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.£16.1m
Last close9.93p
High / Low (52 weeks)64.0p / 7.8p
Stock market listingLN
Forecast net debt (US$m)746.2
Forecast gearing ratio (%)646
SectorAerospace & Defence

Price performance

Relative *(3.5)(19.9)(87.1)

* % 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. Q3 results are due in late May and should show the first signs of improvement following the refinancing.

Last updated on 01/06/2017

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 1.0
2018E 127.4 67.6 (92.5) (56.7) N/A 0.3

Last updated on 23/05/2017

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 01/06/2017

Key management

David Williams, CEO
Nigel Fox, FD

Company address

Cobham House
20 Black Friars Lane
United Kingdom
+44 (0) 207 749 1600
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