Avanti Communications Group plc 
Annual Report and Accounts 201 4
Avanti Communications Group plc Annual Report and Accounts 2014 IFC–1
Overview
Highlights 2014   1
2–13 
Strategic Report:
Business Model
Chairman’s Statement   2
Chief Executive’s Review   3
Strategy  6
Fleet and Coverage  8
Products and Applications 10
Unique Product Advantages 12
14–21 
Strategic Report:
Operational Review
Financial and Operating Review  14
Sustainability 19
22–37 
Corporate 
Governance
Board of Directors   22
Corporate Governance Report   24
Audit Committee Report 29
Nominations Committee Report   30
Technical Committee  31
Report of Remuneration Committee 32
Report of the Board of Directors 35
Statement of Directors’ Responsibilities  37
38–78 
Financial  
Statements
Independent Auditor’s Report   38
Consolidated Income Statement   39
Consolidated Statement of  
Comprehensive Income   39
Consolidated Statement of Financial Position  40
Company Statement of Financial Position  41
Consolidated and Company  
Statement of Cash Flows 42
Consolidated and Company Statement  
of Changes in Equity 43
Notes to the Accounts   44
Notice of AGM   71
Form of Proxy 77
CONTENTS Strategic  
Report:  
Business  
Model  2–13
1/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
HIGHLIGHTS
2014 
WELCOME
SHAREHOLDERS
Financial highlights
•  Revenues increased by 104% to  
$65.6 million (2013: $32.1 million)
•  $430 million Backlog (2013: $445 million)
•  EBITDA positive for the full year for the 
first time
•  $195.3 million cash at year end
Operational highlights
•  Success in contracting and building 
several cellular backhaul networks 
•   Success in contracting and launching 
broadband deployments for several  
large telcos
•  Acquisition of ARTEMIS satellite and 
procurement of HYLAS 4 to create best  
Ka-band coverage in EMEA
We are building a business that can 
potentially generate over $700 million in 
revenues and over $500 million EBITDA 
annually if the current fleet is filled. The 
achievements of the year clearly show  
that Avanti is capable of achieving this 
ambitious growth in time.
Paul Walsh
Chairman 2/
Avanti Communications Group plc: Annual Report and Accounts 2014
$m
2012 2013 2014
80
60
20
40
0
$m
2012 2013 2014
0
5
-5
-10
-15
CHAIRMAN’S  
STATEMENT
AVANTI HAS ALL THE  
INGREDIENTS TO CONTINUE  
TO GROW A BUSINESS TO  
LARGE SCALE.
Paul Walsh
Chairman
EBITDA*
$1.7m 
Revenue
$65.6m  
+104%
It has been a good twelve months for Avanti. Revenues doubled 
and the Company generated positive EBITDA for the year. New 
business was signed with major international telecoms and media 
companies. The Company succeeded in financing a new satellite  
on attractive terms which offers shareholders an additional major 
growth opportunity. 
Avanti has financed a fleet of five satellites able to serve 27% of  
the world’s population in a region containing thirteen of the world’s 
twenty fastest growing countries. The strong focus on Africa is 
unique and gives Avanti a strategic advantage.
Avanti has built a network with a high level of quality and flexibility. 
In a data market which changes rapidly and constantly pushes  
the boundaries of technology, this is fundamental to winning the 
trust of the larger telecommunications companies. We have an 
encouraging roster of customers for a young company launching 
novel products simultaneously into over 50 countries in the last two 
years. This is an important achievement that points to a positive 
future for Avanti.
The Board took a step forward this year to complete Avanti’s 
network in Africa with HYLAS 4, and this gives the company major 
advantages in a region that offers high opportunity. This completes 
our strategic plan for geographic coverage.
In the quality and breadth of its networks, the scale and growing 
quality of its customer base and in its dynamic culture which 
encourages innovation and good customer service, Avanti has  
all the ingredients to continue to grow a business to large scale.  
We are building a business that can potentially generate over $700 
million in revenues and over $500 million EBITDA annually if the 
current fleet is filled. That will not happen overnight, and predicting 
the time taken to contract with the largest telecommunications 
companies is not straight forward. But the achievements of the year 
clearly show that Avanti is capable of achieving this ambitious 
growth in time.
 * adjusted EBITDA before the share based payment charge Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
3/
CHIEF EXECUTIVE’S  
REVIEW
THE SIZE OF CUSTOMERS  
WE HAVE BEEN SIGNING AND  
THE SCALE OF DEPLOYMENTS 
THEY ARE PLANNING GIVES  
US CONFIDENCE.
David Williams
Chief Executive
2014 was the first full year of HYLAS 2 revenues and the first of a 
carefully planned five year programme to sell its extensive capacity. 
This helped us to increase revenues by 104% to $65.6 million and 
to generate EBITDA of $1.7 million (before the non-cash share based 
payment charge). Transitioning to EBITDA positive and signing 
contracts with some of the biggest telcos and media companies in 
our region is a powerful indicator that we have superior, well priced 
products and are able to sell to the most demanding customers. 
Over the course of the year we saw increasing numbers of large 
customers moving from framework contracts to fixed term 
capacities. The rate at which existing customers increased their 
contract values (“repeat rate”) was an encouraging 52% and the 
number of days from initial enquiry to signing (“pipeline”) was 98, 
which demonstrates that the sales cycle is shortening considerably 
as our products become more firmly established in the market.  
We signed 92 new contracts in the year. A continuation of our 
99.99% SLA is a strong reason why new customers are coming  
to our network and existing customers are buying more.
There are two important elements to the story of our year: the 
growth in the customer base and the financing of HYLAS 4.
Customers
Revenue growth remains the most important focus for us. This is 
being achieved via a customer acquisition strategy that has been 
consistent and successful since the outset.
Our products have been designed to provide a cloud of data capacity 
that has maximum quality and flexibility, and broad coverage of 
EMEA, with a particular focus on Sub-Saharan Africa, which  
now accounts for more than 80% of our capacity. We are able to 
support our large telecommunications company customers in the 
widest possible range of applications they seek, greatly exceeding 
the quality and flexibility that they have seen from legacy satellite 
fleets. Customers access the fleet through proprietary software 
called Avanti OSS, and this enables them to scale and change their 
business with unparalleled flexibility. We have a number of patents 
and are pursuing others to protect our innovations.
We achieved early success in selling to specialist service providers, 
referred to in the industry as “VSAT providers”. VSAT providers have 
used our product for enterprise and government networks, media 
services and some regional broadband deployments. Nine of the 
top 20 VSAT providers in our regions now buy Avanti capacity,  
so we know we have generated a loyal and committed customer 
base in this market and continue to work hard to help them to grow. 
As a result, much of our new business this year has been won away 
from legacy technology as old capacity leases matured.  4/
Avanti Communications Group plc: Annual Report and Accounts 2014
We have a lot of capacity to fill – a Ka-band satellite typically has 
around 5–10 times more available Megabits than a Ku-band 
satellite, per tonne, and this drives its price down to levels that are 
attractive to customers. In order to fill that capacity, we need to 
access the large scale international distribution that only major 
telecommunication companies and Mobile Network Operators 
(“MNOs”) can offer. The products of interest here are broadband  
for consumers and SMEs, and cellular backhaul for MNOs.
We have had success this year in finally penetrating these markets. 
We created a world first in providing 3G backhaul to MNOs,  
and have also successfully deployed 4G backhaul for the UK 
government. With Vodafone and Smart launching our backhaul 
products on long term contracts, several other large MNOs  
now piloting the technology at an advanced stage and some 
proceeding to issue RFPs, this market is maturing for us.
We began deployments in the year for a number of national 
incumbent telco operators. Telone in Zimbabwe has grown its 
usage quickly, and we recently announced a contract with Orange 
Kenya Telecom. We also signed contracts with some of the largest 
alternative service providers in the regions like Wananchi, the 
largest media provider in East Africa, and Internet Solutions 
(Dimension Data) the largest pan African ISP . 
The progress of large contracts from pilot, through business  
case evaluation to negotiation and closure, has often been slow. 
However, we have maintained firm discipline in our pricing model 
with our average price remaining above the $2,000 per MHz per 
month that we set in 2008 and we continue to focus on promoting 
our Quality and Flexibility advantages. 
HYLAS 4 rationale
There were four elements in our decision to finance HYLAS 4:
1. Continuity of capacity
We have demonstrated an ability to access the large latent demand 
for our services through some of the contracts we signed in the 
year. It will take perhaps another three years for those contracts to 
fully saturate our in orbit capacities, but at that point we would risk 
becoming an ex-growth business unless we build further capacity.
One of the challenges of the space business is that it takes three to 
four years to design, build, launch and commission a new satellite, 
so it is important that we continue to look far ahead. Current rates 
of repeat business and new customer acquisition suggest that by 
2017 there is a realistic probability that existing capacities will be 
substantially full. The relatively small HYLAS 3 payload we are flying 
on an ESA satellite gives us some ability to expand, but without 
expansion capacity across territories, there is a risk that the 
business at that point would be waiting several years for its next 
major growth inflection. We also need to assure our customers  
of continuity and security of service over the longer term.
HYLAS 4 provides the solution, with new capacity over new countries 
in Africa as well as new capacity over existing territories in Africa 
and Europe that can be used for back up and expansion. We 
believe that the announcement of our provision of expansion and 
back up capacity on HYLAS 4 has already had an impact in some 
new customers signing with us.
2. Opportunities from multinational customers
Almost all of our customers in Sub-Saharan Africa are multinational 
within that region. We conducted a survey to ask them in which 
countries they are active or for which they would like to see Avanti 
launch capacity, and designed HYLAS 4 coverage accordingly.  
Our fleet now covers 13 of the world’s 20 fastest growing 
economies and 27% of the global population. The Sub-Saharan 
region includes 1 billion people but currently has internet 
penetration of just 16%. McKinsey predicts that GDP from Internet 
business in Africa will rise from $18 billion to $300 billion (2025), 
considerably outstripping the global trend of 33% CAGR in data 
usage. We see it as strategically important to make sure that we  
are in a position to capitalise on all of the demand in Sub-Saharan 
Africa, not just part of it. Given that this is the most exciting high 
growth region in the world, it is likely that our focus on Africa will 
remain the limit of our geographic ambition for the time being.
3. Limited competition
There is very little competition for our products because the 
incumbent satellite operators remain broadly conservative about 
moving out of their traditional TV markets and into high quality 
telecoms, and where they are beginning to move in a small way, 
they are using different business models which we believe 
preserves our Quality and Flexibility advantage in our target 
markets. This means that we have prime mover advantage.  
The unmet demand for data across Africa is very large and our 
customers want service in additional countries, therefore the 
opportunity to drive forward our prime mover advantage is 
strategically appealing.
4. Efficient financing
As a result of the bond re-financing we completed in 2013, we were 
able to approach the bond market for an addition to the existing 
facility in a very efficient way. We were also fortunate to come to  
the bond market at a moment in time when investors were very 
supportive. Finally, we were able to launch the HYLAS 4 project 
with no equity capital, thereby protecting shareholders from dilution. 
 
When choosing to finance HYLAS 4, we used base case 
assumptions that would generate an IRR of 29%. The financing  
and procurement strategies were carefully designed to manage 
risk, match capital to liabilities and, most importantly, to maximise 
value for shareholders. 
CHIEF EXECUTIVE’S  
REVIEW CONTINUED Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
5/
HYLAS 4 financing strategy
The “tap-on” bond that we issued in June is sufficient to cover  
our capital commitments because in procurement we achieved a 
limitation of liability of $81 million. Thus, if the capital markets were 
not open around October 2015, we could pause the project for as 
long as necessary. That downside protection was important in our 
structuring but the intention remains to complete the financing  
on time. As part of the tap-on, we gained consent to issue up to  
$125 million in additional bonds, which can therefore be done very 
quickly when the time is right, the only variable being the price the 
market will apply at the time. In order to access the third tranche of 
bonds of up to $125 million, we will also issue up to $100 million of 
Junior Capital. This is defined as any form of capital which has a 
maturity date beyond the bonds, does not pay cash interest and is 
unsecured and structurally subordinated to the bonds.
The success we achieved in procuring HYLAS 4 efficiently means 
that the remaining capital requirement is likely to be 10%–20% 
lower than originally contemplated.
Other achievements
During the year we acquired the ARTEMIS satellite and associated 
spectrum and concluded the first significant new sale of capacity. 
ARTEMIS’ primary function is to communicate with other 
spacecraft in orbit. ARTEMIS revenues are by their nature derived 
from short term projects and are unpredictable, but we expect the 
satellite to yield a good return.
Outlook
Whilst revenue growth this year was strong, there were delays  
to projects from the first half that slipped into the second half of  
the year, and some large up front elements of both revenues and 
costs were therefore taken in the second half. As we grow, we 
expect the susceptibility of the business to the effects of one-off  
set up costs and our dependence on a small number of large 
contracts will diminish.
The size of the customers we have been signing, and the scale  
of the deployments they are planning, gives us confidence that 
utilisation will continue to grow towards our long term target during 
the coming year. Revenues for the first quarter are expected to be 
around the average of the last year, with new contracts driving into 
growth in subsequent quarters.
David Williams
Chief Executive 6/
Avanti Communications Group plc: Annual Report and Accounts 2014
STRATEGY  
We connect people wherever they are.
We serve them in their homes, businesses, 
government and on mobiles. We do so through 
more than 140 partners in 118 countries. Our 
network provides ubiquitous internet service to  
27% of the world’s population. It delivers the level 
of Quality and Flexibility that the most demanding 
telco customers in the world seek.
AVANTI SELLS DATA 
TELECOMMUNICATIONS  
PRODUCTS TO SERVICE  
PROVIDERS ON A  
WHOLESALE BASIS.
Avanti owns significant spectrum assets enabling it to operate 
satellites in the high frequency Ka-band. The use of the Ka-band 
involves frequency re-use techniques, which enables us to offer 
more data at lower cost than was previously possible. 
Avanti has five satellites, three in orbit and two under manufacture. 
They serve customers across Europe, the Middle East and Africa. 
