Manx Telecom Plc (AIM: MANX), the leading communication solutions provider on the Isle of Man, is pleased to announce its pre-close trading update for the full year to 31 December 2018.
The Board confirms that trading during 2018 was in line with management expectations. The Group delivered good revenue growth during the year, driven by Global Solutions and an improved performance in mobile. Underlying EBITDA was in line with management expectations and was underpinned by another year of consistent performance in the core domestic business.
Free cash flow in the period was strong and, as forecast, net debt decreased from the first half of the year following the completion of the Transformation Programme. During the second half of the year, the Company renegotiated its existing debt facilities, extending the term to 2023 and securing improved terms, including to the covenant structure and interest rate margin.
The Group’s rollout of FTTP (‘Fibre to the Premise’) has continued to gain momentum. FTTP now covers all key business districts, industrial estates and selected residential areas, with over 10% of all the Island’s premises passed by year end, in line with previously stated targets. Take up of our new fibre packages is encouraging.
Vannin Ventures, our international growth business, has had a very positive year which included the successful launch on the Isle of Man of Goshawk’s proposition for those with hearing loss. We look forward to launching the proposition in the UK this summer along with our partners BT, which is expected to generate meaningful revenues for the Group in the medium term.
We were pleased to announce the appointment of Iarla Hughes as Chief Financial Officer and Director of the Board in November 2018. Iarla has a strong track record of leading finance teams in large scale international businesses, including Telecoms, and will assist the Board in executing its strategy of maintaining a leading market position, whilst investing for future growth.
Preliminary results for the 12 months to 31 December 2018 will be announced on Wednesday 13 March 2019.
Gary Lamb, Chief Executive Officer, said: “Our solid core performance continued through the second half, maintaining the platform which allows us to develop our growth businesses. The contribution of Global Solutions to our revenue growth and the development of our ground-breaking Goshawk proposition, as set out in detail at our Capital Markets Day late last year, demonstrates the exciting growth potential of Vannin Ventures.”