AVANTI COMMUNICATIONS GROUP PLC 
ANNUAL REPORT AND ACCOUNTS 2015
QUALITY. FLEXIBILITY. WWW.AVANTIPLC.COM
Avanti Communications Group plc  Annual Report and Accounts 2015 CONTENTS
Strategic Report
1 Key Strengths
2 Avanti at a Glance
4  Highlights 
5  Chairman’s Statement
6 Chief Executive’s Review
8  Market Overview
8 Key Performance Indicators 
9 Our Business Model and Strategy
9 Outlook
10 Financial Review
12 Sustainability
Governance
16  Board of Directors 
18  Chairman’s Introduction  
to Governance
19 Corporate Governance Report
23 Audit Committee Report
24  Nominations Committee Report 
24  Technical Committee Report
25 Remuneration Committee Report
28 Report of the Board of Directors
30 Statement of Directors’  
Responsibilities
Financial Statements
31 Independent Auditor’s Report
32 Consolidated Income Statement
33  Consolidated Statement of 
Financial Position 
34 Company Statement of Financial Position
35  Consolidated and Company Statement 
of Cash Flows 
36 Consolidated and Company Statement 
of Changes in Equity
38 Notes to the Accounts
73 Notice of Annual General Meeting
77 Form of Proxy
Chairman’s Statement
Page 5
Chief Executive’s Review
Page 6
Financial Review
Page 10
ABOUT AVANTI
Avanti Communications Group  
is a leading provider of satellite data  
communications services in  
Europe, the Middle East and Africa. WHAT WE DO
Avanti connects people wherever they are – in their homes, 
businesses, in government and on mobiles.
Through the HYLAS satellite fleet and more than 160 partners 
in 118 countries, the network provides ubiquitous internet 
service to a quarter of the world’s population.
KEY STRENGTHS
1. Quality.
Our network mirrors the quality 
of service that terrestrial 
communications offer. We have 
market beating Service Level 
Agreements and no in-country 
coverage gaps.
4. Very high 
throughput.
The HYLAS fleet uses Ka-band 
which enables our High 
Throughput Satellites (“HTS”) 
to transmit over 10 times 
more data per satellite than 
legacy systems.
2. Flexibility.
Avanti has a unique Cloud based 
customer interface that provides 
a single point of co-ordination 
and control, allowing partners to 
become virtual network operators 
without the need to deploy their 
own capital or expertise.
5. High speed.
Our network can provide 
download speeds of up to 
380Mbps, no matter how 
challenging the location. 
3. Innovation.
We’ve developed proprietary 
and patented technology 
which is deployed throughout 
our network.
6. Affordability.
80% price reductions for our 
telecom and government 
customers, versus legacy 
Ku-band systems.
Avanti Communications Group plc 
Annual Report and Accounts 2015
1 smaller
terminals
diversity
QUALITY
STRATEGIC REPORT 
AVANTI AT A GLANCE
UNIQUE PRODUCT ADVANTAGES
Full coverage
• 100% national coverage 
of primary countries
• Overlapping beam 
patterns (no in-country 
coverage gaps)
• Service Providers  
can offer a truly  
national service  
with consistent quality
Smart beam clustering
• Avanti’s beam clusters 
land in a single Gateway 
in the relevant country 
or region
• Service Providers who 
want a national service 
need only operate through 
a single hub
High spectral density
• Service Providers can 
use the smallest possible 
terminals providing a 
cheaper, attractive and 
more efficient way of 
delivering bandwidth 
to customers
Diverse networks  
deliver resilience
• Avanti’s ground network 
is protected from 
atmospheric events
• Redundant Gateway with 
market beating Service 
Level Agreements and no 
atmospheric outages
FLEET AND COVERAGE
• Europe, the Middle East 
and Africa
• 118 countries 
• 13 of the largest economies 
in the world
• 65% of the world’s 20 fastest 
growing economies
HYLAS 1
Launch date: Nov 2010
Footprint: Europe
Capacity (GHz): 3
HYLAS 2 & 2-B
Launch date: Aug 2012
Footprint: EMEA
Capacity (GHz): 14
HYLAS 3
Launch date: 2017
Footprint: EMEA
Capacity (GHz): 4
 
HYLAS 4
Launch date: 2017
Footprint: EMEA
Capacity (GHz): 28
ARTEMIS
Launch date: 2001
Footprint: EMEA
Capacity (GHz): 1
Our Fleet Our Coverage
Avanti Communications Group plc 
Annual Report and Accounts 2015
2 FLEXIBILITY
OSS
advanced 
applications
multi vendor
hub
Hughes
iDirect
Newtec
Your hub
Hughes
ct
Products
PURE
Raw MHz on our satellites
• Service Providers have exclusive use of a defined 
number of MHz in specific beams. Traffic is not 
transparent to Avanti
• Service Providers need to buy from us hosting, power 
and backhaul at the Gateway
• Service Providers can buy hub and Customer Premises 
Equipment (“CPE”) from Avanti or directly from the 
manufacturer
• Service Providers can use Avanti’s Cloud or the 
hub vendor’s
CUSTOM
Managed IP service
•  Service Providers have exclusive use of a defined number 
of Mb in specific beams
• Bandwidth, hub and hosting/power/backhaul are supplied 
by Avanti as a fully managed service, accessed by the 
Avanti Cloud
• Service Providers can buy CPE either from Avanti or 
the manufacturer
•  Installers are trained and accredited by Avanti
SELECT
Packaged broadband
• Service Providers buy individual broadband user 
accounts, which are managed and defined by Avanti
• Accounts are contended i.e. bandwidth is shared in 
ratios controlled by Avanti. Accounts usually have 
defined speeds and monthly data throughputs 
• Service Providers buy CPE from Avanti
• Installers are trained and accredited by Avanti
Unique Avanti Cloud
• Proprietary Avanti Cloud, 
backed up by high levels 
of training and support 
puts Service Providers in 
total control, allowing them 
to configure and manage 
services as if they owned 
the satellite fleet
Multi-vendor platform
• Open architecture 
enabling the use of any 
vendor’s hub or modem 
to satisfy Service 
Providers’ preferences 
for vendor hardware
Contracting flexibility
• Three methods of operation/
contract to suit Service 
Providers’ own risk appetite, 
technical capability and 
budget: raw bandwidth, 
managed megabit and 
packaged customer 
accounts; with the ability to 
change between them as 
their businesses evolve
Niche applications
• Avanti’s Cloud enables 
Service Providers to form 
their own applications 
using their own hardware, 
software and skills
• Significant research and 
development to date has 
accelerated customers’ 
service offerings
PRODUCTS AND APPLICATIONS
Applications
Cellular backhaul Hosting Defence applications
Enterprise networks Oil and gas Security applications
Satellite news gathering Machine 2 machine Education
Backup Customer broadband Blue light
eHealth Occasional use
Avanti Communications Group plc 
Annual Report and Accounts 2015
3 STRATEGIC REPORT  
HIGHLIGHTS
• Revenue up 29.9% to $85.2m 
(2014: $65.6m)
• Continuing business constant 
currency revenue up 50.4%
• Net cash at year end $122.2m 
(2014: $195.3m) with a pro-
forma cash balance of $248.5m
• Contract wins with key target 
customers including SENTECH, 
Tanzania Telecoms Company 
and Orange Telkom Kenya
• Top-20 Customer Bandwidth 
Revenue Growth 53.7%
• Year end fleet utilisation up 
to the 20% to 25% band  
(2014: 10% to 15%)
• Construction of HYLAS 4 
commenced with launch  
on-track for early 2017
• Continuing business constant 
currency growth rate expected 
to continue into 2016
Avanti Communications Group plc 
Annual Report and Accounts 2015
4 STRATEGIC REPORT  
CHAIRMAN’S STATEMENT
Construction of our HYLAS 4 satellite began at the beginning of 
the financial year and the launch remains on-track for early 2017, 
with HYLAS 3 scheduled to launch in the same year. HYLAS 4 will 
complete our planned coverage of EMEA. 
Our technology platform performed to a high standard. The many 
proprietary and patented innovations that we have deliver 
a sustainable competitive advantage. 
We have now invested over $1.2bn in developing a business that 
can meet the huge latent demand for affordable connectivity in high 
growth markets. Together with the investments that we will make 
over the next two years, this will create a company with the potential 
to generate over $500m of EBITDA per annum once the fleet is filled. 
During the year Alan Foster and William Wyatt stepped down from 
the Board. I would like to thank them for the tremendous contributions 
that they have made to Avanti. 
I was pleased to welcome Andy Green and Charmaine Eggberry 
as Non-Executive Directors. I am sure that Avanti will greatly benefit 
from their experience as the business grows. 
Finally, I would like to thank our employees, customers, suppliers 
and investors for their ongoing support. 
Paul Walsh
Chairman
Avanti made good progress in 
2015. Our satellites provided high 
performance, affordable connectivity 
to governments, businesses and 
individuals across EMEA. This changed 
peoples’ lives every day, supporting 
economic growth, business, education, 
healthcare and security.
We enhanced our long-term growth platform, both in terms of customer 
growth and infrastructure development.
Avanti reaches end users through national and international Service 
Providers. During 2015 we grew our distribution platform, signing 
over 90 new contracts with both new and existing customers.
Amongst these were a number of wins with key target customers 
that have national distribution in our core markets. These included 
SENTECH in South Africa, Tanzania Telecoms Company and 
Orange Telkom Kenya.
Paul Walsh
Chairman
Avanti Communications Group plc 
Annual Report and Accounts 2015
5 STRATEGIC REPORT 
CHIEF EXECUTIVE’S REVIEW
While there is still work to be done to achieve Avanti’s full potential, 
in many ways 2015 was a landmark year for us. 
Avanti is no longer regarded as a new entrant. We are delivering 
excellent service for our customers using superior technology, 
today. Our technology platform is proven across our markets 
and our brand is understood and well regarded. 
We have now moved from an establishment to an execution phase. 
We are seeing strong ongoing growth from existing customers 
in our established territories as the distribution base matures and 
we expect to see growth increase when we launch service in 
West Africa. 
It took time to establish our brand, product and price proposition in 
many new markets and early customers were often specialists with 
high expertise and conviction, but limited marketing reach. 
We are increasingly distributing our product through major telecoms 
companies with universal market access within their geographies. 
We have been selected to undertake national broadband roll out 
projects by government owned national telecoms operators in all of 
the core HYLAS 2 African markets of Kenya, Tanzania, Zimbabwe 
and South Africa. Similar progress in other geographies is imminent. 
The maturing distribution platform is now therefore materially 
increasing our growth rates. During 2015, our Top-20 Customer 
Bandwidth Revenue Growth increased 53.7%. 
When we founded Avanti, we chose 
to design the highest quality and 
flexibility into our products, developing 
many patented innovations. This 
differentiates them from legacy 
satellite operators and mirrors the 
quality of service that terrestrial 
communications offer.
David Williams
Chief Executive
Avanti Communications Group plc 
Annual Report and Accounts 2015
6 Yield continues to average around $2,000 per MHz per month. 
The efficiency of our satellites delivers major advantages in pricing, 
which is presented to customers denominated in $ per Mb per month. 
We can generate three times as many MHz per ton of satellite than 
is the case with even the most advanced Ku-band High Throughput 
Satellites (“HTS”). Furthermore we can extract double the Mb per 
MHz due to high spectral efficiency and our dishes are half the 
price of Ku-band dishes.
Our $ per Mb per month prices are far lower than Ku-band 
competitors and we have a more compelling, higher quality, flexible 
and scalable offer. 
Avanti also has significantly greater capacity per country than 
legacy operators. This is important for large telecoms customers 
that want scalable deployments. 
We are also building the fleet. We added a further 3 GHz of incremental 
capacity at the end of 2015, as part of a commercial agreement with 
another satellite operator. This capacity is in the form of a steerable 
beam cluster which we are marketing as HYLAS 2-B. 
HYLAS 2-B gives us coverage of a new geography unserved by the 
fleet and also fortuitously gives us an opportunity to bridge the gap 
in steerable capacity that we have due to the previously announced 
slippage of the European Space Agency’s timetable to launch 
the satellite platform that will host HYLAS 3. Initial revenues are 
expected to arise in the second half of the current financial year. 
During the year the construction of our key HYLAS 4 satellite began. 
It is on-track and, following our capital raise post the year end, 
fully financed. 
To plan for the future, we have been making significant investments 
in our sales and marketing in preparation for the new markets 
that HYLAS 4 will cover. We have also been developing our 
ground network. 
Avanti is a hugely scalable business now the core operations have 
been established. It is a pioneer, delivering revolutionary technology 
which is changing lives today, while preparing to serve new markets 
and new customers in 2016 and beyond. 
David Williams
Chief Executive
Avanti Communications Group plc 
Annual Report and Accounts 2015
7   
KEY PERFORMANCE INDICATORS
Top-20 Customer Bandwidth 
Revenue Growth
Tracks Avanti’s growth trajectory 
from core service sales, excluding 
non-recurring items
53.7%
Fleet Utilisation
Tracks capacity uptake and gives 
an indication of revenue potential 
when Avanti’s fleet is mature
20%-25%
Avanti introduced two new performance indicators during the year 
in order to give investors greater insight into the progress that the 
business is making. 
The first of these was Top-20 Customer Bandwidth Revenue Growth. 
This metric helps to track Avanti’s growth trajectory from core service 
sales, excluding non-recurring items. It is calculated by comparing 
the revenues from current leading customers on a last 12 month 
basis, to the 12 months preceding that. Revenues from this customer 
group were 53.7% higher in the 2015 financial year versus 2014. 
The second new performance indicator was Fleet Utilisation. This 
metric helps to track capacity uptake and gives an indication of 
revenue potential when Avanti’s fleet is mature. It is calculated by 
expressing utilised capacity as a percentage of total available 
capacity for the fleet of HYLAS 1 (3 GHz), HYLAS 2 (11 GHz) and 
ARTEMIS (1 GHz). 
Avanti’s Fleet Utilisation was within the 20% to 25% band at the end 
of 2015, having increased from the 10% to 15% range in the prior 
year. The new HYLAS 2-B capacity is expected to be deployed in 
the middle of the current financial year. We are now commencing 
marketing in West Africa for HYLAS 3 & 4 and expect contract 
pre-sales announcements in the current financial year. 
STRATEGIC REPORT  
MARKET OVERVIEW
Satellites provide data communications and 
broadcasting services around the world. Satellites 
are used versus terrestrial infrastructure in situations 
where they can provide superior economics to 
customers or where other forms of communication 
are not available.
Avanti operates in the fixed data communications part of the satellite 
market. Avanti has pioneered the use of Ka-band technology, which 
enables us to service this market at a lower cost than legacy operators. 
In turn, this vastly increases the addressable market for satellite data 
communications. Particularly in the high growth geographies where 
Avanti’s capacity is focused, but also closer to home where Avanti 
can offer universal superfast broadband across Europe. 
In these areas, dispersed populations and huge land areas make 
terrestrial communications uneconomic to deploy. For example, 
Africa has the same land mass as Europe, USA, China and India 
combined, yet a population the same as just India alone. 
As a result of this low population density, fibre will not be deployed 
in European equivalent scale in the local loop during the lifetime of 
our satellites and so Africa is moving directly to wireless. In wireless 
technology, Ka-band HTS satellite is the best way to deliver high 
capacity, low cost data services. 
Avanti’s satellites provide businesses, governments and individuals 
in the rapidly emerging consumer classes, the opportunity to 
access a high quality and resilient network at affordable prices. 
We estimate that the addressable market for our HTS services 
across the EMEA region, defined as users who both need satellite 
connectivity and have the ability to pay for it, is over 1,000 Gbps and 
growing. Avanti’s HYLAS satellite fleet will provide up to 200 Gbps of 
Total  
addressable market
>1,000 Gbps
EBITDA
potential 
at capacity
$500m
Broadband
>700 Gbps
Enterprise
>150 Gbps
2015 
Revenue
$85.2m
Government
>30 Gbps
Carrier services
>240 Gbps
Market opportunity
data throughput. Avanti competes with the large established global 
satellite operators, that primarily use legacy technologies and other 
young HTS operators.
The addressable market above is the demand that our customers 
tell us that they can convert in the next few years. The total 
potential long-term demand, especially in Africa, is hundreds 
of times greater. 
Avanti Communications Group plc 
Annual Report and Accounts 2015
8 STRATEGIC REPORT 
OUR BUSINESS MODEL AND STRATEGY
Our business model
Avanti connects people wherever they are – in their homes, 
businesses, in government and on mobiles. Through the HYLAS 
satellite fleet and more than 160 Service Providers in 118 countries, 
the network provides ubiquitous internet service to a quarter of the 
world’s population. Avanti delivers the level of quality and flexibility 
that the most demanding telecoms customers seek.
Avanti’s technology platform is made up of three operational 
satellites in orbit, two under construction, a further one which will 
come into service in the second half of the 2016 financial year 
and a ground segment infrastructure delivering comprehensive 
coverage of Europe, the Middle East and Sub-Saharan Africa.
These assets are turned into a virtual network service accessible by 
our Service Provider customers. This is done using the Avanti Cloud, 
a bespoke software based control system that allows all parts of the 
Avanti network to be controlled and configured online.
Avanti has developed proprietary and patented technology which is 
deployed throughout its network. This technology has been developed 
in house by its employees, who are amongst the most experienced 
in the industry.
Avanti uses the high frequency Ka-band spectrum. This enables our 
High Throughput Satellites to transmit over 10 times more data per 
satellite than legacy systems, significantly reducing end-user costs 
and creating a larger addressable market.
A combination of the efficiencies that are inherent in the use of 
Ka-band and Avanti’s high-powered network design also make our 
systems significantly more efficient than the emerging Ku-band high 
throughput networks.
Our network can provide download speeds of up to 380Mbps and 
we can offer customers price reductions versus legacy Ku-band 
systems of up to 80%.
Avanti generates revenue by charging its Service Provider 
customers for the use of its network. The primary revenue 
generating unit of sale is bandwidth, expressed in Mbps.
Like other infrastructure companies, Avanti’s business model 
involves significant upfront capital expenditure to launch services 
and a largely fixed operating cost base. This is expected to result 
in initial cash outflows being followed by very strong cash inflows 
as the business grows.
Avanti’s business model is differentiated from those of legacy 
satellite operators primarily by its use of Ka-band technology and 
the Avanti Cloud. The Avanti Cloud enables the sale of satellite 
capacity as a service, rather than as an infrastructure purchase.
The satellite industry has very high barriers to entry. These include 
the intellectual capital that is needed to design and run a satellite 
network and the requirement for orbital slots and spectrum.
The risks to Avanti’s business model through technological change 
are low, primarily due to the very long lead times needed to develop 
and launch new satellite technologies.
Our strategy
Avanti’s strategy is founded on the assumptions that data usage will 
continue to grow strongly for the foreseeable future; that terrestrial 
infrastructure will not satisfy demand; and that high growth markets 
offer the highest returns.
Avanti sells a managed service for fixed data connectivity. The go 
to market strategy is to sell to telecoms companies and specialist 
Service Providers for use in the Broadband, Enterprise, Government 
and Carrier Services verticals.
The Group sells mainly through direct field sales with strong 
engineering pre-sales support.
The continuing business growth rate, assuming constant currency, 
seen during 2015 is expected to continue in the new financial year. In 
addition to this, management expects core recurring revenue growth 
to again be augmented with non-recurring revenue.
Avanti has a largely fixed cash cost base. There will be a modest 
increase in costs in 2016 as further investments are made in sales 
and marketing and ground operations ahead of the launches of 
HYLAS 3 and HYLAS 4.
Management expects that the combination of Avanti’s strong 
revenue growth and largely fixed cash cost base will lead to  
substantial operating cash flows in the medium-term.
  
OUTLOOK
Avanti Communications Group plc 
Annual Report and Accounts 2015
9 STRATEGIC REPORT 
FINANCIAL REVIEW
EBITDA
EBITDA (before share based payment charges) increased to $16.0m 
from $1.7m in 2014. This was a result of the revenue growth and the 
changes in cash costs outlined below. 
Costs of sale decreased 3.3% to $83.8m (2014: $86.7m). This 
reflected the growth in the business offset by the cost associated 
with the exceptional sales of equipment for an infrastructure project 
in the prior year. Cash cost of sales (excluding depreciation) were 
$38.0m (2014: $39.4m). 
Operating costs increased 2.3% to $35.6m (2014: $34.8m). This 
reflected the growth in the business, the fact that an element of 
the costs are largely fixed and movements in Sterling versus the 
US Dollar. 
Loss per share
Loss attributable to shareholders of $73.1m (2014: $87.2m), which 
included a net interest expense of $40.5m (2014: $39.0m), results 
in a loss per share of 61.5 cents (2014: loss per share of 81.2 cents). 
Cash flow
Net cash balances at year end were $122.2m (2014: $195.3m). 
EBITDA (before the share based payment charge) of $16.0m translated 
into $10.2m of cash absorbed from operations as a result of the 
receipt of an element of revenue in the form of property, plant & 
equipment and an increase in working capital of $1.2m. 
Net proceeds from financing were $90.6m. 
Revenue
Revenue in the year increased 29.9% to $85.2m (2014: $65.6m). 
On a continuing business, constant currency basis, revenues grew 
50.4%. Continuing business is defined as excluding discontinued 
European Space Agency grant revenue in the prior year, a one off 
sale of ARTEMIS capacity in the prior year, exceptional sales of 
equipment for an infrastructure project in the prior year and the  
sale of spectrum in the 2015 financial year. 
Revenue for the year included recurring continuing business 
revenues of $60.1m together with non-recurring revenues of $25.1m. 
The non-recurring revenues related to the sale of certain spectrum 
rights in perpetuity, related to geographic markets in which the 
Group does not seek to operate, in exchange for indefeasible rights 
to use a 3 GHz Ka-band payload over its estimated remaining life 
of 13.5 years. The revenue recognised was based on the fair value 
of the asset received. 
Average yield remained above our target rate of $2,000 per MHz 
per month.
Nigel Fox
Group Finance Director
Avanti Communications Group plc 
Annual Report and Accounts 2015
10 85.2 15
32.1 13
65.6 14
19.7 12
8.7 11
Balance sheet
Tangible fixed assets were $691.0m (2014: $610.8m). Additions 
were $151.1m, of which $96.5m related to HYLAS 4, $35.1m to 
HYLAS 2-B and the balance to HYLAS 3 and ground infrastructure. 
Total depreciation was $47.9m with movements in exchange rates 
decreasing total NBV by $19.7m.
Trade and other receivables decreased 8.0% to $35.5m with accrued 
income remaining fairly stable with a slight reduction due to timing 
differences around the year end. Trade and other payables excluding 
accrued interest decreased from $42.2m in 2014 to $35.7m in 2015. 
This was driven by a reduction in trade payables of $4.6m due to 
the settlement of capital expenditure related liabilities present at the 
2014 year end and timing differences. 
Gross debt was $528.4m (2014: $517.0m) and net debt was $406.2m 
(2014: $321.7m). The Group carries a deferred tax asset in its 
balance sheet, and has significant unclaimed capital allowances 
on the two HYLAS satellite assets which are expected to shelter 
any future tax liabilities for at least three years. 
