04/04/2017

Key management

David Williams, CEO
Nigel Fox, FD

Company address

Cobham House
20 Black Friars Lane
London
EC4V 6EB
United Kingdom
+44 (0) 207 749 1600
View website