Avanti pioneered the use of Ka-band in EMEA. It has also 
pioneered unique technical and commercial models. Avanti sells to 
telecoms service providers, not to end users. Telecom companies 
have high requirements for Quality of Service, and as a result, 
Avanti decided to make over 60 separate innovations (some patent 
protected) which in aggregate produces a very high level of quality. 
It is this focus on quality that has enabled us to win global firsts, 
such as 3G backhaul.
Avanti has also introduced new levels of flexibility to the industry,  
in three ways. Firstly, our proprietary software enables a service 
provider to set up and manage an international network with no 
capex and very little training. Thus, our infrastructure is “virtualised”, 
with enormous power placed in the hands of the service provider. 
Secondly this software, and the hardware platforms they control 
are capable of enormous flexibility in adapting to different customer 
requirements and different applications. Thus our system can do 
anything from simple low cost consumer broadband through to  
3G backhaul and highly encrypted mobile defence applications. 
This responsiveness to customer requests has become a hallmark 
of Avanti’s service. Finally, we have changed the business model in 
our industry from inflexible long term transponder leases to a variety 
of easier contract structures, some as simple as “pay as you go”. 
We have found the best form of marketing is helping a customer to 
experience our product, and making sure that commercial models 
remove risk and complexity, helps customers to do this. As a result, 
at over 140 we believe we have signed more service providers than 
our Ka-band competitors combined. 
Addressable market: potential annual revenues
1
2
3
4
1 Carrier Services £2 billion
2 Broadband £7.1 billion
3 Government £0.4 billion
4 Enterprise £1.9 billion
Independent market research* across  
EMEA clearly demonstrates that Avanti  
and the benefits of Ka-band technology  
are now synonymous within the industry. 
Avanti is viewed as:
• Innovative
• Reliable 
• Highly competent from a technical 
perspective
• Providing highly effective customer 
service and sales teams
Beyond the technology, Avanti’s perceived differentiators 
are the quality of its technology and its flexibility as 
opposed to a one-size fits all approach of the competition. 
This linked with Avanti’s relative size (to that of its 
competitors) allows it to be nimble and better placed to 
meet clients’ current and future needs. 
All these perceptions ensure the company is well placed to 
capitalise on the growing demand for Ka-band  
across EMEA.
Millward Brown  
October 2014
 
* undertaken in April 2014 Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
7/
Avanti has been the pioneer and therefore the price setter in its 
markets. We decided to pursue a strategy of maintaining average 
prices in a tight range at a level that produces us with reasonable 
returns, but also provides service providers with attractive 
economics, and maintaining price discipline. This is working in that 
customers understand the price proposition, and whilst there are 
variations by geography and product, we maintain the average 
pricing that we set out at the start.
Some have talked about over capacity in Africa. We believe they 
mean that there is excess legacy Ku-band capacity, because in  
the data market it cannot compete on price or performance with 
Avanti’s Ka-band technology.
Avanti’s technology, coverage, product, pricing and sales strategies 
have been consistent since the outset. The business plan is being 
delivered two years later than we expected but the strategy is  
good. The Company is established with a strong brand, a market 
beating product, stable pricing, an excellent customer base and a 
compounding business model. It has all the ingredients needed to 
grow a large scale business.
The addressable market for satellite data products in Avanti’s  
region has been assessed at up to £11.4 billion per annum. 
The key to accessing this demand is distribution and with over  
140 customers, Avanti has already created a strong distribution 
network. Avanti set out to target two types of customer:  
the specialist VSAT service provider, and the large telco.
VSAT specialists typically serve large corporate or government 
customers with bespoke networks. They are highly technology 
literate and know their market very well. In the first round of 
customer acquisition, Avanti signed over 100 VSAT specialists.  
The customers typically work on a project by project basis, 
replacing legacy Ku-band technology with Avanti’s more advanced 
products, because they offer end customers high quality at lower 
price. We have now penetrated this market by more than 50%, 
which we believe is a strong indicator of success. We have found 
that these customers are loyal, they like the product and show a 
high repeat rate, i.e. they are now routinely returning to add to 
capacity orders as they win more projects. But in order to fill very 
large amounts of capacity, Avanti needs to add major telecom 
brands. The products concerned are for broadband and cellular 
backhaul. In backhaul, a single mobile tower can consume the 
same bandwidth as 100 consumer broadband installations, so it is 
an efficient way to fill capacity. This market is now developing well  
for Avanti, but it achieved its world first only in 2014 so there is still 
much work to do. In consumer broadband, Avanti has now signed 
and announced several incumbent telcos as customers. In an 
African country, a customer who needs broadband will first contact 
the national telco. Thus the brand pulls demand for Avanti’s product 
through. The breakthroughs made here this year are expected to 
have a major impact in the next few years in filling a great deal of 
capacity at low cost of sale. 
Thus Avanti now has a broad group of expert customers and a 
growing roster of the largest telcos in its region. This distribution 
base should therefore support accelerating growth as customers 
grow their businesses and make escalating repeat orders,  
creating an attractive compounding business model.
There is one significant difference between the distribution model 
for traditional Ku-band satellites and Avanti Ka-band in terms of 
how it turns into order backlog. Ku-band is dominated by Direct to 
Home TV. In this market, TV service providers sign very long term 
leases over the large capacity they need to support a bouquet of 
dozens or hundreds of channels, and very few customers fill a 
satellite. In data, Avanti’s customers are starting from scratch. They 
therefore typically begin with modest capacity commitments, and 
then grow their orders as their own market grows. Avanti’s order 
backlog should therefore grow over time as its existing customers 
grow their business. 8/
Avanti Communications Group plc: Annual Report and Accounts 2014
FLEET AND  
COVERAGE
AVANTI OWNS WORLD LEADING  
KA-BAND SPECTRUM ASSETS THAT  
CAN BE USED TO SERVE UP TO 27%  
OF THE WORLD’S POPULATION 
• The fleet serves customers in Europe,  
the Middle East and Africa
• 109 countries covered
•   27% of global population  
covered – 2 billion people 
•  65% of the world’s  
20 fastest growing 
economies 9/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
HYLAS 1
Launch date:  November 2010
Footprint: Europe
Capacity (GHz): 3.0
Features:  Flexible power shifting 
8 Ka, 1 Ku beam
HYLAS 4
Launch date:  2017
Footprint: EMEA/South America
Capacity (GHz): 28.0
Features:  66 fixed beams
 4 steerable beams
HYLAS 2
Launch date:  August 2012
Footprint: EMEA
Capacity (GHz): 11.0
Features:  44 beams available  
Two steerable beams
ARTEMIS
Launch date:  2001
Footprint: EMEA
Capacity (GHz): 1.0
Features:  Steerable Ka beam  
S-band, NAV payloads
HYLAS 3
Launch date:  2016
Footprint: EMEA
Capacity (GHz): 4.0
Features:  Steerable cluster  
PPP with ESA 10/
Avanti Communications Group plc: Annual Report and Accounts 2014
PURE
PRODUCTS AND 
APPLICATIONS  
• Customers have exclusive use of a defined number of MHz in specific beams.  
Traffic is not transparent to Avanti
• Customers need to buy from us hosting, power and backhaul at the GES 
• Customers can buy hub and CPE from Avanti or directly from the manufacturer
• Customers can use Avanti’s OSS or the hub vendor’s
Products
CUSTOM
• Customers 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 OSS
• Customers can buy CPE either from Avanti or the manufacturer
• Installers trained and accredited by Avanti
Managed IP service  
SELECT
Packaged broadband
• Customers buy individual broadband user accounts, which are managed  
and defined by Avanti
• Accounts are “contended” i.e. share bandwidth in ratios controlled by Avanti.  
Accounts usually have defined speeds and monthly data throughputs 
• Customers buy CPE from Avanti
• Installers trained and accredited by Avanti
Raw MHz on our satellites 11/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
Backup ISP/Broadband Blue light
Applications
SNG SCADA/M2M Education
Enterprise networks Oil and gas Security application
Cellular backhaul Hosting Military application 12/
Avanti Communications Group plc: Annual Report and Accounts 2014
UNIQUE PRODUCT  
ADVANTAGES
Quality
FULL COVERAGE
• 100% national coverage of primary countries
• Overlapping beam patterns (no in-country 
coverage gaps)
• Service Providers can offer truly national service 
with consistent quality
SMART BEAM CLUSTERING
• Avanti’s beam clusters land in a single earth 
station 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 Ground Earth Station (‘GES’) with 
market beating SLAs and no atmospheric 
outages at gateway
AVANTI’S COMMITMENT TO QUALITY AND FLEXIBILITY HAS RESULTED  
IN UNIQUE PRODUCT ADVANTAGES THAT ARE NOW WELL RECOGNISED. Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
13/
Hughes
iDirect
Newtec
Your hub
Hughes
ct
Flexibility
UNIQUE AVANTI OPERATIONAL 
SUPPORT SYSTEM (‘OSS’)
• Proprietary OSS, backed up by high levels of 
training and support puts Service Providers in 
total control, allowing them to configure and 
manage service 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 and 
change between them as business evolves
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 Service Providers’ service offerings 14/
Avanti Communications Group plc: Annual Report and Accounts 2014
FINANCIAL  
AND OPERATING 
REVIEW
THE HYLAS 4 PROJECT  
IS CAPABLE OF GENERATING  
AN IRR OF 29% AND A NPV  
OF $812 MILLION USING 
A DISCOUNT RATE OF 10%.
Nigel Fox
Group Finance Director
Reporting currency
During the year the Group made the decision to change its 
reporting currency to US Dollars following the High Yield Bond 
issue and cognisant that the vast majority of revenues will be 
denominated in US Dollars once the first two satellites approach 
capacity. HYLAS 3 and HYLAS 4 will also have the vast majority  
of their revenues denominated in US Dollars.
Operating performance
Revenue in the year increased by 104% to $65.6 million (2013: 
$32.1 million). 
Revenue for the year included income that is non-recurring in 
nature. It also included project revenues that brought with it 
significant set up costs in the initial phase charged to costs of 
goods sold. One particular contract received extended payment 
terms as set out in note 16 of the Annual Report. Revenue for this 
contract has been recognised in full on the basis that the ongoing 
contractual and commercial relationship gives management 
confidence that the debt will be recoverable in full and is in line  
with Revenue Recognition accounting standards. 
Average pricing remains above our target rate of $2,000 per MHz 
per month. 
Costs of sale have increased year on year not only because there  
is a full year of operating expenditure for the ground stations 
associated with HYLAS 2 (only 9 months in FY 2013), but also 
because of the set up costs mentioned above. Finally, there were 
incremental sub contract costs associated with projects for which 
Avanti was the prime contractor.
Satellite depreciation was $47 .3 million (2013: $38.5 million). The 
increase reflects a full years charge on HYLAS 2 and whilst the 
Sterling charge for HYLAS 1 remained constant, the US Dollar 
reported value increased by $1.9 million due to the strengthening  
of Sterling against our reporting currency.
Overheads in US Dollar terms increased to $34.9 million (2013: 
$28.5 million). At the 2013 exchange rates, overheads for the year 
would have been $31.2 million. Overheads are predominantly 
Sterling based salary costs and gateway earth station and ground 
network costs. In May 2013 the Company moved to larger 
premises in central London. Additional property costs were also 
incurred in Cornwall, Cyprus, Germany, South Africa and the  
Middle East. 15/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
Employees
Employee numbers increased to 178 at 30 June 2014 (2013: 156) 
with average numbers increasing to 177 from 164.
Depreciation
Depreciation is the largest single operating expense in the income 
statement, as the satellite assets are depreciated over their 
warranted lives of 15 years on a straight line basis. Satellite 
depreciation is charged to costs of sale and depreciation on  
all other assets is charged to operating expenses. The total 
depreciation for the year was $49.6 million (2013: $39.6 million).
Other operating income
There were three sources of other operating income in the year. 
Firstly, as in prior years, the Group received grant income related to 
specific operating activities. Secondly, during the year the Group 
received an ex gratia receipt of $5.3 million following a commercial 
settlement in relation to the HYLAS 2 procurement and, thirdly, 
there is a small amount of foreign exchange gain.
Interest
Net interest payable increased to $39.1 million (2013: $7 .9 million) 
following the re-financing of the ECA debt facilities in the High Yield 
Market. In addition, costs associated with the High Yield issuance 
are held on the balance sheet and amortised through the finance 
charges line over the 6.5 year life of the bond in accordance with 
the relevant accounting standard.
Taxation
No income tax credit or deferred tax asset has been recognised in 
respect of the losses for the year to 30 June 2014 (30 June 2013 
$10.6 million tax credit recognised). Whilst the Group foresees 
utilising the losses in future periods, it has taken a prudent 
approach and has not recognised the income tax credit or  
deferred tax asset in this period.
The Group already carries a significant deferred tax asset in its 
balance sheet, and has unclaimed capital allowances on the two 
satellite assets which are expected to shelter any tax liabilities for  
at least three years.
Loss per share
Loss attributable to shareholders is $87 .2 million, resulting in a loss 
per share of 81.18 cents (2013: loss per share 44.49 cents).
Financing and treasury
The capital structure of the Group has changed significantly during 
the last 12 months. HYLAS 2 had initially been funded by the export 
credit agencies of France and the United States, COFACE and US 
Ex-Im Bank respectively. Whilst this debt was useful, it was overly 
restrictive in terms of the Group’s growth aspirations.
In September 2013, the Group concluded its first High Yield Bond 
issuance by raising $370 million of senior secured notes. These 
notes have a coupon of 10% and mature in September 2019. 
Interest is payable semi-annually on 1 April and 1 October.
The proceeds of this issuance were used to repay Ex-Im Bank and 
COFACE together with break and issuance costs as well as putting 
a small amount of cash onto the balance sheet. These break costs 
were communicated to the market in our half year statement to  
31 December 2013.
In June 2014, the Group raised a further $150 million of High Yield 
Bonds as a “tap” to the original issue to start work on HYLAS 4. 
The total project cost was budgeted at $350 million with a further 
bond issuance of $125 million anticipated and additional sub-
ordinated funds to complete the funding. The Group has negotiated 
a limitation of liability in contracts with vendors capping costs at  
$81 million which would allow a pause in the procurement if market 
conditions for the remaining funding were unfavourable.
