SHARES in Avanti Communications, the satellite broadband company, took a 16 per cent hit yesterday as the firm said turnover had missed forecasts for the year.
Avanti posted annual revenue of £15m, against the company’s guidance of £17.8m, and saw losses widen from £12.7m to £16m.
Chief executive David Williams was positive about Avanti’s performance however, and put the miss down to “uber-conservative accounting”, a claim he backed up by buying 8,100 shares after yesterday’s fall at a cost of just under £25,000.
“We know that this is a winning business,” Williams told City A.M., highlighting positives such as the launch of the company’s second satellite over Africa and the Middle East, and the 228 per cent rise in revenue. Williams said he expects the business to be cash flow positive next year, and confirmed plans to switch from Aim to the London Stock Exchange.
“Given the size of the company we’re about FTSE 250 level,” he said.