Post balance sheet events
Avanti announced on 17 August 2015 that it had raised an incremental 
$126.3m to complete the funding of the HYLAS 4 satellite. This 
comprised of a cash inflow from debt issuance of $115.0m and an 
equity issuance of $11.3m to give total cash proceeds of $126.3m. 
As a result of this, pro-forma year end cash including the receipts 
from the debt and equity raises would have been $248.5m. 
Insurance
Avanti maintains a full suite of insurance policies covering not only 
space assets, but also business interruption associated with the 
5 Year Revenue ($’m)
failure of its ground earth stations. The HYLAS 1 in orbit insurance 
policy was renewed in November 2014 with an insured value of  
$176.0m at a rate of 0.63%, and the HYLAS 2 policy was renewed 
in August 2015 for $306.0m at 0.51%.
Backlog
Backlog was $389.5m (2014: $430.0m). Backlog comprises our 
customers’ committed contractual expenditure under existing contracts 
for the sale of bandwidth, satellite services, consultancy services 
and associated equipment sales over the life of their terms. Backlog 
does not include the value arising from potential renewal beyond a 
contract’s term or projected revenue from framework contracts. We 
do include projected revenue from consultancy services provided to 
government customers at the rate of $3.3m per year, based on the 
average revenue generated by these services for the last five fiscal 
years. The usefulness of this metric has reduced as Avanti has 
moved towards selling through framework contracts, under which 
customers start with low initial capacity commitments, but typically 
increase these on a regular basis. Thus the business more closely 
resembles a telecoms company rather than a TV broadcasting 
business, and so backlog does not give a full indication of expected 
forward revenues.
Avanti’s Service Provider customers, under framework contracts which 
have no fixed term, are undertaking a significant number of new 
installations across EMEA every day. This is increasing the run rate 
of Avanti’s recurring revenue growth under framework contracts on 
an ongoing and compounding basis. The impact of this on Avanti’s 
expected future revenues is not captured by the backlog metric.
Nigel Fox
Group Finance Director
Avanti Communications Group plc 
Annual Report and Accounts 2015
11 STRATEGIC REPORT  
SUSTAINABILITY
Avanti uses targets and metrics to measure our performance and to 
enhance future performance by learning from our past successes 
and challenges. Avanti evaluates possible sustainability issues 
based on their relevance to our current operations and the potential 
future impact on the business in order to ascertain our priorities. 
Priorities may change as the business develops and as we receive 
feedback from our stakeholders, and we therefore review these on a 
regular basis. For areas identified as having a high importance, we 
have either already developed strategies and have controls in place 
and are reporting on performance, or we are developing more 
detailed strategies within our existing systems to focus on specific 
aspects. By monitoring our performance in this way we will also get 
valuable feedback for use in the continual improvement of our 
policies, processes and procedures. Stakeholder engagement 
is important to Avanti. 
Talent/Avanti people
To have a sustainable business, Avanti must attract, develop and 
retain talent and manage it across the business. Avanti contributes 
to the wider community through the course of its business by 
creating employment, offering work experience and graduate 
training opportunities to young people and by investing in good 
causes that are relevant to the business.
Our approach to sustainability 
Avanti recognises that the long term sustainability of the Group 
is secured by managing the current impacts of its operations and 
products, and anticipating the future global business environment. 
Avanti’s sustainability strategy is designed to ensure that we have 
in place:
• Responsible business practices to underpin business activities 
and support employees in making the right decisions to drive 
business performance;
• A safe work environment for employees; and
• A diverse range of talented employees with a broad range 
of skills and capabilities to deliver against global 
customer requirements. 
The Chief Executive, supported by the Board, has overall 
responsibility for the Group’s ongoing commitment to sustainability 
to ensure that there are appropriate policies, systems, reporting 
structures and metrics in place to achieve the Group’s sustainability 
objectives. All Avanti employees also have some responsibility 
for sustainability, whether it be in their interactions with Service 
Providers or making efficiencies to support our environmental aims. 
The effectiveness of policies and processes is monitored and 
reviewed on an ongoing basis and risks or opportunities are 
assessed and managed.
Avanti Communications Group plc 
Annual Report and Accounts 2015
12 Attract and retain
Like many companies operating in the technology industry in the 
UK, Avanti has concerns about current and future talent shortages 
in the technology and engineering sectors. This is a particular issue 
as the labour market becomes more fluid. Maximising the available 
talent pool is at the heart of our recruitment strategy and Avanti 
uses a diverse range of recruitment methods to achieve this; 
including utilising social media and our own database of interested 
candidates, harnessing our employees’ networks, online advertising 
and building relationships with universities and other groups. 
The measure of voluntary employee turnover provides insight into 
retention at Avanti. Avanti monitors this on a monthly basis and 
regular feedback ensures that any potential issues are identified 
and dealt with. Avanti’s target for voluntary turnover (over a 12 month 
period) is under 15%. This level reflects the current average levels 
of turnover experienced in London based commercial businesses, 
with an appropriate level of churn to refresh the talent base. To 
improve retention, Avanti has developed internal communications 
and benefits and implemented a more structured development 
strategy. These changes have had a positive impact on retention. 
In the UK currently only 6% of the engineering workforce is female. 
Avanti continues to buck this trend. Engineers make up 60% of 
Avanti’s workforce and of those 11.6% are female. 
At Avanti we continue to actively promote the industry to young 
people and women through work with universities and colleges  
and to promote fair and open recruitment and selection practices. 
Avanti employs people from 33 countries speaking more than 27 
languages. Through encouraging diversity within our workforce, 
Avanti aims to better reflect the diversity of our customer base  
and be able to respond better to its demands. 
Working with young people
Avanti aims to encourage the workforce of the future by supporting 
science, technology and engineering education through building 
links with local colleges and universities, in particular through 
involvement with the National Space Centre, Sector Skills Council for 
Science, Engineering and Manufacturing Technologies (“SEMTA”), 
and UK Students for the Exploration and Development of Space 
(“UKSEDS”). Avanti also offers internships and voluntary work 
experience placements as well as providing expert technical talks to 
universities. Avanti’s graduate scheme attracted over 300 enquiries 
this year and provides bright graduates with training and hands on 
experience of technical roles within the satellite communications 
industry. Now in its fourth year, the graduate scheme provides the 
business with a strong pipeline of committed and competent 
engineers from a range of technical backgrounds.
Graduate scheme
• Over 300 applicants in 2015
• 19 graduates have joined the 
scheme since 2011
Investing in people
• Over 400 training sessions held
• 17% of all vacancies filled 
by internal promotion
Sustainability highlights
Avanti Communications Group plc 
Annual Report and Accounts 2015
13 Avanti key behaviours
Avanti’s key behaviours set out the principles and standards of 
business conduct expected of all employees wherever they operate 
and in whatever role. These behaviours are embedded into our 
induction and performance review processes. Avanti’s key behaviours 
play a large role in ensuring that the strong values of the Company 
are maintained as it grows in size. Avanti’s culture is an important 
factor in driving quality and flexibility for customers and other 
stakeholders in the business. 
Human rights
Avanti requires that its business be conducted with honesty and 
integrity, and in full compliance with all applicable laws. Company 
policies establish clear ethical standards and guidelines for how we 
do business and establish accountability. The Company has clear 
accountability mechanisms in place to monitor and report on 
compliance with these directives. Additionally, Avanti supports and 
upholds the elimination of discriminatory practices with respect to 
employment and occupation, and promotes and embraces diversity 
in all aspects of its business operations.
Developing talent
Robust appraisal and performance management processes are 
in place to ensure that Avanti is able to deliver quality and flexibility 
throughout all areas of work by identifying and developing skills 
and knowledge within the business and empowering employees 
to suggest improvements and innovation. Avanti offers development 
opportunities across the business in technical and management 
skills to ensure that our workforce is ready to adapt to changes in 
technology and markets. In the 12 months leading up to July, Avanti 
provided over 400 training sessions for employees and the 
development activity is paying off. Avanti is proud of its record of 
developing talent and promoting from within; in the last year, 17% 
of all vacancies were filled by internal promotion.
Key next steps
Avanti continues to develop and diversify its recruitment practices 
and grow its links with relevant universities and other groups to 
promote engineering and the satellite industry. We also continue 
to review and improve our practices and policies to ensure that 
we remain an attractive employer as the labour market is predicted 
to become more challenging, and that our workforce is flexible and 
able to adapt quickly to change and growth.
STRATEGIC REPORT 
SUSTAINABILITY continued
Avanti Communications Group plc 
Annual Report and Accounts 2015
14 Health and safety
Avanti wants employees to work in a safe, healthy environment. 
To achieve this we continue to review and update our policies, 
procedures and practices to assess and mitigate against any 
risks. Avanti has a robust health and safety audit and improvement 
process, and encourages employees to report potential issues 
and suggest improvements.
Environment
At Avanti we feel an environmental responsibility to both our Service 
Providers and their wider communities. Fortunately, our technology 
enables us and our Service Providers to behave in an environmentally 
responsible way. Services and applications such as teleworking, 
video conferencing, distance learning and e-commerce allow Service 
Providers to exchange information and ideas without actually 
travelling, saving energy and reducing pollution. Today, Service 
Providers can use our wireless services to make the distribution of 
goods more efficient; help reduce energy use in workshops, offices 
and homes; and take advantage of telemedicine and distance learning.
Measuring the environmental impact
Avanti encourages all employees to avoid all unnecessary travel by 
providing full telephone or video conferencing in meeting rooms at 
Avanti sites. Employees are expected to consider the necessity of 
their journeys and to use alternative methods of communication 
where possible, such as remote accreditation of partners and 
supporting partners via video conferencing. We also carefully 
monitor energy usage and waste in our head office in London, and 
hope to roll out this monitoring across other sites in the near future.
Stakeholders
Avanti’s principal stakeholders include investors, employees, partners, 
suppliers, government and non-government organisations and the 
communities in which it operates. Avanti aims to communicate openly 
with stakeholders about its business in order to better understand 
their views and concerns, and explain the Company’s approach.
Organisational departments
The structure at Avanti is designed to promote flexibility and 
excellent customer service by encouraging accountability and 
allowing for focused working. This is achieved by grouping the 
functions whose main purposes are customer facing (the partner 
support, deployment and logistics teams), sales and revenue 
generation (marketing, sales and pre-sales) and technical 
operations and innovation (procurement, satellite operations, ground 
operations and networks). Interdepartmental working is encouraged 
through the use of project teams and regular meetings of the 
management team, as well as regular cross Company training.
The strategic report on pages 1 to 15 was approved by the Board 
of Directors on 16 September 2015 and signed on its behalf by:
David Williams Nigel Fox
Chief Executive Group Finance Director
Avanti Communications Group plc 
Annual Report and Accounts 2015
15 01/ Paul Walsh
+ • Δ
Chairman
Paul was appointed Chairman of Compass 
Group plc in February 2014 having been 
a Non-Executive Director of the Company 
since January 2014. Previously, he was 
the CEO of Diageo plc from September 
2000 to July 2013, and the Chief Operating 
Officer of Diageo from 1 January 2000.
Paul joined Grand Metropolitan’s brewing 
division in 1982 and became Finance 
Director in 1986. He held financial and 
commercial positions with InterContinental 
Hotels and in the Grand Metropolitan food 
business, becoming CEO of the Pillsbury 
Company in 1992. He was appointed to the 
Grand Metropolitan Board in October 1995, 
and to the Diageo Board in December 1997. 
Paul is a Non-Executive Director at Unilever 
plc and FedEx Corporation and was 
appointed to the Board of United Spirits 
Limited in August 2013. Paul became 
Chairman of Avanti in March 2014.
02/ David Williams
Chief Executive
David is a co-founder of the Company. Prior 
to this, he spent 10 years working in the City 
financing telecommunications projects with 
Chase Manhattan, CIBC and Babcock and 
Brown. He graduated from Leeds with a 
degree in Economics and Politics.
03/ David Bestwick
†
Technical Director
David is a co-founder of the Company. 
He graduated from the University of 
Leicester in 1987 with a BSc in Physics 
with Astrophysics. Following three years at 
Marconi Research Centre, he joined VEGA 
Group plc in 1990 where he worked on a 
wide range of satellite applications projects.
David is responsible for all new technology 
and project developments.
04/ Nigel Fox
Group Finance Director
Nigel is a Chartered Accountant and has 
held various senior finance roles before 
joining Avanti Communications in 2007, 
including Chief Financial Officer of Climax 
Group; Group Financial Controller at ARC 
International; Finance Director of Ruberoid 
Building Products; and Group Financial 
Controller of Ruberoid plc.
Nigel is responsible for all aspects of 
Finance and Administration of the Group.
05/ Matthew O’Connor
Chief Operating Officer
Matthew joined Avanti in 2005 having 
worked in the telecommunications industry 
for 20 years, initially for BT where he held a 
number of sales and marketing roles within 
the UK and International Divisions. He joined 
Telewest in 1996 as a Director of its 
Business Division, where he was part of the 
team that grew the business from a £30m 
regional business to a £300m turnover 
national operation in six years. He went on 
to be Managing Director of the Wholesale 
Division with customers that included 
T-Mobile, 3, Cable and Wireless, NTL 
and many telecoms re-sellers.
06/ John Brackenbury CBE
+ • Δ
Non-Executive Director
John stepped down from Chairman of 
Avanti to a Non-Executive Director role 
in March 2014. He was awarded a CBE 
in June 2000 for his contribution to Tourism, 
Education and Employment. He is a leading 
industrialist with over 40 years of experience 
in the drinks and leisure sector. He is Trustee 
and Director of Springboard Educational 
Trust, Chairman of Brackenbury Leisure Ltd 
and Trustee and Vice President of GamCare. 
John is the Chairman of the Nominations 
Committee.
GOVERNANCE 
BOARD OF DIRECTORS
01
02
03
04
05
06
Avanti Communications Group plc 
Annual Report and Accounts 2015
16 07/ Professor Michael Walker OBE 
FREng
†
 Non-Executive Director
Michael has spent more than 25 years in 
industry, the last 10 years of which, until  
his retirement in September 2009, he was 
Group Research and Development Director 
for the Vodafone Group of companies, with 
responsibility for the Group’s research 
activities, intellectual property and 
technology standards worldwide.
Michael also led technology innovation  
and managed engagement with start-up 
companies for Vodafone, and was a 
member of the Board of Vodafone Ventures, 
the venture capital arm of the company. 
He is a Vodafone Fellow and an Executive 
Technical Advisor to the company. He is 
Chairman of the Board of the European 
Telecommunications Standards Institute. 
He holds the Vodafone Chair in 
Telecommunications at Royal Holloway, 
University of London, as a part-time 
professor, and is a visiting professor  
at the University of Surrey.
Michael was recently appointed Head 
of School for Natural and Mathematical 
Sciences at King’s College London. He 
was awarded an OBE in June 2009 for his 
services to the telecommunications industry.
08/ Richard Vos
+ • †
Non-Executive Director
Richard is a telecommunications and 
satellite professional, with international 
experience, gained over 40 years working 
in the industry. His previous positions 
include Chairman of SatCom Group 
Holdings plc, Inmedia Communications 
Ltd and Inmarsat Ventures plc, and 
Head of Satellite Investments for BT, serving 
as Governor and Chairman for the UK and 
Ireland on the Board of INTELSAT. He is a 
Non-Executive Director at One Horizon 
Group Inc. In July 2014, Richard was 
appointed Director of Tawsat Holdings 
Limited and Tawsat Limited. Both are 
satellite IP development and licensing 
companies, registered in Ireland.
Richard is the Chairman of the 
Remuneration Committee.
09/ Paul Johnson
+
Non-Executive Director
Paul is a Fellow of the Institute of Chartered 
Accountants in England and Wales. He 
spent 24 years as a Partner in KPMG 
working with companies in a variety of 
different industries in both the listed and 
private sectors. For the last 12 years he was 
Chairman of KPMG’s London Region. In 
2015, he became a Non-Executive Director 
of Pelucid Limited, a predictive marketing 
technology company. 
Paul is the Chairman of the Audit Committee.
10/ Charmaine Eggberry
†
Non-Executive Director 
Charmaine is a Non-Executive Director  
on the Board of GB Group plc, Chairperson  
of Buzzmove, CEO of PlanB Consulting  
and a Board member and trustee of  
The Marketing Academy.
Previously, Charmaine was Global Senior 
Vice President at Nokia and Managing 
Director & Vice President, EMEA at 
Research In Motion (BlackBerry). She also 
led Wayra, the digital accelerator, and was 
a Non-Executive Director of Wayra UnLtd, 
a joint venture between the UK Government 
and Telefónica. 
11/ Andy Green 
Non-Executive Director
Andy is Chairman of IG Group, DockOn, Inc. 
and the Digital Catapult. He is a Non-
Executive Director on the Board of ARM 
Holdings plc (and will be appointed Senior 
Independent Director in January 2016). 
Andy is also a Non-Executive Director of the 
CBI. Until 2012, he was CEO of Logica plc.
Prior to joining Logica, Andy was a Board 
member at BT plc. He is also co-Chair of 
the UK Space Leadership Council and a 
member of the Information Economy Council.
+ Audit
• Remuneration
Δ Nomination
† Technical
07 09
08
11
10
Avanti Communications Group plc 
Annual Report and Accounts 2015
17 GOVERNANCE 
CHAIRMAN’S INTRODUCTION TO GOVERNANCE
Avanti firmly supports the upholding  
of good principles of corporate 
governance, not only because it is 
required for compliance purposes  
but because effective corporate 
governance serves to ensure that  
the business is run properly and in  
the interests of all of its stakeholders. 
Paul Walsh
Chairman
The Board of Directors (the “Board”) recognises that it is accountable 
to shareholders for the Company’s activities and that it is responsible 
for the effectiveness of corporate governance practices. It remains 
committed to maintaining high standards of corporate governance 
and, whilst the Company is AIM listed and therefore not required 
to comply with the UK Corporate Governance Code (the “Code”), 
the Board seeks to comply with the Code in all material respects 
wherever it is practical to do so having regard to the size of the 
Company and the resources available to it.
As a Board, we monitor closely for developments in legislation, 
regulation and industry guidelines to ensure that our corporate 
governance policies are kept up to date and that the Board 
committees take into account all of the latest guidance in their 
areas of activity.
The Board takes all appropriate measures to ensure that no conflict 
of interest can exist between members of the Board and other 
stakeholders in the Company. 
Throughout the year ended 30 June 2015, the Board considers that 
the Company complied in all material respects with those parts of 
the Code that it considers appropriate. This Corporate Governance 
Report, the Report of the Board and the Remuneration Report detail 
how the Company has applied the main principles of the Code.
Paul Walsh 
Chairman
Avanti Communications Group plc 
Annual Report and Accounts 2015
18   
CORPORATE GOVERNANCE REPORT
Role of the Board
The Board has a collective duty to promote the long term success 
of Avanti (the “Company”) for its shareholders. The Board sets the 
Company’s strategy and ensures that the necessary resources are 
in place to achieve the strategic priorities. 
In determining the long term strategy and objectives of the 
Company, the Board takes into account its duties and 
responsibilities not just to its shareholders but also to customers, 
employees and other stakeholders and makes its decisions 
objectively. It reviews management and financial performance, 
monitors the delivery of strategy and achievement of objectives 
and works within a rigorous framework of internal controls and risk 
management. The Board develops and promotes the collective vision 
of the Company’s purpose, objectives, values and key behaviours.
Composition of the Board
The Board comprises a Non-Executive Chairman, six other 
Non-Executive Directors and four Executive Directors. During the 
year, William Wyatt and Alan Foster retired as Non-Executive 
Directors and Charmaine Eggberry and Andy Green were appointed 
as Non-Executive Directors. The balance of the Board, together with 
the advice sought from other members of senior management and 
the Company’s external advisors, ensures that no individual has 
unfettered powers of decision.
Chairman and the Chief Executive
The Board is chaired by Paul Walsh who provides leadership that 
demonstrates the values and behaviours of the Company. The 
Chairman is responsible for creating the conditions for overall Board 
and individual Director effectiveness. He ensures that both Executive 
Directors and Non-Executive Directors make available sufficient time 
to execute their duties in an appropriate manner, that all Directors 
receive sufficient financial and operational information and that there 
is proper debate at Board meetings. He is also responsible, in 
consultation with the Chief Executive and the Company Secretary, 
for setting the agenda for the Board’s meetings.
David Williams is the Chief Executive and, supported by the Group 
Finance Director, the Chief Operating Officer and the Technical 
Director, he is responsible for the day-to-day management of the 
Company. He provides leadership to the Company to successfully 
plan and execute the objectives and strategy agreed by the Board. 
The roles of the Chairman and Chief Executive are separate with each 
having clearly defined duties and responsibilities.
Non-Executive Directors
The Company benefits from the extensive experience of the 
Non-Executive Directors in areas critical to the long term future 
success of the Company, encompassing a deep understanding of 
the industry, technology, corporate strategy, finance and investment. 
The Non-Executive Directors help the Executive Directors by 
contributing independent challenge and rigour to the Board’s 
deliberations and assisting in the development of the Company’s 
strategy. In addition, they are responsible for monitoring the 
performance of the Executive Directors against agreed goals and 
objectives. Their views are essential in overseeing the performance 
of the Company.
Induction and ongoing training 
All Directors have access to advice from the Company Secretary 
and independent professionals at the Company’s expense. Training 
is available for Directors as necessary. New Directors receive an 
induction programme and all the Directors are encouraged to 
continue professional education programmes.
Matters reserved for the Board
The Board recognises that, to ensure the long term success of 
the Company, certain specific matters should be reserved for 
the consideration and decision of the Board alone. Decisions 
specifically reserved for approval by the Board are formally 
recorded and include:
• Annual and interim accounts and Financial Statements;
• Dividend policy;
• Board appointments;
• Company strategy and annual operating budget;
• Changes to the Company’s capital structure;
• Changes to the Company’s management and control structure;
• Major capital expenditure, acquisitions and disposals;
• Treasury policies;
• Risk management strategy;
• Company corporate governance policy; and
• Environmental, health and safety and sustainability policies.
Board meetings
The Board met on six occasions during the year. The Board also 
maintained an open dialogue throughout the year and contact by 
telephone occurred whenever necessary. 
Board attendance for the financial year 1 July 2014 to 30 June 2015 Attended
Chairman Paul Walsh 6/6
Executive Directors David Williams
David Bestwick
Nigel Fox 
Matthew O’ Connor
6/6
5/6
6/6
6/6
Non-Executive Directors John Brackenbury CBE
Richard Vos
Michael Walker OBE FREng
Paul Johnson
Charmaine Eggberry (Appointed 27 November 2014)
Andy Green (Appointed 27 November 2014)
Alan Foster (Retired 31 March 2015)
William Wyatt (Retired 27 November 2014) 
6/6
6/6
6/6
6/6
4/5
5/5
4/4
1/1
Avanti Communications Group plc 
Annual Report and Accounts 2015
19 During the year, the Chairman continued the practice of maintaining 
a 12 month agenda for Board and committee meetings. Agenda 
items included permanent items such as progress reports from the 
Executive Directors and the Company Secretary, as well as periodic 
items such as updates from the Board committees, review of the risk 
register and internal controls, strategy and succession planning. 
