10th Sep 2013 10:37
LONDON (Alliance News) - Avanti Communications Group PLC Tuesday reported a big jump in full year revenues, boosted by the delayed launch of its HYLAS 2 satellite.
During the period, the satellite operator launch a second version of the satellite, which expanded its satellite capacity, and provided new coverage across Europe, the middle East and Africa. The launch was seven months behind schedule.
The company said its net loss widened to GBP37.6 million in its last financial year, compared with a loss of GBP16 million a year earlier, largely as a result of an increased depreciation charge, which represents the final payments in relation to the HYLAS 2 satellite and its supporting ground stations.
It reported a 65% rise in revenues for the year ended June 30, to GBP20.6 million, compared with GBP12.5 million the prior year.
It said that it has a backlog of GBP42 million, which it expects to convert to revenues in the 2014 fiscal year, and a further GBP46 million, and GBP40 million, which will convert in the fiscal years ending June 2015 and June 2016, respectively.
It said that it expects orders under framework contracts not included in the backlog, new pipeline contracts and expected renewals of contracts, to increase those figures even more.
The company said that it became operating cashflow positive for the first time in the final quarter of the year, and had GBP38.6 million in cash at year end.
It said that its "blue chip" customer base is improving, as its focuses on generating near term revenues from large multinational telecoms and media companies.
Avanti Comms said that a second backhaul contract is in planning, and a further two networks are at a pilot stage. It also said that during the year its signed an exclusive pan-European contract for video distribution, and an exclusive contract for consumer broadband provision with a Eurostoxx50 customer.
The group said that its signed 40 new contracts in the second half of the fiscal year, and had 96 customers at year end. It also said that whilst HYLAS 2 accounts for 79% of its current orbit capacity and a similar proportion of new orders, high end applications such as cellular backhaul, outside broadcasting and digital cinema were made in Europe using HYLAS 1.
Avanti Communications shares were amongst the biggest gainers in London Tuesday, trading at 198.30 pence per share, up 15% or 25.80 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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