TIDMBBB
RNS Number : 8035T
Bigblu Broadband PLC
25 March 2019
Bigblu Broadband plc
('BBB' or the 'Company')
Final Results
Audited final results for the year ended 30 November 2018
Bigblu Broadband plc (AIM: BBB.L), a leading provider of
alternative super-fast broadband services, announces its audited
results for the year ended 30 November 2018.
The period under review represented one of continued investment
in the product portfolio and consolidation of the Company's leading
position within the alternative super-fast broadband industry,
whilst expanding routes to market to position the Company for
strong organic growth in the current financial year and beyond.
The current trading period has started positively, with the
Company adding more than 3,000 net new customers organically during
the first three months of the current financial year, which is
already ahead of the organic growth achieved for the 12 months
ended 30 November 2018.
Financial Highlights
-- Total revenue increased 26.1% to GBP55.4m (FY 2017: GBP43.9m)
-- Like for like revenue growth(1) of 8.2%
-- Adjusted EBITDA(2) increased 45.7% to GBP6.8m (FY 2017: GBP4.7m)
-- Net debt decreased to GBP11.9m as at 30 November 2018 (FY 2017: GBP13.2m)
Operational Highlights
-- Total customers increased by 13% to c.113k at the end of the period
-- Completed the stated European expansion program following the
acquisitions of Open Sky s.r.l ("Open Sky") and Sat Internet
Services GmbH ("Sat Internet")
-- Significantly expanding BBB's operational footprint across Italy, Germany and Portugal
-- Demonstrated technology leadership with Broadband Delivery UK ("BDUK")
-- Awarded GBP2.1m grant to develop and conduct field trials for
next generation 5G fixed wireless broadband services
-- Connected the first BDUK 'gigafast' customers utilising new
mmWave technology and newly released 60 GHz spectrum
-- Signed a Commercial Agreement with the Viasat and Eutelsat
European Broadband partnership ("EBB")
-- Expanded our 50 Mbps services from five countries to complete
European coverage during the period
-- Strengthened the senior management team to support future
growth with the appointment of Mark Anderson, previously a director
of Sky and Fox Networks, as Chief Operating Officer
Post Period End Highlights
-- Selected in December 2018 as a preferred partner ("PPP") by
Eurobroadband Infrastructure ("EBI"), a subsidiary of Eutelsat
(NYSE / Euronext: ETL)
-- First phase of the coordinated marketing plan offering
superfast satellite broadband services at download speeds of up to
50 Mbps has commenced
-- Systems now deployed and live across an additional six European countries
-- Quickline, a subsidiary of BBB, acquired 100% of JHCS, for a
consideration of GBP0.3m in January 2019
(1) Like-for-like organic revenue growth compares current and
prior period revenue treating acquired or disposed businesses as if
they had been owned for all of both periods on a constant currency
basis.
(2) Adjusted EBITDA represents earnings before interest,
taxation, depreciation, amortisation, share based payments and
other exceptional costs
Andrew Walwyn, CEO of BBB, commented:
"The Company has positioned itself at the forefront of the
alternative super-fast broadband industry. Our technology agnostic
approach, growing product base and expanded routes to market mean
we are now one of the largest and most recognised companies in the
industry. Importantly for our shareholders, we have now established
a compelling value proposition for end users, whilst also
commanding a strong position within the industry to attract new and
exciting commercial partnerships.
"Looking forward to 2019 and beyond, we see plenty of scope to
take advantage of global growth opportunities including, but not
limited to, launching new super-fast satellite broadband services
within the European arena, rolling-out next-generation fixed
wireless networks and further growth across Australia. Importantly,
sales through our industry leading partnership agreement with EBB
is now gaining significant traction despite the operational issues
encountered during the first half of 2018, which were outside of
our control.
"The current trading period has started positively, with the
Company adding more than 3,000 net new customers organically during
the first three months of the current year, which is ahead of the
organic growth achieved for the 12 months ended 30 November
2018.
"Given the above, the Company remains confident of growing its
customer base to 150,000 by 2020, which given the largely fixed
operating cost structure of the business, is expected to deliver
significant earnings growth and shareholder value over the
remainder of the current financial year and beyond."
