Avanti Communications has announced a new contract with Speedy Hire Plc, the UK's leading tools, equipment, plant hire and services company. Deployed via Avanti’s HYLAS 1 Ka-band satellite, Speedy Hire will embed high-speed broadband connectivity solutions into its wholesale rental offering. The value-add proposition will target new and existing enterprise customers.
Mark Rogerson, CEO at Speedy Hire, commented: “The flexibility of Avanti’s satellite technology has allowed us to tailor truly innovative data communication packages to meet the demands of our customers. Broadband connectivity is an exciting value-add proposition to the construction sector in particular, where sites are often remote and beyond the reach of fibre. We are excited about the growth opportunities from this partnership.”
Matthew O’Connor, Chief Operating Officer at Avanti Communications, commented: “We are pleased that Speedy Hire has chosen Avanti to deliver satellite-based connectivity solutions to its remote enterprise customer base. As the sector increasingly demands high speed communications on-site, our high-quality Ka-band technology will enable enterprises to remain connected regardless of location. We look forward to imminent rollout across the UK.”
Speedy Hire operates in construction, infrastructure and industrial markets, with operations in the UK and Middle East.
Hi Guys, Thanks for your figures and input. Will have a detailed look at this over the weekend. Looks like those large buys might be having an effect on the sp. Would be nice to see this move above 200p again having been in the doldrums for a while.
I've been looking back through past statements by the company. The CEO said that he expected the capacity to be sold out in 2016 and nothing has been said to amend that view. I take that to mean H1 & H2 as H3 will have only just come into service and H4 will not have been launched. If so, on the basis of the recent US$500M EBITDA which was derived from sales of US$700M, the expected turnover for 2016 should lie between £134M and £211M (ie max theoretical capacity). Yet the consensus analyst forecast for sales are £84M for 2016 and £114M for 2017. H3 would add a further £60M to the turnover if it sold out.
So I believe the company should move into positive ground in 2016 and then become substantially profitable as H4 kicks in with its much larger capacity from 2017 onwards. Everything depends on the selling price being maintained at $2000 per MHz per month and the capacity sold hitting 2/3rds of theoretical max capacity. If it can do this it will have earned and deserve a higher PE than companies such as Inmarsat as its market is narrower and growing faster.
Looking again at the Financial report for 2014 I am encouraged by the notion that if Avanti continues to sell its space at its planned price structure, the recent declared EBITDA of $1.7 million will be increased to EBITDA of $500 million. Now, I am no accountant, and maths not one of my strong points, so please correct my following calculation if its wrong!
My thoughts are that If this target of $500 million dollars is reached, then given the number of shares in issue, ( around 112 million shares, the present loss per share of around 80 cents, should be translated into an EPS of around $4.4
This seems to me to be a clear pointer as to why we should hold these shares. What do others think?
Thanks very much for your Interesting posts. Looks like someone also worked that out with two massive buys gone through this morning of 668,560 shares at a cost of £1,323,748 each! Should we not see an RNS covering those?
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