TIDMAVN

RNS Number : 3188K

Avanti Communications Group Plc

28 August 2019

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

28 August 2019

AVANTI COMMUNICATIONS GROUP PLC

Interim Results

Avanti Communications Group plc ("Avanti" or "the Group"), a leading provider of satellite data communications services in Europe, the Middle East and Africa, issues the following results for the six months ended 30 June 2019.

Highlights to 30 June

   --     Half year EBITDA in line with Company budget 
   --     Full year 2019 positive EBITDA guidance maintained with further material growth in 2020 

-- Backlog increased 80% to $156.4 million at 30 June 2019, including 1.8Ghz of capacity sold to Turksat (30 June 2018: $87 million)

   --     Successful launch of HYLAS 3 (post period end) 
   --     Completion of new 1.5 lien credit facility 

Kyle Whitehill, Avanti's CEO said:

"The steady progress in the first half of 2019 has set the foundations for the remainder of the year. We expect to see a material contribution from Government bandwidth opportunities in the second half of 2019."

For further information, please contact:

Avanti: Nigel Fox +44 (0)207 749 1600

   Cenkos Securities: Max Hartley / Katy Birkin                       +44 (0)207 397 8900 

Newgate Communications: Adam Lloyd +44 (0)203 757 9842

Notes to editors

Avanti connects people wherever they are - in their homes, businesses, in government and on mobiles. Through the HYLAS satellite fleet and more than 180 partners in 118 countries, the network provides ubiquitous internet service to a quarter of the world's population. Avanti delivers the level of quality and flexibility that the most demanding telecoms customers in the world seek.

Avanti is the first mover in high throughput satellite data communications in EMEA. It has rights to orbital slots and Ka band spectrum in perpetuity that covers an end market of over 1.7bn people.

The Group has invested $1.2bn in a network that incorporates satellites, gateway earth stations, datacentres and a fibre ring.

Avanti has a unique Cloud based customer interface that is protected by patented technology.

The Group has four satellites in orbit.

Avanti Communications is listed in London on AIM (AVN:LSE).

www.avantiplc.com

Overview

Over the six-month period ended 30 June 2019 we have made good progress and this reported EBITDA is in line with our internal forecasts. We are therefore reiterating our previous guidance of generating positive EBITDA for the full year.

Total revenues for 2019 are forecast to grow by 67% over the $53 million reported for 2018, with a further uplift of at least 30% for 2020. The key driver to this growth is bandwidth revenue, which accounted for $31 million of the $53.5 million in 2018 and is now forecast to grow by 125% and 40% in 2019 and 2020 respectively.

Our cost optimisation project is progressing well. The fully-loaded cost of delivering bandwidth in 2018 was $80 million. We expect that to fall by at least 15% in 2019 improving EBITDA margins. Additional non-bandwidth related costs, which are directly offset by equipment and project revenues, will remain flat, but the net affect will continue to be positive, albeit marginally, to the bottom line. The combination of revenue growth and the cost optimisation program should generate positive group EBITDA in 2019 with revenue growth in 2020 largely falling through to EBITDA.

HYLAS 4 came into operation just before the beginning of the reporting period and is working nominally. We were pleased to see the successful launch of HYLAS 3 earlier this month from French Guiana. Importantly, this avails to our customer base for contract up to 50 Ghz of highly attractive Ka band capacity with a weighted average fleet age of 3 years. This now completes our capital expenditure cycle for the foreseeable future. We have made strong progress with key relationships interested in this capacity, both in the wholesale and defence markets. These relationships should make a material contribution to revenue and EBITDA in the second half of 2019.

Outlook

The second half of 2019 is expected to see further significant contract wins, which should see the Company deliver a positive EBITDA for the full year.

Despite this progress, the Directors have recently recommended to shareholders that it would be in the best interests of the Company to cancel the admission of the Company's Ordinary Shares from trading on AIM for several reasons outlined in our shareholder circular dated 20 August 2019. A resolution to this effect will be put to the shareholders at a General Meeting on 5 September 2019. If approved, the last expected day of dealings in the Company's Ordinary Shares on AIM will be 17 September 2019. Since we have listed Bonds on the Irish Stock Exchange, regular financial information will continue to be published through that exchange and on our website.