For further information:
Bigblu Broadband Group PLC www.bbb-plc.com
Andrew Walwyn, Chief Executive Officer Via Walbrook PR
Frank Walters, Chief Financial Officer
Dom Del Mar, Corporate Development
Numis Securities (Nomad and Joint Tel: +44 (0)20 7260 1000
Broker)
Oliver Hardy (Corporate Advisory)
James Black/Jonathan Abbott (Corporate
Broking)
Dowgate (Joint Broker) Tel: +44 (0)20 3903 7715
David Poutney
James Sergeant
Walbrook PR (PR / IR advisers) Tel: +44 (0)20 7933 8780
or
Paul Cornelius / Nick Rome /Sam BigbluBroadband@walbrookpr.com
Allen
About Bigblu Broadband plc
Bigblu Broadband plc (AIM: BBB), is a leading provider of
alternative super-fast satellite and fixed wireless broadband
solutions for consumers and businesses unserved or underserved by
fibre broadband throughout Europe and Australia.
The Company has a significant target market with 27m customers
in Europe with speeds of under 4 Mbps, and a further 1m in
Australia who have been identified as only suitable for either
satellite or fixed wireless broadband. Acquisitive and organic
growth have enabled BBB to grow rapidly since inception in 2008
during which time the Company has completed 20 acquisitions across
nine different countries. It is well positioned to continue growing
as it targets customers that are trapped in the 'digital divide'
with limited or no fibre broadband options.
BBB's range of solutions includes satellite, next generation
fixed wireless and 4G/5G, delivering between 30 Mbps and 300 Mbps
for consumers, and up to 1 Gbps for businesses. It provides
customers with ongoing services from hardware installation and
billing to post-sale customer support, whilst offering various
tariffs depending on end user requirements.
Importantly, as core technologies evolve and cheaper capacity is
made available, BBB will continue to offer ever increasing speeds
and higher data throughputs to satisfy market demands including
'video-on-demand'. BBB's alternative broadband offerings present a
customer experience that is similar to that offered by wired
broadband and the connection can be shared in the normal way with
PCs, tablets and smart-phones via a normal wired or wireless
router. High levels of recurring revenue, increasing economies of
scale and Government support for the alternative broadband market
in many countries provides a solid foundation for the Company as it
targets further growth to 150,000 customers by 2020, as demand for
alternative super-fast broadband services increases around the
world.
CHIEF EXECUTIVE'S REPORT
Overview
2018 was a pivotal year for the Company, completing the European
footprint expansion with two significant acquisitions, establishing
new consumer models in five territories and integrating acquired
businesses onto the Company's operational platforms to underpin
further organic growth.
The acquisitions of Open Sky and Sat Internet completed during
the period further strengthened the Company's operating
capabilities, adding new territories whilst completing the
footprint expansion across Europe. Our geographic expansion was
especially pleasing given the significant set-up costs and delays
experienced in the first half of the year due to operational
difficulties within the EBB partnership between Viasat and
Eutelsat, which were completely out of our control.
However, BBB has ultimately benefited from being involved in the
strategic ambitions of two of the World's largest satellite
operators and the Company expects to benefit significantly going
forward as its partners launch new services across Europe.
During the period the Company completed a GBP12m equity
fundraise with new and existing investors to fund the acquisitions
of Open Sky and Sat Internet and extended its revolving credit
facility with HSBC to ensure the Company is well funded with a
stronger balance sheet going into another period of growth.
Total Revenue Growth and Improved Underlying Margins
Total revenue increased by 26.1% to GBP55.4m (FY 2017: GBP43.9m)
with recurring revenue, defined as revenue generated from the
Company's broadband airtime, which is typically linked to
contracts, up 19% to GBP49.5m representing 89.5% of total revenue.
Adjusted EBITDA for the period was GBP6.8m representing an EBITDA
margin of 12.3% compared to GBP4.7m in FY 2017 and an EBITDA margin
of 10.6% demonstrating the good progress made, the benefits of
recent acquisitions and the Company's ambitious growth strategy.
Customer numbers increased year on year by 13% to c.113k compared
to FY 2017.
Importantly, the Company met its total revenue targets despite
the challenges faced during the period.
Continued Organic Growth
The Company continued to grow with an 8.2% increase in
like-for-like revenue when compared to the prior period. This
increase was primarily driven by continued customer additions and
increased data demands from existing customers as well as further
Government support.
Acquisitive Growth
Following a successful GBP12m (net GBP11.5m) equity fundraise,
the Company acquired Open Sky and Sat Internet in May 2018 for an
aggregate initial consideration of cGBP10m. These earnings
enhancing acquisitions contributed approximately 21,000 new
customers and are performing in-line with expectations.
Both companies formed new hubs for the business from which they
will develop operations in Italy, Germany, Austria and Portugal,
which the Company views as attractive growth markets.
These businesses also bring excellent leadership and team
members with significant 'in market' experience including product
knowledge, marketing strategies and reseller programmes that will
ultimately help improve the Company's operational and financial
performance.
