9 Jan 2009 15:32
9 January 2009
Avanti Screenmedia Group plc
(AIM: ASG)
Trading update
New contract wins
Avanti Screenmedia Group plc ("Avanti" or "the Company"), the leading UK digital screen media specialist, is pleased to announce today that it has signed new contracts with Blueco Limited, the management company of Bluewater and also with Ivista Limited, the advertising sales company in Queens Arcade in Cardiff.
Bluewater is one of the UK's largest shopping malls. The Bluewater contract is for ten years and incorporates the supply and installation of an additional five new screens; the largest being 20 square metres. This builds on the historic contract Avanti enjoyed with Bluewater.
The Queen's Arcade contract is for three years to provide national advertising sales over its Iconic 3.5m x 2.5m screen.
Both of these malls, and the Iconic 103 inch screen installed at Sports Café in Haymarket in London, have been added to 'Digital Life', the sales and marketing alliance with Streetbroadcast, the UK's largest out of home digital retail network, details of which were announced on 10 December 2008.
The Board confirms that current market conditions are extremely challenging although it is also pleased to confirm that, to date, Avanti has not experienced any significant decline in advertising revenues. This is illustrated by the progress at Bluewater and Queen's Arcade.However, in light of these more challenging market conditions, and the increased costs of implementing the new contracts, the Company is continuing to seek essential short term funding for estate development and to finance its increased working capital requirements.
Avanti also announces that it has extended certain of its convertible loan agreements totaling £242,000, that were due for repayment or conversion in December 2008, for a further six months. The terms remain unchanged save that conversion price is reduced from 2.5 pence per share to 2 pence per share.
Commenting, Simon Rees, Chief Executive said:
"As stated in our preliminary results on 4 December, the advertising sector is expected to face a downturn in 2009 with traditional media expected to experience the greatest fall. Avanti has not yet experienced any significant decline in advertising revenues, but remains cautious as to the prospects for 2009. Against this backdrop, we are pleased that our efforts continue to bear fruit as demonstrated by both the Bluewater and Queens Arcade contract wins."
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Enquiries:
Avanti Screenmedia Group plc 020 7902 2345
Simon Rees, CEO
Charles Stanley Securities 020 7149 6000
Nominated Adviser
Russell Cook/Freddy Crossley
Bishopsgate Communications Limited 020 7562 3350
Jenni Herbert