Financial Review

We announced in May 2019 that we had closed the new $55.0 million two-year 1.5 lien credit facility (the "1.5 Facility").

The 1.5 Facility matures in May 2021 or, if the Company's existing super senior facility (the "Super Senior Facility") is extended, in July 2021. Loans made under the 1.5 Facility will bear PIK interest at an annual rate equal to 12.50%. The 1.5 Facility ranks senior relative to the Company's high yield notes and junior relative to the Company's existing super senior debt under the Super Senior Facility for the priority of payment of enforcement proceeds. The Company will use the proceeds of the loans under the 1.5 Facility to fund the capital expenditure and working capital needs of the Company and its subsidiaries.

The Company has also obtained consent from the lenders under the Super Senior Facility to extend, at its election, the maturity to January 2021, subject to the payment of an extension fee. The annual interest rate under the Super Senior Facility is 9.5%.

Income Statement

In order to provide an easier comparison with the prior period the table below excludes the material credits arising from the Government of Indonesia (GOI) settlement in 2018, together with the one-off costs associated with the cost optimisation program.

 
                      Unaudited Half Year 30-Jun-19       Unaudited Half Year 30-Jun-18 
                    Result   Restructuring   Adjusted     Result      GoI      Adjusted 
                                              Result                             Result 
                   -------  --------------  ---------  -----------  -------  ------------ 
                     $'m          $'m          $'m         $'m        $'m         $'m 
                   -------  --------------  ---------  -----------  -------  ------------ 
 Revenue             30.2          -           30.2        29.9       4.3        25.6 
                   -------  --------------  ---------  -----------  -------  ------------ 
 Cost of Sales      (15.1)         -          (15.1)      (8.8)       12.5      (21.3) 
                   -------  --------------  ---------  -----------  -------  ------------ 
 Operating 
  Costs             (22.4)       (2.0)        (20.4)      (22.4)       -        (22.4) 
                   -------  --------------  ---------  -----------  -------  ------------ 
 Other Operating 
  Income             0.6           -           0.6         2.6        1.9         0.7 
                   -------  --------------  ---------  -----------  -------  ------------ 
 EBITDA             (6.7)        (2.0)        (4.7)        1.3        18.7      (17.4) 
                   -------  --------------  ---------  -----------  -------  ------------ 
 

Revenue increased to $30.2 million from $25.6 million for the comparative period. However, bandwidth revenue increased 92% 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).

This resulted in an EBITDA loss of $4.7 million, significantly improved from the EBITDA loss of $17.4 million from the previous period. This was due to the increase in bandwidth revenues combined with the results of the cost optimisation project.

There was also a significant decrease in the finance expense compared to the comparative period as a result of the debt restructuring in April 2018.

Cash flow

Cash absorbed from operations was $10.5 million. With cash interest paid of $6.1 million, cash absorbed from operating activities was $16.8 million.

Capital expenditure was $9.2 million reflecting the launch of HYLAS 3 and HYLAS 4. With net proceeds from new bond issues of $37.5 million during the period, cash increased by $6.9 million to $30.9 million.

Balance sheet

Movements on the balance sheet below refer to comparison with 31 December 2018.

Total non-current assets have decreased by $10.6 million from the last financial year end due to depreciation charged, offset by the inclusion of IFRS 16 finance leases from 1 January 2019.

In current assets, trade and other receivables reduced to $31.3 million from $33.5 million. Inventories have decreased to $19.4 million from $19.5 million as a result of fluctuations in the GBP:USD exchange rate.

The most significant movement in the period was the increase in loans and other borrowings following the drawdown of the 1.5 Lien Facility debt of $39.2 million.

The non-controlling interest in Filiago was disposed of in the period.

