London-based specialist satellite operator Avanti Communications revealed on December 20th that it had abandoned plans to sell itself and instead opted to borrow more cash, at expensive rates of interest.
However, an examination of Avanti’s all-important contracted orders for capacity, referred to as ‘backlog’, shows that its backlog is evaporating faster than new business is coming in to replace forward orders.
In 2014 the company said it had a backlog of $430 million. By 2015 that had shrunk to $389.5 million. By June 30th this year the backlog had fallen to $290.4 million. The contraction is continuing. Notwithstanding new business won, by Sept 30th Avanti’s backlog had reduced to $276 million.
Avanti is earning gross annual revenues of $82.8 million. The company now has net debts of $588.9 million at June 30th, and its September 30th ‘cash in hand’ had dwindled to $43.1 million.