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.

Hello hawick and James,
Would you like someone else to talk to? I'm embarassed to admit I hadn't spotted this one until it appeared in one of those dreaded tip sheets this weekend. Like what I see, so will be joining you in this one in the morning.

Hi sandrew and everyone else. Got in on friday at 235p after seeing the article in Shares mag. How's everyone faring so far? Expectations?

Hi Sandrew and chad. I don't need to talk to myself any more!! :)
Avanti has in the last fortnight been tipped by: Techinvest (a share of year); Shares Mag and (where did you see it sandrew?) this in the independent which might help you chad.
"Stock-pickers' guide

Landing on Small Talk's desk was another of those helpful "Spotlight on AIM" publications from Growth Company Investor, the magazine owned by little Vitesse Media and the publisher of The AIM Guide. Stock-pickers will be drawn to the valuation tables, including one on the market's 20 lowest forward price-earnings ratios. This includes companies such as Aero Inventory, which supplies parts to aircraft maintenance companies, and Avanti Screenmedia, which installs video screens for advertising and entertainment in bars, hairdressers and shopping centres."

Also UK-Analyst is rumoured to be keen supporter. As for numbers, the ones at the top are latest from the company.

Sorry gentlemen, I unfortunately wasn't able to join you after all this morning. I intended to place a spreadbet on but finspreads didn't offer it due to the size market cap. But nevermind I shall keep watching now for a dip and get some shares instead. Wishing you all the best,S.


ps It was in the fleet st letter

Not to worry sandrew, it moved up pretty early on so made it tough for newcomers, but i think there is still a deal of upside. Thanks for the Fleet Street news.

Now nudging 300p!! :)
Only AIM company to receive this award:

For release 7th February 2005

Avanti Screenmedia Group Plc ("Avanti")

Wins "Media Momentum Stars" Award for 'Growth potential and Management'


Avanti, the market leading provider of retail television services to high street
retail and bar market clients, is pleased to announce that it was chosen as one
of the top five UK "Media Momentum Stars", selected for exceptional growth
potential and management, last Friday, 4th February 2005 at the annual Media
Momentum Awards. It was hosted by venture capitalist GP Capital, in association
with the Barclays Media Team and Olswang.

Avanti was rated for its "strength of management and packaged offering" and was
the only AIM-quoted company to receive this award. Others in this category,
sponsored by Barclays Bank and Olswang, were Espotting, Inspired Broadcast
Networks, Opera Telecom and Zone Vision. The judges were from a panel of
industry experts, including Robert Leach, Head of Interactive BskyB, Nick
Horswell, Founder of PHD and Jon Farley, Head of the National Barclays Media SME
team.

Commenting, David WIlliams, Avanti Chief Executive said "We are obviously
growing fast, but it is nice to be singled out by such an eminent panel of
judges for special recognition. It also marks the next step in the coming of
age as screenmedia as a large market in its own right. We are the only
screenmedia company in the list of top 50 fast growing media companies, which
further underlines our leadership position in this exciting new space."

At the Media Momentum Awards, GP Capital also announced the 50 fastest growing
media companies, in which Avanti ranked eleventh, given its reported revenue
growth for the year 2002-2003 of 199%.

GP Capital partner, Manish Madhvani, said: "We are delighted to announce the top
50 as they not only represent the future of the UK media industry but are
exciting examples of companies at the forefront of innovation. Despite a tough
environment for the media sector, these 50 companies successfully grew their
revenue base by an average of 149% in a 1 year period. It was interesting to see
the list draw upon leading companies from areas as diverse as music album
compilations and digital MP3 terminals to Chelsea FC's media sales agency and
leading international broadcasters. The results also indicate certain emerging
industry sectors - internet advertising, and mobile content being ones to watch
for 2005."

This is great stuff hawick. Lets just hope Avanti can continue with this level of performance. Fingers crossed.

Hawick. Have you got any figures for the prospective P/E for this one?

Chad seen various forecasts around 1.5-2 million and double for next year, which would certainly make them cheap now. Market cap about 30 million, if they made 3-4 million 2006 they look good value here, but while i will hold as long as there is momentum, (an X trade of 50,000 at offer early today suggests mms are still very short of stock) I am not sure how high that will take us!

thanks hawick.

Hi guys, just found this previous thread you guys still in ASG? What did you think of the recent contract win? Thought I might update this tread with the recent contract win.........