Backlog

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)

 
 CONSOLIDATED UNAUDITED INCOME STATEMENT 
 FOR THE SIX MONTHSED 30 JUNE 2019 
 
                                                  Unaudited     Unaudited       Audited 
                                                  Half year     Half year     18m ended 
                                                  30-Jun-19     30-Jun-18     31-Dec-18 
                                        Notes           $'m           $'m           $'m 
-------------------------------------  ------  ------------  ------------  ------------ 
 
 Revenue 
      Capacity, services & equipment                   30.2          29.9          73.7 
-------------------------------------  ------ 
 Total revenue                                         30.2          29.9          73.7 
-------------------------------------  ------  ------------  ------------  ------------ 
 Cost of sales - capacity, 
  services & equipment (excl. 
  satellite depreciation)                   6        (15.1)         (8.8)        (51.8) 
 Staff costs                                         (15.4)        (15.3)        (44.1) 
 Restructuring costs                                  (2.0)             -             - 
 Other operating expenses                             (5.0)         (7.1)        (23.4) 
 Other operating income                                 0.6           2.6           4.0 
-------------------------------------  ------  ------------  ------------  ------------ 
 EBITDA                                               (6.7)           1.3        (41.6) 
-------------------------------------  ------  ------------  ------------  ------------ 
 Depreciation and amortisation                       (27.9)        (18.1)        (63.2) 
 Impairment of satellites in 
  operation                                               -             -        (79.6) 
 Impairment of other intangible 
  assets                                                  -             -         (1.0) 
 Impairment of goodwill                                   -             -         (0.1) 
-------------------------------------  ------  ------------  ------------  ------------ 
 Operating loss                                      (34.6)        (16.8)       (185.5) 
-------------------------------------  ------  ------------  ------------  ------------ 
 Finance income                             7             -           1.2           2.5 
 Finance expense                            7        (34.0)        (50.9)       (132.5) 
 Exceptional gain on restructuring 
  of debt                                   7             -         308.7         308.7 
 (Loss)/profit before taxation                       (68.6)         242.2         (6.8) 
-------------------------------------  ------  ------------  ------------  ------------ 
 Taxation                                             (0.1)          22.7        (31.4) 
 (Loss)/profit for the period                        (68.7)         264.9        (38.2) 
-------------------------------------  ------  ------------  ------------  ------------ 
 
 (Loss)/profit attributable 
  to: 
 Equity holders of the parent               8        (68.3)         265.2        (37.2) 
 Non-controlling interests                            (0.4)         (0.3)         (1.0) 
 Basic (loss)/earnings per 
  share (cents)                             8       (3.17c)        30.50c       (3.50c) 
 Diluted (loss)/earnings per 
  share (cents)                             8       (3.17c)        30.24c       (3.50c) 
-------------------------------------  ------  ------------  ------------  ------------ 
 
 
 CONSOLIDATED UNAUDITED STATEMENT OF COMPREHENSIVE 
  INCOME 
 FOR THE SIX MONTHSED 30 
  JUNE 2019 
 
                                                      Unaudited     Unaudited       Audited 
                                                      Half year     Half year     18m ended 
                                                      30-Jun-19     30-Jun-18     31-Dec-18 
                                            Notes           $'m           $'m           $'m 
----------------------------------------  -------  ------------  ------------  ------------ 
 
 (Loss)/profit for the period                            (68.7)         264.9        (38.2) 
-------------------------------------------------  ------------  ------------  ------------ 
 Other comprehensive income 
 Exchange differences on translation 
  of foreign operations and investments 
  that may be recycled to the 
  Income Statement: 
 Foreign currency translation 
  differences on foreign operations                       (3.1)         (3.3)         (3.6) 
 Monetary items that form part 
  of the net investment in a 
  foreign operation                                       (0.2)         (0.6)         (1.2) 
 Total comprehensive (loss)/profit 
  for the period                                         (72.0)         261.0        (43.0) 
-------------------------------------------------  ------------  ------------  ------------ 
 
 Attributable to: 
 Equity holders of the parent                            (71.6)         261.3        (42.0) 
 Non-controlling interests                                (0.4)         (0.3)         (1.0) 
-------------------------------------------------  ------------  ------------  ------------ 
 