In advance of each meeting, the Board is provided with monthly 
management reports and other relevant information in a timely 
manner and in a form and quality that it considers appropriate. 
The Chairman and the Board have confidence that the way in which 
the Board meetings are conducted ensures that they cover all the 
matters required to be discussed and that sufficient time is allowed 
for discussion of each matter at the most appropriate meeting in the 
year, enabling the members of the Board to discharge their duties 
as Directors effectively. 
The Company Secretary attends all Board meetings and is available 
to advise on any corporate governance issues that may arise.
Re-appointment of Directors
All Directors are required to retire every three years and may offer 
themselves for re-appointment, which is not automatic. As a Company 
with a long-term growth strategy, it is appropriate for Directors to 
serve on the Board for more than a single term, subject to continuing 
satisfactory performance.
All Directors proposed to shareholders for election or re-election 
are accompanied by a biography and a description of the skills and 
experience that the Board considers relevant. The Board is satisfied 
that all the Directors standing for election or re-election continue 
to perform effectively and demonstrate commitment to their roles, 
including commitment of time for Board and Board committee 
meetings as well as any other duties which may be undertaken 
by them from time to time.
Board Committees
The Board has established a number of committees to assist in the 
discharge of its responsibilities. The principal committees are the 
Audit Committee, the Nominations Committee, the Remuneration 
Committee and the Technical Committee. The responsibilities of 
each of these Board committees are set out in their individual Terms 
of Reference. The roles and responsibilities of the committees are 
discussed further below.
Committee meetings are held independently of Board meetings 
and invitations to attend are extended by the committee Chairman 
to other Directors, the Company’s advisors and management 
as appropriate.
Audit Committee
The Audit Committee is comprised of four Non-Executive Directors: 
Richard Vos, Paul Walsh, Paul Johnson and John Brackenbury. The 
Committee is chaired by Paul Johnson. Through their other business 
activities, each member of the Committee has significant experience 
in financial matters. The Company considers that the composition 
of the Audit Committee is in accordance with the Code. Further 
information on the activities of the Committee is set out in the Audit 
Committee Report on page 23. 
Nominations Committee
The Nominations Committee is comprised of two Non-Executive 
Directors: John Brackenbury and Paul Walsh. It is chaired by 
John Brackenbury. For further information on the activities of the 
Committee please refer to page 24.
Remuneration Committee
The Remuneration Committee is comprised of three Non-Executive 
Directors: Richard Vos, Paul Walsh and John Brackenbury. It is 
chaired by Richard Vos. 
Executive Directors and senior management attend Remuneration 
Committee meetings at the invitation of the Committee Chairman only.
The Remuneration Committee meets according to the Company’s 
requirements at least twice a year. 
The Remuneration Committee determines, within agreed Terms of 
Reference, specific remuneration packages for the Chairman, the 
Executive Directors and the officers of the Company. This includes 
implementation of Company share incentive plans. In accordance 
with the Committee’s Terms of Reference, no Director may participate 
in discussions relating to his or her own terms and conditions 
of service or remuneration.
With regard to the remuneration policy, the Committee considers:
• The pay scales applied to each Director’s package;
• The proportion of the different types of reward within 
each package;
• The period within which performance related elements 
become payable;
• What proportion of rewards should be related to measurable 
performance or enhanced shareholder value, and the balance 
between short and long-term performance elements; and
• Transparency of Directors’ remuneration in the annual 
Financial Statements. 
Further information on the activities of the Committee is set out in the 
Remuneration Committee Report on pages 25 to 27.
GOVERNANCE 
CORPORATE GOVERNANCE REPORT continued
Avanti Communications Group plc 
Annual Report and Accounts 2015
20 Technical Committee
The Technical Committee is comprised of three Non-Executive 
Directors, Michael Walker, Richard Vos and Charmaine Eggberry, 
the Technical Director and other senior technical management of the 
Company. It is chaired by Michael Walker. For further information 
on the activities of the Committee please refer to page 24.
Relations with shareholders
The Board recognises the importance of establishing and 
maintaining good relationships with all of the Company’s 
shareholders. During the period under review, the Chief Executive, 
Group Finance Director, Chairman, Remuneration Committee 
Chairman and Audit Committee Chairman have met with analysts 
and institutional shareholders to keep them informed of 
significant developments and report to the Board accordingly on 
the views of these stakeholders.
The Interim Report and the Annual Report and Accounts are the 
primary means used by the Board for communication during the 
year with all of the Company’s shareholders. The Board also 
recognises the importance of the internet as a means of 
communicating widely, immediately and cost effectively and a 
Company website (www.avantiplc.com) is maintained to facilitate 
communications with shareholders.
Information available online includes copies of the full and half year 
Financial Statements, press releases and Company news, corporate 
governance information and key dates in the financial calendar.
The Board is committed to the constructive use of the Annual 
General Meeting (“AGM”) as a forum to meet with shareholders and 
to hear their views and answer their questions. The 2015 AGM will 
be held on 24 November 2015 at 9.00 am.
Shareholders are encouraged to attend the AGM and to participate 
in proceedings by asking questions during the formal part of the 
meeting, voting on resolutions put to the meeting and providing 
Board members with their views in informal discussions after 
the meeting.
Notice of the AGM is on page 73 and it is also available to download 
on the Company’s website. Separate resolutions are proposed on 
each issue so that they can be given proper consideration and there 
is a resolution to approve the Annual Report and Accounts. The 
Company counts all proxy votes and indicates the level of proxies 
lodged on each resolution, after they have been dealt with by 
a show of hands.
Financial reporting
At the half year and the year end, all operating Group companies 
are required to produce Financial Statements to comply with local 
accounting regulations and to produce sufficient information 
to enable the central finance team to produce IFRS-compliant 
Consolidated Financial Statements. 
The Board presents a balanced and understandable assessment 
of the Company’s position and prospects in all interim and price 
sensitive public reports whilst also reporting to regulators all 
information required to be presented by statutory requirements.
Internal control and risk management
The Board has overall responsibility for the Company’s system of 
internal control to safeguard Company assets and shareholders’ 
investments. The risk management process and systems of internal 
control are designed to manage rather than eliminate the risk of 
failure to achieve the Company’s objectives.
The Board has reviewed the effectiveness of the system of internal 
control for the year ended 30 June 2015 and up to the date of the 
signing of the Annual Report and Accounts. The Board will continue 
to develop and implement internal control procedures appropriate 
to the Company’s nature and scale. 
The Company does not have an internal audit function due to the small 
size of the Company’s administrative function and the high level of 
Director review and authorisation of transactions. The Audit Committee 
believes that these internal controls are adequate for the Group’s 
current size and does not feel that a separate internal audit function 
is currently warranted. This situation is kept under regular review.
The Board recognises that an essential part of its responsibility 
is the effective safeguarding of assets, the proper recognition of 
liabilities and the accurate reporting of results. The Company has 
a comprehensive system for regular reporting to the Board. This 
includes an annual planning and budgeting system with budgets 
approved by the Board.
The financial reporting system compares against budget and prior 
year, and reconsiders its financial year forecast on a monthly basis.
The Board has established a formal policy of authorisation setting 
out matters which require its approval and certain authorities 
delegated to the Executive Directors.
Avanti Communications Group plc 
Annual Report and Accounts 2015
21 The key features of the Group’s system of internal control are 
as follows:
• Management responsibility and accountability: There are clearly 
defined management responsibilities, reporting lines and limits of 
authority. The Chief Executive and the Group Finance Director 
meet regularly with the Executive Directors and other members of 
senior management to review progress on financial, commercial, 
operational, supply chain, HR, health, safety and environmental 
issues as well as regulatory and legal compliance matters.
• Strategy and planning: The Group updates its strategic plan 
each year and this is approved by the Board.
• Budgeting and reporting: Detailed management accounts are 
prepared each month, consolidated and reviewed in detail with 
senior management.
• Expenditure approval: Authorisation and control procedures 
are in place for capital expenditure and other major projects. 
There is also a process to review capital expenditure projects 
post completion to highlight any issues and improve future 
projects. Authorisation procedures for operating costs and 
contractual commitments are reviewed regularly.
• Independence of the finance function: The finance function is 
encouraged to act independently of general management in the 
course of its preparation of monthly accounts and exercising of 
control procedures.
• Insurance and risk management policies: This includes a formal 
annual risk review report to the Board. Regular meetings are held 
with insurance and risk advisors to assess the risks throughout 
the Group.
• Documented policies: There are documented policies for a 
range of areas including HR matters, expenditure, treasury 
and financial reporting.
• Cash: The cash and debt position at Group and operational level 
is monitored daily and any variances from forecast levels are 
investigated thoroughly. Working capital balances are reviewed 
on a monthly basis at Group level, and any significant variances 
are analysed and investigated.
• Effectiveness: The Board continually reviews the effectiveness of 
the systems of internal control and risk management procedures 
throughout the year.
Ethics
The Group prides itself on carrying out its business in a fair, honest 
and open manner, ensuring that it complies with all relevant laws 
and regulations. 
Under the Companies Act 2006, a Director of a company must avoid 
a situation in which he or she has, or can have, a direct or indirect 
interest that conflicts or may possibly conflict with the interests of the 
company. The Company has a formal procedure in place to manage 
the disclosure consideration and, if appropriate, the authorisation 
of any such possible conflict. Directors are aware of the requirement 
to notify the Board as soon as they become aware of any possible 
future conflict or a material change to an existing authorisation. Only 
Directors who have no interest in the matter being considered are 
able to take the relevant decision. 
The Executive Directors have contracts of service with one year’s 
notice, whilst Non-Executive Directors’ appointments can be 
terminated at any time with six months’ notice. 
None of the Non-Executive Directors has any material business 
or other relationship with the Company or its management. 
Details of the Directors’ service contracts, emoluments, the interests 
of the Directors in the share capital of the Company and options to 
subscribe for shares in the Company are provided in the Remuneration 
Report on pages 25 to 27.
Bribery Act 2010
The Board performs an ongoing assessment of the risk environment 
and has implemented a framework to ensure that the Group trades 
in compliance with the UK Bribery Act 2010 and all other relevant 
anti-bribery and corruption legislation.
GOVERNANCE 
CORPORATE GOVERNANCE REPORT continued
Avanti Communications Group plc 
Annual Report and Accounts 2015
22 AUDIT COMMITTEE
All members of the Audit Committee are independent Non-Executive 
Directors. The Board is confident that the collective experience of 
the Audit Committee members enables them, as a group, to act as 
an effective Committee. 
By invitation, the meetings of the Audit Committee may be attended 
by the Chief Executive and Group Finance Director. The KPMG LLP 
audit engagement partner is present at the Audit Committee meetings 
to ensure full communication of matters relating to the audit. The 
Chairman of the Audit Committee meets regularly with the Group 
Finance Director and external Auditor. 
The Audit Committee has particular responsibility for monitoring the 
financial reporting process, the adequacy and effectiveness of the 
operation of internal controls and risk management and the integrity 
of the Financial Statements. This includes a review of significant 
issues and judgements, policies and disclosures. Its duties include 
keeping under review the scope and results of the audit and its cost 
effectiveness, consideration of management’s response to any 
major external audit recommendations and the independence  
and objectivity of the external Auditor.
During the year to 30 June 2015 the Audit Committee reviewed 
and endorsed, prior to submission to the Board, half year and full year 
Financial Statements, interim management statements and results 
announcements. It considered internal management reports and risk 
management updates, agreed external audit plans, received updates 
on management responses to audit recommendations and approved 
the review of accounting policies. Progress on implementation of 
processes to meet the requirements of the UK Bribery Act 2010  
was also provided to the Committee. Following the issue of high yield 
bonds in October 2013, the Company commenced limited quarterly 
reporting and the Audit Committee additionally required KPMG to 
carry out reviews on revenue recognition and analytical reviews  
of the quarterly Financial Statements with management.
External Auditor
Auditor objectivity and independence is safeguarded through 
a variety of mechanisms. To ensure the Auditor’s independence, 
the Committee annually reviews the Company’s relationship with 
KPMG. Following the review in 2015, the Company concluded that 
it continues to have an objective and professional relationship with 
KPMG and that there are sufficient controls and processes in place 
to ensure the required level of independence. In addition, the 
Auditor is required to review and confirm its independence to the 
Committee on a regular basis. 
Non-audit services 
The Company’s Auditor may also be employed where, as a result 
of its position as Auditor, it either must, or is best placed to, perform 
the work in question.
Paul Johnson
Audit Committee Chairman
  
 
COMMITTEE REPORTS
Avanti Communications Group plc 
Annual Report and Accounts 2015
23 NOMINATIONS COMMITTEE
The Nominations Committee comprises independent Non-Executive 
Directors. The Nominations Committee meets as and when 
necessary and details of the membership of the Committee are 
shown on page 20. The Nominations Committee has responsibility 
for nominating to the Board candidates for appointment as 
Directors, bearing in mind the need for diversity and a broad 
representation of skills across the Board.
The Nominations Committee will also make recommendations 
to the Board concerning the re-appointment of any independent 
Non-Executive Director at the conclusion of his or her specified 
term, the election and re-election of any Director by shareholders 
in accordance with the provisions of the Code and changes to 
senior management, including Executive Directors.
Another area of activity, which the Committee debated, and which 
was also discussed with the full Board, related to Board diversity 
and agreement to the issue of a statement of how the Board considers 
diversity as part of its succession planning. Gender is one element 
of the considerations made in appointing senior management, Board 
appointees and as part of general recruitment practices across 
the Company. The Nominations Committee gives full consideration 
to succession planning in the course of its work, taking into account 
the challenges and opportunities facing the Company, how to take 
account of diversity, including gender, and what skills and expertise 
are needed on the Board and from senior management in the future. 
John Brackenbury CBE
Nominations Committee Chairman
TECHNICAL COMMITTEE
The Board of Avanti has established a Technical Committee 
to report on progress by the Company with all aspects of the 
technology that underpins its business. 
The activities of the Committee include:
1.  Reviewing progress on the development, deployment and 
operation of the technology that supports Avanti’s business on 
an ongoing basis;
2.  Monitoring all technological risks identified in the Company 
risk register; 
3.  Assisting the Company with the resolution of technology problems 
and the realisation of technology opportunities; 
4.  Assessing whether the technology employed is the best fit for 
the Avanti business, and that the technology team is strong 
enough to develop, deliver, operate and maintain it in the best 
interests of the business;
5.  Bringing to the attention of the Board any issues with technology, 
including disruptive technology which might have a significant 
impact on the business of the Company; and
6.  Preparing and maintaining a Technology Strategy for the 
Company which is continuously updated.
The Technical Committee is chaired by Professor Michael Walker, 
with support from Richard Vos, Charmaine Eggberry, David Bestwick 
and senior executives from within the Company.
This year the Technical Committee has focused its work on three 
main topics:
1.  Plotting a course to enable the Company to benefit from the 
integration of satellite technologies with future 5G terrestrial 
services;
2.  Overseeing the managed transition of the control of Avanti’s 
satellite fleet to in-house operations; and
3.  Providing realistic assessments of the potential competitive threat 
that the more speculative new satellite and terrestrial systems 
might actually pose.
Overall the Technical Committee is pleased with the progress the 
Company has made in continuing to build on its technological base 
which is well adapted for the Company’s future growth. 
Professor Michael Walker OBE FREng
Technical Committee Chairman
GOVERNANCE 
COMMITTEE REPORTS continued
Avanti Communications Group plc 
Annual Report and Accounts 2015
24 The Remuneration Committee comprises independent Non-Executive Directors only. The Committee, on behalf of the Board, meets as and 
when necessary to review and approve, as appropriate, the remuneration of the Executive Directors and senior management and major 
remuneration plans for the Company. The Committee consists of Richard Vos (Chairman), Paul Walsh and John Brackenbury. 
Alan Foster and William Wyatt participated actively until March 2015 and November 2014 respectively.
During the year, the Remuneration Committee met four times.
Remuneration policy
The Company’s policy on remuneration of Directors is to attract, retain and motivate the best people, recognising the input they make to the 
ongoing success of the business. Consistent with this policy, the remuneration and benefits package awarded to Directors is intended to be 
competitive and comprises a mix of performance related and non-performance related elements designed to incentivise Directors in 
the short and longer term, and align their interests with those of shareholders. Their remuneration accordingly consists of base pay, annual 
bonus, Long Term Incentive Plan (“LTIP”), share options, pension contributions and other benefits such as health care.
Under the Company’s LTIP which came into operation in July 2013, shares will vest if specific targets are met after a fixed period of years 
after they are allocated. The targets set by the Remuneration Committee reflect the desired performance of the Company as it develops 
from a “start-up” to a more mature business.
The above represents no change from the Company’s existing remuneration policy and no further change is anticipated in the coming year.
Remuneration 2015
The remuneration of the Directors for the year is set out below, the previous year’s figures being shown for comparison. Remuneration 
is paid in Sterling, but reported in US Dollars, the exchange rates used being USD 1.57 in 2015 and USD 1.66 in 2014.
For the year ended 30 June 2015
Executive
Salary
$
Bonus
$
Other
benefits
$
Post
employment
benefits
$
Total
2015
$
Total
GBP
£
D J Williams 564,788 484,651 105,006 – 1,154,445 734,333
D J Bestwick 414,185 355,417 68,600 – 838,202 533,174
N A D Fox 328,707 235,678 50,514 50,120 665,019 423,013
M J O’Connor 288,616 119,424 32,566 36,232 476,838 303,313
Non-Executive
P Walsh 275,119 – – – 275,119 175,000
F E J G Brackenbury CBE 189,161 – 12,652 – 201,813 128,372
C R Vos 86,466 – – – 86,466 55,000
M Walker OBE FREng 82,536 – – – 82,536 52,500
P R Johnson 86,466 – – – 86,466 55,000
C Eggberry (appointed 27 November 2014) 40,567 – – – 40,567 25,804
A Green (appointed 27 November 2014) 40,567 – – – 40,567 25,804
D A Foster (retired 31 March 2015) 62,235 – – – 62,235 39,587
W P Wyatt (retired 27 November 2014) 30,524 – – – 30,524 19,416
Total 2,489,937 1,195,170 269,338 86,352 4,040,797 2,570,316
  
REMUNERATION COMMITTEE REPORT
Avanti Communications Group plc 
Annual Report and Accounts 2015
25 For the year ended 30 June 2014
Executive
Salary
$
Bonus
$
Other
benefits
$
Post
employment
benefits
$
Total
2015
$
Total
GBP
£
D J Williams 629,094 286,474 134,338 – 1,049,906 631,558
D J Bestwick 420,726 210,083 83,228 52,591 766,628 461,807
N A D Fox 336,087 167,821 61,427 42,337 607,672 366,014
M J O’Connor 293,070 146,391 40,988 36,638 517,087 311,537
Non-Executive
P Walsh 194,830 – – – 194,830 117,167
F E J G Brackenbury CBE 232,969 – 13,190 – 246,159 150,246
D A Foster 85,885 – – – 85,885 52,500
W P Wyatt 77,703 – – – 77,703 47,526
M Walker OBE FREng 99,007 – – – 99,007 59,912
C R Vos 91,981 – – – 91,981 56,250
P R Johnson 89,974 – – – 89,974 55,000
Total 2,551,326 810,769 333,171 131,566 3,826,832 2,309,517
Basic salary
Base salary is set by the Committee and reviewed annually, taking into account an individual’s performance and experience measured by 
appraisal and market practice. The Executive Directors received a 5% increase for the year ended 30 June 2015.
Pension
The Company does not operate a specific pension scheme for the Executive Directors. The Executives are entitled to a Company contribution 
to their private pensions equal to 12.5% of their base salary. All Directors are entitled to participate in the Company workplace pension scheme.
Cash bonus 
Bonus awards, which are not pensionable, are made to the Executive Directors based on Company financial and individual performance. 
Bonus payments are only payable if the Company meets a specific target threshold. Personal performance is appraised against the achievement 
of challenging objectives set at the start of each financial year, and is linked to the Company’s strategic and operational performance.
Save As You Earn
During the year, two Executive Directors made contributions into the Avanti Save As You Earn (“SAYE”) schemes. Nigel Fox made monthly 
contributions of £250 into the November 2013 SAYE scheme and David Bestwick made monthly contributions of £250 into the November 
2011 SAYE scheme.
GOVERNANCE 
REMUNERATION COMMITTEE REPORT continued
Avanti Communications Group plc 
Annual Report and Accounts 2015
26 Directors’ share interests 
The following Directors held interests in the share capital of the Company:
Fully paid Ordinary Shares  
of 1p each
30 June
2015
30 June
2014
D J Williams 1,709,414 1,709,414
D J Bestwick 1,301,954 1,301,954
N A D Fox 134,580 134,580
M J O’Connor 203,961 203,961
P Walsh 205,000 205,000
F E J G Brackenbury CBE 516,432 516,432
C R Vos 21,030 21,030
P R Johnson 10,000 10,000
Directors’ Long Term Incentive Plans 
LTIPs have been established by the Company with approval of the Remuneration Committee and with the advice and assistance of Deloitte 
Touche Tohmatsu Limited to reward and incentivise the Executive Directors and senior managers of the Company. 
All unvested shares are held in the Employee Benefit Trust (“EBT”). The LTIP allocations are in separate sub funds within the EBT and are 
subject to automatic revocation if certain criteria are not met and continue to be revocable for the entire Trust period.
The total allocation to the executive is subject to specific performance criteria, which must be met a fixed number of years after the grant. 
Currently, the criteria are twofold:
Two thirds of an award – “the Revenue Part” – or a proportion thereof will vest if specific revenue targets are achieved or bettered. Revenue will be 
based on the Company’s audited Financial Statements for the relevant financial year. The Revenue Part will lapse to the extent it does not vest.
One third of an award – “the Share Price Part” – or a proportion thereof will vest if the three-month average share price to 30 June is  
equal to or above a specified amount. In the event of any variation in the share capital of the Company by way of capitalisation or rights issue, 
consolidation, subdivision or reduction or otherwise, the Remuneration Committee shall make an appropriate adjustment to the share price targets 
to reflect this.
The Share Price Part will lapse to the extent it does not vest in accordance with the schedule.
In 2015, the Remuneration Committee determined that 50% of the 2015 award should be made but that, in the longer term interests of the 
Company, vesting should be made subject to the achievement of an additional criterion that the Share Price should remain at or above 
a certain level for three consecutive months. This amended award shall lapse if this is not achieved by 30 June 2020. 
Current allocations are as set out below:
Outstanding allocations
Potentially
 vesting
2015
Potentially
vesting
2016
Potentially
vesting
2017 Total
D J Williams 153,428 329,869 338,116 821,413 
D J Bestwick 117,270  252,129  258,432  627,831 
N A D Fox 44,954  96,731  99,149  240,834 
M J O’Connor 41,045  84,552  86,666  212,263 
Total  356,697 763,281  782,363 1,902,341
Richard Vos
Remuneration Committee Chairman
Avanti Communications Group plc 
Annual Report and Accounts 2015
27 The Directors have pleasure in presenting their Annual Report 
together with the audited Financial Statements for the year ended 
30 June 2015.
Principal activities
The principal activity of the Company is the provision of satellite 
communication services and it is expected to be so for the 
foreseeable future. The services are principally provided via 
Ka-band satellites. 