This has still got massess of potentail with a single digit P/E offering for next year. I think EPS is forcasted to grow by over 130% without this unexpected new review stream opening up

Dow Jones International News

LONDON (Dow Jones)--Avanti Screenmedia Group PLC said Thursday that it has been awarded a EUR4.3 million contract, over 30 months, by the European Space Agency (ESA).

The television services company said the project, called INSPIRE, provides for the installation of a new mode of satellite and wireless broadband Internet access technology in 600 communities around the United Kingdom and Europe.

Chief Executive David Williams said: "This undertaking marks a significant increase in our activity in this new area of opportunity.

"Whilst there are some core areas in which this technology development enhances our screenmedia offering, overall it is quite a different business. I believe that there may be more significant developments in this area for Avanti Screenmedia this year."

He added: "This contract forms the foundation of what could become a very interesting stand alone business. For that reason, Avanti Screenmedia is currently investigating the most appropriate corporate structure within which to take advantage of this very exciting new development, and I am hopeful of delivering to shareholders this year some unexpected value

Sold as momentum ran out but bought back in following the announcement, which is a really exciting double development.
The chance of a lucrative spin-off should make these shares one for bargain huntrs.

anyone have any idea how much pubs are actually charged for service-cheers .

first bought this at 120 and been in and out a couple times . . . got back in at sub 200 and gonna stay with this for a while now. Looking at historic and forward earnings and ignoring the possible B/B spin off, on fundamentals this is a 300 - 320 stock. With the spin off being a bonus. Chart also looks good, particularly when 100MA is broken, which currently is at 232. Possible resistance at 250 and again at 295.

Superb management, great technology and product and the Mall contract was ground breaking . . . should be an exciting few months. . .

Testing that 232p now Kelvy. I am back in earlier this morning and comdirect says there are two recent upgrades, one broker looking for 26p eps next year which would make the company undervalued at this price imho.

Summer is here!

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

Trading Update

Avanti Screenmedia Group plc ('Avanti') today announces a trading update. The
financial year ended on June 30th 2005 with a strong finish with results in line
with market expectations. The Group ended the period with over 3m cash.

The Company has made a strong start to the year, experiencing a high level of
interest in its services, especially in the retail sector. The launch of a new
product in the leisure sector has also been well received and there are early
signs that advertising demand for the shopping mall offering is strong.

A changing business mix is likely to result in dramatically higher revenues for
2006 than was expected, with trading broadly in line with market
expectations.

Lucrative spin-off here we come? looks like free shares for existing holders. Last two sentences are what matters.

AVANTI AUTHORISED TO OPERATE COMMUNICATIONS SATELLITE BY OFCOM


Avanti Screenmedia Group Plc ('Avanti'), announces that it has been granted two
authorisations by Ofcom for the exclusive use of radio frequency spectrum and
satellite orbit resources in the geostationary orbital position of 33.5 degrees
West.


The two authorisations cover the Broadcast Satellite Services band from 11.7 to
12.5 GHz in the downlink on two polarities, with UK and European coverage.
Avanti therefore has 1.6 GHz of total bandwidth to utilise that can support up
to 40 x 33 MHz transponders, sufficient capacity to broadcast 240 high
definition TV channels.


Avanti is planning to launch and operate its first communications satellite by
no later than March 2008. This activity will complement the previously announced
INSPIRE project, creating a vertically integrated communications services
company offering broadband, broadcast and IPTV services in Europe. As
previously announced, the company is investigating in the best interests of
shareholders the corporate structure most appropriate for this activity, since
it is wholly different from screenmedia, the existing core activity of the
group. The Company expects to announce its conclusions shortly.

Absolutely over the moon - not putting it too strongly.

Also talk of 'exceptional' reward to shareholders from new venture.

'Avanti Screenmedia Group Plc ('Avanti' or 'the Company')
Preliminary Results for the year ended 30 June 2005

Avanti, the market leading provider of screenmedia services to high street
retail, shopping malls and the pub and bar market clients, announces its
preliminary results for the year ended 30 June 2005.

Avanti's clients use screenmedia to entertain customers, build brand, promote
products and generate new advertising revenue. Avanti has a complete in-house
competence to deliver screenmedia services. It builds satellite or terrestrial
distribution screen networks, creates channel strategies, makes video content
and sells advertising. Avanti also has a consultancy and R&D division which
creates new communications technologies and services.

