Avanti Communications (AVN)

Business description

Avanti Communications is a London-based fixed satellite services provider. It sells satellite data communications services to service providers in its key markets of enterprise, broadband, carrier services and government. It has Ka-band capacity on four satellites, with two launches due in 2017.

Stock data

Market cap.£13.8m
Last close8.51p
High / Low (52 weeks)40.6p / 7.8p
Stock market listingLN
Forecast net debt (US$m)756.1
Forecast gearing ratio (%)811
SectorAerospace & Defence

Price performance

Relative *(6.1)(19)(81.1)

* % Relative to local index

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Investment summary

Avanti's refinancing is complete with the bondholders and the $100m Super Senior Debt issue providing additional liquidity. It can now pursue its strategy and more than double capacity when HYLAS 4 is launched, which is necessary to attain the required revenue and cash flow development. Recent trading updates were less positive, lowering our near-term estimates, but order flow is improving. The fair value falls to 93p from 109p, with our long-term assumptions unaltered.

Last updated on 03/08/2017

Y/E Jun Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2015A 85.2 12.5 (73.3) (61.4) N/A N/A
2016A 82.8 4.6 (67.0) (49.3) N/A N/A
2017E 62.0 (11.1) (108.3) (70.2) N/A N/A
2018E 92.0 12.8 (130.1) (79.9) N/A 0.7

Last updated on 21/07/2017

Latest research

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 competitor announcements of future deployment of Ka-band capacity servicing Africa.

Last updated on 03/08/2017

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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