The Company is therefore now well positioned to deliver total
last-mile broadband solutions across all the major markets in
Europe, using either satellite or fixed wireless technology.
Accelerating Technology Evolution
New satellites from our partners, which are fully funded and
already in build, will likely usher in a completely different
satellite broadband proposition. From the middle of 2020, the
Company expects to be able to offer a fibre like service from the
sky, with 100 Mbps download speeds and unlimited data allowances
across key European markets. Furthermore, from 2021, we expect to
be offering our customers between 200 Mbps and 300 Mbps download
speeds.
Our fixed wireless businesses are also benefiting from
significant advances in technology improving speeds and throughput.
BBB has now demonstrated the first 1 Gbps capable network with a
pioneering mmWave technology, utilising the newly released 60 GHz
spectrum. Importantly, all customers who have been connected to the
Company's networks in Norway and the UK within the last year are
now able to be connected at up to 100 Mbps if desired.
Continued Government Support
We remain focussed on helping Governments across Europe achieve
their stated targets to deliver 'universal broadband coverage' with
download speeds of at least 30 Mbps by 2020 and coverage to more
than 50% of households with speeds of at least 100 Mbps by
2025.
We remain convinced it will be difficult for Governments to meet
these challenging targets without the use of super-fast alternative
technologies such as satellite and fixed wireless broadband.
Indeed, many Governments have already launched 'intervention
schemes' to artificially stimulate the market and educate consumers
about the options available to them given that fixed fibre
broadband is unlikely to become a reality for many in the
foreseeable future.
During March 2018, the Company received a GBP2.1m BDUK grant to
carry out field trials to develop and establish the operating
standards of the next generation of 5G fixed wireless broadband
services utilising unused TV whitespace spectrum to increase
super-fast wireless broadband penetration in very rural areas.
Across Europe, there are now Government funded support schemes
in the UK, France, Germany, Spain and Hungary where the hardware
and installation costs of getting online with satellite or fixed
wireless are subsidised.
A similar scheme exists in Australia, where since entering the
Australian Satellite Broadband market in March 2017 following the
acquisition of BorderNET, BBB commanded 50% market share of net new
adds under the Government funded NBNCo scheme during the last six
months of the financial period.
Looking forward, other countries and Governments are expected to
launch similar schemes in the near future.
Board and Senior Management Team Appointments
Christopher Mills - Non-Executive Director
Our largest shareholder, Christopher Mills, joined the Company
as a Non-Executive Director on 23 May 2018. Mr Mills founded
Harwood Capital Management in 2011, a successor from its former
parent company JO Hambro Capital Management, which he co-founded in
1993. He is the investment manager of North Atlantic Smaller
Companies Investment Trust plc, and is non-executive director of
several companies. Total holdings in BBB, at the date of the
announcement, are 22.9%.
Mark Anderson - Chief Operating Officer
In order to effectively manage the significant International
growth opportunity, the Company appointed Mark Anderson as Chief
Operating Officer ("COO") during the period, who has already made a
positive impact across the Company.
Post Balance Sheet Events
Eurobroadband Infrastructure
In December 2018, BBB announced Eurobroadband Infrastructure
("EBI"), a subsidiary of Eutelsat (NYSE/Euronext: ETL), had
selected BBB as its preferred partner in its program to launch a
market leading superfast satellite broadband service to consumers
and businesses across Europe at download speeds of up to 50
Mbps.
Under this commercial arrangement, EBI will provide satellite
network capacity, as well as assist with subscriber premises
equipment, installation and marketing to support the 'Konnect'
brand. BBB will promote and sell satellite broadband services while
managing all activities related to subscriber management including
installation, billing and support.
Based on a shared growth model, BBB will be an integral part of
EBI's strategy of revitalising the distribution network over its
KA-SAT satellite to boost the deployment of internet access via
satellite across Europe in line with EU 2020 targets.
Whilst the PPP agreement was only signed in December 2018,
tangible progress has already been made and the Board expects EBI
to contribute significantly to its accelerated organic revenue
growth in 2019 and beyond.
Quickline Acquisition
In January 2019, Quickline, a subsidiary of BBB, acquired 100%
of JHCS, for a consideration of GBP0.3m. JHCS is a wireless network
provider that supplies fast broadband to homes and businesses in
rural Nottinghamshire and Lincolnshire. The network will be managed
by Quickline without any disruption to the service.
Over the years, Quickline has been working hard to bring
superfast internet to rural and remote areas, which includes its
key role in the development of 5GRIT - the 5G Rural Integrated
Testbed. The acquisition of JHCS was an important step in this
ongoing mission to deliver fast, reliable and secure broadband to
small villages, farms, holiday parks and other sites that are often
ignored by larger service providers. By offering speeds of up to
100 Mbps, the company is helping rural businesses enhance the way
they operate on a daily basis.