Commenting on the results, John Brackenbury, CBE, Chairman said:

'I am extremely pleased and proud to report that our dynamic young management
team have again delivered a set of results which are ahead of target. Avanti
operates in an emerging market, but despite this the company, unlike its peers,
is delivering consistently improving profits. It has moved beyond critical mass
in the pub and bar market, which was the primary objective at flotation. It has
entered the shopping mall market and within just six months has become the
leader in the sector. Although development in the major retailer sector has
been more complex and slower than initially hoped the company is now working on
pilot projects with three large retailers and expects to announce further
transactions in the sector soon. Revenues and profits have shown a considerable
increase, exceeding market expectations. The Company ended the period with a
healthy cash balance of 3.4m.

The Consultancy business has developed its second core technology product, as
described in the INSPIRE press release in March 2005. This product provides
broadband Internet and multimedia services by satellite to businesses and homes
and already has its first order for 600 installations. Following this success,
the Company was awarded, on the 1st September, by OFCOM a license to launch and
operate a satellite. The Company now has rights to use a very large amount of
radio spectrum in perpetuity and, whereas in the past other commercial companies
have paid millions or billions of pounds for such resources, Avanti has been
required to pay almost nothing. Very few companies in the world have ever been
granted satellite operator rights and most of those companies are very large. I
am therefore proud that our management team has been able to create such
exceptional value for shareholders, as well as focussing on the core services.
The Company is in the process of investigating the best corporate structure in
which to develop this exciting new business to maximises the return to
shareholders.'

Financial Highlights

Turnover of 8.440m (2004: 4.620m), up 183%;

Operating profit for continuing businesses (excluding acquisitions) of
1,960k (2004: Profit 179k);

Net profit increased by 122% to 1,983k (2004: Profit 892k);

Net Cash at the year end of 2,052k (2004: Net Debt 947k); and

EPS of 18.25p (2004: 12.90p).

Operating Highlights

Avanti's channels now reach twelve million consumers per week,
reaching 37% of the highly desired 18-34 year old national audience with the
bar channels and 68% of all adults with its Mall channels. We believe this
now makes Avanti's channels a truly large scale advertising medium, which is
reflected by accelerating activity with advertising agencies.

Avanti is now contracted with over 1100 bars and pubs. Avanti launched
a new product called Genie, which is a Video DJ service for bars. This
carries a higher price and gross margin than other products and is likely to
be a major driver of profitability. In addition Avanti has reverted to its
standard terms for charging for the service following the success of its
promotional special offer in reaching critical mass in bars and pubs.

Avanti won a 3 year contract, to provide screenmedia to The Mall
Corporation worth in the region of 6m. It now has contracts for long term
services with 33 shopping malls, offering advertisers access to an estimated
seven million customers per week. Having only entered this market in January
2005, the Company has already achieved a clear market leadership.

Avanti commenced several pilots with major retailers.

The advertising market has shown significant signs of increased
acceptance of Avanti's offerings.

Avanti's consultancy division was awarded the Inspire contract from
ESA (3m) leading to an increase in revenues in the year.

Current Trading and Prospects

David Williams, Chief Executive said 'We are now, as promised, translating
Avanti's market leadership into profitability across all sectors. The
advertising market is becoming increasingly receptive to our offering and we
have recently noticed greater stability in media trading and an improved ability
to forecast accurately advertising revenues. However we remain keen to balance
risk and reward and are also actively pursuing business which does not rely
entirely upon advertising for profitability. Our market leadership is also
increasingly recognised abroad, and as a result we are beginning to look at low
risk opportunities for international business, about which I hope to report
during the current financial year.

I am further pleased to report that we have completed the establishment of a
fine management team which has significant strength in depth. The skill and
dedication of our entire workforce continues to impress me and delight our
clients, and as a result I believe we have built a business which is prepared
for considerable growth.

We are delighted that we have achieved the scale we set out to when we floated
in July 2004. However we remain cautious because in our opinion, our emerging
advertising medium is perhaps only three years in to what will probably be a ten
year development cycle to maturity. Avanti plans to lead that development on an
international scale. We do note that in the USA and the Far East, companies of
a similar size like PRN and Focus Media have commanded far greater valuations
than Avanti, suggesting that international investors are waking up to the future
value of our medium.