 
 CONSOLIDATED UNAUDITED STATEMENT OF FINANCIAL POSITION 
 AS AT 30 JUNE 2019 
 
                                           Unaudited     Unaudited       Audited 
                                           Half year     Half year     18m ended 
                                           30-Jun-19     30-Jun-18     31-Dec-18 
                                  Note           $'m           $'m           $'m 
-------------------------------  -----  ------------  ------------  ------------ 
 
 ASSETS 
 Non-current assets 
 Property, plant and equipment                 704.0         803.3         714.4 
 Intangible assets                               8.9           8.1           9.1 
 Deferred tax assets                               -          53.7             - 
 Total non-current assets                      712.9         865.1         723.5 
-------------------------------  -----  ------------  ------------  ------------ 
 
 Current assets 
 Inventories                                    19.4          20.2          19.5 
 Trade and other receivables         9          31.3          76.5          33.5 
 Cash and cash equivalents                      30.9          11.0          24.0 
 Total current assets                           81.6         107.7          77.0 
-------------------------------  -----  ------------  ------------  ------------ 
 Total assets                                  794.5         972.8         800.5 
-------------------------------  -----  ------------  ------------  ------------ 
 
 LIABILITIES AND EQUITY 
 Current liabilities 
 Trade and other payables                       52.4          75.9          60.4 
 Loans and other borrowings         10           4.1           1.3           1.4 
 Provisions                                      0.6             -           0.6 
 Total current liabilities                      57.1          77.2          62.4 
-------------------------------  -----  ------------  ------------  ------------ 
 
 Non-current liabilities 
 Trade and other payables                        6.6           8.1           7.3 
 Loans and other borrowings         10         537.9         407.8         465.7 
 Provisions                                      3.4             -           3.6 
 Total non-current liabilities                 547.9         415.9         476.6 
-------------------------------  -----  ------------  ------------  ------------ 
 Total liabilities                             605.0         493.1         539.0 
-------------------------------  -----  ------------  ------------  ------------ 
 
 Equity 
 Share capital                                  30.6          30.6          30.6 
 EBT shares                                    (0.1)         (0.1)         (0.1) 
 Share premium                               1,104.4       1,104.4       1,104.4 
 Foreign currency translation 
  reserve                                     (74.4)        (65.8)        (72.3) 
 Retained earnings                           (871.0)       (585.6)       (797.0) 
 Total parent shareholders' 
  equity                                       189.5         483.5         265.6 
 Non-controlling interests                         -         (3.8)         (4.1) 
-------------------------------  -----  ------------  ------------  ------------ 
 Total equity                                  189.5         479.7         261.5 
-------------------------------  -----  ------------  ------------  ------------ 
 Total liabilities and equity                  794.5         972.8         800.5 
-------------------------------  -----  ------------  ------------  ------------ 
 
 
 CONSOLIDATED UNAUDITED STATEMENT OF 
  CASHFLOWS 
 FOR THE SIX MONTHSED 30 JUNE 2019 
 
                                                         Unaudited     Unaudited       Audited 
                                                              Half 
                                                              year     Half year     18m ended 
                                                         30-Jun-19     30-Jun-18     31-Dec-18 
                                               Notes           $'m           $'m           $'m 
--------------------------------------------  ------  ------------  ------------  ------------ 
 
 Cash flow from operating activities 
 
 Cash absorbed by operations                      11        (10.5)        (17.1)        (49.2) 
 
 Interest paid                                               (6.2)         (5.7)        (14.7) 
 Interest received                                               -           0.6           2.5 
 Debt restructuring costs                                        -             -         (7.8) 
 Taxation                                                    (0.1)             -         (0.4) 
 Net cash absorbed by operating activities                  (16.8)        (22.2)        (69.6) 
--------------------------------------------  ------  ------------  ------------  ------------ 
 