At 30 June 2014, the Group had $195.3 million (2013: $58.7 million) 
of cash on the balance sheet. The total debt outstanding was 
$508.5 million (2013: $ 305.4 million) together with $8.5 million of 
finance leases (2013: $7 .6 million).
Insurance
The Group maintains a full suite of insurance policies covering not 
only space assets, but also business interruption associated with 
the failure of its ground earth stations. HYLAS 1 in orbit insurance 
policy was renewed in November 2013 with an insured value of 
£112 million at a rate of 0.75%, and HYLAS 2 was renewed shortly 
after the year end for $306 million at 0.56%.
Currency hedging and exchange rates
Our policy remains to hedge all currency exposures as soon as they 
become certain through a combination of natural offset hedging 
and the use of vanilla products through our relationship banks.  16/
Avanti Communications Group plc: Annual Report and Accounts 2014
Balance sheet
Tangible fixed assets decreased marginally to $610.9 million (2013: 
$613.8 million). Additions were $28.9 million, of which $11.0 million 
related to HYLAS 3 and the balance on ground infrastructure.  
Total depreciation was $49.6 million, with the satellite depreciation 
charged to costs of sale and the balance to operating costs. 
Movements in exchange rates increased total NBV by $33.3 million. 
Trade and other receivables increased from $20.7 million to $38.6 
million. The largest movement is the extended payment terms over 
$9.4 million to a customer who has initiated an infrastructure project 
which is of strategic importance to Avanti in a specific region. The 
year-end position included significant invoices raised in mid-June 
and accrued income that were not payable until after 30 June. 
These balances have subsequently been received and the 
receivables balance has improved.
We have chosen to increase our provisions for doubtful debts  
to $4.6 million. In some regions where infrastructure has been 
disrupted by civil unrest, some customers have been unable to 
remit full amounts to settle their accounts. However, rather than 
terminate services and thereby lose the end customers, we have on 
a case by case basis, allowed services to continue. At the year-end 
we have provided against the outstanding amounts, although we 
hope to achieve some recovery against these provisions.
In addition, the accrued income balance increased to $9.2 million 
from $4.6 million. These balances represent contracts where we 
recognise revenue on a percentage of completion basis, where 
invoicing takes place on a periodic basis.
Trade and other payables excluding accrued interest fell from  
$28.0 million to $26.9 million. Similarly, accruals and deferred 
income in non-current assets have fallen.
Gross debt increased to $517 .0 million (2013: $313.0 million) 
following the high yield bond issuances to re-finance the HYLAS 2 
debt and to commence HYLAS 4. Cash on balance sheet at 30 
June 2014 was $195.3 million (2013: $58.7 million) leaving net debt 
of $321.7 million (2013: $254.3 million).
2014 
$ million
2013 
$ million
ECA debt 0.0 305.4
Bond* 508.5 0.0
Finance leases 8.5 7.6
GROSS DEBT 517.0 313.0
Cash (195.3) (58.7)
NET DEBT 321.7 254.3
*  The face value of the bonds is $520 million. However the costs of issuance are netted 
off for disclosure purposes and will be amortised over the life of the bonds.
FINANCIAL  
AND OPERATING 
REVIEW CONTINUED
Cash flow
Net cash balances increased to $195.3 million (2013: $58.7 million)
The EBITDA (before the share based payment charge) of $1.7 million 
translated into $13.5 million of cash absorbed from operations as a 
result of an increase in working capital of $17 .8 million. The primary 
reason for the increase in working capital was the extended  
credit terms over a $9.4 million receivable, augmented by a fall in 
trade payables. 
Net proceeds from financing was $193.7 million following the two 
high yield bond issuances of $520 million and the repayments of 
the ECA facilities, including a break fee of $6.8 million.
Backlog
Backlog was $430.0 million (2013: $445.0 million). In the fourth 
quarter $26m moved from backlog to P&L. New contracts added 
$24m to backlog. On a net basis, these additions were offset by 
prudent provisions made to backlog in relation to contracts in some 
regions where infrastructure has been disrupted by civil unrest. 
Many of the relevant contracts are currently being paid, and some 
provisions therefore may be written back in future periods.
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 current term or 
any projected revenue from framework contracts. We do include 
projected revenue from consultancy services provided to 
government customers based on the average revenue generated 
by these services for the last five fiscal years.
Current backlog includes one contract from a significant customer 
which has a break clause after year five. The value of backlog after 
the potential break clause is $16.0 million.
Backlog does have a mixture of companies with varying credit quality. 
The average credit quality has improved over the last 18 months. 17/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
Post balance sheet events
In August the Company signed procurement contracts with Orbital 
Sciences Corporation for the manufacture of HYLAS 4 and with 
Arianespace for the launch vehicle for HYLAS 4.
The satellite will be built by Orbital Sciences Corporation, who  
built the HYLAS 2 spacecraft, which is currently outperforming its 
technical specification. The satellite will deliver up to 28GHz of 
capacity in 66 fixed beams positioned over Africa and Europe. 
Some capacity provides growth for existing markets, some 
provides brand new coverage and we retain the flexibility to move 
capacity between different markets. The satellite will also have  
four steerable beams which could serve markets in Latin America 
or Africa. The system represents a continuation of Avanti’s strategy 
to prioritise Quality and Flexibility, and to ensure that customers 
receive world beating services at low prices.
The satellite is scheduled for launch in the three month period 
ending April 2017 . It will be launched by Arianespace, the World’s 
most reliable launch agency, with whom Avanti has enjoyed a very 
strong relationship through the launch of its first two satellites. 
The cost for the satellite plus launch is below $300 million. Liability 
is capped at $81 million, in that Avanti can elect to pause the 
project with no further expenditure above that level.
The HYLAS 4 project, based on certain assumptions regarding 
launch date, constant pricing and fill rates is capable of generating 
an IRR of 29% and at NPV of $812 million using a discount rate  
of 10%.
Principal risks and uncertainty
Foreign exchange risk 
We operate internationally and are exposed to foreign exchange 
risk arising from various currency exposures, primarily with respect 
to the Sterling and the Euro. In order to hedge the foreign currency 
risk we enter into forward contracts or natural hedges. These risks 
are assessed on a continual basis.
At 30 June 2014, if the Euro had weakened/strengthened against 
the US Dollar by 5% with all other variables held constant, post-tax 
loss would have improved by $198,597 or worsened by $198,597 .
At 30 June 2014, 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 $453,698 or worsened  
by $453,698.
The US Dollar cash reserves and US Dollar loan are held in a US 
Dollar denominated company and are revalued through reserves 
upon consolidation. The average volatility of rates during the year 
compared to the year-end exchange rate was 2.54% and therefore 
management believes that a 5% sensitivity rate provides a 
reasonable basis upon which to assess expected changes  
in foreign exchange rates.
Interest rate risk 
We borrow in US Dollars at fixed rates of interest and do 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.
Credit risk
Credit risk is the risk of financial loss arising from a counterparty’s 
inability to repay or service debt in accordance with contractual 
terms. Credit risk includes both the direct risk of default and the  
risk of deterioration of creditworthiness. We believe we have no 
significant concentrations of credit risk. The credit quality of major 
customers is assessed before trading commences taking into 
account its financial position, past experience and other factors. 
Generally when a balance becomes more than 90 days past its  
due date it is considered that the amount will not be fully 
recoverable.
Liquidity risk
Liquidity risk is the risk that we may have difficulty in obtaining  
funds in order to be able to meet both our day-to-day operating 
requirements and our debt servicing obligations. Our exposure  
to liquidity risk management is minimised due to our prudent 
monitoring of all of our 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. 
As in prior years two of the key risks to the profitability and liquidity 
of the business is the rate at which we can fill both satellites and  
the prices at which we can do that. However, the risk of bad debt  
is also a contributory factor.
Our in orbit satellite fleet footprint is widely spread across 88 
different countries. Whilst demand obviously varies from country  
to country, the breadth of coverage minimises concentration risk  
to downturn in demand. With limited competition in the markets 
covered by HYLAS 1 and HYLAS 2 we have not seen any 
significant downward price pressure.  18/
Avanti Communications Group plc: Annual Report and Accounts 2014
In terms of filling the satellites, the global economic environment will 
have an impact on customers’ decisions. Whilst we are not aware 
of losing business to our satellite competition, customers are taking 
longer to commit to significant long term expenditures.
We have had limited bad debt experience, however, we have made 
prudent provisions against customers who have been slow with 
settlements as discussed above in the balance sheet report.
Global economic environment
The global financial system has suffered considerable turbulence 
and uncertainty in recent years. This turbulence has contributed to 
a general economic downturn in many of the countries served by 
Avanti. If potential customers have difficulty accessing capital to 
fund their business plans, this may have a negative effect on the 
Avanti performance, and may delay the onset of new revenue.
The political unrest in some of the countries in which we provide 
service, whilst it provides opportunities for our business when 
infrastructure is disrupted, sometimes makes it difficult for 
counterparties to make timely payments. In these circumstances, 
we work with our partners and provide support on a case by  
case basis.
Accounting policies
The Group has reviewed its accounting policies in accordance with 
IAS 8 Accounting Policies, Changes in Accounting Estimates and 
Errors; and determined that they are appropriate for the Group. 
Details of critical accounting policies are in Note 1 to the 
consolidated Annual Report. 
Going concern
The Group has available sufficient financial resources at 30 June 
2014. The Group has strong backlog underpinning the business, 
with a significant pipeline of opportunities to give the Directors a 
reasonable expectation that the Group has adequate resources 
and business demand drivers to adopt the going concern basis  
of accounting for the financial statements.
Nigel Fox
Group Finance Director
FINANCIAL  
AND OPERATING 
REVIEW CONTINUED 19/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
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;
• A diverse range of talented employees with a broad range of 
skills and capabilities to deliver against global customer 
requirements;
• Programmes to manage the environmental impact of the 
Group’s operations and products, reducing the Group’s carbon 
footprint and that of the Group’s Service Providers. 
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 are monitored and 
reviewed on an ongoing basis and risks or opportunities are 
assessed and managed.
We increasingly adopt targets and metrics to measure our 
performance and provide our stakeholders with an overview of our 
sustainability as a company. By focusing on improvement, learning 
from our past successes and challenges, we are able to further 
enhance future performance. 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. These priorities may change as the business develops and 
as we receive feedback from our stakeholders and we will therefore 
review on a regular basis. For those issues 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 our policies, processes and procedures. Stakeholder 
engagement is important to Avanti. We currently hold dialogue with 
all of our major stakeholders as well as listening to others. We hope 
to encourage this process still further through clear and objective 
reporting of the key issues.
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 apprenticeships and graduate 
training opportunities to young people and by investing in good 
causes that are relevant to the business.
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. To mitigate against these issues, 
Avanti aims to improve retention through improvements to internal 
communications and benefits, and a more structured development 
strategy. Maximising the talent pool available is at the heart of our 
recruitment strategy. Avanti uses plurality of recruitment methods; 
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. Avanti’s target for voluntary turnover (over a 12 month 
period) is under 15%, which we have met consistently over the  
last year. 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. Avanti monitors 
this on a monthly basis and regular feedback ensures that any 
potential issues are identified and dealt with. 
In the UK currently only 6% of the engineering workforce is female. 
Of Avanti’s engineering population 12% are female and we continue 
to actively promote the industry to young people and women 
through work with universities and colleges. 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 and Loughborough 
College, SEMTA and UKSEDs. 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 third year, the graduate 
scheme provides the business with a strong pipeline of committed 
and competent engineers.
SUSTAINABILITY  20/
Avanti Communications Group plc: Annual Report and Accounts 2014
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 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 the Company 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 offer development 
opportunities across the business in technical and management 
skills to ensure our workforce are ready to adapt to changes in 
technology and markets. Avanti is proud of its record of developing 
talent and promoting from within; in 2014 alone, a third of all 
vacancies were filled by internal promotion.
Key next steps
Avanti continue to develop and diversify our recruitment practices 
and grow our links with relevant university 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 and our workforce is flexible  
and able to adapt quickly to change and growth. 
SUSTAINABILITY 
CONTINUED
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. 21/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
The strategic report on pages 2 to 21 was approved by the Board of Directors on 29 October 2014 and signed on its behalf by:
 
David Williams    Nigel Fox   
Chief Executive   Group Finance Director
Corporate social responsibility
AVANTI COMMUNICATIONS:  
STRENGTHENING FAMILIES  
IN TANZANIA AND KENYA.
 
From SOS Children’s Villages we reach out  
to families in the surrounding community. 
Known as family strengthening programmes, 
our community work offers a range of support 
to fragile families, and helps to prevent 
children from ending up alone.
 
We believe the best place for children to develop is within a 
caring family environment. As well as creating SOS families in 
our Children’s Villages, we also work to prevent families living 
nearby from falling apart. Each family we support is offered  
a package of services and a family development plan. 
Gradually they build their capacities and are better able to 
care and protect their children. We tailor services to each 
family’s needs, with our long-term goal to empower families 
so they can support themselves.
Working with the wider community means we can reach 
beyond SOS Children’s Villages and help thousands of 
children and their families. 
In 2013, thanks to Avanti Communications’ 
support, our work reached 2,493 slum 
dwellers in Nairobi and Dar-es-Salaam.
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 purpose are customer facing (the partner support, 
deployment and logistics teams), sales and revenue generation 
(marketing, sales and presales) 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. 22/
Avanti Communications Group plc: Annual Report and Accounts 2014
A STRONG AND  
EXPERIENCED BOARD
02/ 03/ 04/
05/ 07/ 08/
10/ 11/
06/
01/
09/
BOARD OF  
DIRECTORS Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
23/
01/ Paul Walsh + • ∆
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, Paul was the CEO  
of Diageo plc from September 2000 to  
July 2013, and the Chief Operating Officer of 
Diageo from January 2000. Paul joined 
GrandMet’s brewing division in 1982 and 
became Finance Director in 1986. He held 
financial and commercial positions with Inter 
Continental Hotels and in the GrandMet food 
business, becoming CEO of the Pillsbury 
Company in 1992. Paul was appointed to the 
GrandMet 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 the 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. David 
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.
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 £30 million regional business 
to a £300 million turnover national operation in 
6 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 + • ∆ 
Non-Executive
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 of Avanti 
Communications Group plc.
