Avanti reports increased losses
August 29, 2019
By Chris Forrester
Days after Avanti Communications informed the market that it would shortly be de-listing from London’s Alternative Investment Market, it reported slightly reduced losses for its half-year trading to June 30th.
Revenues were short of expectations while the cost of sales reduced somewhat. They increased to $30.2 million from $25.6 million for the comparative period last year. Bandwidth revenue increased 92 per cent to $25.3 million from $13.2 million.
Cost of sales decreased to $15.1 million from $21.3 million in the 6 months to June 2019, largely due to higher sub-contractor costs associated with non-bandwidth revenues in the prior period.
Staff and other operating expenses were $20.4 million (2018: $22.4 million).
In a statement, the company said: “Our backlog comprises our customers’ committed contractual expenditure under existing contracts for the sale of bandwidth, satellite services, consultancy services and equipment sales over their current terms. Backlog does not include the value arising from potential renewal beyond a contract’s current term or projected revenue from framework contracts. Backlog at 30 June 2019 was $156.4 million (30 June 2018: $87 million).”
Avanti’s shares fell 20 per cent on August 28th to 50p. A year ago they were valued at 591p.