Avanti’s first satellite, HYLAS 1, was launched in November 2010 
and brought into commercial service in April 2011. The second 
satellite, HYLAS 2, was successfully launched on 2 August 2012 
and came into commercial service in October 2012. ARTEMIS was 
acquired from the European Space Agency (‘‘ESA’’) on 31 December 
2013. Two further satellites are under construction. HYLAS 3 is a 
payload on ESA’s EDRS-C satellite and construction on HYLAS 4 
commenced in August 2014. Both HYLAS 3 and HYLAS 4 are 
scheduled for launch in 2017.
A review of the Group’s business and developments during the 
year is included in the Chairman’s Statement, the Chief Executive’s 
Review and the Strategic Report. 
Business review and key performance indicators 
Our business model is focused on development of the satellite fleet 
and sale of capacity. During the year, Avanti introduced two new 
performance indicators in order to give investors better insight into 
the progress that the business is making in these areas.
The first of these was Top-20 Customer Bandwidth Revenue Growth. 
This metric helps to track Avanti’s growth trajectory from core 
service sales, excluding non-recurring items. It is calculated by 
comparing the revenues from Avanti’s current leading customers 
on a last 12 month basis, to the 12 months preceding that.
The second new performance indicator is Fleet Utilisation. This 
metric helps to track capacity uptake and gives an indication of 
revenue potential when Avanti’s fleet is mature. It is calculated by 
dividing average utilised capacity by total available capacity for the 
fleet of HYLAS 1 (3 GHz), HYLAS 2 (11 GHz) and ARTEMIS (1 GHz).
Results and dividends 
The results for the year ended 30 June 2015 are shown on page 32. 
No equity dividend was paid in the year ended 30 June 2015 (2014: 
$nil). No final dividend is proposed at the year end (2014: $nil). The 
loss for the year transferred to the shareholders’ funds was $73.1m 
(2014: loss of $87.2m). The net asset position at year end is $304.7m 
(2014: 309.3m).
Share capital
The Company issued 30,066,720 new Ordinary Shares during the 
year ended 30 June 2015 (2014: nil). Details of the Company’s share 
capital are given in Note 22 to the Consolidated Financial Statements.
 
GOVERNANCE 
REPORT OF THE BOARD OF DIRECTORS
Qualitative and quantitative disclosures about interest, 
foreign exchange, credit and liquidity risks
A discussion of the Company’s financial risk management objectives 
and policies and the exposure of the Company to interest rate, 
foreign exchange, credit and liquidity risk is included on pages 38 
to 45 in Note 1 to the Consolidated Financial Statements.
Research and development
The Company continues to invest in new services and technology 
through its research and development programmes which can lead 
to profitable exploitation of Avanti’s satellite capacity. These include 
pure research into new products as well as developing those 
services which have been demonstrated to have a profitable 
business case.
Directors
The Directors who served during the year and were in office up to 
the date of signing were as follows:
P Walsh
D J Williams
D J Bestwick
N A D Fox
M J O’Connor
F E J G Brackenbury CBE
C R Vos
M Walker OBE FREng
P R Johnson 
C Eggberry 
A Green
A biography for each Director is provided on pages 16 and 17. In 
accordance with the Company’s Articles of Association, all Directors 
offer themselves for re-election every three years. The Board 
believes that the members of the Board continue to be effective 
and to demonstrate commitment to their roles, the Board and the 
Company. The Board therefore recommends the re-appointment 
of all Directors who are up for re-election at the AGM.
Directors’ emoluments
Remuneration Policy
The Company’s policy on remuneration of Directors is to attract, 
retain and motivate the best people, recognising the input they have 
to the ongoing success of the business. Consistent with this policy, 
the benefit package awarded by Avanti Communications Group plc 
to its Directors is intended to be competitive. It comprises a mix of 
performance related and non-performance related remuneration 
designed to incentivise the Directors and align their interest with 
those of shareholders and consists of base pay, annual bonus, LTIP, 
pension contributions and other benefits such as healthcare.
Avanti Communications Group plc 
Annual Report and Accounts 2015
28 Major shareholders
At 15 September 2015, the Company had been notified, pursuant to 
the Financial Conduct Authority’s Disclosure & Transparency Rules, 
of the following notifiable voting rights in the Company’s issued 
Ordinary Share capital.
15 September 2015:
M & G Investment Management 27,359,073
Solus Alternative Asset Management 16,248,856
Mast Capital Management 15,083,192
Capital Research & Management 8,700,078
GIC Asset Management 8,274,056
PAR Investment Partners 7,977,734
Caledonia Investments 6,565,816
Avanti Communications EBT 5,293,682
Sanlam FOUR 4,290,934
Directors 4,102,383
Employees are regularly updated about market and industry 
developments. 
Communication between the Board and employees at all levels is 
highly valued and this is achieved through regular staff presentations 
given by the Chief Executive and regular email communication. 
The Company believes in equal opportunities for all employees and 
prospective employees irrespective of nationality, ethnicity, religion, 
age, gender, sexuality or disability. The Company has zero tolerance 
of discrimination in any form.
Policy and practice on payment of creditors
The Group and Company’s policy and practice on payment of 
creditors is:
• To pay all suppliers within the time limit agreed at the start of the 
business with that supplier;
• To ensure that all suppliers are aware of the terms of payment; and
• To pay in accordance with the contractual and other legal 
obligations whenever it is satisfied that the supplier has provided 
the goods and/or services in accordance with the agreed terms 
and conditions.
At 30 June 2015, the Company had trade creditors of $6,114 
(2014: $208,191).
Employees
The Company employed 213 people at 30 June 2015. 
Employees are key to the Company’s success and we rely on 
the workforce being committed to helping us achieve our 
business objectives.
Political donations
During the year the Company made no political donations (2014: $nil).
Corporate Governance
The Corporate Governance Report is provided on pages 19 to 27 
and includes reports from the Board’s Audit, Nominations, 
Remuneration and Technical Committees.
Notice of Annual General Meeting
The notice of the Company’s AGM can be found on page 73. 
Directors’ and Officers’ liability insurance
The Company maintains appropriate insurance to cover Directors’ 
and Officers’ liability for itself and its subsidiaries. At the date upon 
which this report was approved and for the year ended 30 June 2015, 
the Company provided an indemnity in respect of all of the Company’s 
Directors in respect of all losses arising out of or in connection 
with the execution of their powers, duties and responsibilities as 
Directors to the extent permitted by the Companies Act 2006 and 
the Company’s Articles of Association.
Patrick Willcocks
Company Secretary 
Avanti Communications Group plc 
Annual Report and Accounts 2015
29 The Directors are responsible for preparing the Annual Report, the 
Directors’ Report and the Financial Statements in accordance with 
applicable law and regulations. 
Company law requires the Directors to prepare Group and parent 
Company Financial Statements for each financial year. As required 
by the AIM Rules of the London Stock Exchange, they are required 
to prepare the Group Financial Statements in accordance with 
IFRSs as adopted by the EU and applicable law and have elected 
to prepare the parent Company Financial Statements on the 
same basis. 
Under company law, the Directors must not approve the Financial 
Statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the Group and parent Company and of 
their profit or loss for that period. In preparing each of the Group 
and parent Company Financial Statements, the Directors are 
required to: 
• Select suitable accounting policies and then apply 
them consistently; 
• Make judgements and estimates that are reasonable and prudent; 
• State whether they have been prepared in accordance with 
IFRSs as adopted by the EU; and 
• Prepare the Financial Statements on the going concern basis 
unless it is inappropriate to presume that the Group and the 
parent Company will continue in business. 
The Directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the parent Company’s 
transactions and disclose with reasonable accuracy at any time the 
financial position of the parent Company and enable them to ensure 
that its Financial Statements comply with the Companies Act 2006. 
They have general responsibility for taking such steps as are 
reasonably open to them to safeguard the assets of the Group and 
to prevent and detect fraud and other irregularities. 
The Directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the Company’s 
website. Legislation in the UK governing the preparation and 
dissemination of Financial Statements may differ from legislation 
in other jurisdictions. 
David Williams
Chief Executive
GOVERNANCE 
 STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE ANNUAL REPORT, 
THE DIRECTORS’ REPORT AND THE FINANCIAL STATEMENTS
Avanti Communications Group plc 
Annual Report and Accounts 2015
30  
INDEPENDENT AUDITOR’S REPORT 
to the members of Avanti Communications Group plc
We have audited the Financial Statements of Avanti Communications Group plc for the year ended 30 June 2015 set out on pages 32 to 72. 
The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards 
(“IFRSs”) as adopted by the EU and, as regards the parent Company Financial Statements, as applied in accordance with the provisions of 
the Companies Act 2006. 
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in 
an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone 
other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed. 
Respective responsibilities of Directors and Auditor
As explained more fully in the Directors’ Responsibilities Statement set out on page 30, the Directors are responsible for the preparation 
of the Financial Statements and for being satisfied that they give a true and fair view. Our responsibility is to audit, and express an opinion 
on, the Financial Statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards 
require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors. 
Scope of the audit of the Financial Statements 
A description of the scope of an audit of Financial Statements is provided on the Financial Reporting Council’s website at  
www.frc.org.uk/auditscopeukprivate. 
Opinion on Financial Statements 
In our opinion: 
• The Financial Statements give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 30 June 2015 and 
of the Group’s loss for the year then ended; 
• The Group Financial Statements have been properly prepared in accordance with IFRSs as adopted by the EU; 
• The parent Company Financial Statements have been properly prepared in accordance with IFRSs as adopted by the EU and as applied 
in accordance with the provisions of the Companies Act 2006; and 
• The Financial Statements have been prepared in accordance with the requirements of the Companies Act 2006. 
Opinion on other matter prescribed by the Companies Act 2006 
In our opinion the information given in the Strategic Report and the Directors’ Report for the financial year for which the Financial Statements 
are prepared is consistent with the Financial Statements. 
Matters on which we are required to report by exception 
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 
• Adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received 
from branches not visited by us; or 
• The parent Company Financial Statements are not in agreement with the accounting records and returns; or 
• Certain disclosures of Directors’ remuneration specified by law are not made; or 
• We have not received all the information and explanations we require for our audit. 
Tudor Aw (Senior Statutory Auditor)
for and behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
16 September 2015
Avanti Communications Group plc 
Annual Report and Accounts 2015
31 FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
Year ended 30 June 2015
Notes
Year ended
 30 June
 2015
$’m
Year ended
 30 June
 2014
$’m
Revenue 2 85.2 65.6
Cost of sales (83.8) (86.7)
 Satellite depreciation (45.8) (47.3)
 Other cost of sales (38.0) (39.4)
Gross profit/(loss) 1.4 (21.1)
Operating expenses 3 (35.6) (34.8)
Other operating income 6 1.4 7.2
Loss from operations (32.8) (48.7)
Net finance expense 7 (40.5) (39.0)
Loss before taxation (73.3) (87.7)
Income tax 8 – –
Loss for the year (73.3) (87.7)
Loss attributable to:
Equity holders of the parent (73.1) (87.2)
Non-controlling interests (0.2) (0.5)
Basic loss per share (cents) 9 (61.5c) (81.2c)
Diluted loss per share (cents) 9 (61.5c) (81.2c)
The Notes on pages 38 to 72 are an integral part of these Consolidated Financial Statements.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year ended 30 June 2015
Year ended
 30 June
 2015 
$’m
Year ended
 30 June
 2014 
$’m
Loss for the year (73.3) (87.7)
Other comprehensive income
Exchange differences on translation of foreign operations and investments that may be recycled  
to the Income Statement 0.1 (2.1)
Exchange differences on translation of foreign operations and investments that will not be recycled  
to the Income Statement (22.7) 31.2
Total comprehensive loss for the year (95.9) (58.6)
Attributable to:
Equity holders of the parent (95.7) (58.1)
Non-controlling interests (0.2) (0.5)
The Notes on pages 38 to 72 are an integral part of these Consolidated Financial Statements.
Avanti Communications Group plc 
Annual Report and Accounts 2015
32  
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2015
Notes
30 June 
2015
 $’m
30 June 
2014
 $’m
ASSETS
Non-current assets
Property, plant and equipment 11 691.0 610.8
Intangible assets 12 11.0 14.0
Deferred tax assets 17 19.5 21.1
Total non-current assets 721.5 645.9
Current assets
Inventories 15 2.6 1.7
Trade and other receivables 16 35.5 38.6
Cash and cash equivalents 18 122.2 195.3
Total current assets 160.3 235.6
Total assets 881.8 881.5
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 19 31.9 39.9
Loans and other borrowings 20 4.7 4.6
Total current liabilities 36.6 44.5
Non-current liabilities
Trade and other payables 19 16.8 15.3
Loans and other borrowings 20 523.7 512.4
Total non-current liabilities 540.5 527.7
Total liabilities 577.1 572.2
Equity
Share capital 22 2.4 2.0
EBT shares 22 (0.1) (0.1)
Share premium 22 505.3 415.1
Retained earnings (184.4) (112.0)
Foreign currency translation reserve (16.4) 6.2
Total parent shareholders’ equity 306.8 311.2
Non-controlling interests (2.1) (1.9)
Total equity 304.7 309.3
Total liabilities and equity 881.8 881.5
The Financial Statements of company number 6133927 on pages 32 to 72 were approved by the Board of Directors on 16 September 2015 
and signed on its behalf by:
Nigel Fox
Group Finance Director
Avanti Communications Group plc 
Annual Report and Accounts 2015
33 FINANCIAL STATEMENTS
COMPANY STATEMENT OF FINANCIAL POSITION
As at 30 June 2015
Notes
30 June 
2015 
$’m
30 June 
2014 
$’m
ASSETS
Non-current assets
Investments 13 148.7 148.7
Loan receivable 16 917.6 527.5
Deferred tax assets 17 0.5 0.5
Total non-current assets 1,066.8 676.7
Current assets
Trade and other receivables 16 93.3 252.4
Total current assets 93.3 252.4
Total assets 1,160.1 929.1
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 19 154.8 18.5
Loans and other borrowings 20 2.7 1.5
Total current liabilities 157.5 20.0
Non-current liabilities
Loans and other borrowings 20 514.3 511.1
Total liabilities 671.8 531.1
Equity
Share capital 22 2.4 2.0
EBT shares 22 (0.1) (0.1)
Share premium 22 505.3 415.1
Retained earnings (3.4) (3.1)
Foreign currency translation reserve (15.9) (15.9)
Total shareholders’ equity 488.3 398.0
Total liabilities and equity 1,160.1 929.1
The Financial Statements of company number 6133927 on pages 32 to 72 were approved by the Board of Directors on 16 September 2015 
and signed on its behalf by:
Nigel Fox
Group Finance Director
Avanti Communications Group plc 
Annual Report and Accounts 2015
34  
CONSOLIDATED AND COMPANY STATEMENT OF CASH FLOWS
Year ended 30 June 2015
Notes
Group Company
Year ended 
30 June 
2015 
$’m
Year ended
 30 June 
2014 
$’m
Year ended
 30 June 
2015
 $’m
Year ended 
30 June 
2014 
$’m
Cash flow from operating activities
Cash (absorbed)/generated by operations 28 (10.2) (13.5) (93.0) 9.6
Interest paid (52.3) (20.4) (52.3) (14.9)
Interest received – – 55.6 29.9
Net cash (absorbed)/generated by operating activities (62.5) (33.9) (89.7) 24.6
Cash flows from investing activities
Payments for other financial assets and investments – – (3.4) (527.5)
Payments for property, plant and equipment (102.0) (25.8) – –
Net cash used in investing activities (102.0) (25.8) (3.4) (527.5)
Cash flows from financing activities
Proceeds from bond issue – 530.7 – 530.7
Proceeds from share issue 90.6 – 90.6 –
Repayment of borrowings – (305.4) – –
Payment of finance lease liabilities (5.3) (4.2) (2.7) (0.4)
Proceeds from sale and leaseback 5.3 – 5.3 –
Loan breakage cost – (6.8) – (6.8)
Debt issuance costs (0.1) (20.6) (0.1) (20.6)
Net cash received from financing activities 90.5 193.7 93.1 502.9
Effects of exchange rate on the balances of cash and 
cash equivalents 0.9 2.6 – –
Net (decrease)/increase in cash and cash equivalents (73.1) 136.6 – –
Cash and cash equivalents at the beginning of the 
financial year 195.3 58.7 – –
Cash and cash equivalents at the end of the financial year 18 122.2 195.3 – –
The Notes on pages 38 to 72 are an integral part of these Consolidated Financial Statements.
Avanti Communications Group plc 
Annual Report and Accounts 2015
35 Consolidated
Notes
Share 
capital
$’m
Employee
 Benefit 
Trust (“EBT”)
$’m
Share
 premium
$’m
Retained
 earnings
$’m
Foreign
 currency
 translation
 reserve
$’m
Non-
controlling
 interests
$’m
Total 
equity
$’m
2014
At 1 July 2013 2.0 (0.1) 415.1 (25.4) (22.9) (1.4) 367.3
Loss for the year – – – (87.2) – (0.5) (87.7)
Other comprehensive 
income – – – – 29.1 – 29.1
Share based payments 23 – – – 0.6 – – 0.6
At 30 June 2014 2.0 (0.1) 415.1 (112.0) 6.2 (1.9) 309.3
2015
At 1 July 2014 2.0 (0.1) 415.1 (112.0) 6.2 (1.9) 309.3
Loss for the year – – – (73.1) – (0.2) (73.3)
Other comprehensive 
income – – – – (22.6) – (22.6)
Issue of share capital 0.4 – 90.2 – – – 90.6
Share based payments 23 – – – 0.7 – – 0.7
At 30 June 2015 2.4 (0.1) 505.3 (184.4) (16.4) (2.1) 304.7
FINANCIAL STATEMENTS
CONSOLIDATED AND COMPANY STATEMENT OF CHANGES IN EQUITY
Year ended 30 June 2015
Avanti Communications Group plc 
Annual Report and Accounts 2015
36 Company
Notes
Share 
capital
$’m
Employee
 Benefit 
Trust (“EBT”)
$’m
Share
 premium
$’m
Retained
 earnings
$’m
Foreign
 currency
 translation
 reserve
$’m
Total 
equity
$’m
2014
At 1 July 2013 2.0 (0.1) 415.1 (1.5) (15.9) 399.6
Loss for the year – – – (1.6) – (1.6)
Issue of share capital – – – – – –
Share based payments – – – – – –
At 30 June 2014 2.0 (0.1) 415.1 (3.1) (15.9) 398.0
2015
At 1 July 2014 2.0 (0.1) 415.1 (3.1) (15.9) 398.0
Loss for the year – – – (0.3) – (0.3)
Issue of share capital 0.4 – 90.2 – – 90.6
Share based payments – – – – – –
At 30 June 2015 2.4 (0.1) 505.3 (3.4) (15.9) 488.3
Avanti Communications Group plc 
Annual Report and Accounts 2015
37 1. Accounting policies
Statement of compliance
The Group Financial Statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU 
(“IFRSs”), International Financial Reporting Interpretations Committee Interpretations, and the Companies Act 2006 applicable to companies 
preparing their accounts under IFRS.
The principal activity of the Company is the provision of satellite communication services. The services are principally provided via 
Ka-band satellites.
The Company is a public limited company, which is listed on the Alternative Investment Market (“AIM”) and domiciled and incorporated 
in the UK.
The registered office of the Company is 20 Black Friars Lane, London, United Kingdom.
The principal accounting policies applied in the preparation of these Financial Statements are set out below. These policies have been 
consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
The Consolidated Financial Statements have been prepared on the historical cost basis, with the exception of share based payments and 
financial derivatives, which are incorporated using fair value.
The Company has elected to disclose satellite depreciation as a separate item in cost of sales on the face of the consolidated Income 
Statement due to the significance of the charge.
The Company has taken the exemption under section 408 of the Companies Act 2006 to not present the parent Company Income 
Statement or Statement of Comprehensive Income.
The presentational currency of the Group is US Dollars, and the functional currency of the parent Company is also US Dollars. The functional 
currency of an operation is the currency of the main economy to which it is exposed.
The following Adopted IFRSs have been issued but have not been applied by the Group in these Financial Statements. Their adoption is not 
expected to have a material effect on the Financial Statements unless otherwise indicated:
• IFRS 10 Consolidated Financial Statements
• IFRS 11 Joint Arrangements
• IFRS 12 Disclosure of Interests in Other Entities
• IAS 27 Separate Financial Statements (2011)
• IAS 28 Investments in Associates and Joint Ventures (2011)
The Group continues to monitor the potential impact of other new standards and interpretations which may be endorsed by the European 
Union and require adoption by the Group in future accounting periods.
Critical accounting estimates and management judgement
The presentation of Financial Statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires 
management to exercise its judgement in the process of applying the Group’s accounting policies.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities 
within the next financial year are addressed below.
(a) Revenue recognition
The Group uses the percentage of completion method in accounting for its consultancy projects. Use of the percentage of completion 
method requires the Group to estimate the services performed to date as a proportion of the total services to be performed.
The estimates and judgements made by management in accounting for the sale of spectrum rights are disclosed in Note 2 and Note 11.
FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS
 
Avanti Communications Group plc 
Annual Report and Accounts 2015
38 1. Accounting policies continued
(b) Impairment of satellites
The carrying amount of the satellites is dependent on the Group’s ability to sell sufficient capacity in the satellites over their useful economic 
lives. Management remains confident that future sales and resulting cash flows will underpin the carrying value of the satellites. The Group 
will assess impairment annually.
(c) European Space Agency (“ESA”) funding and sale of capacity
In April 2006, the Group entered into a contract with ESA to receive funding for the build of the HYLAS 1 satellite and also giving ESA the 
right to use up to 10% of capacity on HYLAS 1 for a period of three years if the capacity is available. An assessment of the fair value of the 
revenues for the sale of capacity has been performed in order to account for this as a multiple element arrangement. The fair value of the 
capacity sales will be recognised as revenue on a straight line basis over a three year period. This three year period commenced when 
HYLAS 1 became operational in April 2011. Management has made its best estimate of the fair value of the revenue element of the 
transaction based on market prices of the capacity at the inception of the arrangement. The residual fair value represents the value of the 
capital grant and this is released to cost of sales over a period of 15 years to match the useful economic life of the satellite. If the fair value 
of the capacity sale was altered by 10% the impact on the comparative revenue would be $0.6m.
(d) Impairment of goodwill arising as part of business combinations
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units 
(“CGUs”), or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the 
goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. 
Goodwill impairment reviews will be undertaken annually. The carrying value of goodwill is compared to the recoverable amount, which is 
the higher of value in use and the fair value less costs to sell. Any impairment would be recognised immediately as an expense and would 
not subsequently be reversed.
(e) Deferred tax
Deferred tax assets and liabilities require management judgement in determining the amounts to be recognised. In particular, judgement is 
used when assessing the extent to which deferred tax assets should be recognised with consideration given to the timing and level of future 
taxable income. To the extent assumptions regarding future profitability change, there can be an increase or decrease in the amounts 
recognised in respect of deferred tax assets as well as in the amounts recognised in income in the period in which the change occurs.