07/ Alan Foster • ∆
Non-Executive
Alan was a senior partner of deZoete & Bevan 
for over twenty years and, on the creation of 
BZW Asset Management, he was appointed 
Deputy Chairman. This Company was the 
forerunner of Barclays Global Investors.
08/ Professor Michael Walker 
OBE FREng †
Non-Executive
Michael Walker has spent more than 25 years 
in industry, the last ten years of which, until his 
retirement in September 2009, he was Group 
Research and Development Director for the 
Vodafone Group of companies, with the 
responsibility for the Group’s research activities, 
intellectual property and technology standards 
worldwide. He 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. Michael 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. He was recently appointed Head of 
School for Natural and Mathematical Sciences 
at King’s College London. He was appointed an 
OBE in June 2009 for his services to the 
telecommunications industry.
09/ Richard Vos + • †
Non-Executive
Richard is a telecommunications and satellite 
professional, with international experience, 
gained over 40 years working in the industry. 
His previous positions included Chairman of 
SatCom Group Holdings PLC, Inmedia 
Communications Ltd and of 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. 
Richard has recently accepted a Non 
Executive role in One Horizon Group Inc, 
effective from September 2013. 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 of 
Avanti Communications Group plc.
10/ William Wyatt + • ∆
Non-Executive
William is Chief Executive Officer of Caledonia 
Investments plc. He is also a Non-Executive 
Director on the Boards of Terrace Hill Group 
plc, Cobehold SA, TGE Marine AC and Sterling 
Industries plc.
11/ Paul Johnson +
Non-Executive
Paul is a Fellow of the Institute of Chartered 
Accountants in England and Wales. He spent 
38 years with KPMG Europe LLP , becoming a 
Partner in 1988 and has extensive experience 
of 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 London and Eastern Counties and a 
member of KPMG’s UK Markets Executive. 
Paul is the Chairman of the Audit Committee of 
Avanti Communications Group plc.
Committees
+  Audit
•  Remuneration
Δ Nomination
†  Technical 24/
Avanti Communications Group plc: Annual Report and Accounts 2014
CORPORATE  
GOVERNANCE REPORT
CHAIRMAN’S STATEMENT OF 
COMPLIANCE WITH THE UK 
CORPORATE GOVERNANCE CODE
Paul Walsh
Chairman
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. 
The Board recognises that it is accountable to shareholders for the 
Group’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 
Group is AIM listed and therefore not required to comply with the 
new 2014 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 Group 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 2014, 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. Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
25/
Role of the Board
The Board of Directors has a collective duty to promote the long 
term success of the Avanti Group for its shareholders. The Board 
sets the Group’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 Group, 
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 Group’s 
purpose, objectives, values and key behaviours.
Composition of the Board
During the year, the Board comprised a Non-Executive Chairman, 
six other Non-Executive Directors and four 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 Group to successfully plan 
and execute the objective 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 Group 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 on-going 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;
• Group strategy and annual operating budget;
• changes to the Group’s capital structure;
• changes to the Group’s management and control structure;
• major capital expenditure, acquisitions and disposals;
• treasury policies;
• risk management strategy;
• Group corporate governance policy; and
• environmental, health and safety and sustainability policies.
Board meetings
The Board met on nine occasions during the year. The Board also 
maintained an open dialogue throughout the year and contact by 
telephone occurred whenever necessary. 
The attendance of Directors at Board meetings during the year was 
as follows:
Board attendance for the financial year 1 July 2013 to 
30 June 2014
Attended
Chairman Paul Walsh 9/9
Executive Directors David Williams 9/9
David Bestwick 8/9
Nigel Fox 9/9
Matthew O’Connor 8/9
Non-Executive Directors John Brackenbury 9/9
Alan Foster 8/9
William Wyatt 9/9
Richard Vos 8/9
Michael Walker 7/9
Paul Johnson 9/9
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.  26/
Avanti Communications Group plc: Annual Report and Accounts 2014
CORPORATE  
GOVERNANCE REPORT CONTINUED
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.
Reappointment of Directors
All Directors are required to retire every three years and may offer 
themselves for reappointment, 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 
Nominations Committee, the Audit 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 role 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 Group’s advisors and management as 
appropriate.
The Audit Committee
The Audit Committee is comprised of five Non-Executive Directors; 
Paul Johnson, Richard Vos, William Wyatt, Paul Walsh 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 29.
Nominations Committee
The Nominations Committee is comprised of four Non-Executive 
Directors; Paul Walsh, William Wyatt, John Brackenbury and Alan 
Foster. It is chaired by John Brackenbury, except when the matters 
under consideration relate to his position. For further information on 
the activities of the Committee please refer to page 30.
The Remuneration Committee
The Remuneration Committee is comprised of five Non-Executive 
Directors; Alan Foster, William Wyatt, 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 Group share incentive plans. In accordance with 
the Committee’s Terms of Reference, no Director may participate in 
discussions relating to his own terms and conditions of service or 
remuneration.
With regards 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 32 to 34.
Technical Committee
The Technical Committee is comprised of two Non-Executive 
Directors, Michael Walker and Richard Vos, 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 31. Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
27/
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, 
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 Financial 
Statements 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 Group 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 AGM as a 
forum to meet with shareholders and to hear their views and 
answer their questions. The 2014 AGM will be held on 27 
November 2014 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 71 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 it has been dealt with 
usually 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 Group’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 Group’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 Group’s objectives.
The Board has reviewed the effectiveness of the system of internal 
control for the year ended 30 June 2014 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 Group’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 Group 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. 28/
Avanti Communications Group plc: Annual Report and Accounts 2014
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 Officer and 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 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 32 to 34.
Bribery Act 2010
The Board has performed an assessment of the risk environment 
and implemented a framework to ensure that the Group trades in 
compliance with the Bribery Act 2010, which reinforces the Group’s 
stand against bribery or corruption of any form.
CORPORATE  
GOVERNANCE REPORT CONTINUED Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
29/
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 auditors. 
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 auditors.
During the year to 30 June 2014 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 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 2014, 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 their independence  
to the Committee on a regular basis. 
Non-audit services 
The Company’s Auditor may also be employed where, as a result  
of their position as Auditor, they either must, or are best placed to, 
perform the work in question. A formal policy is in place in relation 
to the provision of non-audit services by the Auditor to ensure that 
there is adequate protection of their independence and objectivity.
Paul Johnson
Audit Committee Chairman
AUDIT COMMITTEE 30/
Avanti Communications Group plc: Annual Report and Accounts 2014
The Nominations Committee comprises a majority of independent, 
Non-Executive Directors. The Nominations Committee meets as 
and when necessary and details of the membership of the 
Committee is shown on page 23. 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 Group. 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
NOMINATIONS  
COMMITTEE Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
31/
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. 
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, David Bestwick and senior 
executives from within the Company.
This year the Technical Committee has focused its work on 3 main 
topics.
1. Assessing the design of the HYLAS 4 satellite to make sure it 
meets the Company’s needs from a technological perspective;
2. Driving forward the establishment of a company-wide Quality 
Assurance regime;
3. Providing support to various activities associated with the 
development of satellite backhaul products for a range of 
wireless applications including 3G and 4G cellular services.
Overall the Technical Committee is pleased with the progress  
the Company has made in establishing a technological base  
well adapted for the Company’s future growth. 
Professor Michael Walker OBE
Non-Executive Director
TECHNICAL  
COMMITTEE 32/
Avanti Communications Group plc: Annual Report and Accounts 2014
REPORT OF THE  
REMUNERATION COMMITTEE
Remuneration Committee 
The Remuneration Committee comprises Independent Non-Executive Directors only. The Remuneration 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 Group. The Remuneration Committee consists of R Vos (Chairman), J Brackenbury,  
A Foster, P Walsh and W Wyatt. 
During the year, the Remuneration Committee met five 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 on-going 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, share options, pension contributions and other benefits such as health care.
Under the Company’s Long Term Incentive Plan (LTIP) which came into operation in July 2013, shares will only 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 2014
The remuneration of the Directors for the year was as set out below. The previous year’s figures are shown for comparison:
For the year ended 30 June 2014
Salaries
$
Bonus
$
Other  
benefits 
$
Post 
employment 
benefits 
$
Total  
2014 
$
Total  
GBP 
£
Executive     
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 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 Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
33/
 For the year ended 30 June 2013 
Salaries
$
Bonus
$
Other  
benefits 
$
Post 
employment 
benefits 
$
Total  
2013 
$
Total  
GBP 
£
Executive     
D J Williams 513,063 – 123,671 64,133 700,867 446,697 
D J Bestwick 384,724 – 71,281 43,678 499,683 318,472 
N A D Fox 299,679 – 56,326 37,460 393,465 250,774 
M J O’Connor 273,006 – 37,076 34,126 344,208 219,381 
Non-Executive     
P Walsh 56,223 – – – 56,223 35,833
F E J G Brackenbury CBE 172,590 – 10,236 – 182,826 116,524
D A Foster 64,394 – – – 64,394 41,042
W P Wyatt 56,222 – – – 56,222 35,833
M Walker 58,184 – – – 58,184 37,083
C R Vos 64,721 – – – 64,721 41,250
P R Johnson 33,341 – – – 33,341 21,250
Total 1,976,147 – 298,590 179,397 2,454,134 1,564,139
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 2.5% increase for the year ended 30 June 2014. The variances above 
this level are attributed to movements in exchange rates between the Sterling salaries paid and US Dollar salaries reported.
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 Group workplace 
pension scheme.
Cash bonus 
Bonus awards, which are not pensionable, are made to the Executive Directors based on Group 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 Group strategic and operational performance.
Save as you earn
During the year, two Executive Directors made contributions into the Avanti SAYE schemes. Nigel Fox made monthly contributions of £250 
into the November 2013 SAYE scheme and David Bestwick made monthly contributions of £250 in the November 2011 SAYE scheme. 
Directors’ share interests 
The following Directors held interests in the share capital of the Company:
 
Fully paid Ordinary Shares  
of 1p each
30 June 2014 30 June 2013
D J Williams 1,709,414  1,656,901 
D J Bestwick 1,301,954  1,297,954 
F E J G Brackenbury CBE 516,432  430,791 
D A Foster 451,250  396,250 
P Walsh 205,000  130,000 
M J O'Connor 203,961  197,091 
N A D Fox 134,580  132,620 
W P Wyatt 35,342  35,342 
C R Vos 21,030  21,030 
P R Johnson 10,000 10,000  34/
Avanti Communications Group plc: Annual Report and Accounts 2014
REPORT OF THE  
REMUNERATION COMMITTEE CONTINUED
Directors’ Long Term Incentive Plans (LTIPs) 
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. 
For the awards potentially vesting in 2016, the criteria are twofold:
Two thirds of an award or a proportion thereof will vest if specific EBITDA targets are achieved or bettered. EBITDA will be based on the 
Company’s audited financial statements for the relevant financial year. The EBITDA part will lapse to the extent it does not vest.
One third of an award or a proportion thereof will vest if the three-month average share price to 30 June 2016 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.
Current allocations are as set out below:
Outstanding allocations
Potentially 
Vesting 2015
No. Options
Potentially 
Vesting 2016
No. Options Total
D J Williams 306,855 329,869 636,724
D J Bestwick 234,539 252,129 486,668
N A D Fox 89,907 96,731 186,638
M J O’Connor 82,089 84,552 166,641
Total 713,390 763,281 1,476,671
Richard Vos
Remuneration Committee Chairman Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
35/
The Directors have pleasure in presenting their Annual Report 
together with the audited Financial Statements for the year ended 
30 June 2014.
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.  
A review of the Group’s business and developments during the  
year is included in the Chairman’s Statement, the Chief Executive’s 
Statement and the Strategic Review.
The third satellite, ARTEMIS, was acquired from the European 
Space Agency (‘‘ESA’’) on 31 December 2013.
Business review and key performance indicators
As the Company is still in the early stages of its strategy with a 
focus on the future, we do not currently focus on traditional key 
performance indicators (‘KPIs’). Instead our business model is 
focused on development of the satellite fleet and sale of capacity.  
In the Chairman’s Statement and Finance and Operating Review, 
we have highlighted key financial statistics such as revenue and 
operating profit; however, given the nature of the business at the 
current time we do not consider them to be KPIs.
Results and dividends
The results for the year ended 30 June 2014 are shown on page 39. 
No equity dividend was paid in the year ended 30 June 2014  
(2013 $nil). No final dividend is proposed at the year end (2013 $nil). 
The loss for the year transferred to the shareholder’s funds was 
$87 .2 million (2013: loss of $47 .7 million). The net asset position at 
year end is $309.4 million (2013: $367 .3 million).
Share capital
The Company did not issue any new Ordinary Shares during the 
year ended 30 June 2014 (2013: nil). Details of the Company’s 
share capital are given in Note 22 to the Consolidated Financial 
Statements.
Qualitative and quantitative disclosures  
about interest, foreign exchange, credit  
and liquidity risks
A discussion of the Group’s financial risk management objectives 
and policies and the exposure of the Group to interest rate, foreign 
exchange, credit and liquidity risk is included in the Finance and 
Operating Review, pages 14 to 18.
REPORT OF THE  
BOARD OF DIRECTORS
Research and development
The Group 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
D A Foster
C R Vos
W P Wyatt
M Walker OBE
P R Johnson
A biography for each Director is provided on page 23. In accordance 
with the Company’s Articles of Association, all Directors will offer 
themselves for re-election every 3 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 Group. 
The Board therefore recommends the reappointment 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, long 
term incentive plan, share options, pension contributions and other 
benefits such as health care. 36/
Avanti Communications Group plc: Annual Report and Accounts 2014
Major shareholders
At September 2014, the Company had been notified, pursuant to 
the Financial Conduct Authority’s Disclosure and Transparency 
Rules, of the following notifiable voting rights in the Company’s 
issued Ordinary Share capital.
30 September 2014
M & G Investment Management Ltd. 21,790,683
Caledonia Investments plc 13,131,632
The Capital Group Companies, Inc. 6,937,062
GIC Private Limited 5,905,492
Directors & Related 4,757,443
Solus Alternative Asset Management, L.P. 4,504,620
Hargreaves Lansdown Asset Management 4,200,826
Legal & General Investment Management Ltd. 4,194,367
Avanti Communications Group EBT 4,111,473
Barclays, Plc. 3,416,487
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 2014, the Company had trade creditors of  
$208,191 (2013: nil).
