Anyone else in Avanti Screenmedia (ASG)? Bought in on Monday on back of superb sole supplier agreement with Sony and the shares responded (finally) on Friday as the market gave a delayed reaction. Fast growing company winning contracts all over the place. Market cap of 16.5 million decidedly undemanding!

Also not much stock around. People were paying 2p above quote on Thursday for 15k, (classic sign of impending rise btw for traders) before the 10% gain on Friday.
Exciting place for your money! Stunning chart already!

Financial Highlights


Turnover of 4.620m (2003: 1.439m), up 221%;

Operating profit for continuing businesses (excluding acquisitions) of
179k (2003: Loss 196k);

Net profit of 892k (2003: Loss 183k);

Translucis Holdings Limited acquisition in May 2003 contributed 578k
for the period;

AIM admission in July 2004 and 3m fundraising for working capital and
expansion; and

Shareholders' funds of 1.42m (pre-flotation).


Operating Highlights


MVN product launched in February well received by pub and bar market:
sold to 'Litten Tree' (Surrey Free Inns), Toad (Eldridge Pope), Henry J Beans,
Modern British Taverns and others;

New lifestyle brands advertising on the Magnetic Channel include:
Wrigleys, Vauxhall, BMW 1 Series, Easyjet, Smart Car with 80 brands booked
since inception and over 30% repeat bookers;

Current pilots with O'Neill's and Boots plc continue to be positive;
network now installed in 260 Toni&Guy salons (207 - 2003);

Currently in talks with a number of major retailers which may result
in pilots in the near future; and

Senior management appointments.


Current Trading and Prospects


Said David Williams, Chief Executive: 'We are well placed to significantly
develop the business further. The screenmedia market is just beginning to mature
and opportunities are now proliferating. Current trading is good. We remain
positive in our outlook and fully expect to meet market expectations in the year
ahead.'


Enquiries:


Avanti Screenmedia Group plc
www.avanti-screenmedia.com

David Williams, Chief Executive
Gary Truman, Group Financial Director 0207 749 1600 (today)

Binns & Co PR 020 7786 9600
Peter Binns
Jacqui Graves 020 7153 1486

Seymour Pierce Limited
Dru Edmonstone 0207 107 8011
John Depasquale 0207 107 8010



PRELIMINARY RESULTS


Introduction


'I am delighted to present our results for the 15 month period ended 30 June
2004 and to be able to report excellent progress in the development of Avanti's
business.


We have exceeded our expectations with regards to operating profit and met those
for turnover. The results represent our 5th year of growth whilst moving into
profitability. We continue to outperform our competitors on many financial,
growth and service measures. Accordingly, we believe we have further reinforced
Avanti's position as market leader in the UK for the provision of screenmedia.


On 23rd May 2003 Avanti acquired Translucis Holdings Limited (renamed Avanti
Screenmedia Limited) from Diageo plc. Avanti has exploited the synergies from
the acquisition to turn the Group into a profitable company as well as
strengthening its product offering and revenue streams.


AIM


The company subsequently floated on AIM on the 9th July 2004 with a market
capitalisation of 12.9 million through the placing of 2,307,692 ordinary shares
of 1 pence each at an issue price of 130 pence per share. This generated 3m
gross of new proceeds from 23.27% of the enlarged share capital placed.


We welcome a number of new institutional shareholders to the Company following
the successful placing and admission to AIM including those investors with
shareholdings over 3%; Hermes Investment Management (5.8%), J M Finn (4.1%) and
Aberdeen Asset Management (3.1%).


The net proceeds from the admission to AIM will be used to fund:-


* The accelerated roll out of MVN by reducing fees. This will enable the
Group to grow the MVN audience of 18-34 years olds rapidly, becoming a
larger and more compelling medium for advertisers;


* An update to the business operational systems of the Group by purchasing
new hardware and software;


* Working capital to support the Group with expansion over the next 2 years.



F E J G Brackenbury, CBE
Chairman



Summary of Avanti's business


Avanti is the market leader (by clients and sites installed) in the UK for the
provision of in-store television services, whereby it builds satellite or
terrestrial distribution and screen networks, creates channel strategies, makes
video content and sells media space. Clients use this service to entertain
customers, build brand, promote products and sell advertising in-store.