The new financial year has started well for us with very positive signs in the
retail market and an increase in advertising sales. We have increased our
prices and margins on products for the pub and mall markets, having achieved
critical mass, and these markets for us are now about maturing profitability,
not the land grab of the previous year. I am pleased to report that having
rebuilt our advertising team this year with higher quality professionals the
results are showing through.

The technology consulting business which created our screenmedia technology has
had by far its biggest success to date with our new broadband technology. No
doubt you will be aware from our releases concerning OFCOM, that we are in the
process of creating a business of truly large scale to exploit a new satellite
operator license. This is an opportunistic development which is relatively new
to shareholders, but represents the culmination of ten years of quiet but
diligent work. It is difficult for me to overstate the excitement we feel at
this new development, since it offers a rare and unparalleled opportunity to
eventually generate significant returns for our investors.'

Enquiries:

Avanti Screenmedia Group plc

www.avanti-screenmedia.com


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

Binns & Co PR 0207 786 9600
Peter Binns 07768 392 582
Paul McManus 07980 541 893

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 year ended 30 June 2005 and to be
able to report continued progress in the development of Avanti's business.

On 24th January 2005 Avanti acquired Freelance Media Limited (t/a Screen
Network) for approximately 1.9m which was satisfied by a cash payment of
541,728 and the issue of 690,441 new ordinary shares in the Company
('Consideration Shares') at a price of 200p per share. It was subsequently
discovered that Freelance had additional liabilities of 165k which led to the
acquisition price reducing to 1.7m and the 96,054 shares that this represented
were placed with an institutional investor. Freelance Media specialises in
developing shopping mall screeenmedia opportunities. Avanti has exploited the
synergies from the acquisition to enhance long term profitability and to make
its overall offer more attractive to advertisers.'


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 screenmedia services, whereby it builds satellite or terrestrial
content 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 at or close to the
point of sale.

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. Competitors often claim the same, but in fact outsource most key
functions creating higher risk and cost for clients.

Avanti's market research has shown that the presence of screenmedia advertising
can increase the amount of time customers spend in-store and generate
significant 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 categories of screenmedia channel.

Branded Channels

Avanti operates several Avanti branded channels: Magnetic, MVN, MVN Gym and MVN
Mall which are programmed entirely at Avanti's discretion and cost so that small
independent operators can use screenmedia without incurring the cost of bespoke
programming. The channels offer a variety of music and entertainment content.
Through the creative use of technology, these operators can however customise
their channels to make them appear bespoke by using local messaging services
resident on their media players which automatically slot into the programming
schedules. Avanti then sells advertising across these estates. Avanti also has
a more complex product in pub and bar called MVN Genie which enables customers
to operate the media player as a Video DJ deck. These channels are typically
offered on a fully maintained and service basis with a combination of fees
payable and media revenues shared.

Bespoke Retail Channels

Avanti creates bespoke channels for retail operators. Employing retail
strategists and media creative directors, Avanti is able to interpret clients'
retail strategies and create sophisticated marketing campaigns using the large
and complex screen networks it installs and maintains for these clients.

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
technology development. It provides consultancy to a variety of operators and
government agencies. The business creates technologies which Avanti then
commercialises. Its second major success has been the creation of a new
satellite broadband data product called INSPIRE. Avanti is now building the
final piece in the product chain by looking to finance and launch its own
satellite following the award of a radio license from OFCOM. We shall
communicate with shareholders shortly regarding the precise nature of this large
scale development.

New contracts won

Avanti signed a three year agreement valued at approximately 6 million with The
Mall Limited Partnership ('The Mall'), Britain's leading owner and operator of
shopping centres, for the provision of a total solution screenmedia service to
22 of The Mall's nationwide shopping centres, from Aberdeen to Bristol. It
should be noted when reading the P&L that this contract relied upon expertise
acquired from Screen Networks but the business was conducted within another
group subsidiary company.

It is the largest single contract secured by Avanti to date and breaks new
ground. Mall TV has an audience of circa 5 million visitors per week making it
the largest fully-commercial, single-client screenmedia network in Europe, and
early advertising sales have been encouraging. Avanti also has 11 other shopping
centres on its MVN Mall network.

The company is engaged in several pilots with retailers which it expects to turn
to commercial roll-outs.

MVN is now contracted with over 1,100 bars, delivering an advertising audience
of 4.5 million customers per week. Whilst there are some 60,000 pubs in the UK,
most being small community, food led or family pubs, Avanti targets an urban
youth audience and, of the 3,000 high street venues in the UK, the Group now has
a 33 per cent share of its target market.