Employees
The Group employed 178 people at 30 June 2014.
Employees are key to the Group’s success and we rely on the 
workforce being committed to helping us achieve our business 
objectives.
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 Group believes in equal opportunities for all 
employees and prospective employees irrespective of nationality, 
ethnicity, religion, age, gender, sexuality or disability. The Group  
has zero tolerance of discrimination in any form.
Political donations
During the year the Group made no political donations (2013: nil).
Corporate governance
The Corporate Governance Report is provided on pages 24 to 37 
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 71.
Directors’ and officers’ liability insurance
The Group 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 2014, the Company provided an indemnity in respect  
of all of the Group’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.
By order of the Board.
Patrick Willcocks
Company Secretary
REPORT OF THE  
BOARD OF DIRECTORS CONTINUED Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
37/
The Directors are responsible for preparing the Strategic 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 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.
STATEMENT OF  
DIRECTORS’ RESPONSIBILITIES
Each Director, confirms that to the best of his knowledge and belief:
• the financial statements in this document, prepared in 
accordance with the applicable set out accounting standards, 
give a true and fair view of the assets, liabilities, financial position 
and profit of the Company and of the Group as a whole; and
• the Directors’ Report, including the Strategic Report, includes a 
fair view of the development and performance of the business 
and the position of the Company and of the Group as a whole, 
including a description of the principal risks and uncertainties 
that they face.
In the case of each Director in office at the date on which the 
Directors’ Report is approved:
• so far as the Directors are aware, there is no relevant audit 
information of which the Company’s auditors are unaware; and
• they have taken all the steps that they ought to have taken as 
Directors in order to make themselves aware of any relevant 
audit information and to establish the Company’s Auditors are 
aware of that information.
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.
This confirmation is given in accordance with the provisions of  
s.418 of the Companies Act 2006.
Approved by the Board of Directors and signed on behalf  
of the Board.
David Williams
Chief Executive 38/
Avanti Communications Group plc: Annual Report and Accounts 2014
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 2014 set out on pages 39  
to 70. 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 37 , 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 2014 
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 on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London
29 October 2014 39/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
Notes
Year ended 
30 June 2014 
$’000
Year ended 
30 June 2013 
$’000
Revenue 2 65,622 32,125
Cost of sales (86,699) (57,973)
 Satellite depreciation (47,339) (38,456)
 Other cost of sales (39,360) (19,517)
Gross loss (21,077) (25,848)
Operating expenses 3 (34,886) (28,484)
Other operating income 6 7,219 1,513
Loss from operations (48,744) (52,819)
Finance income 7 10 442
Finance expense 7 (38,957) (6,506)
Net financing expense (38,947) (6,064)
Loss before taxation (87,691) (58,883)
Income tax credit 8 – 10,553
Loss for the year (87,691) (48,330)
Loss attributable to:
Equity holders of the parent (87,199) (47,736)
Non-controlling interests (492) (594)
Basic loss per share (cents) 9 (81.18c) (44.49c)
Diluted loss per share (cents) 9 (81.18c) (44.49c)
The Notes on pages 44 to 70 are an integral part of these consolidated financial statements.
Consolidated Statement of Comprehensive Income
Year ended 30 June 2014
Year ended 
30 June 2014 
$’000
Year ended 
30 June 2013 
$’000
Loss for the year (87,691) (48,330)
Other comprehensive income
Exchange differences on translation of foreign operations and investments that may be recycled to the 
income statement (2,122) (8,193)
Exchange differences on translation of foreign operations and investments that will not be recycled to the 
income statement 31,235 –
Total comprehensive loss for the year (58,578) (56,523)
Attributable to:
Equity holders of the parent (58,086) (55,929)
Non-controlling interests (492) (594)
Items in the statement above are net of tax. The income tax relating to each component of other comprehensive income is disclosed in note 8.
The Notes on pages 44 to 70 are an integral part of these consolidated financial statements.
Consolidated Income Statement
Year ended 30 June 2014 40/
Avanti Communications Group plc: Annual Report and Accounts 2014
Notes
30 June 2014 
$’000
30 June 2013 
$’000
ASSETS
Non-current assets
Property, plant and equipment 11 610,857 613,828
Intangible assets 12 13,963 13,512
Deferred tax assets 17 21,074 18,852
Total non-current assets 645,894 646,192
Current assets
Inventories 15 1,733 4,510
Trade and other receivables 16 38,648 20,685
Cash and cash equivalents 18 195,283 58,699
Total current assets 235,664 83,894
Total assets 881,558 730,086
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 19 39,870 28,018
Loans and other borrowings 20 4,545 27,043
Total current liabilities 44,415 55,061
Non-current liabilities
Trade and other payables 19 15,299 21,707
Loans and other borrowings 20 512,431 286,006
Total non-current liabilities 527,730 307,713
Total liabilities 572,145 362,774
Equity
Share capital 22 1,799 1,799
EBT shares 22 90 90
Share premium 22 415,130 415,130
Foreign currency translation reserve 6,211 (22,902)
Retained earnings (111,963) (25,443)
Total parent shareholders’ equity 311,267 368,674
Non-controlling interests (1,854) (1,362)
Total equity 309,413 367,312
Total liabilities and equity 881,558 730,086
The consolidated financial statements of company number 6133927 on pages 39 to 70 were approved by the Board of Directors on  
29 October 2014 and signed on its behalf by:
Nigel Fox
Group Finance Director
Consolidated Statement of Financial Position
As at 30 June 2014 41/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
Notes
30 June 2014 
$’000
30 June 2013 
$’000
ASSETS
Non-current assets
Deferred tax assets 17 497 497
Investments 13 148,668 148,668
Loan receivable 16 527,500 –
Total non-current assets 676,665 149,165
Current assets
Trade and other receivables 16 245,543 251,016
Total current assets 245,543 251,016
Total assets 922,208 400,181
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables 19 18,429 108
Loans and other borrowings 20 1,526 365
Total current liabilities 19,955 473
Non-current liabilities
Loans and other borrowings 20 511,104 166
Total liabilities 531,059 639
Equity
Share capital 22 1,799 1,799
EBT shares 22 90 90
Share premium 22 415,130 415,130
Foreign currency translation reserve (15,902) (15,902)
Retained earnings (9,968) (1,575)
Total shareholders’ equity 391,149 399,542
Total liabilities and equity 922,208 400,181
The consolidated financial statements of company number 6133927 on pages 39 to 70 were approved by the Board of Directors on  
29 October 2014 and signed on its behalf by:
Nigel Fox
Group Finance Director
Company Statement of Financial Position
As at 30 June 2014 42/
Avanti Communications Group plc: Annual Report and Accounts 2014
Group Company
Notes
Year ended 
30 June 2014 
$’000
Year ended 
30 June 2013 
$’000
Year ended 
30 June 2014 
$’000
Year ended 
30 June 2013 
$’000
Cash flow from operating activities
Cash (absorbed)/generated by operations 28 (13,528) (16,435) 9,618 364
Interest paid (20,392) (7,977) (14,898) –
Interest received – – 29,880 –
Net cash (absorbed)/generated by operating activities (33,920) (24,412) 24,600 364
Cash flows from investing activities
Payments for other financial assets and investments – – (527,500) –
Payments for property, plant and equipment (25,798) (73,783) – –
Net cash used in investing activities (25,798) (73,783) (527,500) –
Cash flows from financing activities
Proceeds from borrowings 10 43,823 – –
Proceeds from bond issue 530,667 – 530,667 –
Repayment of borrowings (305,367) (4,704) – –
Payment of finance lease liabilities (4,161) (537) (366) (364)
Cost of existing finance (6,827) – (6,827) –
Debt issuance costs (20,574) – (20,574) –
Net cash received from/(used by) financing activities 193,748 38,582 502,900 (364)
Effects of exchange rate on the balances of cash and cash 
equivalents 2,554 (2,107) – –
Net increase/(decrease) in cash and cash equivalents 136,584 (61,720) – –
Cash and cash equivalents at the beginning of the financial year 58,699 120,419 – –
Cash and cash equivalents at the end of the financial year 18 195,283 58,699 – –
The Notes on pages 44 to 70 are an integral part of these consolidated financial statements.
Consolidated and Company Statement of Cash Flows
Year ended 30 June 2014 43/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
Consolidated
Notes 
Share capital 
$’000
Employee benefit 
trust (EBT) 
$’000
Share premium 
$’000
Retained 
earnings 
$’000
Foreign currency 
translation 
reserve 
$’000
Non-controlling 
interests 
$’000
Total equity 
$’000
2013
At 1 July 2012 1,799 90 415,130 21,709 (14,709) (768) 423,251
Loss for the year – – – (47,736) – (594) (48,330)
Other comprehensive 
income – – – – (8,193) – (8,193)
Share based payments 23 – – – 588 – – 588
Tax credit taken directly 
to reserves – – – (4) – – (4)
At 30 June 2013 1,799 90 415,130 (25,443) (22,902) (1,362) 367,312
2014
At 1 July 2013 1,799 90 415,130 (25,443) (22,902) (1,362) 367,312
Loss for the year – – – (87,199) – (492) (87,691)
Other comprehensive 
income – – – – 29,113 – 29,113
Share based payments 23 – – – 679 – – 679
At 30 June 2014 1,799 90 415,130 (111,963) 6,211 (1,854) 309,413
Company
Notes 
Share capital 
$’000
Employee benefit 
trust (EBT) 
$’000
Share premium 
$’000
Retained 
earnings 
$’000
Foreign currency 
translation 
reserve 
$’000
Non-controlling 
interests 
$’000
Total equity 
$’000
2013
At 1 July 2012 1,799 90 415,130 (286) (3,086) – 413,647
Loss for the year – – – (1,294) – – (1,294)
Share based payments – – – 22 – – 22
Other comprehensive 
income – – – – (12,816) – (12,816)
Tax credit taken directly 
to reserves 17 – – – (17) – – (17)
At 30 June 2013 1,799 90 415,130 (1,575) (15,902) – 399,542
2014
At 1 July 2013 1,799 90 415,130 (1,575) (15,902) – 399,542
Loss for the year – – – (8,408) – – (8,408)
Share based payments – – – 15 – – 15
At 30 June 2014 1,799 90 415,130 (9,968) (15,902) – 391,149
The Notes on pages 44 to 70 are an integral part of these consolidated financial statements.
Consolidated and Company Statement of Changes in Equity
Year ended 30 June 2014 44/
Avanti Communications Group plc: Annual Report and Accounts 2014
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 
(IFRS), International Financial Reporting Interpretations Committee (IFRIC) Interpretations, and the Companies Act 2006 applicable to 
companies preparing their accounts under IFRS.
The principal activity of the Group 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 Company incurs and sources a significant majority of costs in US Dollars, and the financing is in US dollars. Having considered the 
aggregate effect of all relevant factors which are the main determinants of functional currency, the Directors concluded that following the 
first bond issue the functional currency of the Company had changed to US Dollars. Accordingly, the Directors determined that this had 
changed from 1 July 2013. In accordance with IAS 21 this change has been accounted for following the same methodology as detailed 
below for the change in the Group’s presentational currency.
From 1 July 2013 the Group changed its presentational currency to US Dollars. Comparative information has been restated in US Dollars 
in accordance with the guidance defined in IAS 21. The 2013 financial statements and associated notes have been retranslated from 
Sterling to US Dollars in compliance with IAS 21 as follows:
• Assets and liabilities were translated at closing rate
• Income and expenses were translated at actual rates or appropriate averages
• Equity components were translated at historical rates
• Differences resulting from the retranslation of the opening net assets and the results for the year have been taken to reserves
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 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)
• Amendments to IFRS 7 Financial Instruments: Disclosures – Offsetting Financial Assets and Financial Liabilities
• Amendments to IAS 32 Financial Instruments: Presentation – Offsetting Financial Assets and Financial Liabilities
• Amendments to IAS 12 Income Taxes – Deferred tax: Recovery of Underlying Assets
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 IFRS 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.
Notes to the Accounts 45/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
1. Accounting policies continued
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.
(b) Impairment of satellites
The carrying amount of the satellites are dependent on the Group’s ability to sell sufficient capacity in the satellites over their useful 
economic lives. In management’s view, at this early stage in the life of the HYLAS 1 and 2 satellites, the sale of capacity is progressing well 
and in line with plans. 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 3 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 3 year period. This 3 year period commenced when HYLAS 1 
became operational in April 2011. Management has made their 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 revenue figure would be $575,000.
(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.
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 consolidated 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 values 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 values 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. 46/
Avanti Communications Group plc: Annual Report and Accounts 2014
1. Accounting policies continued
Revenue recognition
The Group currently earns revenue primarily from the sale of satellite broadband services to customers and from providing consultancy 
advice connected with the exploitation of the space assets. In the current year, 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 smaller proportion of the total revenue.
Broadband satellite communications services revenues are recorded in accordance with the contracted amounts.
For multiple element arrangements revenue is allocated to each element on fair value regardless of any separate prices stated within the 
contract. The portion of the revenue allocated to an element is recognised when the revenue recognition criteria for that element have 
been met.
Revenue also includes the sale of satellite equipment recognised when the risks and rewards of ownership have transferred to the customer.
Revenue from space consultancy and other consultancy contracts connected with the exploitation of the 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.
Accrued income represents the excess of revenue recognised over amounts invoiced. Deferred income represents any unearned 
balances remaining from amounts invoiced to 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. Accounts receivable balances are specifically reviewed to assess a customer’s ability to make payments.
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.
Financial costs of debt are allocated to periods over the term of the related debt using the effective interest rate method. Issuance costs 
are deducted from the debt proceeds on initial recognition of the liability and are amortised and charged to the income statement as 
finance costs over the term of the debt.
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.
Notes to the Accounts continued 47/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
1. Accounting policies continued
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, except for foreign exchange differences on intercompany loans 
that are designed as quasi-equity as they are not expected to be repaid, which are recognised in other comprehensive income.
