Avanti Screenmedia’s double whammy

In-store TV outfit Avanti Screenmedia has recruited Simon Rees, previously boss of WPP Group’s Mindshare agency, as its new chief executive and simultaneously warned on upcoming results.

Rees will have a job on his hands in the new role, since the board divulged that revenues for the year to June will be ‘significantly behind market expectations’ as its eye had been off the ball somewhat, focused instead on the demerger of Avanti’s satellite communications subsidiary, Avanti Communications, onto AIM. Management admitted that certain contracts were expected to be included in the financial year but will instead fall into the subsequent period, considerably impacting on revenues.

Good news was issued in the shape of an extension to a contract with Stuart Rose’s recovering Marks and Spencer, where a one-year contract has been signed for Avanti’s interactive touch-screen kiosks at 40 stores. The launch should begin in August.

Avanti shares, which were boosted by the satellite subsidiary to highs of more than 350p in the last year and fell to around 20p after the split, now rest around the 11p mark.