 Cash flows from investing activities 
 Payments for property, plant and equipment                  (9.2)        (31.1)        (84.7) 
 Net cash used in investing activities                       (9.2)        (31.1)        (84.7) 
--------------------------------------------  ------  ------------  ------------  ------------ 
 
 Cash flows from financing activities 
 Net proceeds/(payments) from debt 
  issue                                                       37.5         (2.9)         148.6 
 Net proceeds from share issue                                   -           0.2           0.2 
 Repayment of debt                                           (2.0)             -             - 
 Payment of finance lease liabilities                        (2.5)         (0.4)         (2.8) 
 Net cash received from/(used by) financing 
  activities                                                  33.0         (3.1)         146.0 
--------------------------------------------  ------  ------------  ------------  ------------ 
 
 Effects of exchange rate on the balances 
  of cash and cash equivalents                               (0.1)         (1.0)         (0.4) 
 
 Net increase/(decrease) in cash and 
  cash equivalents                                             6.9        (57.4)         (8.7) 
 
 Cash and cash equivalents at the beginning 
  of the financial year                                       24.0          68.4          32.7 
 
 Cash and cash equivalents at the end 
  of the financial period                                     30.9          11.0          24.0 
--------------------------------------------  ------  ------------  ------------  ------------ 
 
 
 CONSOLIDATED UNAUDITED STATEMENT OF CHANGES 
  IN EQUITY 
 FOR THE SIX MONTHSED 30 JUNE 2019 
 
                                      Employee                               Foreign 
                                       benefit                              currency 
                              Share      trust      Share    Retained    translation   Non-controlling     Total 
                            capital      (EBT)    premium    earnings        reserve         interests    equity 
                                $'m        $'m        $'m         $'m            $'m               $'m       $'m 
------------------------  ---------  ---------  ---------  ----------  -------------  ----------------  -------- 
 
 As at 1 July 2017              2.7      (0.1)      519.4     (317.7)         (67.5)             (3.1)     133.7 
 Loss for the period              -          -          -      (91.0)              -             (0.4)    (91.4) 
 Other comprehensive 
  income                          -          -          -           -            5.6                 -       5.6 
 Share based payments             -          -          -         0.1              -                 -       0.1 
 As at 31 December 2017 
  (Unaudited)                   2.7      (0.1)      519.4     (408.6)         (61.9)             (3.5)      48.0 
------------------------  ---------  ---------  ---------  ----------  -------------  ----------------  -------- 
 
 As at 1 January 2018           2.7      (0.1)      519.4     (408.6)         (61.9)             (3.5)      48.0 
 Loss for the period              -          -          -       265.2              -             (0.3)     264.9 
 Other comprehensive 
  income                          -          -          -           -          (3.9)                 -     (3.9) 
 Issue of share capital        27.9          -      142.7           -              -                 -     170.6 
 Share based payments             -          -          -         0.1              -                 -       0.1 
 Transfer                         -          -      442.3     (442.3)              -                 -         - 
 As at 30 June 2018 
  (Unaudited)                  30.6      (0.1)    1,104.4     (585.6)         (65.8)             (3.8)     479.7 
------------------------  ---------  ---------  ---------  ----------  -------------  ----------------  -------- 
 
 As at 1 July 2018             30.6      (0.1)    1,104.4     (585.6)         (65.8)             (3.8)     479.7 
 Loss for the period              -          -          -     (211.4)              -             (0.3)   (211.7) 
 Other comprehensive 
  income                          -          -          -           -          (6.5)                 -     (6.5) 
 As at 31 December 2018 
  (Audited)                    30.6      (0.1)    1,104.4     (797.0)         (72.3)             (4.1)     261.5 
------------------------  ---------  ---------  ---------  ----------  -------------  ----------------  -------- 
 
 As at 1 January 2019          30.6      (0.1)    1,104.4     (797.0)         (72.3)             (4.1)     261.5 
 Loss for the period              -          -          -      (68.3)              -             (0.4)    (68.7) 
 Disposal of subsidiary           -          -          -       (5.7)            1.2               4.5         - 
 Other comprehensive 
  income                          -          -          -           -          (3.3)                 -     (3.3) 
 As at 30 June 2019 
  (Unaudited)                  30.6      (0.1)    1,104.4     (871.0)         (74.4)                 -     189.5 
------------------------  ---------  ---------  ---------  ----------  -------------  ----------------  -------- 
 
 
   1.      General information 

Avanti Communications Group plc ('the Company') is a public company incorporated and domiciled in the United Kingdom. The address of its registered office is 20 Black Friars Lane, London EC4V 6EB. The Company is listed on AIM.

