Shares of satellite operator Avanti Communications soared after it said while losses for the half year widened, it expects to become cash flow positive in the second half of the year.
Loss before taxation swelled to £15.94m for the six months ended December 31st 2012 compared to a loss of £6.6m before. Revenue for the period rose to £8.6m from £5.1m.
Avanti said sales momentum was growing with its second satellite HYLAS 2 fully operational and attracting major telecom customers.
The group has over £40m of revenue already in backlog for the year to June 2014.
The backlog at December 31st of firm orders was £290m.
Cash and cash equivalents at year-end stood at £50.7m from £25.9m previously.
Chairman John Brackenbury commented: ‘Avanti has enough business in backlog and pipeline to expect to achieve its targets, and pleasingly we have over £40m of revenue already in backlog for the year to June 2014 with another 18 months of selling still to go, so visibility of future performance is strengthening.’
‘Sales momentum continues to build very well. We operate in rapidly developing markets in Africa and the Middle East which are showing very strong demand for our market-beating services, with several HYLAS 2 beams already fully sold.’
‘Technical milestones are now behind us and our forward visibility continues to improve. 2013 should show commercial transformation,’ it added.
Shares of Avanti rose 5.37% at 265p at 0930 in London trading.