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.

Should also point out since these numbers (inserted below), as well as the Sony agreement, they have also won a contract with Brooks Leisure.

GROUP PROFIT AND LOSS ACCOUNT
for the 15 month period ended 30th June 2004




Notes From Operations From Unaudited Audited Year to
Excluding Acquisitions 15 months 31/03/03
Acquisitions to 30/06/04
'000 '000 '000 '000

Turnover 3,012 1,608 4,620 1,439
Cost of (1,071) (550) (1,621) (397)
sales --------- --------- -------- -------

Gross Profit 1,941 1,058 2,999 818

Administration (1,762) (479) (2,241) (1,022)
expenses --------- --------- -------- -------

179 579 758 (204)

Other - 76 76 32
operating --------- --------- -------- -------
income

Operating 179 655 834 (172)
Profit/(Loss) --------- ---------

Interest 10 -
receivable
Interest (50) (12)
payable -------- -------

Profit /
(Loss) on
Ordinary
Activities
before
Taxation 794 (183)

Tax on profit 98 -
on ordinary -------- -------
activities

Retained 892 (183)
Profit / ======== =======
(Loss) for
Year

Earnings per
Share

Basic earnings 3 12.90p (2.86)p
/ (loss) per ======== =======
share

Diluted 3 12.58p (2.86)p
earnings / ======== =======
(loss) per
share

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


PRELIMINARY RESULTS


GROUP BALANCE SHEET
at 30th June 2004

Unaudited Audited
At 30/06/04 At 31/03/03
'000 '000 '000 '000
Fixed Assets
Tangible Assets 1,657 163
Intangible Assets - Goodwill 29 34
- Negative Goodwill 2 (923) -
-------- --------
763 197

Current Assets
Stocks 152 39
Debtors 2,031 336
Cash at Bank and in Hand 363 73
-------- --------
2,546 448
-------- --------
Creditors: Amounts falling due within
one year (1,723) (387)
-------- --------

Net Current Assets 823 62
-------- --------
1,586 259
-------- --------
Creditors: Amounts falling due after (173) (286)
one year
-------- --------
Net Assets 1,413 (27)
======== ========


Capital and Reserves
Called up Share Capital 76 -
Share Premium Account 643 171
Profit and Loss Account 694 (198)
-------- --------
Shareholders' Funds 1,413 (27)
-------- --------




PRELIMINARY RESULTS


GROUP CASH FLOW STATEMENT
at 30th June 2004

Unaudited Audited
2004 March 2003
'000 '000

Net cash (outflow) from operating activities (812) (181)
Returns on investments and servicing of finance (40) (12)
Taxation 98 -
Capital expenditure and financial investment (464) (110)
Investment in subsidiary undertaking - (37)

-------- ----------
Net cash (outflow) before financing (1,218) (339)
Financing 952 416
-------- ----------
Increase/(decrease) in cash (266) 76
======== ==========

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

Operating profit / loss 835 (172)
Depreciation 473 54
Amortisation of goodwill (522) 3
(Increase) in stocks (113) (155)
(Increase) in debtors (1,760) (39)
Increase in creditors 275 128
-------- ----------
(812) (181)
======== ==========

Reconciliation of Movement of (Net Debt)

(Net Debt) / Funds at start of period (279) (40)
Increase / (Decrease) in cash (266) 77
Cash inflow from increase in loans (369) (292)
Cash inflow from increase in finance lease (33) (24)
obligations
-------- ----------
(Net Debt) at close of period (947) (279)
======== ==========

Analysis of Funds / (Net Debt)

Cash at bank and in hand 363 73
Bank overdrafts (594) (36)
-------- ----------
(231) 37
Bank loans due within one year (522) (25)
Bank loans due within one year (164) (267)
Finance leases and hire purchase agreements (30) (24)
-------- ----------
(Net Debt) at close of period (947) (279)
======== ==========





Notes


1. Presentation of results

This Preliminary Statement was approved by the directors on 27th September 2004.


The results have been prepared using accounting policies and practices
consistent with those adopted in the 2003 Report and Accounts but have not been
audited.


The audited results of Avanti Communications Limited (the former holding
company) for the year ended 31st March 2003 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 / (loss) per share

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


Earnings per share of 12.90p (2003: loss per share of 2.86p) is calculated on
the profit attributable to ordinary shares of 892,070 (2003: loss 183,239)
divided by the weighted number of ordinary shares in issue during the period.




2004 2003

Computation of basic earnings/(loss) per share:

Net profit/(loss) 892,070 (183,239)
Weighted average number of shares outstanding 6,916,168 6,414,210
Basic earnings/(loss) per share 12.90p (2.86)p



Computation of diluted earnings per share:

Net profit/(loss) 892,070 (183,239)
Weighted average number of shares outstanding 7,092,291 6,414,210
Basic earnings/(loss) per share 12.58p (2.86)p

Up again today. If Boots start to roll out the pilot, then the growth could be explosive.

Up 25p today. Still talking to myself??

Ah well, guess it's not a trendy exploration stock.........

From UK-Analyst on Friday:
"Shares in Avanti Screenmedia (ASG) added 18p to 198p as speculation mounted that some good corporate news is in the offing, with a small institutional placing completed as part of the upcoming news."

"Good morning James, I have news."

"Ah g'day nice to chat James, do tell."

"You know that Avanti thing you been goin' on about."

"Ah yes, ASG, the one i suggested at 155p a couple of weeks ago."

"Well James thought this might interest you."

"Buyers warmed to Avanti Screenmedia, 15 pence better at 210, after the provider of retail television services to high street retail and the pub and bar market clients revealed it has gained two contracts for the supply of its MVN (Music Video Network) channel."

"Thanks James, but I hear the 'good corporate news' still hasn't been announced."

'"That's right James, more to come."

Nice, thanks James, keep in touch, can get awfully lonely round here otherwise."

'Good call James, good luck, keep 'em coming, see ya soon!"

"Cheers!"

'Hi James lad, so your acquisition happened as promised, you still here?'
'Indeed, Sir.'
'Top tip from techinvest this morning for 2005 I hear.'
'Nice, thanks James!'
'You're welcome, nice 35% rise so far in a couple of months, more to come.'
'Yes it's all going very well for this company.'
Yes, speak soon James, btw someone tell moneyam to get that chart sorted that they've c*cked up, tut tut!'.'

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. . .