Struggling satellite operator Avanti Communications is having a tough time and a near-total collapse in its already stressed share price.
This past week has seen its share price fall from 3.9 pence/share to a miserable 3p as shareholder confidence evaporated. One month ago its share price stood at 4.75p per share. Back in February shares were trading at more than 12p, and two years ago they were topping 25p. Avanti’s market capitalisation is a mere $65 million.
At the end of September the company issued its half-year results and said that revenue for the 6 months to June 30th were $29.9 million, but the company admitted that trading over the previous 18 months had been “difficult”. Staff and operating expenses were running at some $22.4 million for the January-June half year, which is probably similar for this current trading period.
Avanti in September warned that it might need to raise a “modest amount” of additional funding over the next year or so, but no announcement has been made as yet.