Going concern
The Directors have assessed forecast future cash flows for the foreseeable future, being a period of at least a year following the approval  
of the accounts, and are satisfied that the Group’s cash resources and facilities are sufficient to meet these cash flows.
Considering the above, the Directors believe that the Group is well placed to manage its business risks successfully despite the continued 
current uncertain economic outlook and have a reasonable expectation that the Group has adequate resources to continue in operational 
existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the annual 
Financial Statements.
Basis of consolidation
Where the Company has the power, either directly or indirectly, to govern the financial and operating policies of another entity or business 
so as to obtain benefits from its activities, it is classified as a subsidiary. The Financial Statements present the results of the Company and 
its subsidiaries, including Filiago GmbH & Co and the Employee Benefit Trust (the “Group”) as if they formed a single entity. Intercompany 
transactions, balances, income and expenses are therefore eliminated in full.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. The Group applies the acquisition method 
to account for business combinations. The cost of control for the acquisition of a subsidiary is the fair value of the assets transferred, the 
settlement of pre-existing relationships, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the 
Group. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their 
fair value at the acquisition date. The Group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, 
either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets.
Goodwill is initially measured as the excess of the aggregate of the cost of control and the fair value of non-controlling interest over the 
net identifiable assets acquired and liabilities assumed. If this cost of control is lower than the fair value of the net assets of the subsidiary 
acquired, the difference is recognised in the Income Statement.
The Financial Statements of legal subsidiaries are prepared for the same reporting year as the parent Company using consistent 
accounting policies.
Avanti Communications Group plc 
Annual Report and Accounts 2015
39 1. Accounting policies continued
Revenue recognition
The Group generates its revenues primarily from the sale of satellite broadband services to customers and from providing consultancy 
advice connected with the utilisation of the Group’s space assets. Revenue from the sale of satellite broadband services on the HYLAS 
fleet is the key revenue stream of the business with space consultancy contracts being a small proportion of the total revenues.
Revenue for broadband satellite communications services are recognised for Avanti’s three main products as follows:
• Pure – Raw bandwidth – Customers have exclusive use of a defined number of MHz in specific beams – The proportion of the total 
contract value recognised as revenue in a period equates to the proportion of the total contracted capacity provided in that period.
• Custom – Managed IP service – Customers have exclusive use of a defined number of Mb in specific beams – The proportion of the total 
contract value recognised as revenue in a period equates to the proportion of the total contracted capacity provided in that period. 
• Select – Packaged broadband – Customers buy individual broadband user accounts, which are managed and defined by Avanti – 
Revenues are recognised in the period that the service is delivered based on the number of user accounts and contracted prices 
per account.
Revenue includes the sale of terminals and other satellite communication equipment which is recognised when the risks and rewards 
of ownership have transferred to the customer.
Revenue from space consultancy and other consultancy contracts connected with the utilisation of the Group’s space assets are 
recognised by reference to the stage of completion of the contract activity at the reporting date. The contracts are broken down into 
separable elements which are all judged individually on a percentage of completion basis in order to ascertain the completeness of an 
overall project. By its nature these projects require a certain element of judgement by management. Contract costs are recognised as an 
expense in the period they are incurred. Where Avanti is judged to be the prime partner, revenues are recognised on a gross basis in line 
with the risks and rewards of the contract.
Revenue also includes income from spectrum co-ordination agreements which is recognised immediately where the Group sells spectrum 
assets in perpetuity.
Where goods or services are provided in exchange for dissimilar goods or services, the revenue is measured at the fair value of the goods 
or services received where these can be reliably measured, otherwise at the fair value of the goods or services given up, adjusted by the 
amount of cash or or cash equivalents received.
Accrued income represents the excess of revenue recognised over amounts invoiced. Deferred income represents any unearned balances 
remaining from amounts received from customers pursuant to prepaid contracts.
Appropriate allowances for estimated irrecoverable amounts are recognised as an expense when there is objective evidence that trade 
receivables are impaired.
Indefeasible rights of use
Where the Group enters into an arrangement which constitutes an indefeasible right of use (“IRU”), the arrangement is reviewed to establish 
whether the IRU is a lease, a service contract or a sale of goods. Whether an arrangement contains a lease is assessed by considering 
whether the provision of a service depends on the use of one or more specific assets and whether the agreement conveys a right to use 
those assets.
Once it has been determined that an IRU is or contains a lease, then the arrangement is accounted for in accordance with the leased 
assets accounting policy.
FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
Avanti Communications Group plc 
Annual Report and Accounts 2015
40 1. Accounting policies continued
Leased assets
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement and requires 
an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets and whether the 
arrangement conveys the right to use the asset.
Leases of property, plant and equipment where the Group holds substantially all the risks and rewards of ownership are classified as 
finance leases. Assets acquired under hire purchase or a finance lease are capitalised in the Statement of Financial Position. Those held 
under hire purchase and finance lease contracts are depreciated over the shorter of either their estimated useful lives or the term of the 
lease. The interest element of these obligations is charged to the Income Statement over the relevant period. The capital element of the 
future payments is treated as a liability.
Leases where a significant portion of the risks and rewards are held by the lessor are classified as operating leases. Rentals are charged 
to the Income Statement on a straight line basis over the period of the lease.
Interest income and expense
Borrowing costs incurred for the construction of the satellite assets are capitalised during the period of time required to complete and 
prepare the assets for their intended use, in accordance with IAS 23 “Borrowing Costs”. Other borrowing costs are expensed in the 
Income Statement.
Interest income on cash deposits is recognised on an effective interest rate methodology, taking into account the principal amounts 
outstanding and the interest rates applicable.
Foreign currency
Transactions entered into by the Group entities in a currency other than the currency of the primary economic environment in which it 
operates (the “functional currency”) are recorded at the rates ruling when the transactions occur. Foreign currency monetary assets and 
liabilities are translated at the rate ruling at the reporting date. Exchange differences arising on the retranslation of unsettled monetary 
assets and liabilities are recognised immediately in the Income Statement.
The presentational currency of the Group is US Dollars.
On consolidation, assets and liabilities of foreign undertakings are translated into US Dollars at year end exchange rates. The results 
of foreign undertakings are translated into US Dollars at average rates of exchange for the year (unless this average is not a reasonable 
approximation of the cumulative effects of the rates prevailing on the transaction dates, in which case income and expenses are translated 
at the dates of the transactions). Foreign exchange differences arising on retranslation are recognised directly in a separate component of 
equity, the foreign currency translation reserve.
In the event of the disposal of an undertaking with assets and liabilities denominated in a foreign currency, the cumulative translation difference 
associated with the undertaking in the translation reserve is charged or credited to the gain or loss on disposal recognised in the 
Income Statement.
Pension schemes
Employees have the option to participate in the Group’s defined contribution pension scheme or to establish their own pension scheme to 
which the Group will match employee contributions up to a maximum amount. There is no ongoing liability to the Group beyond the period 
that the contributions are made. The costs of such contributions are charged to the Income Statement when incurred.
Avanti Communications Group plc 
Annual Report and Accounts 2015
41 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
1. Accounting policies continued
Share based payments
The Group operates a number of equity settled share based payment arrangements, under which the Group receives services from 
employees as consideration for equity instruments (share options and shares) of the Group. Equity settled share based payments are 
measured at fair value (excluding the effect of non-market based vesting conditions) at the date of grant, but include any market based 
performance criteria and the impact of vesting conditions. The fair value determined at the grant date is recognised on a straight line basis 
over the vesting period, based on the Group’s estimate of the options or shares that will eventually vest and adjusted for the effect of 
non-market based vesting conditions.
Fair value is measured using either the Binomial options pricing model, the Black-Scholes model or Monte Carlo simulations, whichever is 
most appropriate to the award.
Service and performance conditions are vesting conditions. Any other conditions are non-vesting conditions which have to be taken into 
account to determine the fair value of equity instruments granted. In the case that an award or option does not vest as a result of a failure 
to meet a non-vesting condition that is within the control of either counterparty, this is accounted for as a cancellation. Cancellations must 
be treated as accelerated vesting and all remaining future charges are immediately recognised. As the requirement to save under an 
employee share save arrangement is a non-vesting condition, employee cancellations must be treated as an accelerated vesting.
Current tax
The charge for taxation is based on taxable profits for the year. Taxable profit differs from profit as reported in the Income Statement 
because it excludes items of income and expenses that are taxable or deductible in other years and it further excludes items that are never 
taxable or deductible.
The tax expense for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it 
relates to items recognised in other comprehensive income or directly in equity. In this case the tax is also recognised in other comprehensive 
income or directly in equity respectively.
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities based on tax 
rates that have been enacted or substantially enacted by the reporting date.
Deferred tax
Deferred tax is recognised on differences between the carrying amount of assets and liabilities in the Financial Statements and the corresponding 
tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are 
generally recognised for all taxable temporary differences, and deferred tax assets are generally recognised for all deductible temporary 
differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can 
be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that 
sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the 
asset realised, based on tax rates that have been enacted or substantively enacted by the reporting date. The measurement of the deferred 
tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, 
to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and liabilities and the 
deferred tax assets and liabilities relate to taxes levied by the same taxation authority on either the same taxable Group company; or different 
Group entities which intend either to settle current tax assets and liabilities on a net basis, or to realise the assets and settle the liability 
simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered.
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is 
provided so as to write off the cost of assets, other than assets under construction, over their estimated useful lives using the straight line 
method. Depreciation on satellite assets commences once in orbit testing has been completed and the satellite is available for use.
Avanti Communications Group plc 
Annual Report and Accounts 2015
42 1. Accounting policies continued
Cost includes the original purchase price of the asset and the costs directly attributable to bringing the asset to its working condition 
for its intended use. Property, plant and equipment is depreciated using the straight line method based on the following useful lives:
Motor vehicles 25% per annum Plant and machinery 25% per annum 
Network assets 20%–25% per annum Leasehold improvements 25% per annum 
Fixtures and fittings 25% per annum Satellites in construction Nil 
Satellites in operation 6.67% per annum
The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in 
estimate accounted for on a prospective basis. The gain or loss arising on the disposal of assets is charged to the Income Statement 
account and is calculated as the difference between the disposal proceeds and the carrying amount of the assets.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, 
the term of the relevant lease.
Satellites in construction assets relate to costs (including employee related costs) directly attributable to the construction of the HYLAS 
satellites. Once the satellites become operational and placed into service, the assets are transferred to a space asset category and 
depreciated over the life of the satellites.
Where the conditions are not met the costs are expensed through the Income Statement.
Intangible assets
Intangible assets are stated at cost less accumulated amortisation and any accumulated impairment losses. Amortisation is provided so 
as to write off the cost of assets, other than assets under construction, over their estimated useful lives using the straight line method. The 
amortisation rate on computer software is 25%. Newly acquired intangible assets as part of the business combination, customer lists and 
trade name are amortised over 15 and 5 years respectively.
Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its 
intended use.
The estimated useful lives, residual values and amortisation method are reviewed at each year end, with the effect of any changes in estimate 
accounted for on a prospective basis. The gain or loss arising on the disposal of assets is charged to the Income Statement and is calculated 
as the difference between the disposal proceeds and the carrying amount of the assets.
Research and development costs in relation to the satellites are capitalised if they meet the conditions set out in IAS 38 “Intangible Assets” 
which are that development costs are only capitalised once a business case has been demonstrated as to the technical feasibility and 
commercial viability. Capitalised development costs are amortised over the expected useful life of the assets.
Impairment of non-financial assets
Assets that have an indefinite useful life, for example goodwill or intangible assets not ready for use, are not subject to amortisation and 
will be tested annually for impairment.
Assets that are subject to amortisation and depreciation are reviewed for impairment when events or changes in circumstances indicate 
that the carrying amount may not be fully recoverable. The impairment review comprises a comparison of the carrying amount of the fixed 
asset with its recoverable amount, which is the higher of fair value less costs to sell and value in use.
Fair value less costs to sell is calculated by reference to the amount at which the asset could be disposed of. Value in use is calculated by 
discounting the expected future cash flows obtainable as a result of the asset’s continued use, including those resulting from its ultimate 
disposal, at a market based discount rate on a pre-tax basis.
An impairment loss is recognised in the Income Statement whenever the carrying amount of an asset exceeds its recoverable amount.
The carrying amount will only be increased where an impairment loss recognised in a previous period for an asset either no longer exists 
or has decreased, up to the amount that it would have been had the original impairment not occurred.
Avanti Communications Group plc 
Annual Report and Accounts 2015
43 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
1. Accounting policies continued
For the purpose of conducting impairment reviews, CGUs are identified as groups of assets and liabilities that generate cash flows that are 
largely independent of other cash flow streams. The assets and liabilities include those directly involved in generating the cash flows and 
an appropriate proportion of corporate assets. For the purposes of impairment, individual satellites are treated as individual CGUs.
For the purpose of impairment testing of goodwill, goodwill is allocated to a group of CGUs (being subsidiaries acquired in each 
acquisition). Such group of CGUs represent the lowest level within the Group for which the goodwill is monitored for internal  
management purposes.
Investments
Investments are recorded at cost. Investments are reviewed for impairment when events or changes in circumstances indicate that the 
carrying amount may not be fully recoverable.
Investments in subsidiaries are stated at cost and reviewed for impairment on an annual basis.
European Space Agency funding
As noted in the critical estimates and judgements, an element of income from ESA represents revenue for the sale of capacity on the 
satellite. The fair value of the capacity sold to ESA was being recognised as revenue over three years on a straight line basis.
Grant funding
Other grant income which has capital expenditure and job creation/safeguarding targets is recognised on a straight line basis over the 
relevant period irrespective of cash and claims, and is disclosed as other operating income.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises all costs of purchase, cost of conversion and other costs 
incurred in bringing the inventories to their present location and condition.
Cost is determined by the first-in first-out method.
Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of directly attributable issue costs.
Trade receivables and other financial assets
Trade and loan receivables are measured at initial recognition at fair value and are subsequently measured at amortised cost using the 
effective interest rate method where the time value of money is material. Appropriate allowances for estimating irrecoverable amounts 
are recognised in the Income Statement where there is evidence that the asset is impaired. This impairment would be recognised within 
operating expenses.
Cash and cash equivalents
Cash and cash equivalents in the Statement of Financial Position are comprised of cash in hand and demand deposits, and other short term 
highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of change in value. 
For the purpose of the Consolidated Cash Flow Statement, cash and cash equivalents are stated net of outstanding bank overdrafts.
Provisions
Provisions are recognised when the Group has a legal or constructive obligation to transfer economic benefits arising from past events and 
the amount of the obligation can be estimated reliably. Provisions are not recognised unless the outflow of economic benefits to settle the 
obligation is more likely than not to occur.
Avanti Communications Group plc 
Annual Report and Accounts 2015
44 1. Accounting policies continued
Borrowings
Interest-bearing bank loans and overdrafts are measured initially at fair value, net of transaction costs incurred. Borrowings are subsequently 
stated at amortised cost; any difference between the proceeds and the redemption value is recognised in the Income Statement over the 
period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 
12 months after the reporting date.
Trade payables
Trade payables are initially measured at fair value, and are subsequently measured at amortised cost.
Business combinations
Business combinations are recognised in the Consolidated Financial Statements from the time of acquisition. The comparative figures are 
not restated for acquisitions.
Acquisitions are accounted for using the acquisition method and the identifiable assets and liabilities acquired are measured at their fair 
values at the date of acquisition.
Any excess of the cost of control over the fair value of the acquired assets and liabilities is recognised as goodwill, within intangible assets. 
Intangible assets are amortised over their useful life and any goodwill is tested annually for impairment.
Derivative financial instruments
Financial assets and financial liabilities are recognised on the Group’s Statement of Financial Position when the Group becomes a party 
to the contractual provisions of the instrument.
The Group uses derivative financial instruments mainly to reduce exposure to foreign exchange risks. The Group does not hold or issue 
derivative financial instruments for trading purposes. Derivatives are recognised at fair value on the date a contract is entered into and 
are subsequently remeasured at their fair value. Fair value is measured using the closing bank rate compared with the contract rate.
Hedge accounting is currently not applied. Changes in fair value of derivative financial instruments are recognised in the Income Statement 
as they arise.
Segment reporting
Operating segment(s) are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. 
The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segment(s), 
has been identified as the Avanti Executive Board which makes the strategic decisions.
2. Revenue
As stated in Note 1, the Group currently earns revenue primarily from the sale of satellite broadband services to customers and from providing 
consultancy advice connected with the utilisation of the Group’s space assets. On adoption of IFRS 8 “Operating Segments”, the Group 
concluded that the chief operating decision maker (the Avanti Executive Board) manage the business and the allocation of resources on the 
basis of the provision of satellite services, resulting in one segment.
Revenue generated by the Group for the year ended 30 June 2015 was $85.2m (2014: $65.6m). The majority of revenue represents invoiced 
sales of satellite broadband services provided to external customers, revenue on space and consultancy contracts recognised on a 
percentage of completion basis and the sale of terminals. Of this, $25.1m (2014: $nil) represents the sale of spectrum rights (see below) and 
$5.7m (2014: $6.6m) relates to the sale of terminals. As referred to in the critical estimates and judgements, revenues from ESA representing 
the sale of capacity on HYLAS 1 comprise nil% (2014: 8.3%) of total revenue.
Avanti Communications Group plc 
Annual Report and Accounts 2015
45 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
2. Revenue continued
Spectrum revenue
In June 2015, the Group entered into an agreement to sell, in perpetuity, certain spectrum rights related to geographic markets in which the 
Group does not seek to operate. The indefeasible right to use (“IRU”) a 3 GHz Ka-band payload over its estimated remaining life of 13 years 
was received in consideration. The IRU arrangement has a fixed cost payable per annum and a variable cost based on the capacity of the 
payload that is sold. The payload can be directed over the Group’s core market of Europe, the Middle East and Africa and increases the 
Group’s current satellite capacity by approximately 20%. Revenue of $25.1m (2014: $nil) was recognised for this non-recurring transaction 
related to the utilisation of the Group’s space assets.
The revenue recognised was based on the fair value of the consideration received, in this case the IRU of the Ka-band payload. The IRU 
has been valued on a replacement cost basis and takes into account the cost of building and launching a comparable payload with 
equivalent capacity and a 13 year remaining life. The Group has used the costs that it has experienced in constructing and launching its 
existing satellite fleet, including those under construction, as a benchmark to reach this accounting estimate. The IRU valuation also takes 
into account the fixed cost payable per annum under the IRU agreement discounted at the Group’s estimated cost of capital of 10%.
The Group derived $36.5m (2014: $14.7m) of its turnover from European countries outside the United Kingdom, $27.2m (2014: $35.2m) from 
countries outside Europe and $21.5m (2014: $15.7m) from the United Kingdom. 
3. Operating expenses
Operating expenses by function are as follows:
30 June 
2015 
$’m
30 June 
2014 
$’m
Distribution 4.0 4.3
Administration 31.6 30.5
35.6 34.8
Loss from operations for the year is stated after charging the following:
30 June 
2015 
$’m
30 June 
2014 
$’m
Operating expenses:
Depreciation of property, plant and equipment 2.1 2.1
Amortisation of intangible assets 0.2 0.2
Employee benefit expense 20.0 19.5
Operating lease expenses 2.3 2.6
Cost of sales:
Space asset depreciation 45.8 47.3
Release of ESA grant (1.4) (1.5)
Satellite services 13.4 18.8
Materials purchased 6.8 11.9
Sub contractors 11.4 7.4
Avanti Communications Group plc 
Annual Report and Accounts 2015
46 4. Auditor remuneration
Amounts payable for the audit of these Financial Statements are $0.23m (2014: $0.21m). Amounts payable to the Company’s auditor 
and its associates for the audit of subsidiary Financial Statements are $0.03m (2014: $0.03m), audit related assurance services are $nil 
(2014: $0.39m) and taxation compliance services are $0.04m (2014: $0.04m).
5. Employee benefit costs
The aggregate remuneration of all employees comprised:
30 June 
2015 
$’m
30 June 
2014 
$’m
Wages and salaries 20.8 19.6
Social security costs 2.0 1.6
Pension costs 0.5 0.4
Share based payment expense 0.7 0.7
24.0 22.3
Less: costs capitalised as satellites in construction (4.0) (2.8)
20.0 19.5
Employee numbers
The average monthly number of people (including the Executive Directors) employed during the year by category of employment:
30 June 
2015 
No. 
employees
30 June 
2014 
No. 
employees
Operations 49 49
Sales and marketing 58 47
Development and engineering 50 48
Administration and executive 35 33
192 177
6. Other operating income
30 June 
2015 
$’m
30 June 
2014 
$’m
Other grant income 1.4 1.4
Exchange gain on trade receivables and payable balances – 0.5
Ex gratia receipt – 5.3
1.4 7.2
The ex gratia receipt in the year ended 30 June 2014 arose following a commercial settlement in relation to the HYLAS 2 project.
Avanti Communications Group plc 
Annual Report and Accounts 2015
47 7. Net finance expense
30 June 
2015 
$’m
30 June 
2014 
$’m
Finance expense
Interest expense on loans and other borrowings (54.4) (39.1)
Foreign exchange loss (1.0) (0.3)
Finance lease expense (0.1) (0.2)
Less: interest capitalised to satellites in construction 15.0 0.6
Finance expense (40.5) (39.0)
8. Income tax 
30 June 
2015 
$’m
30 June 
2014 
$’m
Current tax
Current tax expense – –
Overseas tax – –
Total current tax – –
Deferred tax
Origination and reversal of temporary differences 1.6 (5.8)
Adjustment in respect of prior periods (1.4) 3.4
Impact of change in UK tax rate (0.2) 2.4
Total deferred tax – –
Total income tax – –
The tax on the Group’s loss before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable 
to profits of the consolidated entities as follows:
30 June 
2015 
$’m
30 June 
2014 
$’m
Loss before tax (73.3) (87.7)
Tax credit at the UK corporation tax rate of 20.75% (2014: 22.5%) (15.2) (19.7)
Tax effect of non-deductible expenses 0.1 0.2
Adjustment in respect of prior periods (1.4) 1.5
Effect of tax rates in foreign jurisdictions (0.9) 2.7
Impact of change in UK tax rate (0.2) 2.4
Temporary differences for which no deferred tax has been recognised 17.6 12.9
Income tax recognised in the Income Statement – –
FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
Avanti Communications Group plc 
Annual Report and Accounts 2015
48 8. Income tax continued
The Group has not recognised a tax credit in the year ended 30 June 2015.
No income tax credit has been recognised in respect of the losses for the year ended 30 June 2015 (30 June 2014: $nil). Whilst the Group 
foresees utilising the losses in future periods, it has not recognised the income tax credit in this period and will do so when there is greater 
certainty over their recovery.
The standard rate of corporation tax in the UK fell from 21% to 20% with effect from 1 April 2015. Accordingly, the Group’s profits for this 
accounting period are taxed at an effective rate of 20.75% (2014: 22.5%).