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 establish their own pension scheme to which the Group will match employee contributions up to a 
maximum amount. There is no on-going liability to the Group beyond the period that the contributions are made. The cost of such 
contributions are charged to the income statement when incurred.
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 straightline 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 profits differ 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. 48/
Avanti Communications Group plc: Annual Report and Accounts 2014
1. Accounting policies continued
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 difference 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. Management believes the recognised deferred 
tax asset will be recoverable within 3-4 years based on forecasts showing increased utilisation of the satellite fleet.
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 straightline 
method. Depreciation on satellite assets commences once in-orbit testing has been completed and the satellite is available for use.
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.
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  Satellite in construction Nil
Satellite 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.
Satellite in construction 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 for capitalisation 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.
Notes to the Accounts continued 49/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
1. Accounting policies continued
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 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.
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.
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 (ESA) 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 is being recognised as revenue over 3 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. 50/
Avanti Communications Group plc: Annual Report and Accounts 2014
1. Accounting policies continued
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 on 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.
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.
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 positions 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 re-measured 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 who make the strategic decisions. 
Notes to the Accounts continued 51/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
2. Revenue
As stated in Note 1, the Group currently earn revenue primarily from the sale of satellite broadband services to customers and from 
providing consultancy advice connected with the exploitation of the 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 of $65,622,000 (2013: $32,125,000) represents 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, $16,578,000 
(2013: $4,027 ,000) relates to the sale of terminals and other equipment. As referred to in the critical estimates and judgements, revenues 
from ESA representing the sale of capacity on HYLAS 1 comprise 8.3% (2013: 21.8%) of total revenue.
The Group derived $14,698,000 (2013: $6,152,000) of its turnover from European countries outside the United Kingdom, $35,252,000 
(2013: $10,692,000) from countries outside Europe and $15,672,000 (2013: $15,281,000) from the United Kingdom.
3. Operating expenses
Operating expenses by function are as follows:
30 June 2014 
$’000
30 June 2013 
$’000
Distribution 4,250 5,885
Administration 30,636 22,599
34,886 28,484
Loss from operations for the year is stated after charging the following:
30 June 2014 
$’000
30 June 2013 
$’000
Operating expenses:
Depreciation of property, plant and equipment 2,238 1,177
Amortisation of intangible assets 225 217
Research and development costs expensed as incurred 42 50
Employee benefit expense 19,399 15,969
Operating lease expenses 2,582 1,133
Cost of sales:
Space asset depreciation 47,339 38,456
Release of ESA grant (1,505) (1,359)
Satellite services 18,830 8,002
Materials purchased 11,299 4,945
Sub contractors 7,365 3,387
4. Auditor remuneration
30 June 2014 
$’000
30 June 2013 
$’000
Audit of these financial statements 209 173
Disclosures below are based on amounts receivable in respect of other services to the Company and its 
subsidiaries:
Amounts receivable by the Company’s auditor and its associates in respect of:
– Audit of financial statements of subsidiaries of the Company 29 24
– Audit related assurance services 392 –
– Taxation compliance services 43 27
673 224 52/
Avanti Communications Group plc: Annual Report and Accounts 2014
5. Employee benefit costs
The aggregate remuneration of all employees comprised:
30 June 2014 
$’000
30 June 2013 
$’000
Wages and salaries 19,587 14,949
Social security costs 1,614 2,302
Pension costs 360 240
Share based payment expense 679 588
22,240 18,079
Less: costs capitalised as satellite in construction (2,841) (2,110)
19,399 15,969
Employee numbers
The average monthly number of people (including the Executive Directors) employed during the year by category of employment:
30 June 2014 
No. employees
30 June 2013 
No. employees
Operations 49 45
Sales and marketing 47 38
Development and engineering 48 42
Administration and executive 33 39
177 164
6. Other operating income
30 June 2014 
$’000
30 June 2013 
$’000
Ex gratia receipt 5,342 –
Exchange gain/(loss) on trade receivables and payable balances 454 (353)
Other grant income 1,423 1,366
Liquidated damages – 500
7,219 1,513
The ex gratia receipt arose following a commercial settlement in relation to the HYLAS 2 project.
The liquidated damages in the year ended 30 June 2013 were received in relation to the late delivery of the HYLAS 2 satellite.
7. Net finance (expense)/income
30 June 2014 
$’000
30 June 2013 
$’000
Finance income
Financing exchange gain – 413
Interest income on bank deposits 10 29
10 442
Finance expense
Interest expense on borrowings and loans (39,051) (7,942)
Fair value loss on derivatives – (199)
Financing exchange loss (271) –
Finance lease expense (219) (249)
Less: interest capitalised to satellite in construction 584 1,884
(38,957) (6,506)
Net finance expense (38,947) (6,064)
Notes to the Accounts continued 53/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
8. Income tax credit
30 June 2014 
$’000
30 June 2013 
$’000
Current tax
Current year tax expense – –
Total current tax – –
Deferred tax
Origination and reversal of temporary differences (5,877) (13,675)
Adjustment in respect of prior periods 3,438 2,270
Impact of change in UK tax rate 2,439 852
Total deferred tax – (10,553)
Total income tax credit – (10,553)
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 2014 
$’000
30 June 2013 
$’000
Loss before tax (87,691) (58,883)
Tax credit at the corporate tax rate of 22.5% (2013: 23.8%) (19,730) (14,014)
Tax effect of non-deductible expenses 181 339
Adjustment in respect of prior periods 1,548 2,270
Effect of tax rates in foreign jurisdictions 2,662 –
Deferred tax asset write off – 852
Impact of change in UK tax rate 2,439 –
Temporary differences for which no deferred tax has been recognised 9,578 –
Current year tax losses for which no deferred tax asset has been recognised 5,544 –
Foreign exchange translation differences (2,222) –
Income tax credit – (10,553)
Income tax credit recognised in the income statement – (10,553)
No income tax credit has been recognised in respect of the losses for the year ended 30 June 2014 (30 June 2013 $10.6m tax credit 
recognised). Whilst the Group foresees utilising the losses in future periods, it has taken a prudent approach and has not recognised the 
income tax credit in this period.
The standard rate of corporation tax in the UK changed from 23% to 21% with effect from 1 April 2014. Accordingly, the rate of 22.5% 
(2013: 23.8%) has been applied in the above reconciliation.
Reductions in the UK corporation tax rate from 26% to 24% (effective from 1 April 2012) and to 23% (effective 1 April 2013) were 
substantively enacted on 26 March 2012 and 3 July 2012 respectively. Further reductions to 21% (effective from 1 April 2014) and 20% 
(effective from 1 April 2015) were substantively enacted on 2 July 2013. This will reduce the company’s future current tax charge 
accordingly. The deferred tax asset at 30 June 2014 has been calculated based on the rates of 20% and 21% substantively enacted at the 
balance sheet date. 
9. Earnings/(loss) per share
30 June 2014 
cents
30 June 2013 
cents
Basic and diluted loss per share (81.18) (44.49)
The calculation of basic and diluted earnings/(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 2014 
$’000
30 June 2013 
$’000
Loss for the year attributable to equity holders of the parent Company (87,199) (47,736)
Weighted average number of ordinary shares for the purpose of basic and diluted earnings per share 107,408,907 107,306,711 54/
Avanti Communications Group plc: Annual Report and Accounts 2014
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 2014 amounted to $8,408,000 (2013: $1,294,000 loss).
11. Property, plant and equipment
Leasehold 
improvements 
$’000
Network 
assets 
$’000
Fixtures and 
fittings 
$’000
Satellites in 
operation
 $’000
Satellites in 
construction 
$’000
Motor 
vehicles 
$’000
Group total 
$’000
Cost
Balance at 1 July 2012 413 16,060 1,188 233,548 360,395 88 611,692
Additions 1,472 243 424 27,265 47,224 – 76,628
Transfer – (3,266) – 368,424 (365,158) – –
Disposals – (24) – – – (24) (48)
Effect of movements in exchange 
rates (58) (430) (45) 4,097 (12,615) (2) (9,053)
Balance at 30 June 2013 1,827 12,583 1,567 633,334 29,846 62 679,219
Additions – 6 628 17,344 10,956 – 28,934
Transfer – – – – – – –
Disposals – – – (11,236) – – (11,236)
Effect of movements in exchange 
rates 218 1,449 166 27,906 3,554 8 33,301
Balance at 30 June 2014 2,045 14,038 2,361 667,348 44,356 70 730,218
Accumulated depreciation
Balance at 1 July 2012 396 6,861 944 18,944 – 71 27,216
Charge for the year 72 932 157 38,456 – 16 39,633
Transfer – (479) – 479 – – –
Disposals – (24) – – – (22) (46)
Effect of movements in exchange 
rates (13) (196) (32) (1,168) – (3) (1,412)
Balance at 30 June 2013 455 7,094 1,069 56,711 – 62 65,391
Charge for the year 388 1,513 336 47,340 – – 49,577
Disposals – – – (1,989) – – (1,989)
Effect of movements in exchange 
rates 70 890 129 5,285 – 8 6,382
Balance at 30 June 2014 913 9,497 1,534 107,347 – 70 119,361
Net book value
Balance at 30 June 2014 1,132 4,541 827 560,001 44,356 – 610,857
Balance at 30 June 2013 1,372 5,489 498 576,623 29,846 – 613,828
At 30 June 2014, the Group held assets under finance lease agreements with a net book value of $3,953,856 (2013: $4,098,294). A depreciation 
charge for the year of $984,244 (2013: $219,219) has been provided on these assets. These assets are included in network assets.
Satellites in operation includes the HYLAS 1 and 2 satellites, and 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 ground station assets have been depreciated from this point. ARTEMIS was acquired on 31 December 2013 and 
has been depreciated from this date.
The satellites in construction assets of $44,356,000 now relates to HYLAS 3 and 4 design (2013: $29,846,000 in relation to HYLAS 2 and 3).
Included in the satellites in operation costs are capitalised finance costs of $57 ,027 ,000 (2013: $53,523,954) related to the HYLAS 2 
satellite. The HYLAS 2 assets are located in Cyprus.
Impairment reviews were conducted on the satellites in operation. The carrying value of the assets are supported and thus there is no 
impairment loss recorded. A sensitivity analysis was carried out by management and is not considered to have a significant impact on the 
impairment conclusions.
Notes to the Accounts continued 55/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
12. Intangible assets
Computer 
software 
$’000
Brand 
name 
$’000
Customer 
lists 
$’000
Goodwill 
$’000
Group total 
$’000
Cost
Balance at 1 July 2012 620 285 2,181 11,822 14,908
Effect of movements in exchange rates (19) 7 57 (490) (445)
Balance at 30 June 2013 601 292 2,238 11,332 14,463
Effect of movements in exchange rates – 14 109 553 676
Balance at 30 June 2014 601 306 2,347 11,885 15,139
Accumulated amortisation
Balance at 1 July 2012 620 41 104 – 765
Charge for the year – 61 156 – 217
Effect of movements in exchange rates (19) (3) (9) – (31)
Balance at 30 June 2013 601 99 251 – 951
Charge for the year – 63 162 – 225
Effect of movements in exchange rates – – – – –
Balance at 30 June 2014 601 162 413 – 1,176
Net book value
Balance at 30 June 2014 – 144 1,934 11,885 13,963
Balance at 30 June 2013 – 193 1,987 11,332 13,512
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 cash-generating unit.
As set out in IAS 36 Impairment of Assets, a cash-generating unit is the smallest identifiable group of assets that generate cash inflows 
from continuing use that are largely independent of the cash flows from other assets or groups of assets. For the purpose of impairment 
testing of goodwill, goodwill is allocated to a group of cash-generating units (being subsidiaries acquired in each acquisition). Such group 
of cash generating units represent the lowest level within the Group for which the goodwill is monitored for internal management 
purposes.
The recoverable amount of the cash-generating units is determined using value-in-use, which is calculated by using the discounted cash 
flow method. This method considered the cash flows of the cash-generating units for the 10 years from the reporting date to 30 June 2024 
with subsequent transition to perpetuity. Year 1 of these cash flows were based on a detailed management budget and years 2 to 10 on 
growth assumptions that remain consistent at 9%. A perpetuity growth rate of 2% was applied to the Year 10 cash flows. The present 
value of cash flows is calculated by discounting the cash flow by pre-tax interest rate of approximately 14.6%.
The brand names acquired in the course of the Filiago business combination of $306,000 are amortised on a straight-line basis over a 
period of five years. At the year end the NBV of the brand names is $144,000 (2013: $193,000), after charging $63,000 (2013: $61,000)  
of amortisation in the year.
The customer lists acquired in the course of the Filiago business combination of $2,347 ,000 are amortised on a straight-line basis over a 
period of fifteen years. At the year end the carrying amount of the customer bases is $1,934,000 (2013: $1,987 ,000) after charging 
$162,000 (2013: $156,000) of amortisation in the year. 56/
Avanti Communications Group plc: Annual Report and Accounts 2014
13. Investments
Company
Shares in subsidiary undertakings
30 June 2014 
$’000
30 June 2013 
$’000
Beginning of the year 148,668 153,428
Effect of movements in exchange rates – (4,760)
148,668 148,668
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
Hybeam Limited Satellite services England & Wales
* Company was dormant in the year ending 30 June 2014.
The Company holds 100% ownership interest and voting power in all the above entities.
On 1 November 2011 the Group took effective control of Filiago GmbH & Co (“Filiago”) by enhancing the security over its loans with Filiago. 
Since 1 November 201 1 (“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.
Notes to the Accounts continued 57/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
15. Inventories
Group
30 June 2014 
$’000
30 June 2013 
$’000
Finished goods 1,733 4,510
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 $11,928,905 (2013: $4,864,000).
There have been no write-downs of inventory during the year.
16. Trade and other receivables
Group Company
30 June 2014 
$’000
30 June 2013 
$’000
30 June 2014 
$’000
30 June 2013 
$’000
Trade receivables 25,583 9,586 913 –
Less provision for impairment of trade receivables (4,566) (1,690) – –
Net trade receivables 21,017 7,896 913 –
Accrued income 9,182 4,646 – –
Prepayments 5,956 5,534 4,708 1,516
Amounts due from Group companies – – 239,672 249,500
Other receivables 2,493 2,609 250 –
38,648 20,685 245,543 251,016
For discussion of credit risk, refer to Note 21(b).
