Bigblu Broadband PLC – Final Results

Bigblu Broadband PLC – Final Results

Bigblu Broadband plc (AIM: BBB.L), a leading provider of alternative super-fast and ultra-fast broadband services, announces its audited results for the year ended 30 November 2019.

 

The period under review represented one of a focus on the customer, customer offers, retention and customer experience in all our territories. It was also a period where we consolidated and upgraded our last ten years of growth with new systems, new banking facilities and new business practices. To have completed all this and grown our revenue by 12% and our adjusted EBITDA2 by 50% in addition to reporting positive adjusted EPS4 for the first time is a huge achievement.

 

Financial Highlights

 

·      Total revenue increased 12% to £62.1m (FY18: £55.4m)

·      Like for like revenue growth1 on a constant currency basis of 11% (FY18: 8%)

·      Reported positive adjusted EPS4 for the first time of 8.2p (FY18: loss 0.2p) and EPS improved to a loss of 13.9p (FY18: 25.8p)

·      Pre adjustment for IFRS 16

·      Adjusted EBITDA2 increased 50% to £10.2m (FY18: £6.8m)

·     Adjusted PAT3 improved to a profit of £4.7m (FY18: loss £0.1m) with PAT improving by 40% to a loss of £8.0m (FY18: loss £13.3m)

·      Free cash outflow of £3.9m, following CAPEX investment of £8.9m and items separately identified as exceptional in nature of £4.9m

·      Net debt5 increased to £14.2m (FY18: £11.9m), with net debt to adjusted EBITDA reducing to 1.4x (FY18: 1.75x)

·      As a result of the early adoption of IFRS 16 the impact on the financial statements is as follows:

·      Statement of Comprehensive Income – increase in adjusted EBITDA from £10.2m to £11.7m

§ EBITDA increased by £1.5m representing the removal of operating lease costs, which were reclassified as depreciation

§ Depreciation increased by £1.2m, representing the annual charge for all operating leases

§ Non cash interest charge increased by £0.3m

·      Statement of Financial Position

·      Fixed assets increased by net book value of £5.1m

·    A corresponding £5.1m increase in finance leases, with £0.7m being less than 12 months and £4.4m representing the period greater than 12 months for all lease commitments

 

Operational Highlights

 

·      Total customers at period end was c.110k

·      Net customer growth (excluding impact of rationalised customers) was c10k (FY18: growth 3k)

·     Selected as a preferred partner (“PPP”) by Eurobroadband Infrastructure (“EBI”), a joint venture between Eutelsat and Viasat, Inc. to offer super-fast satellite broadband services across our European territories. Consequently, the Company and customers benefited from an improved product suite with increased download speeds and extended data allowances

·      Following transition to the PPP program, in the last quarter of the financial year we rationalised c.13k customers who were utilising non-competitive network offers during the period. These customers have either been disconnected or migrated to other providers

·      Accelerated product roll-out via government funded schemes with subsidised hardware and installation programmes

·      Leading position in Australia maintained – SkyMesh named best NBN Co satellite provider – NBN Co was established in 2009 to design, build and operate Australia’s wholesale broadband access network

·      Average annualised customer churn, excluding the rationalised customers, reduced to 20.5% (FY18: 21.9%)

·      £12m funding package secured for QCL Holdings Limited (“Quickline”) to accelerate growth and support the build-out of new infrastructure, targeting a significant increase in customer base and profitability

·     Transferring from the Hybrid Retail Agreement (“HRA”) to PPP Agreement during the year resulted in additional costs and disruption to the business, including full re-branding, new IT development and increased staffing, to manage the migration

 

Post Period End Highlights

 

·    Agreed £30m revolving credit facility with Santander Bank UK plc to replace loan notes totalling £12m issued in 2016 by Business Growth Fund (“BGF”) and the Group’s £10m revolving credit facility with HSBC plc and to provide additional working capital to support the Group. HSBC continues to provide a £4m revolving credit facility and operational banking support to QCL

·     Quickline selected to lead a £6m Government-backed project to boost rural connectivity in North Yorkshire, England’s largest rural county

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