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Avanti Communications (AVN)

Business description

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

Stock data

Market cap.£103.8m
Last close4.80p
High / Low (52 weeks)13.5p / 4.8p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual(0.7)(7)(47)
Relative *(0.5)(11.7)(48.9)

* % Relative to local index

Other companies in sector Show

Company news

Y/E Jun Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2016A 82.8 4.6 (67.0) (49.3) N/A N/A
2017A 56.6 (34.5) (172.9) (104.5) N/A N/A
2018E N/A N/A N/A N/A N/A N/A
2019E N/A N/A N/A N/A N/A N/A

Last updated on 26/06/2018

Investment summary

Avanti has had a busy Q3. The company completed the conversion to equity of its 2023 notes and, following the $20.1m settlement due from the government of Indonesia at the end of July, it expects to complete further lines of funding to complement the restructuring. Meanwhile, the successful launch of HYLAS 4 just after the Q3 end maintains the schedule is to bring the satellite into operational service towards the end of July 2018. This satellite should double capacity and mark an end to the investment phase. Overall, the removal of financial constraint should support the company as it refines and implements its new strategy.

Last updated on 29/06/2018

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 29/06/2018

Key management

Nigel Fox, FD

Company address

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