26th Mar 2020 13:45
(Alliance News) - Bigblu Broadband PLC on Thursday branded 2019 a "pivotal year" as it reported improved earnings underpinned by minimal acquisition activity and a focus on integrating already acquired businesses.
The stock was trading 8.8% higher at 68.00 pence each on Thursday afternoon in London.
The broadband services provider saw revenue rise 12% in 2019 to GBP62.1 million from GBP55.4 million recorded for 2018. Pretax loss narrowed significantly to GBP8.3 million from GBP15.2 million.
No dividend was declared.
Bigblu launched its 50 megabytes-per-second satellite products throughout its European Hubs during the period. Its Australian business Skymesh saw overall customer growth of around 10%. The company said its UK fixed wireless operator Quickline performed well, adding that it secured a GBP12 million new equity and debt funding package for Quickline in August to support the build-out of its fibre-backed fixed wireless infrastructure across the UK in 2020.
Looking ahead, the company said it remains confident it can take advantage of long-term global growth opportunities. It noted that although the Covid-19 outbreak may present short-term challenges, it has seen an increase in customer demand for fast broadband in the home amid the increase of remote working.
"The board has conducted stress tests against our covenants and business valuation metrics to ensure that we can manage the risks that Covid-19 presents. We recognise that a number of our business activities could be impacted. By modelling sensitivities in specific key performance indicators such as volume of activations, margin, overhead and forex, management is satisfied that it can manage these risks over the going concern period," said Chief Executive Andrew Walwyn.
The company said it has plans in place to protect its cash and earnings before interest, taxes, depreciation, and amortization during the period of disruption and uncertainty
"Under this plan, identified items include reducing discretionary spend, postponing discretionary capital expenditure, reducing marketing, freezing all headcount increases, working with suppliers on terms particularly our network partners and ultimately seeking relief, as appropriate, from the various forms of government support being put into place," Walwyn added.
By Ife Taiwo; [email protected]
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