Included in the Group’s trade receivables balance at 30 June 2014 is a long term receivable of $9.4m. 10% of the original balance has 
already been collected, with the remainder payable in nine equal instalments of $1,040,000 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 $527 .5m relating to amounts due from a Group company. Interest is payable 
on this intra-Group loan at 10.5% per annum.
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 2014 
$’000
30 June 2013 
$’000
30 June 2014 
$’000
30 June 2013 
$’000
Deferred tax assets 30,753 28,309 79 497
Deferred tax liabilities (9,679) (9,457) 418 –
21,074 18,852 497 497
The gross movement on the deferred income tax account is as follows:
Balance at beginning of year 18,852 8,778 497 443
Income tax recognised in the income statement – 10,553 – 351
Loss transfer to Group company – – – (264)
Tax (credited)/charged directly to equity – (4) – (17)
Effects of movements in exchange rates 2,222 (475) – (16)
Balance at end of year 21,074 18,852 497 497 58/
Avanti Communications Group plc: Annual Report and Accounts 2014
17. Deferred taxation continued
Group
Opening 
balance 
$’000
Credited/ 
(charged) to 
the income 
statement 
$’000
(Credited)/ 
charged
 to equity 
$’000
Effects of 
movements in  
exchange rates
$’000
Closing 
balance 
$’000
30 June 2014
Tax assets
Provisions and deferred income 4,072 (906) – 486 3,652
Share based payment 916 – – 109 1,025
Unused tax losses 23,321 – – 2,755 26,076
Total tax assets 28,309 (906) – 3,350 30,753
Tax liabilities
Property, plant and equipment (9,457) 906 – (1,128) (9,679)
Total tax liabilities (9,457) 906 – (1,128) (9,679)
Net deferred tax asset/(liability) 18,852 – – 2,222 21,074
Group
Opening 
balance 
$’000
Credited/ 
(charged) to 
the income 
statement 
$’000
(Credited)/ 
charged 
to equity 
$’000
Effects of 
movements in 
exchange rates
$’000
Closing 
balance 
$’000
30 June 2013
Tax assets
Provisions and deferred income 7,638 (3,433) – (133) 4,072
Share based payment 1,024 (74) (4) (30) 916
Unused tax losses 11,794 12,143 – (616) 23,321
Total tax assets 20,456 8,636 (4) (779) 28,309
Tax liabilities
Property, plant and equipment (11,678) 1,917 – 304 (9,457)
Total tax liabilities (11,678) 1,917 – 304 (9,457)
Net deferred tax asset/(liability) 8,778 10,553 (4) (475) 18,852
Company
Opening 
balance 
$’000
Credited/ 
(charged) to 
the income 
statement 
$’000
(Credited)/ 
charged 
to equity 
$’000
Effects of 
movements in  
exchange rates
$’000
Closing 
balance 
$’000
30 June 2014
Tax assets
Share based payment 78 – – – 78
Unused tax losses 419 – – – 419
Total tax assets 497 – – – 497
Notes to the Accounts continued 59/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
17. Deferred taxation continued
Company
Opening 
balance 
$’000
Credited/ 
(charged) to 
the income 
statement 
$’000
(Credited)/ 
charged
 to equity 
$’000
Effects of 
movements in 
exchange rates
$’000
Closing 
balance 
$’000
30 June 2013
Tax assets
Share based payment 100 (2) (17) (3) 78
Unused tax losses 342 90 – (13) 419
Total tax assets 442 88 (17) (16) 497
At 30 June 2014, none of the deferred tax asset of $30.8m (2013: $28.3m) is expected to be recovered in the next 12 months.
At 30 June 2014, none of the deferred tax liability of $9.7m (2013: $9.5m) is expected to be settled in the next 12 months.
No deferred tax asset has been recognised in respect of the losses for the year ended 30 June 2014 (30 June 2013 $10.6m tax credit 
recognised). Whilst the Group foresees utilising the losses in future periods, it has decided not to recognise the deferred tax asset 
movement in the year.
As at 30 June 2014, the total unrecognised deferred tax asset totalled $15.1m. This is made up of unused tax losses of $5.5m, and other 
temporary differences of $9.6m.
Management believes the recognised deferred tax asset will be recoverable within 3-4 years based on forecasts showing increased 
utilisation of the satellite fleet.
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 are comprised as follows:
Group
30 June 2014 
$’000
30 June 2013 
$’000
Cash and bank balances 193,568 57,172
Short-term deposits 1,715 1,527
Net cash and cash equivalents 195,283 58,699
19. Trade and other payables
Group Company
30 June 2014 
$’000
30 June 2013 
$’000
30 June 2014 
$’000
30 June 2013 
$’000
Current
Trade payables 8,485 18,091 5,355 –
Social security and other taxes 662 484 – –
Other payables 2,121 (245) – 106
Accruals and deferred income 28,602 9,688 13,074 2
39,870 28,018 18,429 108
Non-current
Accruals and deferred income 15,299 21,707 – –
15,299 21,707 – –
Accruals and deferred income above includes the interest accrued in the Company of $13m in relation to the $370m and $150m bonds. 60/
Avanti Communications Group plc: Annual Report and Accounts 2014
20. Loans and other borrowings
Group current Group Non-current
30 June 2014 
$’000
30 June 2013 
$’000
30 June 2014 
$’000
30 June 2013 
$’000
Secured at amortised cost
Bank loans – 22,640 26 282,793
High yield bonds – – 508,419 –
Finance lease liabilities
(i)
 (note 24) 4,545 4,403 3,986 3,213
4,545 27,043 512,431 286,006
Company current Company Non-current
30 June 2014 
$’000
30 June 2013 
$’000
30 June 2014 
$’000
30 June 2013 
$’000
Secured at amortised cost
Bank loans – – – –
High yield bonds – – 508,418 –
Finance lease liabilities
(i)
 (note 24) 1,526 365 2,686 166
1,526 365 511,104 166
(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 not exceeding 5 years.
High yield bonds
The Company issued 10% Senior Secured Notes of $370m and $150m on 1 October 2013 and 17 June 2014 respectively.
Issuer
Original  
notional value Description of instrument Due
Avanti Communications Group plc $520m 10% Senior Secured Notes 1 October 2019
The high yield bonds are disclosed in non-current loans and borrowings as detailed below:
30 June 2014 
$’000
30 June 2013 
$’000
High yield bonds 520,000 –
Add: Issue premium (unamortised) 7,444 –
Less: Debt issuance costs (19,026) –
508,418 –
Loan balances outstanding as at 30 June 2013 related to debt financing for HYLAS 2 with US Exim bank and COFACE. These amounts 
were repaid during the year. Current year non-current bank loans relate predominantly to the bond issues as disclosed above.
Notes to the Accounts continued 61/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
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 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 2014, if the Euro had weakened/strengthened against the US Dollar by 5% with all other variables held constant, post tax loss 
would have improved by $198,597 or worsened by $198,591 (2013: post tax profit would have improved by $404,686 or worsened by 
$404,686).
At 30 June 2014, 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 $453,698 or worsened by $453,698 (2013: post tax profit would have improved by $34,416 or worsened by 
$34,416).
The average volatility of rates during the year compared to the year end exchange rate was 2.34% 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 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.
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+. The credit quality of major customers is assessed before trading commences 
taking into account its financial position, past experience and other factors.
30 June 2014 
$’000
30 June 2013 
$’000
Trade receivables 21,017 7,896
Total 21,017 7,896
The ageing of trade receivables which have not been impaired was as follows:
Not past due 
$’000
1–30 days 
$’000
31–60 days 
$’000
60+ days
 $’000
Total 
$’000
30 June 2014 13,698 2,947 1,228 3,144 21,017
30 June 2013 3,283 1,485 510 2,618 7,896 62/
Avanti Communications Group plc: Annual Report and Accounts 2014
21. Financial instruments and risk management continued
Movements in the provision for impairment of trade receivables are as follows:
30 June 2014 
$’000
30 June 2013 
$’000
At beginning of year 1,690 408
Allowances made in the period 3,990 1,291
Amounts used and reversal of unused amounts (1,114) (9)
At end of year 4,566 1,690
The provision of $4,566,000 (2013: $1,690,000) has been raised against gross trade receivables of $25,583,000 (2013: $9,586,000). Every 
major customer is assessed on an individual basis and we provide for bad debts when an impairment has been identified.
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 
$’000
1 to 2 years 
$’000
2 to 5 years 
$’000
Over 5 years 
$’000
Contractual 
amount 
$’000
Carrying
 amount 
$’000
30 June 2014
Bank loans 26 – – – 26 26
High yield bonds – – – 520,000 520,000 508,419
Finance leases 4,624 2,630 1,267 – 8,521 8,531
Trade payables 8,485 – – – 8,485 8,485
30 June 2013
Bank loans 36,336 45,677 215,935 60,085 358,033 305,433
Finance leases 4,599 2,115 1,171 – 7,885 7,616
Trade payables 18,091 – – – 18,091 18,091
Interest is payable on the high yield bonds at 10% p.a. over the five year remaining life of the bonds.
In addition, the Company has intercompany balances carried at $239.6m (2013: $249.5m). The contractual amount is equal to 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 the borrowings disclosed in Note 20, cash and cash equivalents disclosed 
in 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.
Notes to the Accounts continued 63/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
21. Financial instruments and risk management continued
e) Financial instruments by category
Group
Assets as per balance sheet
Loans and 
receivables 
$’000
Total 
$’000
30 June 2014
Trade and other receivables (excl prepayments) 32,692 32,692
Cash and cash equivalents 195,283 195,283
227,975 227,975
30 June 2013
Trade and other receivables (excl prepayments) 15,151 15,151
Cash and cash equivalents 58,699 58,699
73,850 73,850
Liabilities as per balance sheet
Other financial 
liabilities at 
amortised cost 
$’000
Total 
$’000
30 June 2014
Borrowings (excl finance lease liabilities) 508,445 508,445
Finance lease liabilities 8,531 8,531
Trade and other payables (excl non-financial liabilities) 54,507 54,507
571,483 571,483
30 June 2013
Borrowings (excl finance lease liabilities) 305,433 305,433
Finance lease liabilities 7,616 7,616
Trade and other payables (excl non-financial liabilities) 49,678 49,678
362,727 362,727
Company
Assets as per balance sheet
Loans and 
receivables 
$’000
Total 
$’000
30 June 2014
Trade and other receivables (excl prepayments) 240,835 240,835
240,835 240,835
30 June 2013
Trade and other receivables (excl prepayments) 249,500 249,500
249,500 249,500
Liabilities as per balance sheet
Other financial 
liabilities at 
amortised cost 
$’000
Total 
$’000
30 June 2014
Finance lease liabilities 4,212 4,212
Trade and other payables (excl non-financial liabilities) 18,429 18,429
22,641 22,641
30 June 2013
Finance lease liabilities 531 531
Trade and other payables (excl non-financial liabilities) 108 108
639 639 64/
Avanti Communications Group plc: Annual Report and Accounts 2014
21. Financial instruments and risk management continued
Financial instruments and risk management – 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 1 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 
$’000
EBT 
shares 
$’000
Group and 
company share 
premium 
$’000
At 1 July 2012 111,736 1,799 90 415,130
At 30 June 2013 111,736 1,799 90 415,130
At 1 July 2013 111,736 1,799 90 415,130
At 30 June 2014 111,736 1,799 90 415,130
23. Share based payments
The fair value of share options charged to the income statement in the period was $679,000 (2013: $588,000). 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 17 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)
• Unapproved share option plan (October 2010)
• Unapproved share option plan (April 2011)
• Save As You Earn scheme (SAYE) (July 2010)
• 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 scheme (SAYE) (November 2011)
• Unapproved share option plan (March 2012)
• Unapproved share option plan (April 2012)
• Unapproved share option plan (October 2013)
• Long Term Incentive Plan (LTIP) (July 2013)
• Unapproved share option plan (May 2014)
The 2014 charges and weighted average fair value for each of the significant plans above were as follows:
2014 charge 
$
2013 charge 
$
EMI 2,983 38,155
LTIP schemes 118,806 214,879
Unapproved schemes 554,975 305,031
SAYE schemes 2,670 30,010
679,434 588,075
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, and on the SAYE scheme 2011 is £3.09.
Notes to the Accounts continued 65/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
23. Share based payments continued
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.
The table below sets out the number and weighted average exercise prices (WAEP) of, and movements in, the significant share options 
schemes during the year:
2014 
No.
2014 
WAEP
2013 
No.
2013 
WAEP
EMI
Outstanding at the beginning of the year 140,394 £0.01 156,201 £0.01
Granted during the year – £0.01 – £0.01
Forfeited in the year – £0.01 – £0.01
Exercised during the year (9,316) £0.01 (15,807) £0.01
Outstanding at the end of the year 131,078 £0.01 140,394 £0.01
Unapproved schemes
Outstanding at the beginning of the year 442,691 £0.01 563,705 £0.01
Granted during the year 442,000 £0.01 – £0.01
Forfeited in the year – £0.01 – £0.01
Exercised during the year – £0.01 (121,014) £0.01
Outstanding at the end of the year 884,691 £0.01 442,691 £0.01
SAYE schemes
Outstanding at the beginning of the year 135,243 £4.10 135,243 £4.10
Granted during the year – £4.10 – £4.10
Forfeited in the year – £4.10 – £4.10
Exercised during the year – £4.10 – £4.10
Outstanding at the end of the year 135,243 £4.10 135,243 £4.10
The weighted average share price for the year ended 30 June 2014 was £2.38 (2013: £2.99).
136,201 (2013: 102,713) of the EMI options, nil (2013: 15,000) of the unapproved 2007 scheme, and nil (2013: 50,000) of the unapproved 
July 2010 scheme were exercisable from 30 June 2014. With exception of the LTIP shares issued to senior management, all outstanding 
LTIP shares were returned to the EBT.
The exercise price of options outstanding at 30 June 2014 was £0.01 (2013: £0.01) and the weighted average remaining contractual life 
was 5.5 years (2013: 6.7 years).
Each model has slightly different exercise criteria and therefore separate valuation models were used.