Avanti is the only supplier in the UK market with a complete turnkey competence
in-house, from engineering and network maintenance to video production and media
sales.


Avanti's market research has shown that the presence of screen based advertising
can increase the amount of time customers spend in-store and generate sales
uplift of advertised brands. Whilst Avanti is not dependent on media revenues,
it benefits from significant upside as this market (and Avanti's share of it)
grows. The marginal cost of generating additional advertising revenues is low.


Product portfolio and development


Avanti offers two products:


Branded Channels

Magnetic is an advertising funded channel and has been supplied to higher end
style bars in the UK since 2002. Magnetic is the most mature of Avanti's
channels from an advertising revenue perspective with 80 brands booked since
inception of which 30 per cent. are also repeat bookers. Music Video Network
(MVN) was developed as a result of the Directors' conclusion that in order to
reach a wider audience and generate materially higher potential advertising
revenues, a proposition was needed in order to suit the majority of the main
stream pub market.


The principal features of MVN are summarised below:-


* The service allows the retailer to tailor a schedule from 4 available MVN
pop music video channels to meet the needs of different periods of the day
or for a different target market audience;


* The MVN equipment provides the retailer with graphical templates for local
managers to create high impact promotional messages;


* Avanti owns the media space of the channel and retains the advertising
revenues generated from the channel subject to a revenue share it gives back
to the outlet; and


* Offers production services to advertisers on the channel at extra cost.


Avanti has developed a marketing tool that gives significant new control of
ambience to pub operators and engages customers in a powerful way. Further MVN
is a higher quality product than the current offerings in the market place and
can in addition carry advertising messages more effectively.


Bespoke Retail Channels


Avanti installs receiving and play-out equipment and screens, manages and
maintains the network, devises channel strategies, creates and broadcasts
programming, sells media space and manages qualitative and quantitative research
for major retailers. Each element of this process is paid for by the customer
and in most cases, Avanti sells the advertising airtime on the channel, charges
a commission and returns the balance of the revenues from such sales to the
retailer.


The Bespoke Retail Channel solves a customer problem with its 'one-stop shop'
approach to a customer's needs which avoids the problems of managing a
consortium and thereby reduces costs and risks.


Consultancy


Avanti also operates a consultancy division specialising in multimedia
applications development. It provides consultancy to a variety of operators and
agencies such as the European Space Agency, the British National Space Centre (a
division of the DTI), Eumetsat and Inmarsat. It also supplies R&D to drive
forward the functionality of Avanti's screenmedia technology. This business has
provided cash flow in the past to aid the development of the service business,
from which Avanti expects to see the majority of growth. However the consultancy
business is expected to sustain further growth and may in future provide new
technology applications related to Screenmedia which the Company can
commercialise.


New contracts won


The company is engaged in pilots to provide a bespoke retail channels to The
Boots Company plc and O'Neill's (Mitchell's & Butler). In addition Avanti is
currently in talks with a number of other major retail clients which may result
in pilots or roll-outs in the future.


MVN was launched on 19 February 2004 and since launch has been sold to 64
'Litten Tree' bars (Surrey Free Inns), Henry J Beans, Eldridge Pope and others.
In addition the Group has an exclusive agreement with County Estate Management,
who manage approximately 650 pubs, to supply its MVN channel to those pubs
within the estate which wish to receive a screenmedia service


Management team


Avanti completed its additions to the senior team by the end of the period.
During the period there were several changes to the main Board. Gary Truman,
formerly Group Financial Controller at Vanco plc, was appointed as Group Finance
Director. Also John French was appointed as an independent Non-Executive
Director. John is also chairman and chief executive of Croma Group plc and is
non-executive chairman of Air Music and Media Group plc, and of the Claims
People Group plc, all AIM listed companies.


We are delighted to welcome Jamie Ball as Executive Media Sales Director. He was
previously sales controller for Granada Enterprises - Channels generating 8
million of advertising sales per annum. Also Stuart Gill, formerly executive
creative director of AMV Advance, AMVBBDO's sister agency, joins as Executive
Creative Director. Finally Peter Watson joins as Operations Director, previously
operations manager for Satellite Information Services Limited.


Current trading and future prospects


Avanti's unique offering presents a highly compelling business case to retailers
and we believe we are well placed to significantly develop the business further.
The screenmedia market is just beginning to mature and opportunities are now
proliferating. Current trading is good and we remain positive in our outlook and
fully expect to meet market expectations in the year ahead.