On 8 July 2015, the UK Government announced its intention to reduce the UK corporation tax rate to 19% with effect from 1 April 2017, and 
to 18% with effect from 1 April 2020. These changes were included in the draft Finance Bill 2015 published 15 July 2015. The Finance Bill 
2015 has not yet been substantively enacted and so the proposed reductions have not been reflected in the balances disclosed above. 
It has not yet been possible to quantify the full anticipated effect of the proposed rate reduction, although the impact is not expected to 
be material.
9. Loss per share
30 June 
2015 
cents
30 June 
2014 
cents
Basic and diluted loss per share (61.5) (81.2)
The calculation of basic and diluted loss per share is based on the earnings attributable to ordinary shareholders divided by the weighted 
average number of shares in issue during the year.
30 June 
2015 
30 June 
2014 
Loss for the year attributable to equity holders of the parent Company $(73.1)m $(87.2)m
Weighted average number of Ordinary Shares for the purpose of basic earnings per share 118,975,177 107,408,907
10. Profit of the parent Company
As permitted by section 408 of the Companies Act 2006, the Income Statement of the parent Company is not presented as part of these 
accounts. The loss of the parent Company after tax for the year ended 30 June 2015 amounted to $0.3m (2014: $1.6m loss).
Avanti Communications Group plc 
Annual Report and Accounts 2015
49 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
11. Property, plant and equipment
Leasehold
improvements
$’m
Network
assets
$’m
Fixtures and
fittings
$’m
Satellites in
operation
$’m
Satellites in
construction
$’m
Group
total
$’m
Cost
Balance at 30 June 2013 1.8 12.7 1.6 633.3 29.8 679.2
Additions – – 0.6 17.3 11.0 28.9
Disposals – – – (11.2) – (11.2)
Effect of movements  
in exchange rates 0.2 1.4 0.2 27.9 3.6 33.3
Balance at 30 June 2014 2.0 14.1 2.4 667.3 44.4 730.2
Additions – 0.7 0.3 39.5 110.6 151.1
Transfer – – – 5.6 (5.6) –
Disposals – (0.2) – (1.7) (1.4) (3.3)
Effect of movements  
in exchange rates (0.2) (1.6) (0.1) (19.7) (3.4) (25.0)
Balance at 30 June 2015 1.8 13.0 2.6 691.0 144.6 853.0
Accumulated depreciation
Balance at 30 June 2013 0.5 7.2 1.1 56.7 – 65.5
Charge for the year 0.3 1.5 0.3 47.3 – 49.4
Disposals – – – (2.0) – (2.0)
Effect of movements  
in exchange rates 0.1 0.9 0.1 5.4 – 6.5
Balance at 30 June 2014 0.9 9.6 1.5 107.4 – 119.4
Charge for the year 0.3 1.4 0.4 45.8 – 47.9
Effect of movements  
in exchange rates (0.1) (0.9) – (4.3) – (5.3)
Balance at 30 June 2015 1.1 10.1 1.9 148.9 – 162.0
Net book value
Balance at 30 June 2015 0.7 2.9 0.7 542.1 144.6 691.0
Balance at 30 June 2014 1.1 4.5 0.9 559.9 44.4 610.8
Avanti Communications Group plc 
Annual Report and Accounts 2015
50 11. Property, plant and equipment continued
Property, plant and equipment under finance lease
At 30 June 2015, the Group held assets under finance lease agreements with a net book value of $46.7m (2014: $4.0m). A depreciation 
charge for the year of $1.3m (2014: $1.0m) has been provided on these assets. These assets are included in network assets.
Satellites in operation
Satellites in operation include the HYLAS 1 and HYLAS 2 satellites in addition to the ARTEMIS satellite. HYLAS 1 came into commercial 
service on 1 April 2011 and the associated satellite assets were depreciated from this point. HYLAS 2 came into commercial service 
on 1 October 2012 and all related satellite and gateway assets have been depreciated from this point. ARTEMIS was acquired on 
31 December  2013 and has been depreciated from this date.
HYLAS 2-B
Satellites in operation also includes a Ka-band payload that the Group operates under an indefeasible right of use (“IRU”) agreement 
entered into in June 2015 for the estimated remaining useful life of the payload of 13.5 years. This payload is known as HYLAS 2-B and Note 
2 provides more detail on the transaction through which this payload was received. The IRU agreement is accounted for as a finance lease 
and a Net Book Value (“NBV”) of $35.1m is included within satellites in operation and also within the assets held under finance lease 
disclosure provided above.
The IRU of HYLAS 2-B has initially been recognised at its fair value of $35.1m. This asset value will subsequently be depreciated over the 
life of the IRU agreement of 13.5 years. The IRU has been valued on a depreciated replacement cost basis. This was determined to be the 
most appropriate valuation technique as it has the most observable inputs into the model. Under this approach, the fair value is calculated 
as the cost of constructing and bringing into service an asset that could provide equivalent capacity. The fair value has been reached by 
aggregating the estimated fair value of the cost to build the payload and the cost of launching the payload, including insuring the launch, in 
addition to the cost of designing and managing the procurement of the asset. Each of the four inputs have been classified as level 2 inputs 
within the fair value hierarchy. The Group has obtained third party quotations for some elements and applied rates known from the existing 
fleet of satellites for other elements.
Satellites in construction
The satellites in construction assets of $144.6m relate to HYLAS 3 and HYLAS 4 (2014: $44.4m in relation to HYLAS 3 and HYLAS 4).
Capitalised finance costs
Included in the satellites in operation are capitalised finance costs of $72.0m (2014: $57 .0m) related to the HYLAS 2 and HYLAS 4 satellites. 
Asset impairment review
An impairment review was conducted on the HYLAS 1 satellite and associated network infrastructure (“HYLAS 1”), together representing 
the CGU. The carrying value of the assets is supported and no impairment is required.
The recoverable amount of HYLAS 1 is determined using value in use, which is calculated by using the discounted cash flow method. 
This method considers the forecast cash flows of HYLAS 1 over its remaining useful economic life of 12 years. Estimates of future cash flows 
originate from the detailed budget for the year to 30 June 2016, as reviewed and approved by the Board. Forecasts for the subsequent periods 
assume a ramp-up of satellite capacity sold over the following four years up to a maximum assumed capacity sold of 85%, with consistent 
performance thereafter over the remaining useful life of the CGU. The present value of the forecast cash flows was calculated using the 
Group’s incremental cost of borrowing of 10%.
Sensitivity analysis was carried out by management over assumptions made relating to price and growth in operations, and is not 
considered to have a significant impact on the impairment conclusions.
Avanti Communications Group plc 
Annual Report and Accounts 2015
51 12. Intangible assets
Computer
 software
$’m
Brand 
name
$’m
Customer 
lists
$’m
Goodwill
$’m
Group 
total
$’m
Cost
Balance at 30 June 2013 0.6  0.3  2.2  11.3  14.4 
Effect of movements in exchange rates –  –  0.1  0.7  0.8 
Balance at 30 June 2014 0.6  0.3  2.3  12.0  15.2 
Effect of movements in exchange rates – (0.1) (0.4) (2.3) (2.8) 
Balance at 30 June 2015 0.6  0.2  1.9  9.7  12.4 
Accumulated amortisation
Balance at 30 June 2013 0.6  0.1  0.3  –  1.0 
Charge for the year –  0.1  0.1  –  0.2 
Balance at 30 June 2014 0.6  0.2  0.4  –  1.2 
Charge for the year –  –  0.2  –  0.2 
Balance at 30 June 2015 0.6  0.2  0.6  –  1.4 
Net book value     
Balance at 30 June 2015 –  –  1.3  9.7  11.0 
Balance at 30 June 2014 –  0.1  1.9  12.0  14.0 
The additions of goodwill and intangible assets were generated from the Group obtaining control of Filiago GmbH & Co (“Filiago”), located 
in Germany, on 1 November 2011, and resulted in the recognition of $12.1m of goodwill and $2.7m of intangible assets, representing the 
Filiago brand name and customer lists. The intangibles acquired with obtaining control of Filiago represent the CGU.
The goodwill on acquisition of Filiago is not subject to amortisation and so is required to be reviewed annually for impairment. Filiago’s 
goodwill impairment review showed that no impairment was required as at 30 June 2015.
The recoverable amount of the Filiago CGU was determined using the value in use approach. The value in use was estimated by preparing a 
discounted cash flow forecast for Filiago over a six year period with a terminal value forecast into perpetuity after that period. Forecast cash 
flows originate from the detailed budget for the year to 30 June 2016, as reviewed and approved by the Board. The present value of the 
forecast cash flows was calculated using the Group’s estimated pre-tax cost of capital of approximately 11%.
Sensitivity analysis was carried out by management over assumptions made relating to revenue growth and discount rates and is not 
considered to have a significant impact on the impairment conclusions.
The brand names acquired in the course of the Filiago business combination of $0.3m are amortised on a straight line basis over a period 
of five years. At the year end the NBV of the brand names is $0.03m (2014: $0.14m), after charging $0.06m (2014: $0.06m) of amortisation 
in the year.
The customer lists acquired in the course of the Filiago business combination of $2.4m are amortised on a straight line basis over a period 
of 15 years. At the year end the carrying amount of the customer bases is $1.3m (2014: $1.9m) after charging $0.15m (2014: $0.16m) 
of amortisation in the year.
FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
Avanti Communications Group plc 
Annual Report and Accounts 2015
52 13. Investments
Company
Shares in subsidiary undertakings
30 June 
2015 
$’m
30 June 
2014 
$’m
Beginning and end of the year 148.7  148.7 
 148.7  148.7 
The Directors believe that the carrying value of the investments is supported by their underlying net assets.
A full list of the Company’s subsidiaries is disclosed in Note 14.
14. Subsidiaries
As at the end of the year the Group and Company held the following investments in subsidiary companies:
Name of subsidiary Nature of business Place of incorporation
Avanti Communications Limited Telecommunication consultancy England & Wales
Avanti Space Limited Satellite services England & Wales
Avanti Local TV Services Limited* Satellite services England & Wales
Avanti Space 3 Limited* Satellite services England & Wales
Avanti Launch Services Limited Management services Isle of Man
Avanti Broadband Limited Satellite services England & Wales
Avanti Broadband (Ire) Limited* Satellite services England & Wales
Avanti HYLAS 2 Limited Satellite services England & Wales
Avanti HYLAS 2 Launch Services Limited Management services Isle of Man
Avanti Communications Infrastructure Limited* Holding company England & Wales
Avanti Employee Benefit Trust Employee benefit trust England & Wales
Avanti HYLAS 2 Cyprus Limited Satellite services Cyprus
Avanti HYLAS Services Limited Project management services Cyprus
Avanti Communications Marketing Services Limited Sales and marketing England & Wales
Avanti Communications Germany GmbH Satellite services Germany
Avanti Communications Sweden AB Satellite services Sweden
Avanti Turkey Uydu Telekomunikasyon Limited Sirketi Satellite services Turkey
Avanti Communications South Africa Pty Limited Satellite services South Africa
Hybeam Limited Satellite services England & Wales
Avanti Communications Kenya Limited Satellite services Kenya
* Company was dormant in the year ending 30 June 2015.
The Company holds 100% ownership interest and voting power in all of the above entities.
On 1 November 2011 the Group took effective control of Filiago by enhancing the security over its loans with Filiago. Since 1 November 
2011 (the “date of control”) Filiago has been accounted for as a subsidiary in the Consolidated Financial Statements because of the control 
now held but, because the Group has not purchased any equity shares in the Company, a 100% non-controlling interest is recognised on 
the Statement of Financial Position removing the impact of achieving control from shareholders’ funds.
Avanti Communications Group plc 
Annual Report and Accounts 2015
53 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
15. Inventories
Group
30 June 
2015 
$’m
30 June 
2014 
$’m
Finished goods 2.6 1.7
Finished goods represent customer premises equipment which includes dishes, modems and outdoor unit transceivers.
The cost of inventories recognised as an expense during the period was $6.8m (2014: $11.9m).
There have been no write-downs of inventory during the year.
16. Trade and other receivables
Group Company
30 June 
2015 
$’m
30 June 
2014 
$’m
30 June 
2015 
$’m
30 June 
2014 
$’m
Trade receivables 22.2 25.6 – –
Less provision for impairment of trade receivables (4.4) (4.6) – –
Net trade receivables 17.8 21.0 – –
Accrued income 10.6 9.2 – –
Prepayments 5.5 6.0 7.5 4.7
Amounts due from Group companies – – 85.6 247.4
Other receivables 1.6 2.4 0.2 0.3
35.5 38.6 93.3 252.4
For discussion of credit risk, refer to Note 21(b).
Included in the Group’s trade receivables balance at 30 June 2015 is a long term receivable of $8.5m (2014: $9.4m). 19% of the original 
balance has already been collected, with the remainder payable in instalments due every six months commencing 30 June 2015. 
The receivable will be fully repaid by 30 June 2019. In addition to the instalments payable, interest is payable at 5.25% per annum.
The Company has non-current trade and other receivables of $917.6m (2014: $527.5m) relating to amounts due from Group companies.
Avanti Communications Group plc 
Annual Report and Accounts 2015
54 17. Deferred taxation
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax 
liabilities and when the deferred income taxes relate to the same fiscal authority. The offset amounts are as follows:
Group Company
30 June 
2015 
$’m
30 June 
2014 
$’m
30 June 
2015 
$’m
30 June 
2014 
$’m
Deferred tax assets 30.5 30.8 0.5 0.5
Deferred tax liabilities (11.0) (9.7) – –
19.5 21.1 0.5 0.5
The gross movement on the deferred income tax account is as follows:
Balance at 1 July 2014 21.1 18.9 0.5 0.5
Income tax recognised in the Income Statement – – – –
Tax (credited)/charged directly to equity – – – –
Effects of movements in exchange rates (1.6) 2.2 – –
Balance at 30 June 2015 19.5 21.1 0.5 0.5
Group
Opening
 balance 
$’m
Credited/
(charged) 
to the 
Income
 Statement 
$’m
(Credited)/
charged 
to equity 
$’m
Effects of 
movements 
in exchange
 rates
$’m
Closing
 balance 
$’m
30 June 2015
Tax assets
Unused tax losses 26.1 1.6 – (2.0) 25.7
Provisions and deferred income 3.7 – – 0.1 3.8
Share based payment 1.0 – – – 1.0
Total tax assets 30.8 1.6 – (1.9) 30.5
Tax liabilities
Property, plant and equipment (9.7) (1.6) – 0.3 (11.0)
Total tax liabilities (9.7) (1.6) – 0.3 (11.0)
Net deferred tax asset 21.1 – – (1.6) 19.5
Avanti Communications Group plc 
Annual Report and Accounts 2015
55 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
17. Deferred taxation continued
Group
Opening
 balance 
$’m
Credited/
(charged) to
 the Income
 Statement
 $’m
(Credited)/
charged
 to equity 
$’m
Effects of 
movements 
in exchange
 rates
$’m
Closing
 balance 
$’m
30 June 2014
Tax assets
Unused tax losses 23.4 – – 2.7 26.1
Provisions and deferred income 4.1 (0.9) – 0.5 3.7
Share based payment 0.9 – – 0.1 1.0
Total tax assets 28.4 (0.9) – 3.3 30.8
Tax liabilities
Property, plant and equipment (9.5) 0.9 – (1.1) (9.7)
Total tax liabilities (9.5) 0.9 – (1.1) (9.7)
Net deferred tax asset 18.9 – – 2.2 21.1
Company
Opening
 balance 
$’m
Credited/
(charged) 
to the 
Income
 Statement
 $’m
(Credited)/
charged
to equity 
$’m
Effects of 
movements 
in exchange
 rates
$’m
Closing 
balance 
$’m
30 June 2015
Tax assets
Share based payment 0.1 – – – 0.1
Unused tax losses 0.4 – – – 0.4
Total tax assets 0.5 – – – 0.5
Avanti Communications Group plc 
Annual Report and Accounts 2015
56 17. Deferred taxation continued
Company
Opening
 balance 
$’m
Credited/
(charged) to 
the Income
 Statement
 $’m
(Credited)/
charged
 to equity 
$’m
Effects of 
movements 
in exchange
 rates
$’m
Closing
 balance 
$’m
30 June 2014
Tax assets
Share based payment 0.1 – – – 0.1
Unused tax losses 0.4 – – – 0.4
Total tax assets 0.5 – – – 0.5
At 30 June 2015, none of the deferred tax asset of $30.5m (2014: $30.8m) is expected to be recovered in the next 12 months.
At 30 June 2015, none of the deferred tax liability of $11.0m (2014: $9.7m) is expected to be settled in the next 12 months.
No deferred tax asset has been recognised in respect of the year ended 30 June 2015 (30 June 2014: $nil). Whilst the Group foresees 
utilising the deferred tax assets in future periods, it has not recognised the deferred tax asset movement in the year. Management believes 
the recognised deferred tax asset will be recoverable within three to four years based on forecasts showing increased utilisation of the 
satellite fleet.
As at 30 June 2015, the total unrecognised deferred tax asset totalled $30.9m (2014: $15.1m). This is made up of unused tax losses of 
$24.9m (2014: $5.5m), and other temporary differences of $6.0m (2014: $9.6m).
18. Cash and cash equivalents
For the purpose of the Cash Flow Statement, cash and cash equivalents include cash in hand and at banks net of outstanding overdrafts.
Cash and cash equivalents at the end of the financial year as shown in the Cash Flow Statement can be reconciled to the related items in 
the balance sheet as follows:
Group
30 June 
2015 
$’m
30 June 
2014 
$’m
Cash and bank balances 120.6 193.6
Short-term deposits 1.6 1.7
Net cash and cash equivalents 122.2 195.3
Avanti Communications Group plc 
Annual Report and Accounts 2015
57 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
19. Trade and other payables
Group Company
30 June 
2015 
$’m
30 June 
2014 
$’m
30 June 
2015 
$’m
30 June 
2014 
$’m
Current
Trade payables 3.9 8.5 – –
Social security and other taxes 0.7 0.7 – –
Other payables 1.1 2.1 – –
Accruals and deferred income 26.2 28.6 13.0 13.1
Amounts due to Group companies – – 141.8 5.4
31.9 39.9 154.8 18.5
Non-current
Accruals and deferred income 16.8 15.3 – –
16.8 15.3 – –
Accruals and deferred income above includes the interest accrued in the Company of $13.0m (2014: $13.0m) in relation to the $370.0m 
and $150.0m bonds.
20. Loans and other borrowings
Group current Group non-current
30 June 
2015 
$’m
30 June 
2014 
$’m
30 June 
2015 
$’m
30 June 
2014 
$’m
Secured at amortised cost
High yield bonds – – 510.3 508.4
Finance lease liabilities
(i)
 (Note 24) 4.7 4.6 13.4 4.0
4.7 4.6 523.7 512.4
Company current Company non-current
30 June 
2015 
$’m
30 June 
2014 
$’m
30 June 
2015 
$’m
30 June 
2014 
$’m
Secured at amortised cost
High yield bonds – – 510.3 508.4
Finance lease liabilities
(i)
 (Note 24) 2.7 1.5 4.0 2.7
2.7 1.5 514.3 511.1
(i)
  Finance lease obligations are secured by retention of title to the related assets. The borrowings are on fixed interest rate debt with repayment periods between 
3 and 13.5 years.
Avanti Communications Group plc 
Annual Report and Accounts 2015
58 20. Loans and other borrowings continued
High yield bonds
The Company issued 10% Senior Secured Notes of $370.0m and $150.0m on 1 October 2013 and 17 June 2014 respectively.
Issuer
Original 
notional value Description of instrument Due
Avanti Communications Group plc $520.0m 10% Senior Secured Notes 1 October 2019
The high yield bonds are disclosed in non-current loans and borrowings as detailed below:
30 June 
2015 
$’m
30 June 
2014 
$’m
High yield bonds 520.0 520.0
Add: Amortised issue premium 6.0 7.4
Less: Amortised debt issuance costs (15.7) (19.0)
510.3 508.4
21. Financial instruments and risk management
Group
The Group is subject to the risks arising from adverse movements in interest rates and foreign currency. The Group uses a variety of hedging 
instruments to manage these risks. The managing of these risks, along with the day-to-day managing of treasury activities, is performed 
by the finance team.
All financial instruments have been measured at amortised cost. As such, financial assets being cash and cash equivalents and trade and 
other receivables are classified as “Loans and Receivables” and financial liabilities being trade and other payables and interest-bearing 
liabilities have been classified as “Other Financial Liabilities”.
(a) Market risk
(i) Foreign exchange risk management
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect 
to GBP and the Euro. In order to hedge the foreign currency risk the Group enters into forward contracts or natural hedges. These risks are 
assessed on a continual basis.
At 30 June 2015, if the Euro had weakened/strengthened against the US Dollar by 5% with all other variables held constant, post tax loss 
would have worsened by $0.4m or improved by $0.4m (2014: post tax loss would have worsened by $0.2m or improved by $0.2m).
At 30 June 2015, if the Sterling had weakened/strengthened against the US Dollar by 5% with all other variables held constant, post tax loss 
would have improved by $0.8m or worsened by $0.8m (2014: post tax loss would have improved by $0.5m or worsened by $0.5m).
The average volatility of rates during the year compared to the year end exchange rate was 4.32% and therefore management believes that 
a 5% sensitivity rate provides a reasonable basis upon which to assess expected changes in foreign exchange rates.
(ii) Interest risk management
The Group borrows in pounds Sterling and US Dollars at fixed rates of interest and does not seek to mitigate the effect of adverse 
movements in interest rates. Cash and deposits earn interest at fixed rates based on banks’ short term treasury deposit rates. Short-term 
trade and other receivables are interest free.
Avanti Communications Group plc 
Annual Report and Accounts 2015
59 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
21. Financial instruments and risk management continued
(b) Credit risk management
The Group’s principal financial assets are cash and short term deposits and trade and other receivables. The Group has no significant 
concentrations of credit risk with the exception of the other financial assets. Cash and cash equivalents are deposited with high-credit quality 
financial institutions with a minimum rating of A+ and trade receivables are principally from well established corporations. The credit quality 
of major customers is assessed before trading commences taking into account its financial position, past experience and other factors.
30 June 
2015 
$’m
30 June 
2014 
$’m
Trade receivables 17.8 21.0
Total 17.8 21.0
The ageing of trade receivables and other financial assets which have not been impaired was as follows:
Not past due
$’m
1–30 days
$’m
31–60 days
$’m
60+ days
$’m
Total
$’m
30 June 2015 12.7 1.7 0.7 2.7 17.8
30 June 2014 13.8 2.9 1.2 3.1 21.0
Movements in the provision for impairment of trade receivables are as follows:
30 June 
2015 
$’m
30 June 
2014 
$’m
At 1 July 2014 4.6 1.7
Allowances made in the period 1.7 4.0
Amounts used and reversal of unused amounts (1.9) (1.1)
At 30 June 2015 4.4 4.6
The provision of $4.4m (2014: $4.6m) has been raised against gross trade receivables of $22.2m (2014: $25.6m). Every major customer is 
assessed on an individual basis and we provide for bad debts when an impairment has been identified.
