In its Q4 report, AVTECH reported a turnover of SEK 3.1 million, slightly below our expectations, which amounted to SEK 4.2 million. However, EBITDA was positive, which enabled the company to achieve its cash-flow target towards the end of 2017.
Estimate vs Actuals:
The explanation that revenue was no higher can be explained in the easyJet cooperation. The roll-out that will happen "feet-wide" has been delayed slightly with easyJet, which means revenue is still at a fairly low level. This is explained by "administrative causes" at easyJet.
During the quarter, tests and technical preparations were conducted with several airlines for potential contracting. The company also has ongoing negotiations with existing customers regarding any upgrades of the service Aventus Nowcast Full Flight.
For real-time updates, including weather information, the mobile service/app "Aventus Managment Dashboard" are available. During the latter part of 2017, the app has passed over in a test phase. At the moment, a selected group of pilots uses the product during flight. The app is scheduled to be launched for commercial use in Q2 2018.
AVTECH’s cash and cash equivalents at the end of the period amounted to SEK 20.4 million.
Download our latest Research Report from 2017-10-26