These unaudited condensed consolidated interim financial statements ("the interim financial statements") were approved for issue on 27 August 2019.

   2.      Basis of preparation 

These interim financial statements for the six months ended 30 June 2019 have been prepared in accordance with IAS 34, "Interim Financial Reporting", as adopted by the EU. The interim financial statements should be read in conjunction with the financial statements for the 18-month period ended 31 December 2018, which have been prepared in accordance with International Financial Reporting Standards ("IFRSs"), as adopted by the EU.

The accounting policies applied are consistent with those of the financial statements for the period ended 31 December 2018.

The interim financial statements have not been audited or reviewed and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The audited statutory accounts for the period ended 31 December 2018 were approved by the Board of Directors on 7 June 2019 and have been delivered to the Registrar of Companies. The auditor's report on these accounts was not qualified, did not contain statements under section 498(2) or (3) of the Companies Act 2005 but did draw attention to a matter by way of emphasis.

   3.      Accounting policies 

The same accounting policies, presentation and methods of computation are followed in these condensed consolidated interim financial statements as were applied in the preparation of the Group's financial statements for the period ended 31 December 2018.

The condensed consolidated interim financial information presented does not comply with the full disclosure requirements of all applicable IFRSs.

   4.      Segmental reporting 

Operating segment(s) are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segment(s), has been identified as the Avanti Executive Board who make the strategic decisions.

   5.      Income tax 

No income tax credit or deferred tax asset has been recognised in respect of the losses for the six month period to 30 June 2019 (30 June 2018: $22.7 million). Whilst the company foresees utilising the losses in future periods, it has not recognised the income tax credit or deferred tax in this period.

   6.      Cost of sales 
 
                                       Unaudited     Unaudited       Audited 
                                       Half year     Half year     18m ended 
                                       30-Jun-19     30-Jun-18     31-Dec-18 
                                             $'m           $'m           $'m 
----------------------------------  ------------  ------------  ------------ 
 
 Other cost of sales                      (15.1)        (21.3)        (64.3) 
 Government of Indonesia bad debt 
  release                                      -          12.5          12.5 
                                    ------------  ------------  ------------ 
 Cost of sales                            (15.1)         (8.8)        (51.8) 
----------------------------------  ------------  ------------  ------------ 
 

During the year to 30 June 2017 the Group provided for debt from the Government of Indonesia and commenced arbitration proceedings, resulting in a write off of unbilled accrued income of $1.4m, and a provision against trade receivables of $16.8m comprised of a bad debt expense of $12.5m following termination of the contract post year end, and the reclassification of $4.3m from deferred income to the bad debt provision related to amounts billed but for which services had not been delivered at 30 June 2017.

Following a ruling in the Group's favour as announced on 7 June 2018, this provision was released in full resulting in a credit of $12.5m to the bad debt expense and recognition of previously deferred revenue of $4.3m.

The Group received the full $20.1m outstanding payment from the Government of Indonesia on 13 August 2018.