Outlook
The Company has now successfully positioned itself at the
forefront of the alternative super-fast broadband industry. Our
exciting product portfolio and expanding routes to market mean BBB
is now one of the largest and most recognised companies in the
industry.
Looking forward to the current year, there remains plenty of
scope to take advantage of global growth opportunities including,
but not limited to, launching new super-fast satellite broadband
services within the European arena, rolling-out next-generation
fixed wireless networks and further growth across Australia.
Importantly, sales through partnership agreements are gaining
strong traction through compelling consumer product offerings and
increased marketing spend, which underpins our rapid organic
customer growth expectations in the current year.
Given the above, the Company looks forward to the remainder of
the current financial year with a clear focus on accelerating
organic revenue growth and continuing to leverage its increased
scale from the recent acquisitions while also benefiting from
improved management systems to ensure the Company can continue to
deliver shareholder value.
Andrew Walwyn
CEO
25 March 2019
FINANCIAL REVIEW
In the year, total customers increased from c100k at the start
of the year to c113k as at 30 November 2018. The sales mix across
the Company, following the disposal of fibre customers in
Australia, was c.78% Satellite and c.22% Fixed Wireless during the
period.
Total revenue increased by GBP11.5m or 26.1% to GBP55.4m (FY
2017: GBP43.9m), driven by organic growth as well as the net impact
of acquisitions and disposals during the period. Like for like
revenue growth was 8.2% (FY 2017: 12.7%) as the Company continued
to add net new customers during the year, albeit at a reasonably
modest rate, and a slightly increased average revenue per user
("ARPU") with other income including installations, services,
network support and grants increasing during the period.
ARPU, calculated by dividing total revenues from all sources by
the average customer base, increased in 2018 to approximately GBP42
per month (FY 2017: GBP41) as we began to offer better packages
with increased revenue from services, installations and grant
income.
Churn rates (defined as the number of subscribers who
discontinue their service as a percentage of the total number of
subscribers within the period), excluding disposed fibre customers,
increased to an average of 21.6% per annum (FY 2017: 16.8%) during
the period. This was due to in part to customer service issues as
we migrated customer bases over to new systems and the slower
network launch of new products and support. The Company recruited a
call centre Director and expanded the customer experience team
during the period to reduce the risks of these issues
reoccurring.
Gross profit margins improved from 35.5% (FY 2017) to 40.6% (FY
2018) as a result of improved product sales mix and additional high
margin other income, including grant income and support.
Distribution and administrative expenses, pre items identified
as exceptional in nature, increased by 43.9% to GBP15.7m (FY 2017:
GBP10.9m) representing 28.3% of revenue (FY 2017: 24.8%) due to a
combination of the increased overheads relating to the completed
acquisitions, and specific investments in central overheads across
Senior Management, customer services, IT, HR and finance.
Underlying depreciation increased to GBP3.5m in FY 2018, from
GBP2.7m in FY 2017 as a result of capital investment made during
the period and a full depreciation charge for Quickline as it was
acquired in August 2017. In addition, a further GBP3.1m
depreciation charge was also provided following a full review of
the useful economic life of fixed wireless assets in the UK and
Norway.
Amortisation decreased to GBP7.5m in FY 2018, from GBP8.0m in FY
2017, mainly due to the completed amortisation of acquisitions made
in FY 2016, which are written off over 24-month period, offset
against increased amortisation for acquisitions completed in FY
2017 and FY 2018.
The Company incurred significant charges during the period,
including costs related to fundraising, acquisitions, business
consolidations and the initial start-up costs associated with
Partnership agreements, are described in more detail in the
following section.
Interest costs increased slightly during the year to GBP2.2m (FY
2017: GBP2.1m) as a result of increased interest charges for the
draw down on the Revolving Credit Facility with HSBC during the
period, which increased by GBP0.4m to GBP4.9m. The difference
between the charge and the interest paid in the cash flow statement
relates to the accrued redemption premium on the BGF debt.
The tax credit arises from the release of deferred tax on fully
and partly amortised customer base intangible assets.