Avanti's consultancy division was awarded a 4.3m (3m) contract, over 30
months, by the European Space Agency. The project, called INSPIRE, involves the
installation of a new mode of satellite and wireless broadband internet access
technology in 600 communities around the UK and Europe.

Management team

Avanti made three executive appointments during the year Stuart Chambers as
Retail Screenmedia Sales Director, Oliver Wilson as On Trade Sales Director and
Matthew O'Connor as Managing Director of the Broadband division.

Stuart Chambers brings considerable experience to Avanti in New Business
Development and Consulting in the area of digital merchandising. He worked on
the successful initiation of five digital media networks with UK market leaders
such as Tesco TV, Sainsbury's Future Store, Sainsbury's Bank, Marks & Spencer
and Philip Morris Worldwide Duty Free (Marlboro).

Oliver Wilson also brings significant expertise to his role as On Trade Sales
Director. He joins from BskyB where he was National Sales Manager serving the
leisure and hospitality sector.

Matthew O'Connor joined as Managing Director of the Broadband business Matthew
has worked in the telecommunications industry for 20 years initially for BT and
then Telewest in 1996 as a Director of its Business Division where he was
instrumental in growing the business from 30m to 300m revenues and in
launching the broadband proposition. He has also consulted widely across the
industry for a range of clients including Vodaphone, Ericsson and the DTI.

Current trading and future prospects

The Company has made a strong start to the new financial year, experiencing a
high level of interest in its services, especially in the retail sector. The
launch of the video DJ product in the leisure sector has also been well received
and there are early signs that advertising demand for the shopping mall offering
is strong. The creation of a new satellite multimedia business is expected to
deliver exceptional and unexpected rewards to shareholders.



D J Williams
Chief Executive


PRELIMINARY RESULTS



GROUP PROFIT AND LOSS ACCOUNT
For the year ended 30th June 2005






Notes From
Continuing Unaudited Audited
Operations Year 15 months
Excluding From ended to
Acquisitions Acquisitions 30/06/05 30/06/04
'000 '000 '000 '000

Turnover 8,426 14 8,440 4,620
Cost of sales (3,239) (38) (3,277) (1,621)

Gross Profit /(Loss) 5,187 (24) 5,163 2,999

Administration expenses (3,227) (6) (3,233) (2,241)

1,960 (30) 1,930 758

Other operating income - - - 76

Operating Profit/(Loss) 1,960 (30) 1,930 834

Interest receivable 80 10
Interest payable (110) (50)

Profit on Ordinary Activities before Taxation 1,900 794

Tax on profit on ordinary activities 83 98

Retained Profit for Year 1,983 892

Earnings per Share

Basic earnings per share 3 18.25p 12.90p

Diluted earnings per share 3 16.34p 12.58p


There are no recognised gains or losses other than the profit for the financial year


PRELIMINARY RESULTS



GROUP BALANCE SHEET
At 30th June 2005


Note Unaudited Audited
At 30/06/05 At 30/06/04


'000 '000 '000 '000
Fixed Assets
Tangible Assets 3,538 1.657
Intangible Assets - Goodwill 2,015 29
-Negative Goodwill 2 (441) (923)

5,112 763

Current Assets
Stocks 109 152
Debtors 5,367 2,031
Cash at Bank and in Hand 4,292 363

9,768 2,546
Creditors: Amounts falling due within
one year (3,754) (1,723)

Net Current Assets 6,014 823

11,126 1,586

Creditors: Amounts falling due after (835) (173)
one year

Net Assets 10,291 1,413



Capital and Reserves
Called up Share Capital 123 76
Share Premium Account 7,491 643
Profit and Loss Account 2,677 694

Shareholders' Funds 10,291 1,413





PRELIMINARY RESULTS



GROUP CASH FLOW STATEMENT
For the year ended 30th June 2005


Unaudited Audited
2005 June 2004
'000 '000

Net cash (outflow) from operating activities (757) (812)
Returns on investments and servicing of finance (31) (40)
Taxation 83 98
Capital expenditure and financial investment (1,234) (464)
Investment in subsidiary undertaking (542) -


Net cash (outflow) before financing (2,481) (1,218)
Financing 6,410 952

Increase/ (decrease) in cash 3,929 (266)