In closing, I would like to recognise the efforts of the employees who continue
to contribute vitally to the success of the Group. On behalf of your Directors,
I would like to extend sincere thanks to each and every one of them for their
loyal support and dedication throughout the year.

Thanks to Lukewarm on sharesforum for this;

Have you read this Eyecatcher? Gives an idea of the potential.
All the patience now paying off

''Avanti Screenmedias recent results for the year to June were largely ignored by the market, a curious reaction given the group hoisted profits 122 per cent higher to 2 million on sales up 183 per cent to 8.44 million. Year-end net cash stood at 2 million, against net debts last time of 1 million.

The group, a market leader in the provision of television advertising screens to the retail trade, increased the number of bars signed up to its service to over 1,100, signed a 6 million, three-year deal with a major shopping centre operator and became UK market leader in the provision of television advertising services to shopping malls.

There was also the small matter of the 3 million contract its consultancy division secured from the European Space Agency. This is for the provision of broadband internet and multimedia services by satellite to business and homes and the first order for 600 installations has already been received''

Our confidence is at an all-time high is how chief executive David Williams described the mood in his company, saying he felt very comfortable with his profit targets for the year ahead (he expects to hike profits 75 per cent to 3.4 million), adding we have hopes of signing up a few big retailers to the Avanti product in the months ahead.

By any measure, these were superlative results. But tucked away in the announcement was another stirring development that could radically transform the financial performance in the years ahead. Avanti, which grew out of the bowels of the aerospace industry, confirmed it had secured the licence, in perpetuity to launch and operate its own satellite in Europe. This is an intriguing development, given that there are only around five satellite operators in Europe and that it will have 1.6 gigahertz of radio frequency enough to broadcast 240 hi-definition television channels. And it was all secured for not much money.

This is an amazing opportunity for us, all the more so because thus far it hasnt cost us a penny, says Williams. Of course, it will cost many millions to hoist the satellite into space and we may have to partner with others to do so. But the deal is the summation of ten years of lobbying and, considering that satellite can generate up to 50 million per year when up and running, youll forgive us our elation.

With the core business firing on all cylinders, profits piling up, and a new satellite operation in the offing, Avanti is a fantastic growth story.

One AIM company on the way to becoming a "Major".

Avanti Screenmedia Group plc
('Avanti' or 'the Company')

25m placing; 23.1m Contract Gain from the European Space Agency; Development
of new Satellite Operator business

Avanti, the market leading provider of screenmedia services to businesses, today
announces the placing of 10,000,000 new ordinary shares in the Company ('the
Placing Shares') at 2.50 per share ('Placing Price') to complete the financing
of the launch of a satellite which exploits the license awarded in August.

The placing, undertaken on behalf of the Company by Seymour Pierce with new and
existing institutional investors, raised 25m (before expenses). The placing
complements the award by the European Space Agency ('ESA') of a contract for
between 34m (23.1m) and 36m (24.5m) and, in aggregate, these funds will
fully finance the construction of a satellite. ESA has given Avanti a
Preliminary Authority to Proceed on this contract and documentation will be
completed subject to the placing.

The new ESA contract provides approximately half of the cost of building a
highly advanced small satellite in-line with ESA policy on R&D in the space
sector. Avanti will take full ownership of the satellite once in orbit. The
estimated cost of the launch in 2008 (including insurance) is 20m which Avanti
expects to be debt project financed. The satellite will have a lifetime of at
least 12 years.

The satellite will be used to turn Avanti into a vertically integrated
international satellite broadcaster and broadband supplier, with each aspect of
the value chain from core infrastructure to customer relationships under its
control and ownership. The Avanti satellite will be used to provide services
such as broadband and High Definition Television ('HDTV') services for
broadcasters, consumers and businesses in 22 countries in Europe, as well as
serving its own screenmedia customers. This satellite will occupy the orbital
position at 33.5 degrees west, which Avanti was awarded under license by OFCOM, the
communications watchdog, who allocated it part of the radio spectrum and
authorized it to occupy a broadcast satellite orbit position.