Company Statutory Results and EBITDA Reconciliation
A reconciliation of the statutory operating loss before taxation
for FY 2018 of GBP13m (FY 2017: GBP8.0m loss) to Adjusted EBITDA is
shown below:
Audited Audited
12 months to 12 months
to
30 November 30 November
2018 2017
GBP000 GBP000
Statutory operating (loss) (12,999) (8,023)
Depreciation 6,629 2,716
Amortisation 7,491 8,049
Share based payments 395 353
Fundraise, legal and related
costs associated with acquisition
and disposal activity 1,617 975
Employee related costs associated
with consolidations in the regions 980 601
Partnership investment start-up 1,893 -
costs
Deferred Consideration Provision 800 -
Adjusted EBITDA 6,806 4,671
-------------------------------------- ------------- ------------
The Company incurred significant expenses in the period, that
are considered exceptional in nature, are highlighted below:
-- GBP1.6m of fees relating to the fundraising and M&A activity completed during the period
-- GBP1.0m employee termination and redundancy costs where
divisions or hubs have been consolidated including provisions made
for the disposal of the Australian Fibre business
-- GBP1.9m of specific set up costs incurred in relation to the
HRA agreement with Viasat and the PPP agreement with Eutelsat.
These were costs incurred in setting up business operations in
Spain, Poland, Norway Finland, Sweden, Italy, Germany and Portugal
including statutory entities, legal, telco licenses, websites,
rebranding, finance, IT and internal headcount cost incurred in
going live in all these territories.
-- GBP0.8m provision as part of an 'earn-out' consideration for
the acquisition of Quickline completed in 2017. As part of the
total consideration, an additional earn-out payment is due to the
vendors should certain performance targets be met over a three-year
period. A provision of GBP2.7m was made in last year's accounts and
further positive performance through 2018 has resulted in a further
deferred consideration of GBP0.8m, which has now been provided for.
Post period end GBP2m has been paid to the vendors.
Included within these identified costs are cGBP1.3m, which were
not paid in the period but are anticipated to be paid in the
current financial year.
Reported loss per share (basic and diluted) reduced from 19.7p
to 25.8p as a result of increased depreciation and non-recurring
items.
Revenue and Adjusted EBITDA in FY 2018 and the comparative
period is segmented by geography as follows:
Revenue Adjusted EBITDA
Audited Audited Audited Audited
12 months 12 months 12 months 12months
to to to to
30 November 30 November 30 November 30 November
2018 2017 2018 2017
GBP000 GBP000 GBP000 GBP000
Segment
UK 16,405 14,083 2,462 3,217
Europe 23,779 14,450 6,524 2,901
Australia 15,166 15,359 1,505 606
Plc and Central
Costs - - (3,685) (2,053)
Total 55,351 43,892 6,806 4,671
------------ ------------ ------------ ------------
Balance Sheet
Net assets on the balance sheet are GBP10.1m (FY 2017:
GBP9.3m).
Goodwill increased mainly due to the FY 2018 acquisitions
(GBP11.6m), offset against amortisation of GBP7.5m.
Inventory days increased to 22 days (FY 2017: 18 days) and
debtor days increased to 32 days (FY 2018) from 25 days (FY 2017).
Creditor days increased to 107 days (FY 2018) from 95 days (FY
2017) due to extended terms from our airtime providers and delayed
payments to a key supplier in Australia in respect of the disposal
of the fibre business. Within other creditors of GBP9.2m, GBP6.4m
relates to total deferred consideration provisions.
Total debt increased in the year by GBP0.8m to GBP17.0m, due to
a GBP0.4m increase in the RCF with HSBC and a loan of GBP0.4m
acquired on the acquisition of Open Sky.
Net debt decreased year on year from GBP13.2m as at 30 November
2017 to GBP11.9m as at 30 November 2018. This was primarily a
result of the improved operating cash flow after movements in
working capital of GBP4.9m in FY 2018 compared to an inflow of
GBP2.3m in FY 2017. Acquisition activity continued to be funded
through our financing activities. The receipt of equity proceeds of
cGBP11.5m, was used to fund the acquisitions of Sat Internet
Services and Open Sky, as well as additional funding for working
capital.
As at 30 November 2018, the Group had a cash balance of GBP5.1m
and GBP3.2m of headroom under the HSBC facility. The increase in
cash is largely due to the continued support of our Network
Partners. However, we recognise as we work closer with our network
partners across existing and new territories, there will be a
desire to reduce creditor days. We will continue to work with them
to ensure payment terms are appropriate for our size of business
alongside the ongoing marketing and product support obligations to
ensure the Company can deliver consistently improving products and
services to its customers.
Cashflow
Below is a summary of the Cash flow movements during the period
compared with FY 2017.
