Excellent 1C. That in a round about way is what I have been saying recently but you put it in much more equaationed terms than I ever could. When you study other Sat companies this is what happens. It can take a number of years before the revenue kicks in but when it does - big time. The Market often get these things wrong as most don't have the time or inclination to work these things out. Good intellectual post
For me, a trend has now been clearly established that good quality revenue has been growing at 25%+ per quarter for the last 3 quarters (the figure for good quality revenue in the last quarter of the 2015 financial year requires some digging around at circa £11million) . Management guidance is for this trend to continue and increase, backed up by large contract wins and Hylas 3B now coming online and covering a new territory. Plug this growth rate into your calculator for the next consecutive quarters and you will see that the current flying fleet will be full by the summer of 2017. Hylas 4 is then due to come onine with Hylas 3(A) to follow. Comparisons on a year on year basis, years of underwhelming revenue performance and increasing debt have made the market blind to this established trend that Avanti company has most likely passed an inflexion point and will soar over the next 24 calendar months.
is that the US$ has weakened and hence why commodities picked up a lot yesterday. This should give AVN a boost as it's debt is in US$. Plus with a lot of contracts coming through in the UK this should also help. Yesterdays news on revenues was no doubt disappointing. Still AVN is looking in better shape going forward now so I cannot see why the sp should be any lower than what it was this time last year. Should see sp back up above 200p short term.
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