Reconciliation of Operating Profit to Net Cash (Outflow) from Operating Activities


Operating profit 1,930 834
Depreciation 839 473
Amortisation of goodwill (444) (522)
Decrease / (Increase) in stocks 44 (113)
(Increase) in debtors (4,072) (1,760)
Increase in creditors 946 276

(757) (812)

Reconciliation of Movement of (Net Debt)

(Net Debt) at start of year (947) (279)
Increase / (Decrease) in cash 3,929 (266)
Cash (inflow) from increase in loans (129) (369)
Cash inflow from increase in finance lease obligations (801) (33)

Net Cash/ (Debt) at close of year 2,052 (947)


Analysis of Funds / (Net Debt)

Cash at bank and in hand 4,292 363
Bank overdrafts (845) (594)

3,447 (231)
Bank loans due within one year (222) (522)
Bank loans due within one year (341) (164)
Finance leases and hire purchase agreements (832) (30)

Net Cash / (debt) at close of year 2,052 (947)






Notes

1. Presentation of results

This Preliminary Statement was approved by the directors on 19 September 2005.

The results have been prepared using accounting policies and practices
consistent with those adopted in the 2005 Report and Accounts but have not been
audited.

The audited results of Avanti Communications Limited (the former holding
company) for the fifteen months ended 30th June 2004 have been filed with the
Registrar of the Companies and on which the auditors gave an unqualified audit
opinion.

The financial information contained in this Preliminary Statement does not
constitute statutory accounts as defined by Section 240 of the Companies Act
1985.

2. Negative Goodwill written back

Negative Goodwill arising on the acquisition of Translucis Holdings Limited is
being amortised over a period of 36 months from 1st June 2003 and is being
matched to the depreciation of the revalued assets from which it arose.

3. Basic and diluted earnings per share

The calculation of the basic and diluted earnings per share is based on the
earnings attributable to ordinary shareholders, divided by the weighted average
number of shares in issue during the year.

Earnings per share of 18.25p (2004: earnings per share of 12.90p) is calculated
on the profit attributable to ordinary shares of 1,983,201 (2004: 892,070)
divided by the weighted number of ordinary shares in issue during the year.

2005 2004

Computation of basic earnings per share:

Net profit 1,983,201 892,070
Weighted average number of shares outstanding 10,867,501 6,916,168
Basic earnings per share 18.25p 12.90p

Computation of diluted earnings per share:

Net profit 1,983,201 892,070
Weighted average number of shares outstanding 12,138,947 7,092,291
Basic earnings per share 16.34p 12.58p

This comes from the chattering classes on advfn so must be treated with due care and attention, but there is a lot of discussion about the bandwidth and satellite licences ASG have been awarded. I am no expert but people are talking of sky high valuations (literally) but if they are even 10% right, ASG could be a right little goldmine.

'mjcrockett...yup thats absolutely correct. ASG have been assigned a satellite slot and the bandwidth...a scarce resource.I have spent my life time designing on board satellite systems and will not bore you with the technical details.Suffice to say that the bandwidth in the frequecy re-use mode is massive..and as the company says is enough to support 240 HDTV channels.The applications are endless.Even on a modest assumption of 1m revenue per channel(shopping channels,advertisements,pay channels etc)the potential is obvious.The likes of BskyB and those offering satellite based broadband internet services will be keen to get their slide rule over ASG..or indeed their Consultancy Division.As I have said before,the Division could be spun off with valuation well above the current ASGs market cap...imo'.

And:

''Avanti Screenmedia Group Plc (Avanti), announces that it has been granted two authorisations by Ofcom for the exclusive use of radio frequency spectrum and satellite orbit resources in the geostationary orbital position of 33.5 degrees West. The two authorisations cover the Broadcast Satellite Services band from 11.7 to 12.5 GHz in the downlink on two polarities, with UK and European coverage. Avanti therefore has 1.6 GHz of total bandwidth to utilise that can support up to 40 x 33 MHz transponders, sufficient capacity to broadcast 240 high definition TV channels.'

I know nothing about satellites, but my reading of this was that they already have the 'space in the sky' that you refer to. Or have I not understood this correctly?


Answer:

240 channels - yes - I think Sky has about 200.

Sky has a market cap of 10b, Avanti is 33m.

ASG must be a bargain surely! :-)

As i said, chatter, but if anyone has more grasp of this than me, I'd be fascinated..............

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.