Audited Audited
12 months to 30 12 months to 30 November
November 2017
2018
GBP000 GBP000
----------------- --------------------------
Operating cash flows
after movements in
working capital 4,870 2,265
----------------- --------------------------
Interest and tax paid (1,496) (1,406)
----------------- --------------------------
Capital Expenditure (2,282) (2,826)
----------------- --------------------------
Acquisition Expenditure (13,667) (8,428)
----------------- --------------------------
Cash generated from
financing activities 14,190 10,529
----------------- --------------------------
Change in cash 1,615 134
----------------- --------------------------
Operating cash flow, including exceptional costs and after
movements in working capital, increased from GBP2.3m in FY 2017 to
GBP4.9m in FY 2018. This represents a conversion of 72% (FY 2017
48%) of Adjusted EBITDA. This improvement largely reflects working
capital improvements of GBP6.1m, some of which will reverse in the
current year and which have more than offset cash exceptional
costs.
Interest paid in the period amounted to GBP1.5m (FY 2017
GBP1.4m).
Capital expenditure of GBP2.3m in the current year compares to
GBP2.8m in 2017 as the Company continues to invest in tower and
mast infrastructure following the acquisition of Breiband in 2016
and Quickline in 2017, in addition to providing customers with
equipment for the services provided.
Acquisition expenditure included GBP11.6m related to the
acquisitions made in Germany and Italy together with deferred
consideration and earn out payments. In addition, we incurred
GBP1.8m of intangibles expenditure for software and network
development.
Financing cash flow includes GBP11.5m proceeds from equity
issuance, GBP1.5m cash and GBP0.4m loans within subsidiaries
acquired and GBP0.4m proceeds from loan drawn down.
Bigblu Broadband plc
Condensed consolidated statement of comprehensive income
12 months ended 30 November 2018
Note Audited Audited
12 months to 30 12 months to 30 November
November 2017
2018
GBP000 GBP000
Revenue 55,351 43,892
Cost of goods sold (32,859) (28,315)
Gross Profit 22,492 15,577
Distribution and administration expenses 2 (21,370) (12,835)
Depreciation and amortisation (14,121) (10,765)
Operating Loss (12,999) (8,023)
Interest Payable (2,167) (2,057)
------------------------------------------ ----- ----------------- --------------------------
Loss before Tax (15,166) (10,080)
Tax on continuing Operations 1,870 2,451
------------------------------------------ ----- ----------------- --------------------------
Loss for the period (13,296) (7,629)
------------------------------------------ ----- ----------------- --------------------------
Other comprehensive income
Foreign currency translation difference (394) (67)
Total comprehensive Income (13,690) (7,696)
Loss per share
Basic and diluted 3 (25.8) (19.7)
Bigblu Broadband plc
Condensed consolidated statement of financial position
As at 30 November 2018
Restated
Audited Audited
As at As at
30 Nov 2018 30 Nov 2017
GBP000 GBP000
Non-Current Assets
Property Plant and Equipment 5,517 9,347
Intangible assets 36,087 30,194
Investments 53 345
Total Fixed Assets 41,657 39,886
Current Assets
Inventory 1,950 1,476
Trade Debtors 4,811 3,018
Other Debtors 5,082 2,689
Deferred Tax asset 882 648
Cash and Cash Equivalents 5,067 3,452
Total Current Assets 17,792 11,283
Current Liabilities
Trade Payables (9,677) (7,176)
Recurring Creditors and
Accruals (9,226) (6,823)
Other Creditors (9,456) (4,720)
Payroll taxes (936) (353)
VAT (2,018) (1,659)
Total Current Liabilities (31,313) (20,731)
Non-Current Liabilities
Loans and debt facilities (16,979) (16,228)
Other payables (409) (3,586)
Deferred taxation (657) (1,292)
Total Non-Current Liabilities (18,045) (21,106)
Total Liabilities (49,358) (41,837)
Net Assets 10,091 9,332
------------------------------- ------------ ------------
Equity
Share Capital 8,506 6,826
Share Premium 23,900 23,900
Other Reserves 4 12,272 (497)
Revenue Reserves (34,587) (20,897)
------------------------------- ------------ ------------
Total Equity 10,091 9,332
------------------------------- ------------ ------------
Bigblu Broadband plc
Condensed consolidated Cash Flow Statement
12 Months Ended 30 November 2018
Restated
Audited Audited
12 months 12 months
ended ended
30 November 30 November
2018 2017
GBP000 GBP000
Operating Loss after tax for the
year (13,296) (7,629)
Interest 2,167 2,057
Taxation (1,870) (2,451)
Release of Grant creditors (2,556) (582)
Amortisation and impairment of intangible
assets 7,491 8,049
Depreciation charge 6,629 3,287
Share based payments 395 353
Foreign exchange variance and other
non-cash items (130) (1,285)
Movement in working capital 6,040 466
------------------------------------------- ------------ --------------------
Operating cash flows after movements
in working capital 4,870 2,265
Interest paid (1,478) (1,406)
Tax paid (18) -
------------------------------------------- ------------ --------------------
Net cash generated / (used) in operating