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 are 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. 66/
Avanti Communications Group plc: Annual Report and Accounts 2014
23. Share based payments continued
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 allocation to each executive is split into three separate tranches:
i) The Core Tranche
This element of the grant became exercisable in 7 equal instalments. The first instalment was exercisable on grant and the second on 
30 June 2008. The remaining 5 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 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 £5.50. The benchmark for this tranche of LTIP was satisfied in November 2010.
iii) The Extraordinary Achievement Tranche
This element of the grant was only exercisable if the Market Value of a Share exceeded £10 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 
have been returned to the EBT.
Executive 
directors 
No.
Senior 
managers 
No.
Opening balance 2013
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) (71,429)
Exceptional vested (679,570) (62,500)
Unvested balance returned to the EBT (1,079,213) (62,500)
Outstanding balance 30 June 2013 – 53,571
Movements in year ended 30 June 2014:
Core vested – (17,857)
Outstanding balance 30 June 2014 – 35,714
iv) The Share Award Tranche
The share award LTIP 2015 was issued 30 July 2013 for two years to 30 June 2015. 2/3rds of the award is based on revenue 
performance for the year ending 30 June 2015. 1/3rd of the award is based on a share price as at 30 June 2015.
A second LTIP award was issued on 14 January 2014 for two years to 30 June 2016. 2/3rds of the award is based on EBITDA performance 
for the year ending 30 June 2016. 1/3rd of the award is based on a share price as at 30 June 2016.
Notes to the Accounts continued 67/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
23. Share based payments continued
The total number of options issued under the awards was as follows:
30 June 2015 30 June 2016
Total award
No.
Two-thirds 
Dependent 
on revenue 
performance
No.
One-third 
Dependent on 
share price
No.
Total award
No.
Two-thirds 
Dependent 
on EBITDA 
performance
No.
One-third 
Dependent on 
share price
No.
Executive directors 713,390 475,593 237,797 763,281 508,854 254,427
Senior managers 209,543 139,695 69,848 221,289 147,526 73,763
922,933 615,288 307,645 984,570 656,380 328,190
Unapproved Schemes
At 30 June 2014, there were 12 unapproved schemes in place, established at various dates since 2007 .
Under each scheme, the options are issued for 10 years with 25% or 33% vesting at the end of years 3, 4, 5 and 6. Two new unapproved 
schemes were established in year ended 30 June 2014.
Under nine of the schemes (noted below), the market value of the shares must be £10.00 or more per share for a consecutive period of six 
months in order for the vesting conditions to be met. For all other schemes, there are no performance criteria and the options are 
exercisable as long as the option holder remains with the Company.
Unapproved schemes with £10.00 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)
Save as you earn (SAYE) schemes
The save as you earn schemes were established in July 2010 and November 2011 and were open to all employees of the Company at 
the time.
Save as you earn is an HMRC approved all employee savings-related share option scheme under which employees save up to a limit  
of £250 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. 68/
Avanti Communications Group plc: Annual Report and Accounts 2014
24. Obligations under finance leases
Leasing arrangements
Finance leases relate to capital equipment with lease terms of 3–5 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.
Finance lease liabilities
Group  
Minimum lease payments
Group  
Present value of lease payments
30 June 2014 
$’000
30 June 2013 
$’000
30 June 2014 
$’000
30 June 2013 
$’000
No later than one year 4,624 4,599 4,545 4,403
Later than 1 year no later than 5 years 3,897 3,286 3,986 3,213
8,521 7,885 8,531 7,616
Less future finance charge 10 (269) – –
8,531 7,616 8,531 7,616
Company  
Minimum lease payments
Company  
Present value of lease payments
30 June 2014 
$’000
30 June 2013 
$’000
30 June 2014 
$’000
30 June 2013 
$’000
No later than one year 1,526 365 1,526 365
Later than 1 year no later than 5 years 2,686 166 2,686 166
4,212 531 4,212 531
Less future finance charge – – – –
4,212 531 4,212 531
Included in the financial statements as:
Group Company
30 June 2014 
$’000
30 June 2013 
$’000
30 June 2014 
$’000
30 June 2013 
$’000
Current borrowings 4,545 4,403 1,526 365
Non-current borrowings 3,986 3,213 2,686 166
Present value of minimum lease payments 8,531 7,616 4,212 531
25. Obligations under operating leases
The Group’s future aggregate minimum lease payments under non-cancellable operating leases are as follows:
30 June 2014 30 June 2013
Land & 
Buildings 
$’000
Other 
$’000
Land & 
Buildings
$’000
Other 
$’000
No later than one year 2,193 41 1,959 20
Later than 1 year no later than 5 years 10,963 58 9,794 –
After 5 years 28,138 – 27,097 –
41,294 99 38,850 20
Operating lease commitments principally relate to leased office space of the Group’s head office. During the prior year the Group exited 
from its lease commitments at 74 Rivington Street, London and relocated its head office to Cobham House, 20 Black Friars Lane, London 
on 6 May 2013. The Group entered into a 20 year lease on the property, with annual rent of $2.0m. Other operating leases include a fleet 
of 5 vans.
Notes to the Accounts continued 69/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
26. Capital commitments
As at 30 June 2014 the Group has contracted but not provided for capital commitments of $52.2m (made up of CAD$9.6m and €31.7m) 
in relation to the procurement of Avanti’s third satellite, HYLAS 3 (2013: $16.0m in relation to HYLAS 3).
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 2014 
$’000
30 June 2013 
$’000
Salaries and other short term employee benefits 2,884 2,275
Bonus 811 –
3,695 2,275
Payments into defined contribution schemes 132 179
Gain on exercise of share options – 333
3,827 2,787
Pension contributions amounting to $131,566 (2013: $173,942) were made into personal pension schemes in respect of three (2013: four) 
of the Directors.
No Non-Executive Directors exercised share options in the period.
The emoluments of the highest paid Director totalled $1,049,906 (2013: $700,867), made up of:
Total emoluments
30 June 2014 
$’000
30 June 2013 
$’000
Salaries and other short term employee benefits 763 637
Bonus 286 –
Payments into defined contribution schemes (current year) – 64
Total emoluments 1,049 701
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 consulting division.
Group Company
Total emoluments
30 June 2014 
$’000
30 June 2013 
$’000
30 June 2014 
$’000
30 June 2013 
$’000
Salaries and other short term employee benefits 3,922 3,400 550 727
Bonus 1,091 – – –
Payments into defined contribution schemes 114 236 – –
Share based payments – 497 – –
5,127 4,133 550 727 70/
Avanti Communications Group plc: Annual Report and Accounts 2014
27. Related party transactions and Directors’ emoluments continued
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 2014 
$’000
30 June 2013 
$’000
Avanti Communications Limited 1,876 1,754
Avanti Broadband Limited 2,928 5,110
Avanti Space Limited 974 1,219
Avanti HYLAS 2 Limited 1,307 190
7,085 8,273
The parent Company had the following intercompany balances outstanding at the year end:
30 June 2014 
$’000
30 June 2013 
$’000
Avanti Communications Limited 127,961 142,165
Avanti Space Limited 7,378 5,449
Avanti Broadband Limited 18,352 13,330
Avanti HYLAS 2 Limited (1,469) 1,106
Avanti Communications Infrastructure Limited 87,450 87,450
239,672 249,500
In addition to the above related party balances at 30 June 2014, the parent Company had a loan receivable from Avanti Hylas 2 Limited  
of $527 .5m. Interest is payable at a rate of 10.5% per annum.
Intercompany balances are unsecured and repayable on demand.
28. Cash (absorbed by)/generated from operations
Group 
30 June 2014 
$’000
Company 
30 June 2014 
$’000
Group 
30 June 2013 
$’000
Company 
30 June 2013 
$’000
Loss before taxation (87,691) (8,407) (58,884) (1,669)
Interest receivable (10) (29,880) 199 202
Interest payable 30,210 28,072 – –
Amortised bond issue costs 1,648 1,648 – –
Foreign exchange losses in operating activities (245) 211 – –
Depreciation and amortisation of non-current assets 49,803 – 39,850 –
Provision for doubtful debts 3,332 – 2,553 –
Loan breakage costs 6,827 6,827 (5) –
Onerous lease provision – – 588 –
Share based payment expense 679 15 – 20
(Increase)/decrease in stock (326) – (3,267) –
(Increase)/decrease in debtors (9,702) 5,474 (4,109) 1,748
(Decrease)/increase in trade and other payables (8,053) 5,658 6,640 63
Cash (absorbed by)/generated from operations (13,528) 9,618 (16,435) 364
Notes to the Accounts continued 71/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
Notice is hereby given that the Annual General Meeting of the Company will be held at 9.00am on 27 November 2014 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 2014, together with the reports of the Directors and Auditor therein.
2. Re-election of Directors
2.1 To re-elect Nigel Fox as a Director of the Company who retires by rotation in accordance with the Company’s Articles of Association.
2.2 To re-elect Michael Walker as a Director of the Company who retires by rotation in accordance with the Company’s Articles  
of Association.
3. Election of auditor
To re-appoint KPMG LLP as auditor of the Company.
4. Auditor’s remuneration
To authorise the Directors to determine the remuneration of the auditors.
Special Business
To consider, and if thought fit, to pass the following resolutions, of which resolution 5 will be proposed as an ordinary resolution, and 
resolution 6 will be proposed as a special resolution:
5. 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 £376,455, such authority to expire on 27 May 2016 or at the conclusion of the Annual General Meeting 
following the date on which this resolution is passed (whichever is the earlier), 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.
Notice of AGM 72/
Avanti Communications Group plc: Annual Report and Accounts 2014
6. 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 5 above, and/or where such an allotment 
constitutes and 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 
£112,936 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
29 October 2014
Notice of AGM continued Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
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 6.00pm on 25 
November 2014 (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 and 
to ensure your entrance to the meeting is dealt with promptly, 
please bring your attendance card with you and register at the 
registration desk inside the building.
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 who 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 for 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 at Neville House, 18 Laurel Lane, Halesowen, 
West Midlands B63 3DA, by no later than 25 November 2014.
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 74/
Avanti Communications Group plc: Annual Report and Accounts 2014
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 2014.
Resolution 2 – Re-election of Directors
These resolutions concern the re-appointment of Nigel Fox  
and Michael Walker who are retiring at the meeting by rotation  
in accordance with the Company’s articles of association.
Resolution 3 – 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 4 – Auditor’s Remuneration
This resolution authorises the Directors to fix the auditor’s 
remuneration.
Resolution 5 – Director’s 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 £376,455, representing approximately 33.33% 
of the nominal value of the issued ordinary share capital as at 29 
October 2014, 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.
Notes to Notice of Annual General Meeting continued
Resolution 6 – Director’s 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 £112,936 
representing approximately 10% of the nominal value of the issued 
Ordinary Share capital of the Company as at 29 October 2014, 
being the latest practicable before publication of this notice.  
Unless revoked, varied or extended, this authority will expire at  
the conclusion of the next AGM 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 6 is 
necessary to retain flexibility, although they do not have any 
intention at the present time of exercising such power. 75/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
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:
To ensure your entrance to the meeting is dealt with promptly, please bring your attendance card with you and register at the registration 
desk inside the building.
Shareholder Information:
If you have any questions concerning your shareholding, please speak to Avanti Communications Group plc.
Important:
If you have questions about the meeting, or if you need any assistance, please telephone Georgina Newell 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 10,001 3,109,895 1,686
10,000 – 20,000 1,387 ,593 105
20,001 – 50,000 2,159,042 73
50,001 – 100,000 1,755,889 25
100,001 – 150,000 1,771,597 14
150,001 – 300,000 6,498,875 29
300,001 – 500,000 7,337,726 19
500,001 – 1,000,000 6,470,189 9
1,000,000 + 81,246,043 20
Further Notes to the Annual General Meeting 76/
Avanti Communications Group plc: Annual Report and Accounts 2014
Financial Calendar: 
• November 2014: Annual General Meeting
• November 2014: Quarterly earnings release
• February 2015: Interim results for the six months ended 31 December 2014
• May 2015: Quarterly earnings release
• September 2015: Preliminary results for the year ended 30 June 2015
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 71. 
Dividend:
The Directors have not recommended the payment of a dividend for the year ended 30 June 2014.
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 continued 77/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
Form of Proxy
for Avanti Communications Group plc
(incorporated and registered in England and Wales under number 6133927) (the ‘Company’)
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 27 November 2014 at 9.00 a.m. (“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 29 October 2014 (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 2014 (ordinary resolution)
2.1 To re-elect Nigel Fox as a director (ordinary resolution)
2.2 To re-elect Michael Walker as a director (ordinary resolution)
3  To re-appoint KPMG LLP as auditors (ordinary resolution)
4  To authorise the Directors to fix the remuneration of the auditors (ordinary resolution)
Special Business
5  To authorise the Directors to allot relevant securities (ordinary resolution)
6   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
Tear along perforation 78/
Avanti Communications Group plc: Annual Report and Accounts 2014
Form of proxy notes
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 9.00 a.m. on 25 November 2014. 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.
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). 79/
Strategic  
Report:
Operational 
Review 14–21
Corporate 
Governance 
  
 22–37
Financial 
Statements 
  
 38–78
Strategic  
Report:  
Business  
Model  2–13
Notes 80/
Avanti Communications Group plc: Annual Report and Accounts 2014
Notes Officers and Professional Advisors
Directors
P Walsh
Chairman
D J Williams
Chief Executive
D J Bestwick
Technical Director
N A D Fox
Group Finance Director
M J O’Connor
Chief Operating Officer
D A Foster
Non‑Executive Director
W P Wyatt
Non‑Executive Director
C R Vos
Non‑Executive Director
M Walker OBE
Non‑Executive Director
F E J G Brackenbury CBE
Non‑Executive Director
P R Johnson
Non‑Executive Director
Secretary
P 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 Clark
1 London Wall
London
EC2Y 5EB
Registered Auditor
KPMG LLP
15 Canada Square
London
E14 5GL Avanti 
Communications 
Group plc
Cobham House,
20 Black Friars Lane
London EC4V 6EB
www.avantiplc.com
Avanti Communications Group plc Annual Report and Accounts 2014