Avanti Communications Group plc 
Annual Report and Accounts 2015
60 21. Financial instruments and risk management continued
(c) Liquidity risk management
The Group’s exposure to liquidity risk management is minimised due to the prudent monitoring of all of the Group’s liabilities. Cash and cash 
forecasts are monitored on a daily basis and our cash requirements are met by a mixture of short term cash deposits, debt and finance leases.
The following table analyses the Group’s financial liabilities into relevant maturity groupings based on the expected undiscounted cash flows.
Within 1 year
$’m
1-2 years
$’m
2-5 years
$’m
5+ years
$’m
Contractual
 amount
$’m
Carrying
 amount
$’m
30 June 2015
High yield bonds – – 520.0 – 520.0 510.3
Finance leases 5.8 4.6 7.0 12.4 29.8 18.1
Trade payables 3.9 – – – 3.9 3.9
30 June 2014
High yield bonds – – – 520.0 520.0 508.4
Finance leases 4.9 3.0 1.4 – 9.3 8.6
Trade payables 8.5 – – – 8.5 8.5
Interest is payable on the high yield bonds at 10% per annum over the four year remaining life of the bonds.
In addition, the Company has net intercompany receivables carried at $861.4m (2014: net receivables carried at $767.3m). The contractual 
amount is the carrying amount.
(d) Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide 
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. 
The capital structure of the Group consists of debt, which includes borrowings (Note 20), cash and cash equivalents (Note 18) and equity 
attributable to equity holders of the parent, comprising Ordinary Share capital, share premium, other reserves and retained earnings.
We endeavour to maximise earnings and minimise risk through an appropriate balance of debt and equity.
(e) Financial instruments by category 
Group
Assets as per balance sheet
Loans and
 receivables
$’m
Total
$’m
30 June 2015
Trade and other receivables (excl prepayments) 30.0 30.0
Cash and cash equivalents 122.2 122.2
152.2 152.2
30 June 2014
Trade and other receivables (excl prepayments) 32.6 32.6
Cash and cash equivalents 195.3 195.3
227.9 227.9
Avanti Communications Group plc 
Annual Report and Accounts 2015
61 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
21. Financial instruments and risk management continued
Liabilities as per balance sheet
Other financial
 liabilities at
amortised cost
$’m
Total
$’m
30 June 2015
Borrowings (excl finance lease liabilties) 510.3 510.3
Finance lease liabilities 18.1 18.1
Trade and other payables (excl non-financial liabilities) 48.0 48.0
 576.4  576.4 
30 June 2014
Borrowings (excl finance lease liabilties) 508.4 508.4
Finance lease liabilities 8.6 8.6
Trade and other payables (excl non-financial liabilities) 54.5 54.5
 571.5 571.5
Company
Assets as per balance sheet
Loans and
 receivables
$’m
Total
$’m
30 June 2015
Trade and other receivables (excl prepayments) 85.8 85.8
85.8 85.8
30 June 2014
Trade and other receivables (excl prepayments) 247.7 247.7
247.7 247.7
Liabilities as per balance sheet
Other financial 
liabilities at 
amortised cost
$’m
Total
$’m
30 June 2015
Finance lease liabilities 6.7  6.7 
Trade and other payables (excl non-financial liabilities) 154.8  154.8 
161.5 161.5
30 June 2014
Finance lease liabilities 4.2  4.2 
Trade and other payables (excl non-financial liabilities) 18.5  18.5 
22.7 22.7
Avanti Communications Group plc 
Annual Report and Accounts 2015
62 21. Financial instruments and risk management continued
Company
The Company does not have a material exposure to interest rate risk and foreign exchange risk.
Overall market risk, credit risk and liquidity risk are managed on a Group wide basis. Derivatives are measured at fair value and intercompany 
balances and accruals are measured at amortised cost. All intercompany balances are repayable on demand and accruals and derivatives 
mature in less than one year.
There is no provision for impairment against any of the Company’s financial assets.
22. Share capital – issued and fully paid
Number 
of shares 
‘000
Group and
 Company
 Ordinary 
Shares 
$’m
EBT 
shares 
$’m
Group and 
Company 
share 
premium 
$’m
At 1 July 2014 111,736 2.0 (0.1) 415.1
Shares issued 28,867 0.4 – 90.2
Issue of treasury shares to EBT 1,200 – – –
At 30 June 2015 141,803 2.4 (0.1) 505.3
On 9 October 2014, the Group issued 1,200,000 shares to the EBT at £0.01 per share.
On 5 February 2015, the Group issued 28,866,720 shares at £2.10 per share giving rise to share premum of $90.2m after share issue 
costs of $0.9m.
Refer to Note 29 for details of shares issued post year end on 21 August 2015.
Avanti Communications Group plc 
Annual Report and Accounts 2015
63 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
23. Share based payments
The fair value of share options charged to the Income Statement in the period was $0.7m (2014: $0.6m). The full fair value of these options 
is recognised over the vesting period for those options. All share based payment plans are equity settled and details of these plans are set 
out below.
The Company has established 19 share option schemes:
• Enterprise Management Incentives scheme (“EMI”)
• Long Term Incentive Plan (“LTIP”)
• Unapproved share option plan (2007)
• Unapproved share option plan (March 2010)
• Unapproved share option plan (July 2010)
• Save As You Earn (“SAYE”) scheme (July 2010)
• Unapproved share option plan (October 2010)
• Unapproved share option plan (April 2011)
• Unapproved share option plan (July 2011)
• Unapproved share option plan (October 2011)
• Unapproved share option plan (October 2011) key management personnel
• Save As You Earn (“SAYE”) scheme (November 2011)
• Unapproved share option plan (March 2012)
• Unapproved share option plan (April 2012)
• Long Term Incentive Plan (“LTIP”) (July 2013)
• Unapproved share option plan (October 2013)
• Save As You Earn (“SAYE”) scheme (November 2013)
• Unapproved share option plan (May 2014)
• Unapproved share option plan (May 2015)
The 2015 charges for each of the significant plans above were as follows:
2015 
charge
$’m
2014 
charge
$’m
LTIP schemes 0.1  0.1 
Unapproved schemes 0.6 0.5 
0.7 0.6 
To date all options (with exception of the SAYE scheme) have been granted with a strike price of 1 pence. The strike price on the SAYE 
scheme 2010 is £4.70, £3.09 on the SAYE scheme 2011, and £2.10 on the SAYE scheme 2013.
In July 2007 an Employee Benefit Trust (“EBT”) was established. The EBT is managed by Bedell Trustees in Jersey. The results of the EBT 
have been consolidated into the Group’s results.
Avanti Communications Group plc 
Annual Report and Accounts 2015
64 23. Share based payments continued
The table below sets out the number and weighted average exercise prices (“WAEP”) of, and movements in, the share options schemes 
during the year:        
2015
No.
2015
WAEP
2014
No.
2014
WAEP
EMI
Outstanding at the beginning of the year 131,078 £0.01 140,394 £0.01 
Granted during the year – – – – 
Forfeited in the year (2,066) £0.01 – –
Exercised during the year (2,668) £0.01 (9,316) £0.01 
Outstanding at the end of the year 126,344 £0.01 131,078 £0.01 
Unapproved schemes
Outstanding at the beginning of the year 884,691 £0.01 442,691 £0.01 
Granted during the year 445,000 £0.01 442,000 £0.01 
Forfeited in the year (111,529) £0.01 – – 
Exercised during the year – – – – 
Cancelled in the year (485,162) £0.01 – –
Reissued in the year 485,162 £0.01 – – 
Outstanding at the end of the year 1,218,162 £0.01 884,691 £0.01 
SAYE schemes
Outstanding at the beginning of the year 209,669 £2.70 135,243 £4.10 
Granted during the year – – 133,380 £2.10 
Forfeited in the year (113,654) £3.09 (58,954) £4.70 
Exercised during the year – – – – 
Outstanding at the end of the year 96,015 £2.10 209,669 £2.70 
The weighted average share price for the year ended 30 June 2015 was £2.24 (2014: £2.38). 126,344 (2014: 131,078) of the EMI options 
were exercisable at 30 June 2015. 
The exercise price of options outstanding at 30 June 2015 was £0.01 and the weighted average remaining contractual life was 9.4 years 
(2014: 5.5 years).
Each model has slightly different exercise criteria and therefore separate valuation models were used.
Avanti Communications Group plc 
Annual Report and Accounts 2015
65 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
23. Share based payments continued
EMI scheme
The EMI scheme was used to issue options to staff on 24 July 2007 at an exercise price of 1p. The new options were issued for 10 years 
with 25% vesting at the end of years 3, 4, 5 and 6. Those staff who had previously held unvested options in the former parent Company 
at the time of the de-merger were given a shorter vesting period for these new options. There are no performance criteria associated 
with these options and they are exercisable as long as the option holder remains an employee of the Company.
The weighted average inputs to the Black-Scholes model are as follows:
Share price at date of grant £2.16
Expected volatility 35%
Weighted average exercise price £0.01
Expected life 4 years
Expected dividend yield 1%
Risk-free interest free 5.5%
Expected volatility was determined by calculating the actual volatility of the Group’s share price since flotation. The expected life used 
in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions, and 
behavioural considerations.
Long Term Incentive Plan
The LTIP was established by the Company with approval from the Remuneration Committee to reward and incentivise the Executive 
Directors and senior managers of the Company.
The LTIP allocations are in separate sub funds within the EBT and are subject to a discretionary Trust. The shares are subject to automatic 
revocation if certain criteria (set out below) are not met and continue to be revocable for the entire Trust period.
The allocations into the LTIP vary for each executive. The total remaining allocation to each executive falls into the following tranches:
(i) The Core Tranche
This element of the grant became exercisable in seven equal instalments. The first instalment was exercisable on grant and the second on 
30 June 2008. The remaining five were exercisable yearly thereafter.
(ii) The Exceptional Achievement Tranche
This element of the grant was amended during 2010. Originally, these options were only exercisable if the average market value of the share 
exceeded £5.00 for a consecutive period of six months prior to 30 June 2010. Given the unprecedented market conditions over the previous 
year, the Remuneration Committee considered that whilst the executives had performed well and that the share price had outperformed the 
FTSE 100 and AIM All Share Index since the LTIPs were granted, the target set in the LTIP rules may still not be achieved. 
In May 2010 the Remuneration Committee agreed to extend the target date to 31 December 2010 and that the six month average target 
price should be increased to £5.50. The benchmark for this tranche of LTIP was satisfied in November 2010.
Avanti Communications Group plc 
Annual Report and Accounts 2015
66 23. Share based payments continued
(iii) The Extraordinary Achievement Tranche
This element of the grant was only exercisable if the market value of a share exceeded £10.00 for a consecutive period of six months before 
30 June 2013. At 30 June 2013, the criteria of the extraordinary achievement tranche had not been met, therefore the outstanding shares 
were returned to the EBT.
Executive 
directors 
No.
Senior 
managers 
No.
Original allocations:
Core 1,192,960  125,000 
Exceptional 679,570  62,500 
Extraordinary 679,213  62,500 
Additional grant July 2010 400,000 –
Total allocation 2,951,743  250,000 
Core vested (1,192,960) (89,286)
Exceptional vested (679,570) (62,500)
Unvested balance returned to the EBT (1,079,213) (62,500)
Outstanding balance 30 June 2014 – 35,714 
Movements in year ended 30 June 2015:
Core vested – (17,857)
Outstanding balance at 30 June 2015 – 17,857 
(iv) The Share Award Tranche 
The share award LTIP 2015 was issued 30 July 2013 to 30 June 2015. Two-thirds of the award was based on revenue performance for the 
year ending 30 June 2015. One-third of the award was based on the share price as at 30 June 2015.
In 2015, the Remuneration Committee determined that 50% of the 2015 award should be made but that, in the longer term interests of the 
Company, vesting should be made subject to the achievement of an additional criterion that the share price should remain at or above 
a certain level for three consecutive months. This amended award shall lapse if this is not achieved by 30 June 2020.
A second LTIP award was issued on 14 January 2014 to 30 June 2016. As consistent with the earlier LTIP, two-thirds of the award is based 
on revenue performance for the year ending 30 June 2016. Therefore there is no charge relating to that part of the LTIP. One-third of the 
award is based on the share price as at 30 June 2016.
A third LTIP award was issued on 5 November 2014 to 30 June 2017. As consistent with the earlier LTIP awards, two-thirds of the award is 
based on revenue performance for the year ending 30 June 2017. Therefore there is no charge relating to that part of the LTIP. One-third of 
the award is based on the share price as at 30 June 2017.
Avanti Communications Group plc 
Annual Report and Accounts 2015
67 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
23. Share based payments continued
The total number of options issued under the awards was as follows:
30 June 2015 30 June 2016 30 June 2017
 Amended 
award  Total award Two-thirds One-third Total award Two-thirds One-third
Dependent 
on share 
price
Dependent 
on revenue 
performance
Dependent 
on share 
price
Dependent 
on revenue 
performance
Dependent 
on share 
price
Executive directors 356,697 763,281 508,854 254,427 782,363 521,575 260,788
Senior managers 104,773 221,289 147,526 73,763 304,877 203,251 101,626
461,470 984,570 656,380 328,190 1,087,240 724,826 362,414
Unapproved schemes
At 30 June 2015, there were 13 unapproved schemes in place, established at various dates since 2007. 
Under each scheme, the options are issued for 10 years with 33% vesting at the end of years 3, 4 and 5. 
Prior to 1 May 2015, nine of the schemes (noted below) required the market value of the shares to be £10.00 or more per share for a 
consecutive period of six months in order for the vesting conditions to be met. On 1 May 2015, the remaining options in these schemes were 
cancelled, and reissued where the option holder continued to be employed by the Group. The reissued options require the market value of 
the shares to be £5.00 or more per share for a consecutive period of six months in order for the vesting conditions to be met. Other terms 
remained the same.
Unapproved schemes reissued with £5.00 share price vesting criteria:
• Unapproved share option plan (March 2010)
• Unapproved share option plan (October 2010)
• Unapproved share option plan (April 2011)
• Unapproved share option plan (July 2011)
• Unapproved share option plan (October 2011)
• Unapproved share option plan (March 2012)
• Unapproved share option plan (April 2012)
• Unapproved share option plan (July 2013)
• Unapproved share option plan (May 2014)
In addition, one new unapproved scheme was established in the year ended 30 June 2015, also with £5.00 share price vesting criteria:
• Unapproved share option plan (May 2015)
For all other schemes, there are no performance criteria and the options are exercisable as long as the time vesting criteria are met and 
the option holder remains with the company.
Save As You Earn (“SAYE”) schemes
The SAYE schemes were established in July 2010, November 2011 and November 2013 and were open to all employees of the Company 
at the time.
SAYE is an HMRC approved all employee savings-related share option scheme under which employees save up to a limit of £250.00 on a four 
weekly basis with an option to buy shares in the Company at the end of a three year period at a discount of up to 20% of the market value on 
the grant date. Options are not subject to performance conditions. All options are exercisable from three years from the date of grant. 
All options expire six months from their exercise date.
Avanti Communications Group plc 
Annual Report and Accounts 2015
68 24. Obligations under finance leases
Leasing arrangements
Finance leases relate to capital equipment with typical lease terms of three to five years. The Group has the option to purchase the 
equipment for a nominal value at the conclusion of the lease agreement. The Group’s obligations under finance leases are secured by the 
lessor’s title to the leased assets.
Also included under finance leases is the 13.5 year IRU agreement described in Note 2. The present value of the minimum lease payments 
in relation to this agreement and included below is $10.0m of which $0.8m is current and $9.2m is non-current.
Finance lease liabilities
Group 
Minimum lease payments
Group 
Present value 
of lease payments
30 June 
2015 
$’m
30 June 
2014 
$’m
30 June 
2015 
$’m
30 June 
2014 
$’m
No later than 1 year 5.8 4.9 4.7 4.6
Later than 1 year, no later than 5 years 11.6 4.4 7.3 4.0
After 5 years 12.4 – 6.1 –
29.8 9.3 18.1 8.6
Less future finance charge (11.7) (0.7) – –
18.1 8.6 18.1 8.6
Company 
Minimum lease payments
Company 
Present value 
of lease payments
30 June 
2015 
$’m
30 June 
2014 
$’m
30 June 
2015 
$’m
30 June 
2014 
$’m
No later than 1 year 3.0 1.8 2.7 1.5
Later than 1 year, no later than 5 years 5.4 3.1 4.0 2.7
8.4 4.9 6.7 4.2
Less future finance charge (1.7) (0.7) – –
6.7 4.2 6.7 4.2
Included in the Financial Statements as:
Group Company
30 June 
2015 
$’m
30 June 
2014 
$’m
30 June 
2015 
$’m
30 June 
2014 
$’m
Current borrowings 4.7 4.6 2.7 1.5
Non-current borrowings 13.4 4.0 4.0 2.7
Present value of minimum lease payments 18.1 8.6 6.7 4.2
Avanti Communications Group plc 
Annual Report and Accounts 2015
69 FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
25. Obligations under operating leases
The Group’s future aggregate minimum lease payments under non-cancellable operating leases are as follows:
30 June 
2015
30 June
2014
Land &
 Buildings
 $’m
Land &
 Buildings
 $’m
No later than 1 year 2.0 2.2
Later than 1 year, no later than 5 years 10.1 11.0
After 5 years 23.9 28.1
36.0 41.3
Operating lease commitments principally relate to leased office space of the Group’s head office. The Group entered in a 20 year lease on 
the property on 6 May 2013, with annual rent of $2.0m.
26. Capital commitments
As at 30 June 2015 the Group has contracted but not provided for capital commitments of $45.2m in relation to the procurement of HYLAS 
3 (2014: $52.2m).
The Group commenced the construction of HYLAS 4 early in the year ended 30 June 2015 following the announcement that it had completed 
contracts for that satellite’s construction and launch in August 2014. As at 30 June 2015, the Group was not contractually committed to any 
future payments under the construction or launch contracts and so none are included in the capital commitment disclosure provided above. 
As described in Note 29, subsequent to the year end the Group raised funds totalling $136.3m to complete the funding for HYLAS 4.
27. Related party transactions and directors’ emoluments
Transactions with Directors
Details of the Directors’ remuneration are set out below in aggregate for each of the categories specified in the Companies Act 2006.
30 June 
2015 
$’m
30 June 
2014 
$’m
Salaries and other short term employee benefits 2.8  2.9 
Bonus 1.2  0.8 
 4.0  3.7 
Payments into defined contribution schemes 0.1 0.1
 4.1  3.8 
Pension contributions amounting to $0.1m (2014: $0.1m) were made into personal pension schemes in respect of two (2014: three) of 
the Directors.
No Non-Executive directors exercised share options in the period.
The emoluments of the highest paid Director totalled $1.2m (2014: $1.1m), made up of:
Total emoluments
30 June 
2015 
$’m
30 June 
2014 
$’m
Salaries and other short term employee benefits 0.7  0.8 
Bonus 0.5  0.3 
Payments into defined contribution schemes –  – 
Total emoluments 1.2  1.1 
Avanti Communications Group plc 
Annual Report and Accounts 2015
70 27. Related party transactions and directors’ emoluments continued
Transactions with Directors and key management personnel – Group and Company
Details of the remuneration of Directors and key management personnel are set out below in aggregate for each of the categories specified 
in IAS 24 “Related Party Disclosures”.
Key management personnel are considered to be the executive Board, the general counsel, the head of regulatory, and the managing 
director of the ApTec division.
Total emoluments
Group Company
30 June 
2015 
$’m
30 June 
2014
 $’m
30 June 
2015 
$’m
30 June 
2014 
$’m
Salaries and other short term employee benefits 4.0  3.9  0.6  0.6 
Bonus 1.8  1.1  –  – 
Payments into defined contribution schemes 0.1  0.1  –  – 
 5.9  5.1  0.6  0.6 
Other related party transactions
Subsidiaries
Intra-Group transactions are eliminated on consolidation and are not reported in the Group accounts. The Company charged the following 
management fees to its subsidiaries:
30 June 
2015 
$’m
30 June 
2014 
$’m
Avanti Communications Limited 3.1  1.9 
Avanti Broadband Limited 3.6  2.9 
Avanti Space Limited 1.3  1.0 
Avanti HYLAS 2 Limited 1.8  1.3 
 9.8  7.1 
The parent Company had the following intercompany balances outstanding at the year end:
30 June 
2015 
$’m
30 June 
2014 
$’m
Avanti Communications Limited 52.8 128.0
Avanti Space Limited 19.6 7.4
Avanti Broadband Limited 6.6 18.4
Avanti HYLAS 2 Limited 782.4 526.0
Avanti Communications Infrastructure Limited – 87.5
861.4 767.3
Intercompany balances are unsecured and repayable on demand.
Avanti Communications Group plc 
Annual Report and Accounts 2015
71 28. Cash (absorbed by)/generated from operations
Group 
30 June 
2015
 $’m
Group 
30 June 
2014 
$’m
Company 
30 June 
2015 
$’m
Company 
30 June 
2014 
$’m
Loss before taxation (73.3) (87.7) (0.3) (1.6)
Interest receivable – – (55.6) (29.9)
Interest payable 37.7 30.2 52.3 28.1
Amortised bond issue costs 1.8 1.6 2.1 1.6
Foreign exchange loss/(gain) 1.0 (0.2) (0.5) 0.2
Depreciation and amortisation of non-current assets 48.1 49.8 – –
Provision for doubtful debts 1.0 3.3 – –
Loan breakage costs – 6.8 – –
Share based payment expense 0.7 0.7 – –
Sale of spectrum rights (Note 2) (25.1) – – –
(Increase) in stock (0.9) (0.3) – –
Decrease/(increase) in debtors 1.6 (9.7) (96.0) 5.5
(Decrease)/increase in trade and other payables (2.8) (8.0) 5.0 5.7
Cash (absorbed by)/generated from operations (10.2) (13.5) (93.0) 9.6
29. Post balance sheet events
On 21 August 2015, the Group placed $125.0m in Senior Secured Notes due 2019 (the “Notes”) under the existing indenture. The Notes 
were issued at a small discount to the then trading price of Avanti’s existing notes at the time of issue and have a coupon of 10%. On the 
same date, Avanti issued 3,592,781 new Ordinary Shares of 1p each at a price of 200.65p per new Ordinary Share, to raise approximately 
£7.2m ($11.3m) (net of expenses). The funds raised will be used to complete the construction and launch of HYLAS 4.
FINANCIAL STATEMENTS
NOTES TO THE ACCOUNTS continued
 
Avanti Communications Group plc 
Annual Report and Accounts 2015
72 Notice is hereby given that the Annual General Meeting of the 
Company (“AGM”) will be held at 9.00am on 24 November 2015 at 
The Bridewell Suite, Crowne Plaza London – The City, 19 New Bridge 
Street, London EC4V 6DB for the following purposes:
Ordinary Business
To consider and, if thought fit, to pass the following resolutions, 
which will be proposed as ordinary resolutions:
1. Report and accounts 
To receive the audited annual accounts for the year ended 30 June 
2015, together with the reports of the Directors and Auditor therein.
2. Election of Directors
2.1 To elect Charmaine Eggberry as a Director of the Company.
2.2 To elect Andrew Green as a Director of the Company.
3. Re-election of Directors
3.1 To re-elect Paul Walsh as a Director of the Company who 
retires by rotation in accordance with the Company’s Articles 
of Association.