   7.      Net finance (expense)/income 
 
                                      Unaudited     Unaudited       Audited 
                                      Half year     Half year     18m ended 
                                      30-Jun-19     30-Jun-18     31-Dec-18 
                                            $'m           $'m           $'m 
---------------------------------  ------------  ------------  ------------ 
 
 Finance income 
 Interest income                              -           1.2           2.5 
                                              -           1.2           2.5 
---------------------------------  ------------  ------------  ------------ 
 
 Finance expense 
 Interest expense on borrowings 
  and loans                              (31.4)        (75.4)       (196.0) 
 Foreign exchange loss                    (1.0)         (0.6)         (0.4) 
 Finance lease expense                    (0.9)         (0.8)         (1.9) 
 Other finance expense                    (0.7)             -             - 
 Costs of refinancing                         -         (5.8)         (8.1) 
 Less: interest capitalised to 
  satellite in construction                   -          31.7          73.9 
--------------------------------- 
                                         (34.0)        (50.9)       (132.5) 
---------------------------------  ------------  ------------  ------------ 
 
 Exceptional gain on debt for 
  equity swap                                 -         254.9         254.9 
 Exceptional gain on substantial 
  modification of debt                        -          53.8          53.8 
 
 Net finance (expense)/income            (34.0)         259.0         178.7 
---------------------------------  ------------  ------------  ------------ 
 
   8.      (Loss)/earnings per share 
 
                                                Unaudited     Unaudited         Audited 
                                                Half year     Half year       18m ended 
                                                30-Jun-19     30-Jun-18       31-Dec-18 
                                                      $'m           $'m             $'m 
-----------------------------------------  --------------  ------------  -------------- 
 Basic earnings/ (loss) per share                  (3.17)         30.50          (3.50) 
 Diluted earnings/ (loss) per 
  share                                            (3.17)         30.24          (3.50) 
-----------------------------------------  --------------  ------------  -------------- 
 
 The calculation of basic and diluted earnings/(loss) per 
  share is based on the earnings attributable to 
 ordinary shareholders divided by the weighted average number 
  of shares in issue during the year. 
 
 
                                                Unaudited     Unaudited         Audited 
                                                Half year     Half year       18m ended 
                                                30-Jun-19     30-Jun-18       31-Dec-18 
                                                      $'m           $'m             $'m 
                                           --------------  ------------  -------------- 
 
 (Loss)/profit for the year attributable 
  to equity holders of the parent 
  Company                                        $(68.3)m       $265.2m        $(37.2)m 
 
 Weighted average number of ordinary 
  shares for the 
 purpose of basic earnings per 
  share                                     2,155,830,294   869,344,814   1,065,920,979 
-----------------------------------------  --------------  ------------  -------------- 
 
   9.     Trade and other receivables 
 
                                    Unaudited     Unaudited       Audited 
                                    Half year     Half year     18m ended 
                                    30-Jun-19     30-Jun-18     31-Dec-18 
                                          $'m           $'m           $'m 
-------------------------------  ------------  ------------  ------------ 
 
 Trade receivables                       12.0          44.0          10.0 
 Less provision for impairment 
  of trade receivables                  (0.9)         (0.7)         (1.1) 
 Net trade receivables                   11.1          43.3           8.9 
-------------------------------  ------------  ------------  ------------ 
 
 Accrued income                           7.4           8.1           6.2 
 Prepayments                             10.1          17.7          14.1 
 Other receivables                        2.7           7.4           4.3 
 
                                         31.3          76.5          33.5 
-------------------------------  ------------  ------------  ------------ 
 

10. Loans and borrowings

 
                                             Current                                          Non-current 
                      -----------------------------------------------------  -------------------------------------------- 
                           Unaudited         Unaudited              Audited     Unaudited         Unaudited       Audited 
                                Half              Half                               Half 
                                year              year            18m ended          year         Half year     18m ended 
                           30-Jun-19         30-Jun-18            31-Dec-18     30-Jun-19         30-Jun-18     31-Dec-18 
                                 $'m               $'m                  $'m           $'m               $'m           $'m 
                      --------------  ----------------  -------------------  ------------  ----------------  ------------ 
 
 Secured at 
 amortised 
 cost 
 PIK Toggle Notes                  -                 -                    -         329.6             282.7         306.2 
 Super Senior Notes                -                 -                    -         148.9             115.0         150.2 
 1.5 Lien Facility                 -                 -                    -          37.5                 -             - 
 Finance lease 
  liabilities                    4.1               1.3                  1.4          21.9              10.1           9.3 
 