The Board of Avanti believe that the satellite project will address the digital
divide problem identified by the European Commission, which predicts that large
parts of the population in Europe will not be adequately served by terrestrial
broadband communications. Ownership of the satellite by Avanti also reduces the
cost of providing services such as broadband and screenmedia by removing
suppliers from the value chain.

The Board also believe that there is a shortage of suitable satellite capacity,
given the pending upgrade of digital television services to the HDTV format,
which consumes four times as much bandwidth as ordinary digital TV.

Avanti expects to finalise the satellite procurement contract within a few
weeks.

Commenting, David Williams, Chief Executive of Avanti, said: 'We have been
advising investors to expect new value from the activities of our R&D team and I
am delighted to reveal the scale of our achievements. New satellite businesses
are very rare and tend to be large scale. The support received from the DTI,
OFCOM and ESA in the form of the R&D contract, and license awards, in
conjunction with the fantastic support from our institutional investors, now
gives us the opportunity to create a substantial international satellite
operator business. There are strong synergies with our core business of
satellite television broadcasting to businesses, since we will be able to offer
triple play services from space - media, data and VoIP. This also makes it
easier to extend our screenmedia services around Europe. The first satellite we
are launching can service up to 170,000 broadband customers in Europe, or could
broadcast up to 1,000 digital TV channels. However, the capacity of our orbital
position enables us to service as many as 15,000,000 broadband customers and
thousands of regional TV channels and so it is our hope that we will build upon
the first project to create a very large international customer base over tim

So whats happened all of a sudden, 2 days of decline, whats the news?

Having just seen the results why the drop. Seems good news in terms of ongoing business and investment opportunities?

Just bought in, on a flyer, in profit within 2 mins, price went up 3p during purchase execution. WOW. Heres hoping for a nice little earner.

Looks like I've just been taken for a ride, at least being mugged this way there arn't any bruises, only psycological scares.

hi oily ... thanks for the heads-up on this one, though i am not sure it's for me as am pretty much fully invested anyway (and delighted to have got away with my shirt on AL which i sold this morning when my stop got hit at 725) .....

more specifically, what is the story about sp on this company collapsing in a heap and why does that necessarily make it "cheap"?

Volitile, isn't the word for this one. Up 60% in one hour then down 84% to -24% in the next hour. That is sheer manipulation of sp to con investors into buying and then locking them in. Not nice mr mm. You are nothing but theives.

or the stock is so illiquid that purchasing/selling a very modest number has a disproportionate affect - similarly PRX

Cynic re post 33, On 16 april 2007 the company demerged with Avanti Coms, AVN, hence the huge drop in sp around that time. Given that fact, all the current price hiking by mm's on this stock are purely speculative and it is difficult to work out fair value. Do not use historical chart info on this stock as it doesn't reflect the slimmed down version of the company. That said, they do have a new contract and there should be some residual value. But how much?

I am having difficulty gauging what is really happening here, other than to say that I think it is a con.

Nearly all the trades are being reported late and because of the large swing in price, they are all being reported as purchases, when quite a few are sales. I believe this situation to be diliberately manufactured to give the impression of huge buying support.

This stock has risen by 400% this month, and once the majority of shares in issue have been taken up at a massively inflated price, I think the sp will fall back towards the 3p to 5p mark.

I am no expert on this stock but the new contract is worth about 1million per year. Even if you multiplied that by 10 that would only put about 5p onto the sp. If the movements in sp are geniune then the corresponding market cap yesterday fluctuated from 35.36million at 17p upto 58.24million at 28p down to 27.04million at 13p and back to the start of the day figure.

If this isn't creative accounting then I don't know what is.

good rns out today and simon rees is on trading places tomorrow at noon (sharecrazy website) could well be worth a look (i am a holder)

This share is like riding a rollercoaster.

Having scrutinised this share for several months now, I am of the impression that the only reason that sp rises and falls so quickly, is, to lock in as many punters as possible. The variances belie belief.

200,000 bought 35,000 sold and down 1p, with results due tommorrow, what an absolute joke. Stuff investing in this sort of crap, in a totally one-sided market, where theives are allowed to make up whatever prices they want to suit themselves. What happened to accountability and making a MARKET, not feathering their nests.

I thought the reason the shares moves quickly on good news is because a high percentage is owned by institutions etc.

77% up

Rumor on ADVFN that rise is due to a takeover bid...no idea if its true or not!!