AVN.L Share News (AVN)

Annual results from satellite operator Avanti Communications met recently-downgraded estimates on Tuesday morning, with shares rising strongly after the firm gave an upbeat outlook and said it turned cashflow positive before the end of the financial year.Revenues increased 65% year-on-year from £12.5m to £20.6m in the 12 months to June 30th. This was broadly in line with market estimates given that the company scaled back revenue guidance by up to £10m in a July trading update after several major contracts were pushed back into the new financial year."Confirmation of the full-year revenue in line with expectations set out in July is welcome," said analysts at Jefferies on Tuesday morning.However, the loss before interest and tax more than doubled during the year from £15.8m to £33.7m due to an increased depreciation charge.Nevertheless, Avanti became operating cashflow positive for the first time during the final quarter and had £39m of cash by the year end. A stronger balance sheet has given it "the comfort of sufficient cash to cover debt repayments for two years," it said.The company said that its backlog totalled £290m by the end of the period, £42m of which is expected to be taken to revenue in the current year. "Avanti achieved major milestones this year in launching the HYLAS 2 satellite, expanding service to 50 countries and becoming operating cash flow positive. Market adoption is maturing and the company has an increasingly 'blue-chip' customer base," said Chairman John Brackenbury."Whilst at times the pace of progress has been unpredictable, the company has good products with clear competitive advantages, good customers and the right people to make Avanti a success." The stock was up 3.45% in early trading on Tuesday at 178.45p.BC