3.2 To re-elect David Bestwick as a Director of the Company who 
retires by rotation in accordance with the Company’s Articles 
of Association.
3.3 To re-elect Richard Vos as a Director of the Company who 
retires by rotation in accordance with the Company’s Articles 
of Association.
3.4 To re-elect Matthew O’ Connor as a Director of the Company 
who retires by rotation in accordance with the Company’s 
Articles of Association.
4. Appointment of Auditor
To re-appoint KPMG LLP as Auditor of the Company.
5. Auditor’s remuneration
To authorise the Directors to determine the remuneration of 
the Auditor.
Special Business
To consider, and if thought fit, to pass the following resolutions, of 
which resolution 6 will be proposed as an ordinary resolution, and 
resolution 7 will be proposed as a special resolution:
6. Directors’ authority to allot shares
That the Directors are generally and unconditionally authorised 
pursuant to section 551 of the Companies Act 2006 (the “Act”) 
(in substitution for all or such existing authorities which are hereby 
revoked) to allot shares in the Company, and grant rights to subscribe 
for or to convert any security into shares of the Company (such 
shares, and rights to subscribe for or to convert any security into 
share of the Company being “relevant securities”) at such times and 
to such person, on such terms and in such manner as they think fit, 
up to an aggregate nominal amount of £491,321, such authority to 
expire on the earlier of the date falling 18 months after the date of 
the passing of this resolution and the conclusion of the next Annual 
General Meeting, save that the Company may before such expiry 
make any offer or agreement which would or might require relevant 
securities to be allotted after such expiry and the Directors may allot 
relevant securities in pursuance of such offer or agreement as if that 
authority had not expired.
7. Directors’ power to issue shares for cash
That, in substitution for any equivalent authorities and powers 
granted to the Directors prior to the passing of this resolution, the 
Directors be and they are hereby empowered pursuant to section 
570(1) of the Act to allot equity securities (as defined in section 560 
of the Act) of the Company wholly for cash pursuant to the authority 
of the Directors conferred by resolution 6 above, and/or where such 
an allotment constitutes an allotment of equity securities by virtue 
of section 560(2) of the Act, as if section 561(1) of the Act did not 
apply to such allotment provided that the power conferred by this 
resolution shall be limited to:
(a) the allotment of equity securities in connection with an invitation 
or offer of equity securities to the holders of Ordinary Shares in 
the capital of the Company (excluding any shares held by the 
Company as treasury shares (as defined in section 724(5) of 
the Act)) on a fixed record date in proportion (as nearly as 
practicable) to their respective holdings of such shares or in 
accordance with the rights attached to such shares (but subject 
to such exclusions or other arrangements as the Directors may 
deem necessary or expedient in relation to fractional entitlements 
or as a result of legal or practical problems under the laws of, or 
the requirements of, any regulatory body or any stock exchange 
in any territory or otherwise howsoever); and
(b) the allotment of equity securities pursuant to the exercise 
of any options granted by the Company at the date of this 
resolution; and
the allotment, otherwise than pursuant to paragraphs (a) and (b) 
above, of equity securities up to an aggregate nominal value equal 
to £147,396 and unless previously renewed, revoked, varied or 
extended, this power shall expire on the earlier of the date falling 
18 months after the date of the passing of this resolution and the 
conclusion of the next Annual General Meeting of the Company 
except that the Company may at any time before such expiry make 
an offer or agreement which would or might require relevant securities 
to be allotted after such expiry and the Directors may allot relevant 
securities in pursuance of such an offer or agreement as if this 
power had not expired. 
By Order of the Board
Patrick Willcocks
Secretary
Registered Office: Cobham House, 20 Black Friars Lane, 
London EC4V 6EB
Registered Number: 6133927
21 October 2015
 
NOTICE OF ANNUAL GENERAL MEETING
Avanti Communications Group plc 
Annual Report and Accounts 2015
73 Notes:
1. Pursuant to Regulation 41 of the Uncertificated Securities 
Regulation 2001 (as amended), only those members registered 
in the register of members of the Company at 9.00am on 
20 November 2015 (or if the Annual General Meeting is 
adjourned, 48 hours before the time fixed for the adjourned 
Annual General Meeting) shall be entitled to attend and vote at 
the Annual General Meeting in respect of the number of shares 
registered in their name at the time. In each case, changes to 
the register of members after such time shall be disregarded 
in determining the rights of any person to attend or vote at the 
Annual General Meeting.
2. If you wish to attend the Annual General Meeting in person, 
you must register in advance. Please complete and return to 
the Company Secretary your registration card. You will need 
to register no later than 48 hours in advance and bring 
identification to the meeting.
3. A member who is entitled to attend, speak and vote at the 
Annual General Meeting may appoint a proxy to attend, speak 
and vote instead of him. A member may appoint more than one 
proxy provided each proxy is appointed to exercise rights 
attached to different shares (so a member must have more than 
one share to be able to appoint more than one proxy). A proxy 
need not be a member of the Company but must attend the 
Annual General Meeting in order to represent you. A proxy must 
vote in accordance with any instructions given by the member 
by whom the proxy is appointed. Appointing a proxy will not 
prevent a member from attending in person and voting at the 
Annual General Meeting will terminate the proxy appointment. 
A proxy form is enclosed. The Notes to the proxy form include 
instructions on how to appoint the Chairman of the Annual 
General Meeting or another person as proxy. You can only 
appoint a proxy using the procedures set out in these Notes 
and in the notes to the proxy form.
4. To be valid, a proxy form, and the original or duly certified copy 
of the power of attorney or other authority (if any) under which it 
is signed or authenticated, should reach the Company’s 
registrar, Neville Registrars Limited at Neville House, 18 Laurel 
Lane, Halesowen, West Midlands B63 3DA, by no later than 
9.00am on 20 November 2015.
5. The Notes to the proxy form include instructions on how to 
appoint a proxy by using the CREST proxy appointment service. 
You may not use any electronic address provided either in this 
Notice of Annual General Meeting or in any related documents 
(including the proxy form) to communicate with the Company 
for any purposes other than those expressly stated.
6. In the case of joint holders of shares, the vote of the first named 
in the register of members who tenders a vote, whether in 
person or by proxy, shall be accepted to the exclusion of the 
votes of other joint holders.
7. A member that is a company or other organisation not having 
a physical presence cannot attend in person but can appoint 
someone to represent it. This can be done in one of two ways: 
either by the appointment of a proxy (described in Notes 3 to 5 
above) or of a corporate representative. Members considering 
the appointment of a corporate representative should check 
their own legal position, the Company’s Articles of Association 
and the relevant provision of the Companies Act 2006.
8. Copies of the Executive Directors’ service contracts with the 
Company and any of its subsidiary undertakings and letters 
of appointment of the Non-Executive Directors are available for 
inspection at the registered office of the Company during the 
usual business hours on any weekday (Saturday, Sunday or 
public holidays excluded) from the date of this notice until the 
conclusion of the Annual General Meeting and will also be 
available for inspection at the place of the Annual General 
Meeting from 9.00am on the day of the Annual General 
Meeting until its conclusion.
 
NOTES TO NOTICE OF ANNUAL GENERAL MEETING
Avanti Communications Group plc 
Annual Report and Accounts 2015
74 Resolution 1 – Report and accounts
All companies are required by law to lay their annual accounts and 
reports before a general meeting of the Company, together with the 
Directors’ report and Auditor’s report on the accounts. At the Annual 
General Meeting, the Directors will present these documents to the 
shareholders for the financial year ended 30 June 2015.
Resolution 2 – Election of Directors
These resolutions concern the election of Charmaine Eggberry and 
Andrew Green as Directors of the Company. Charmaine Eggberry 
was appointed by the Board on 27 November 2014 as a Non-Executive 
Director. Andrew Green was appointed by the Board on 27 
November 2014 as a Non-Executive Director. Charmaine Eggberry 
and Andrew Green are required by the Company’s Articles of 
Association to offer themselves for election at the Annual General 
Meeting following their appointment. Charmaine Eggberry’s 
biography is set out on page 17. Andrew Green’s biography is set 
out on page 17.
Resolution 3 – Re-election of Directors
These resolutions concern the re-appointment of Paul Walsh, 
David Bestwick, Richard Vos and Matthew O’Connor who are 
retiring at the meeting by rotation in accordance with the 
Company’s Articles of Association.
Resolution 4 – Appointment of Auditor
This resolution concerns the re-appointment of KPMG LLP as 
Auditor until the conclusion of the next general meeting at which 
accounts are laid, that is the next Annual General Meeting.
Resolution 5 – Auditor’s remuneration
This resolution authorises the Directors to fix the Auditor’s 
remuneration.
Resolution 6 – Directors’ authority to allot shares
This resolution grants the Directors authority to allot shares in 
the capital of the Company and other relevant securities up to 
an aggregate value of £491,321, representing approximately 33.33% 
of the nominal value of the issued Ordinary Share capital as at 
20 October 2015, being the latest practicable date before publication 
of this notice. The Directors do not have any present intention of 
exercising the authorities conferred by this resolution but they 
consider it desirable that the specified amount of authorised but 
unissued share capital is available for issue so that they can more 
readily take advantage of possible opportunities. Unless revoked, 
varied or extended, this authority will expire at the conclusion of the 
next Annual General Meeting of the Company or the date falling 18 
months from the passing of this resolution, whichever is the earlier.
Resolution 7 – Directors’ power to issue shares for cash
This resolution authorises the Directors in certain circumstances 
to allot equity shares for cash other than in accordance with the 
statutory pre-emption rights (which require the Company to offer all 
allotments for cash first to existing shareholders in proportion to their 
holdings). The relevant circumstances are either where the allotment 
takes place in connection with a rights issue or the allotment is 
limited to a maximum nominal amount of £147,396 representing 
approximately 10% of the nominal value of the issued Ordinary 
Share capital of the Company as at 20 October 2015, being the 
latest practicable before publication of this notice. Unless revoked, 
varied or extended, this authority will expire at the conclusion of 
the next Annual General Meeting of the Company or 18 months after 
the passing of the resolution, whichever is the earlier. The Directors 
consider that the power proposed to be granted by resolution 7 is 
necessary to retain flexibility, although they do not have any intention 
at the present time of exercising such power.
Avanti Communications Group plc 
Annual Report and Accounts 2015
75 Introduction
After his opening remarks, the Chairman will explain in detail the procedures for the conduct of the meeting, particularly for asking questions. 
The resolutions which are set out in the Notice of Meeting will then be put to the meeting.
How to ask questions
At the meeting, shareholders will be given the opportunity to ask questions. Please explain the nature of your question and give your name 
and address. You may be asked to wait until called upon to speak. Please remember to state your name before asking your question.
Time
The doors will open at 8.30am and the meeting will start promptly at 9.00am.
Cameras, tape recorders etc.
No cameras, video recorders, tape recorders or mobile phones will be allowed into the meeting.
Registration
You must register in advance to attend the meeting. Please complete and return to the Company Secretary your registration card. You will 
need to register no later than 48 hours in advance and bring identification to the meeting.
Important
If you have questions about the meeting, or if you need any assistance, please telephone Laura Holmes at Avanti Communications 
Group plc on 0207 749 1600 during normal working hours.
Analysis of shareholders
Range of holdings Number of shares Number of shareholders
Less than 10,000 3,054,202 1,491
10,001 – 20,000 949,266 66
20,001 – 50,000 1,817,711 58
50,001 – 100,000 1,992,121 30
100,001 – 150,000 2,418,614 19
150,001 – 300,000 4,168,823 18
300,001 – 500,000 6,691,545 17
500,001 – 1,000,000 8,160,363 11
1,000,000 + 116,143,705 20
Financial calendar
• November 2015: Annual General Meeting
• February 2016: Interim results for the six months ended 31 December 2015
• September 2016: Preliminary results for the year ended 30 June 2016
Annual General Meeting
The Annual General Meeting will be held at The Bridewell Suite, Crowne Plaza London – The City, 19 New Bridge Street, London EC4V 6DB.
Details of the resolutions to be proposed at the Annual General Meeting are contained in the Notice of Annual General Meeting on page 73. 
Dividend
The Directors have not recommended the payment of a dividend for the year ended 30 June 2015.
Listing
Ordinary Shares of Avanti Communications Group plc are traded on AIM.
The share price is available from the Avanti website at www.avantiplc.com and in The Financial Times and The Times.
Registrars
All administrative enquiries relating to shareholdings should be directed to The Registrar, Neville Registrars Limited, Neville House, 
18 Laurel Lane, Halesowen, West Midlands B63 3DA.
Avanti’s services
Information about Avanti’s services can be found at www.avantiplc.com.
 
FURTHER NOTES TO THE ANNUAL GENERAL MEETING
Avanti Communications Group plc 
Annual Report and Accounts 2015
76 Proxy form for use at the Annual General Meeting of Avanti Communications Group plc (the “Company”) to be held at The Bridewell Suite, 
Crowne Plaza London – The City, 19 New Bridge Street, London EC4V 6DB on 24 November 2015 at 9.00am (“AGM” or “Meeting”).
I/We
of
I/We
being a member/members of the Company entitled to receive notice, attend and vote at general meetings of the Company, hereby appoint 
the Chairman of the Meeting (Note 1)
I/We
as my/our proxy to attend, speak and vote for me/us and on my/our behalf at the AGM and at any adjournment thereof in relation to the 
resolutions specified in the Notice of AGM dated 21 October 2015 (the “Resolutions” and the “Notice” respectively) and any other business 
(including adjournments and amendments to the Resolutions) which may properly come before the Meeting or any adjournment thereof.
I/We direct my/our proxy to vote as follows in respect of the Resolutions (Note 2):
Ordinary Business For Against
Vote 
withheld 
(Note 2)
1. To receive the report and accounts for the year ended 30 June 2015 (ordinary resolution)
2.1 To elect Charmaine Eggberry as a Director (ordinary resolution)
2.2 To elect Andrew Green as a Director (ordinary resolution)
3.1 To re-elect Paul Walsh as a Director (ordinary resolution)
3.2 To re-elect David Bestwick as a Director (ordinary resolution)
3.3 To re-elect Richard Vos as a Director (ordinary resolution)
3.4 To re-elect Matthew O’Connor as a Director (ordinary resolution)
4. To re-appoint KPMG LLP as Auditor (ordinary resolution)
5. To authorise the Directors to fix the remuneration of the Auditor (ordinary resolution)
Special Business
6. To authorise the Directors to allot relevant securities (ordinary resolution)
7. To enable the Directors to allot shares for cash without first offering them to existing 
shareholders (special resolution)
(Note 3) Number of shares in relation to which proxy is authorised to act:
 This proxy appointment is one of a multiple proxy appointment (Note 4)
 This proxy appointment is signed on behalf of the member under power of attorney or other authority (Notes 5 and 6) 
Signed Dated
FORM OF PROXY  
for Avanti Communications Group plc
(incorporated and registered in England and Wales under number 6133927)
Avanti Communications Group plc 
Annual Report and Accounts 2015
77
✂ Tear along perforation 1. A member who is entitled to attend, speak and vote may appoint a proxy 
to attend, speak and vote instead of him. A proxy need not be a member 
of the Company but must attend the AGM in order to represent you. 
A member wishing to appoint someone other than the Chairman of 
the Meeting as his or her proxy should insert that person’s name in 
the space provided in substitution for the reference to “the Chairman 
of the Meeting” (and delete that reference) and initial the alteration.
2. Please indicate by inserting an “X” in the appropriate box how you 
wish your vote to be cast on the Resolutions. Your proxy must vote 
in accordance with any instructions given by you. If you mark the box 
“Vote withheld” it will mean that your proxy will abstain from voting. 
A “Vote withheld” is not a vote in law and will not be counted in the 
calculation of the proportion of the votes “For” and “Against” a resolution. 
If you fail to select any of the given options, the proxy can vote as he or 
she chooses or can decide not to vote at all.
3. If the proxy is being appointed in relation to less than your full voting 
entitlement, please indicate on the line provided the number of shares 
in relation to which that person is authorised to act as your proxy. If left 
blank, your proxy will be deemed to be authorised in respect of your full 
voting entitlement or, if this proxy form has been issued in respect of a 
designated account for a shareholder, the full voting entitlement for that 
designated account.
4. A member may appoint more than one proxy provided each proxy is 
appointed to exercise rights attached to different shares (so a member 
must have more than one share to be able to appoint more than one 
proxy). A separate proxy form must be deposited for each proxy 
appointed. Further copies of this form may be obtained from Neville 
Registrars Limited between 9.00am and 5.00pm (London time) Monday 
to Friday on 0121 585 1131 from within the UK or +44 121 585 1131 if 
calling from outside the UK, or you may photocopy this form. If you 
appoint multiple proxies please indicate on the line provided the number 
of shares in relation to which the person named on this form is 
authorised to act as your proxy, and also indicate by ticking the box 
provided that the proxy instruction is one of multiple instructions being 
given. All forms must be signed and returned to Neville Registrars 
Limited, the Company’s registrars, at the address below, together in the 
same envelope. Where multiple proxies are appointed, failure to specify 
the number of shares to which this proxy appointment relates, or 
specifying a number which exceeds the number held by the member 
when totalled with the number specified on other proxy appointments 
by the same member, will render all the appointments invalid.
5. To be valid, this proxy form, and the original or duly certified copy of 
the power of attorney or other authority (if any) under which it is signed 
or authenticated, must be received by post or (during normal business 
hours only) by hand at the offices of the Company’s registrars, 
Neville Registrars Limited, Neville House, 18 Laurel Lane, Halesowen, 
West Midlands B63 3DA by 9.00am on 20 November 2015. Alternatively, 
a member may appoint a proxy or proxies by using the CREST proxy 
appointment service, by following the procedure set out in Note 11 
below. You can only appoint a proxy using the procedures set out in 
these Notes and in the Notes to the Notice.
6. An individual member or his attorney must sign this form. If the 
member is a company, this proxy form must be executed under the 
company’s common seal or signed on the company’s behalf by a duly 
authorised officer or attorney of the company, stating their capacity 
(e.g. director, secretary).
7. The appointment of a proxy will not preclude a member from attending 
the Meeting and voting in person. If the member appointing the proxy 
does so attend and vote, any proxy appointment will terminate automatically.
 
FORM OF PROXY NOTES
8. In the case of joint holders, the proxy appointment of the most senior 
holder will be accepted to the exclusion of any appointments by the other 
joint holders. For this purpose, seniority is determined by the order in 
which the names are stated in the register of members of the Company 
in respect of the joint holding.
9. A member wishing to change his or her proxy instructions should submit 
a new proxy appointment using the methods set out, and by the time 
limit specified, in Note 5. Any changes to proxy instructions received 
after that time will be disregarded. A member who requires another form 
should contact Neville Registrars Limited between 9.00am and 5.00pm 
(London time) Monday to Friday on 0121 585 1131 from within the UK 
or +44 121 585 1131 if calling from outside the UK. Subject to Note 4, 
if a member submits more than one valid proxy appointment, 
the appointment received last before the time limit in Note 5 will 
take precedence.
10. A member wishing to revoke his or her proxy appointment should do 
so by sending a notice to that effect to the Company’s registrars to 
the address set out in Note 5 or electronically by means of the facilities 
described in Note 11 below. The revocation notice must be received 
by Neville Registrars Limited by the time limit set out in Note 5. 
Any revocation notice received after this time will not have effect.
11. CREST members who wish to appoint a proxy or proxies through the 
CREST proxy appointment service may do so for the Meeting (and any 
adjournment thereof) by following the procedures described in the 
CREST Manual. CREST personal members or other CREST sponsored 
members (and those CREST members who have appointed a voting 
service provider) should refer to their CREST sponsor or voting service 
provider, who will be able to take the appropriate action on their behalf.
 In order for a proxy appointment or instruction made by means of 
CREST to be valid, the appropriate CREST message (a “CREST Proxy 
Instruction”) must be properly authenticated in accordance with 
Euroclear UK & Ireland Limited’s (“Euroclear”) specifications and must 
contain the information required for such instructions, as described in 
the CREST Manual. The message (regardless of whether it relates to the 
appointment of a proxy, the revocation of a proxy appointment or to an 
amendment to the instruction given to a previously appointed proxy) 
must, in order to be valid, be transmitted so as to be received by Neville 
Registrars Limited (ID 7RA11) by the latest time(s) for receipt of proxy 
appointments specified in Note 5 above. For this purpose, the time of 
receipt will be taken to be the time (as determined by the timestamp 
applied to the message by the CREST Applications Host) from which 
Neville Registrars Limited is able to retrieve the message by enquiry to 
CREST in the manner prescribed by CREST. After this time any change 
of instructions to proxies appointed through CREST should be 
communicated to the appointee through other means.
 CREST members (and, where applicable, their CREST sponsors or 
voting service providers) should note that Euroclear does not make 
available special procedures in CREST for any particular messages. 
Normal system timings and limitations will therefore apply in relation 
to the input of CREST Proxy Instructions. It is the responsibility of the 
CREST member concerned to take (or if the CREST member is a CREST 
personal member or sponsored member or has appointed a voting 
service provider, to procure that his CREST sponsor or voting service 
provider takes) such action as shall be necessary to ensure that a 
message is transmitted by means of the CREST system by any particular 
time. In this connection, CREST members (and, where applicable, their 
CREST sponsors or voting service providers) are referred, in particular, 
to those sections of the CREST Manual (available at www.euroclear.com/
CREST) concerning practical limitations of the CREST system and timings.
 The Company may treat as invalid a CREST Proxy Instruction in the 
circumstances set out in Regulation 35(5)(a) of the Uncertificated 
Securities Regulations 2001 (as amended).
Avanti Communications Group plc 
Annual Report and Accounts 2015
78  
NOTES
Avanti Communications Group plc 
Annual Report and Accounts 2015
79  
NOTES
Avanti Communications Group plc 
Annual Report and Accounts 2015
80  
OFFICERS AND PROFESSIONAL ADVISORS
Directors
Paul Walsh
Chairman
David Williams
Chief Executive
David Bestwick
Technical Director
Nigel Fox
Group Finance Director
Matthew O’Connor
Chief Operating Officer
John Brackenbury CBE
Non-Executive Director
Professor Michael Walker OBE
Non-Executive Director
Richard Vos
Non-Executive Director
Paul Johnson
Non-Executive Director
Charmaine Eggberry
Non-Executive Director
Andy Green
Non-Executive Director
Secretary
Patrick Willcocks
Registered Office
Cobham House 
20 Black Friars Lane 
London 
EC4V 6EB
Company Number
6133927
Bankers
HSBC Bank Plc
70 Pall Mall 
London 
SW1Y 5EZ
Solicitors
Osborne Clarke
1 London Wall 
London 
EC2Y 5EB
Registered Auditor
KPMG LLP
15 Canada Square 
London 
E14 5GL
Designed and produced by Luminous
www.luminous.co.uk QUALITY. FLEXIBILITY.
AVANTI COMMUNICATIONS 
GROUP PLC 
COBHAM HOUSE 
20 BLACK FRIARS LANE 
LONDON EC4V 6EB 
Avanti Communications Group plc  Annual Report and Accounts 2015