Since its demerger last year from Avanti Communications, Avanti Screenmedia’s share price has been on a rollercoaster journey, having dropped from an initial 35p it currently sits at a price of 2.5p after today’s announcement of interim results which said that they required more funding.
I am afraid that we don’t see this as a positive update at all and the need for UK PDS 1 Million funding in the current climate is probably not good. Many folks who had done due diligence with regard an Avanti investment in the past mentioned their huge cash burn and if they are not careful managing their outgoings for the rest of 2008, they may find themselves in deep water (as well as Bluewater).
Avanti Screenmedia Group PLC
27 March 2008
Avanti Screenmedia Group plc
(“Avanti” or “the Company”)
Unaudited Interim Results
Avanti Screenmedia Group plc, the AIM listed leading digital screen media specialist, announces interim results for the six months ended 31st December 2007.
- Turnover for the 6 months ended 31st December 2007 was £2.64m (like-for-like turnover 2006: £1.25m);
- Operating Loss for the period was £2.39m (like-for-like loss 2006: £2.68m);
- Successful fundraising of £1.14m during 6 months under review;
- Booked advertising sales increased by 145%;
- New account wins, including the showcase mall at Bluewater;
- Extension and restructuring of key mall contracts with The Mall Corporation, Land Securities plc and Tates Limited; and
- Implementation of new financial model now adopted for the Company’s key customers
Simon Rees, CEO, commented:
“Despite a challenging trading period, the Company has made a strong start to the new financial year, and the results for six months to 31st December 2007 reflect the beginnings of the positive implementation of Avanti’s new strategy.
“Transforming from its technology heritage, the Company is now truly establishing itself as the lead digital solutions provider within the wider retail media environment. Our focus is on growing our client base, generating advertising and promotional sales (locally, regionally and nationally), strengthening of relations with existing clients, introducing new dynamic creative executions, all against the backdrop of controlling our costs. Our ability to draw on a range of technological, distribution and creative innovations through in-house development and strategic partnerships is key to our growth in the future. The Company has now established a robust client base, including 3 of the 5 premier malls in the UK and one of the largest independently owned mall portfolios, The Mall Corporation. I am proud of the exceptional effort every member of my team has made over the past six months and look forward to continued progress and future success.”
Spare a thought for the retail investors, those who had invested initially (and didn’t put stop losses in place) would now be sitting easily on a 90%+ loss, others who have bought at the wrong time on this rollercoaster journey would also have lost out.
A prominent retail investor told us “the market as a whole is jittery … the big problem is even the mere mention of funding can send a stock into a tailspin” he continued “in these climates it’s imperative that there is strong PR and company communication, this is why Avanti struggle I believe”
It is hard to find anyone who may have gained from all this turmoil and share price movement (smart day traders apart perhaps).