4th Feb 2016 08:49
LONDON (Alliance News) - Avanti Communications Group PLC on Thursday reported a narrowed pretax loss for its first half, and guided for 50% revenue growth from its continuing business at constant currency for its full year.
For the half year to end-December, the satellite data communications company reported a pretax loss of USD45.5 million, narrowed from a pretax loss of USD48.0 million a year before, as a slight decline in revenue to USD31.0 million from USD31.1 million was offset by lower cost of sales.
Avanti said revenue was hurt by the strength of the dollar against sterling and the euro, and on an adjusted basis revenue, underlying revenue rose 18% in the half year, helped by strong contract wins. The company said it had won USD40.0 in contracts, mainly with government and large telecoms customers, in its second quarter.
It is these contract wins that bolster the company's confidence for its full year, as Avanti believes these will make a "material contribution" in its second half, along with a "very strong pipeline of opportunities that are in advanced stages of negotiation".
"Our growth prospects are supported by both our recent order wins and a very strong pipeline of near term opportunities that are in advanced stages of negotiation. Avanti is strongly capitalised with more than adequate cash headroom. In a pioneering market, the combination of a good product, good customers and a fully funded model assures us that Avanti has a successful trajectory ahead," said Chief Executive Officer David Williams in a statement.
Shares in Avanti were down 0.7% at 137.06 pence Thursday morning, having initially risen to 148.00p on the news.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.