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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.£97.2m
Last close4.50p
High / Low (52 weeks)13.5p / 4.3p
Stock market listingLN
Forecast net debt (m)N/A
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual(8.4)(16.7)(40.1)
Relative *(4.8)(10.2)(36.3)

* % Relative to local index

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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 23/09/2018

Investment summary

Avanti made good progress in the second six months of the current extended financial period. In addition, HYLAS 4 became commercially operational this month and there have been significant contract awards since launch, encouraging the belief that it should improve the financial outlook. The last reporting period reflected some uncertainty around the financial restructuring; however, this has been completed successfully. Avanti also received $20m cash from the Indonesian arbitration settlement in August. We await guidance for FY19 trading, including possible modest financing needs, before restoring forecasts.

Last updated on 01/10/2018

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 28/09/2018

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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