The Board of Avanti Screenmedia today confirmed that their cash position was further improved through a £100,000 convertible loan and therefore gave official notice that the company was no longer reliant on an overdraft facility from its bank.
I have mentioned previously how well Avanti have been doing with their advertising sales. The attached press release says, and I quote “the Board is also pleased to confirm that advertising sales across the Company are performing strongly. Booked (gross) advertising sales for the current financial year have already exceeded those achieved for the entire 12 months to 30 June 2007”.
I don’t know for a fact that this is all down to advertising on the Setanta network but I expect the majority of the sales are. The Setanta deal is the best they have.
This announcement shot the stock price up almost 38% on the day – whilst Avanti still has a lot of problems – it has a very, very large monthly burn rate for example – investors will feel confidence in the announcement.
Going forward I would like to see a lot more openness from the company – at the moment they are one of the larger media sales businesses that don’t wish to share the brands that they are booking – though, as you know, I feel this is good for the industry and in the long run good for them also.