activities 3,374 859
Investing activities
Purchase of assets (2,282) (2,826)
Purchase of intangibles (5,498) (4,362)
Purchase of investments (8,169) (4,066)
Net cash used in investing activities (15,949) (11,254)
Financing activities
Proceeds from issue of ordinary
share capital 11,948 7,518
Proceeds from Loans 400 4,500
Cash within subsidiaries acquired 1,491 -
Loans paid/within subsidiaries acquired 351 (1,489)
Cash generated from financing activities 14,190 10,529
Net (decrease) / increase in cash
and cash equivalents 1,615 134
Cash and cash equivalents at beginning
of period 3,452 3,318
------------------------------------------- ------------ --------------------
Cash and cash equivalents at end
of period 5,067 3,452
------------------------------------------- ------------ --------------------
Bigblu Broadband plc
Condensed consolidated Reserves Movement
12 Months Ended 30 November 2018
Share Share Other Revenue Total
Capital Premium Reserves Reserve
GBP000 GBP000 GBP000 GBP000 GBP000
Note
4
At 1(st) December
2017 5,362 15,589 2,396 (13,201) 10,146
Profit / (Loss) for
the period - - - (7,629) (7,629)
Issue of shares 1,464 8,311 - - 9,775
Share option reserve - - 353 - 353
Foreign Exchange Translation - - (3,246) - (3,246)
Other Movements - - - (67) (67)
--------------------------------- ---------------------- --------- ---------- ----------- ---------
At 30th November 2017 6,826 23,900 (497) (20,897) 9,332
Profit / (Loss) for
the period - - (13,296) (13,296)
Issue of shares 1,680 - 12,010 - 13,690
Share option reserve - - 395 - 395
Foreign Exchange Translation - - 364 (394) (30)
At 30th November 2018 8,506 23,900 12,272 (34,587) 10,091
--------------------------------- ---------------------- --------- ---------- ----------- ---------
Bigblu Broadband plc
Notes to the financial statements
For the period ended 30 November 2018
1. Presentation of financial information and accounting
policies
Basis of preparation
The condensed consolidated financial statements are for the full
year to 30 November 2018.
The nature of the Company's operations and its principal
activities is the provision of last mile (incorporating Satellite
and Wireless) broadband telecommunications and associated / related
services and products.
The company prepares its consolidated financial statements in
accordance with International Accounting Standards ("IAS") and
International Financial Reporting Standards ("IFRS") as adopted by
the EU. The financial statements have been prepared on the
historical cost basis, except for the revaluation of financial
instruments.
The preparation of financial statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts in the
financial statements. The areas involving a higher degree of
judgement or complexity, or areas where assumptions or estimates
are significant to the financial statements are disclosed further.
The principal accounting policies set out below have been
consistently applied to all the periods presented in these
financial statements, except as stated below.
Going concern
The Directors have prepared and reviewed projected cash flows
for the Company reflecting its current level of activity and
anticipated future plan for the next 12 months. The Company is
currently loss-making, mainly as a result of amortisation and
exceptional charges including additional depreciation. The business
continues to grow the number of users in a number of key target
markets and continues to review the short-term business model of
the company by which the company becomes profitable and delivers a
return on the investments.
The Board has concluded that no matters have come to their
attention which suggest that the Company will not be able to
maintain its current terms of trade with customers and suppliers.
The Company's forecasts for the newly combined Company, including
due consideration of the short term continued operating losses of
the Company, taking account of possible changes in trading
performance, indicate that the Company has sufficient cash
available to continue in operational existence throughout the
forecast period and beyond. As a consequence, the Board believes
that the Company is well placed to manage its business risks and
longer-term strategic objectives, successfully. Accordingly, they
continue to adopt the going concern basis in preparing these
results.
Estimates and judgments
The preparation of a condensed set of financial statements
requires management to make judgments, estimates and assumptions
about the carrying amounts of assets and liabilities at each period
end. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates. The
estimates and underlying assumptions are reviewed on an ongoing
basis.
In preparing these condensed set of consolidated financial
statements, the significant judgments made by management in
applying the Company's accounting policies and the key sources of
estimating uncertainty were principally the same as those applied
to the Company's and Individual company's financial statements for
the year ended 30 November 2018.
