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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.£64.8m
Last close3.00p
High / Low (52 weeks)13.5p / 2.4p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
SectorAerospace & Defence

Price performance

Relative *5.6(1.9)(65.4)

* % 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 28/01/2019

Investment summary

Avanti continued to progress in Q318. Although revenues of $10.8m remained at a low ebb, HYLAS 4 is now commercially operational. Following major contract awards, bandwidth revenues are set to increase strongly in Q418, with significant growth in FY19 underpinned. After receipt of $20.1m cash from the Indonesian arbitration settlement, 30 September cash was $13.3m. After the period end the Super Senior Facility was extended by $20.0m to $152.5m and fully drawn providing an additional $34.5m of funding. We await further guidance for FY19 trading, before restoring forecasts.

Last updated on 01/02/2019

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 01/02/2019

Key management

Nigel Fox, FD

Company address

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