                                 4.1               1.3                  1.4         537.9             407.8         465.7 
--------------------  --------------  ----------------  -------------------  ------------  ----------------  ------------ 
                                                                Original 
                           Description of                        notional 
 Issuer                     instrument                           value        Due 
 Avanti Communications     PIK Toggle Notes                                   1 October 
  Group plc                                                     $360.1m        2022 
 Avanti Communications     Super Senior Notes                                 30 June 2020 
  Group plc                                                     $152.5m 
 Avanti Communications     1.5 Lien                                           31 July 2021 
  Group plc                                                     $39.2m 
 
                                                    Unaudited     Unaudited             Audited 
                                                         Half          Half 
                                                         year          year           18m ended 
                                                    30-Jun-19     30-Jun-18           31-Dec-18 
                                                          $'m           $'m                 $'m 
------------------------  ------------------  ---------------  ------------  ------------------ 
 
 PIK Toggle notes                                       376.3         343.7               360.1 
 Super Senior notes                                     150.5         118.0               152.5 
 1.5 Lien Facility                                       39.2             -                   - 
------------------------  ------------------  ---------------  ------------  ------------------ 
                                                        566.0         461.7               512.6 
 
 Less: 
 Unamortised credit on substantial 
  modification                                         (46.7)        (61.0)              (53.9) 
 Debt issuance costs                                    (3.3)         (3.0)               (2.3) 
 
                                                        516.0         397.7               456.4 
------------------------  ------------------  ---------------  ------------  ------------------ 
 
 

11. Cash absorbed by operations

 
                                                    Unaudited     Unaudited       Audited 
                                                         Half 
                                                         year     Half year     18m ended 
                                                    30-Jun-19     30-Jun-19     31-Dec-18 
                                                          $'m           $'m           $'m 
------------------------------------------  ---  ------------  ------------  ------------ 
 
 (Loss)/profit before taxation                         (68.6)         242.2         (6.8) 
 Interest receivable                                        -         (1.3)         (2.5) 
 Interest payable                                        25.1          25.2          89.1 
 Amortised bond issue costs                               8.0          25.0          54.0 
 Foreign exchange losses in operating 
  activities                                              0.9           0.8           0.2 
 Depreciation and amortisation of 
  non-current assets                                     27.9          18.1          64.3 
 Provision for doubtful debts                           (0.2)        (11.0)        (20.3) 
 Exceptional credit on debt for equity 
  swap                                                      -       (254.9)       (254.9) 
 Exceptional credit on substantial 
  modification                                              -        (53.8)        (64.7) 
 Share based payment expense                                -             -           0.2 
 Impairment                                                 -             -          80.7 
 Decrease/(Increase) in stock                               -           0.5        (16.9) 
 Increase/(decrease) in debtors                           0.4         (9.5)          41.9 
 (Decrease)/increase in trade and 
  other payables                                        (5.5)           3.0         (6.2) 
 Effects of exchange rate on the balances 
  of working capital                                      1.5         (1.4)         (7.3) 
 
 Cash absorbed by operations                           (10.5)        (17.1)        (49.2) 
-----------------------------------------------  ------------  ------------  ------------ 
 

12. Post balance sheet events

HYLAS 3 was successfully launched on 6 August 2019. HYLAS 3 is Avanti's latest High Throughput Satellite that will provide flexible and quick-to-deploy Ka-band communications across EMEA. HYLAS 3 has been built in partnership with the European Space Agency (ESA), MDA, Airbus, and OHB. It shares a platform with EDRS-C, a data relay mission for low earth orbiting satellites.

With over 4GHz capacity, HYLAS 3 is a unique cluster of 8 steerable beams that can be quickly moved wherever needed across the region. HYLAS 3 Ka-band steerable guarantee high-capacity anywhere within the visible earth disk. The high-strength and high-efficiency Ka-band beams allow to generate the greatest capacity using the smallest terminals. HYLAS 3 is also hub-agnostic, with the widest range of terminals accredited for use on Avanti network.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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August 28, 2019 02:00 ET (06:00 GMT)

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