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.£20.7m
Last close12.75p
High / Low (52 weeks)102.0p / 11.2p
Stock market listingLN
Forecast net debt (US$m)746.2
Forecast gearing ratio (%)646
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual(35)(50.5)(86.5)
Relative *(35.7)(52.5)(88.5)

* % Relative to local index

Other companies in sector Show

Investment summary

Following the success of the consent solicitation announced on 6 January, Avanti’s refinancing is now complete. The company can pursue the strategic development of its satellite network, increasing revenue and cash flow potential. While lower guidance and the refinancing dilute previous cash equity valuations, a significant opportunity for shareholder value creation remains. Our reinstated and revised forecasts produce a current DCF-based fair value standing at 109p per share.

Last updated on 02/03/2017

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 1.2
2018E 127.4 67.6 (92.5) (56.7) N/A 0.3

Last updated on 02/03/2017

Latest research

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 29/11/2016

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