Basis of consolidation
The condensed consolidated financial statements comprise the
financial statements of Satellite Solutions Worldwide Group plc and
its controlled entities. The financial statements of controlled
entities are included in the consolidated financial statements from
the date control commences until the date control ceases.
The financial statements of subsidiaries are prepared for the
same reporting period as the parent company, using consistent
accounting policies. All inter-company balances and transactions
have been eliminated in full.
2. Distribution and Administration Expenditure
Distribution and administration costs are analysed as
follows:
FY 2018 FY 2017
GBP000 GBP000
Employee related costs 8,768 7,499
Marketing and communication costs 2,270 1,359
Logistics, Finance, IT, banking,
insurance AIM and Other costs 4,647 2,048
---------------------------------------- -------- --------
Underlying costs 15,685 10,906
% of Revenue 28.3% 24.8%
---------------------------------------- -------- --------
Share based payments 395 353
Fundraise, legal and related costs
associated with acquisition activity 1,617 975
Employee related costs associated
with consolidations in regions 980 601
1,893 -
Partnership investment start-up
costs
Deferred Consideration provision 800 -
Identified Exceptional Costs 5,685 1,929
% of Revenue 10.2% 4.4%
Total 21,370 12,835
% of Revenue 38.5% 29.2%
---------------------------------------- -------- --------
3. Loss per share
Basic loss per share is calculated by dividing the loss
attributable to shareholders by the weighted average number of
ordinary shares in issue during the period.
IAS 33 requires presentation of diluted EPS when a company could
be called upon to issue shares that would decrease earnings per
share or increase the loss per share. For a loss-making company
with outstanding share options, net loss per share would be
decreased by the exercise of options. Therefore, as per IAS33:36,
the antidilutive potential ordinary shares are disregarded in the
calculation of diluted EPS.
Reconciliation of the profit and weighted average number of
shares used in the calculation are set out below:
Weighted average
Loss Number of Shares Per share amount
At 30 November 2017
Basic and Diluted EPS GBP000 units Pence
Loss attributable to shareholders:
- Continuing operations (7,629) 38,637,575 (19.7)
Loss Number of Shares Per share amount
At 30 November 2018
Basic and Diluted EPS GBP000 Units Pence
Loss attributable to shareholders:
- Continuing operations (13,296) 51,551,407 (25.8)
4. Other capital reserves
Foreign
Listing Merger Reverse Other exchange Share Total
Cost Relief acquisition equity translation option capital
Reserve reserve Reserve reserve reserve reserve reserves
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 30 November
2016 (219) 4,471 (3,317) 271 726 464 2,396
Other comprehensive
income
Other equity
Foreign Exchange
Translation (3,246) (3,246)
Listing Cost
Reserve
Credit to equity
for equity settled
Share based payments 353 353
At 30 November
2017 (219) 4,471 (3,317) 271 (2,520) 817 (497)
Other comprehensive
income
Other equity 11,762 248 12,010
Foreign Exchange
Translation 364 364
Listing Cost
Reserve
Credit to equity
for equity settled
Share based payments 395 395
At 30 November
2018 (219) 16,233 (3,317) 271 (2,156) 1,460 12,272
-- Listing cost reserve
-- The listing cost reserve arose from expenses incurred on AIM listing.
-- Other equity reserve
-- Other Equity related to the element of the BGF Convertible
Loan which has been grossed up but may be shown net.
-- Reverse acquisition reserve
-- The reverse acquisition reserve relates to the reverse
acquisition of Bigblu Operations Limited (Formerly Satellite
Solutions Worldwide Limited) by Bigblu plc (Formerly Satellite
Solutions Worldwide Group plc) on 12 May 2015.
-- Foreign exchange translation reserve
-- The foreign exchange translation reserve is used to record
exchange difference arising from the translation of the financial
statements of foreign operations.
-- Share option reserve
-- The share option reserve is used for the issue of share
options during the year plus charges relating to previously issued
options.
-- Merger relief reserve
-- The merger relief reserve relates to the share premium
attributable to shares issued in relation to the acquisition of
Bigblu Operations Limited (Formerly Satellite Solutions Worldwide
Limited)
5. Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed within the financial statements or related notes.
6. Restatement of 2017
The restatement in 2017 was due to the result of the grossing up
of the deferred grant income between Property, Plant and Equipment
and Other Payables.
7. Availability of the Full Year Report
A copy of these results will be made available for inspection at
the Company's registered office during normal business hours on any
week day. The Company's registered office is at Broadband House,
108 Churchill Road, Bicester OX26 4XD. The Company is registered in
England No. 9223439.
A copy can also be downloaded from the Company's website at
https://www.bigblu.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR SEMFDLFUSEFD
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