TIDMBBB
RNS Number : 2783Y
Bigblu Broadband PLC
08 September 2020
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon the
publication of this announcement, the inside information is now
considered to be in the public domain for the purposes of MAR.
Bigblu Broadband plc
('BBB' or the 'Company' or the 'Group')
Quickline Secures GBP7.6m Broadband Grant
Award of a contract to deliver faster broadband speeds across
West Yorkshire and York within two years as part of BDUK's
Superfast Broadband Programme
Bigblu Broadband plc (AIM: BBB.L), a leading provider of
alternative broadband services, announces that its subsidiary
Quickline Communications Limited ("Quickline") has won a
competitive tender to provide fixed wireless access ("FWA") and
fibre to the premises broadband ("FTTP") to premises in West
Yorkshire and York that are unable to access fast and reliable
internet connectivity of at least 30 megabits per second.
On behalf of the West Yorkshire Combined Authority, Quickline
will enable 1,700 businesses in rural areas to connect to
super-fast* and, in most cases, ultra-fast** broadband services
whilst also passing a further 5,000 residential homes within two
years. A number of premises will also be connected to full fibre
networks providing for gigabit speeds.
The contract provides for a total investment of GBP9.11m in both
fibre and fixed wireless networks, leading to significantly faster
broadband speeds in the more isolated areas of West Yorkshire and
York. The programme will receive a subsidy of GBP7.646m, with
GBP6.898m funded from DEFRA, through the European Agricultural Fund
for Rural Development and GBP748,000 from the Combined Authority.
Quickline is also committing GBP1.464m of investment to support the
roll-out.
Quickline sees this as an exciting opportunity to provide
superfast and ultra-fast broadband services to new customers in
West Yorkshire and York and therefore expects to see strong take-up
of broadband services from these previously under-served areas,
enabling it to continue increasing its customer numbers. Quickline
also expects to deliver at least its targeted return on capital of
c.15% over the life of the contract.
Quickline's Progress
In August 2019, Quickline secured GBP12m funding which allowed
it to increase the size and scale of its operations with
significantly increased revenue, EBITDA and profitability
anticipated as new capital is deployed and the business increases
in scale. Quickline's strategic plan included the targeting of
grants issued by BDUK to support investment in rural broadband
projects alongside organic investment and the consideration of
selective acquisitions.
In February 2020, Quickline was selected to lead a GBP6m project
to boost rural connectivity in North Yorkshire. Today's award
represents the first contract win under BDUK's Superfast broadband
programme. Quickline continues to be actively involved in a number
of further local authority tenders and hopes to be able to announce
further contract wins in the future.
Quickline is also a government approved supplier under the Rural
Gigabit Connectivity Programme which allows it to secure vouchers
of up to GBP3,500 per premise to fund the cost of providing
gigabit-capable broadband in rural communities. Finally, Quickline
has been invited to participate in the design of the DPS system
that will be used by BDUK to deploy much of the committed GBP5bn
subsidy.
The Quickline Opportunity
Quickline is focussed on delivering improved broadband
connectivity in the rural areas of Northern England, where a
significant digital divide remains and hundreds of thousands of
premises are in need of increased broadband speeds. Quickline's
heritage is fixed wireless but its network includes increasing
amounts of fibre connectivity. Its aim is to be the leading UK
dedicated rural broadband infrastructure provider, delivering
innovative, flexible and hybrid solutions that can address the
millions of premises unlikely to be served commercially by full
fibre networks for many years to come.
Significant Government Support
In May 2019, the Chancellor announced a GBP5 billion commitment
to fund gigabit-capable deployment in the hardest to reach 20%
through the 'Outside-In' approach. Building Digital UK (BDUK), part
of the Department for Digital, Culture, Media & Sport (DCMS) is
responsible for the development of broadband networks across the UK
and continues to develop and operate various schemes to deploy this
GBP5bn commitment. These include Rural Gigabit Vouchers of up to
GBP3,500 per premise connected and a future Dynamic Purchasing
System (DPS) that will allow infrastructure providers to bid for
funding to roll-out gigabit-capable networks to underserved
regions. BDUK has also committed to supporting the GBP1.7bn
Superfast Broadband Programme until 2026.
*Superfast defined as broadband speeds in excess of 30Mbps
** Ultrafast defined as broadband speeds in excess of
100Mbps
Steve Jagger, CEO of Quickline commented: "We're excited to be
working with the West Yorkshire Combined Authority and City of York
to deliver high speed internet to local, hard to reach areas. We
understand the challenges of delivering rural broadband services
that is why we pride ourselves on delivering flexible, hybrid
innovative solutions."
Andrew Walwyn, Chief Executive Officer of Bigblu broadband,
commented:
"We believe that this is the first of a number of potential
contract wins for Quickline under BDUK's Superfast broadband
programme. This win emphasises the growth potential within the
Group that management highlighted when it announced the disposal of
Bigblu's UK and European Satellite Broadband Operations.
"We are delighted that Quickline has secured this contract -
with last year's GBP12m funding affording it the flexibility for it
to tender for capital intensive contracts as it targets a customer
base of approximately 30,000 subscribers over the next three
years.
"Importantly, there are a number of further opportunities and
live tenders, that had been delayed by Brexit and COVID-19, which
if converted will provide further significant scale and value to
the business. We expect that BBB will benefit from Quickline's
increased valuation, revenues and profitability as its accelerated
growth strategy is successfully implemented."
For further information:
Bigblu Broadband Group PLC www.bbb-plc.com
Andrew Walwyn, Chief Executive Officer Via Walbrook PR
Frank Waters, Chief Financial Officer
Dom Del Mar, Corporate Development
finnCap (Nomad and Broker) Tel: +44 (0)20 7220 0500
Marc Milmo / Simon Hicks / Charlie Beeson
(Corporate Finance)
Tim Redfern / Richard Chambers / Manasa
Patil
(ECM)
Walbrook PR (PR / IR advisers) Tel: +44 (0)20 7933 8780
or
Nick Rome/Tom Cooper/Nicholas Johnson BigbluBroadband@walbrookpr.com
About Bigblu Broadband plc
Bigblu Broadband plc (AIM: BBB), is a leading provider of
alternative super-fast and ultra-fast broadband solutions
throughout Europe and Australia. BBB delivers a portfolio of
super-fast wireless broadband products for consumers and businesses
unserved or underserved by fibre.
High levels of recurring revenue, increasing economies of scale
and Government stimulation of the alternative broadband market in
many countries provide a solid foundation for significant organic
growth as demand for alternative super-fast broadband services
increases around the world.
In July 2020, BBB announced the conditional sale of its European
Satellite business to Eutelsat and whilst the completion has yet to
be concluded this offers an excellent return for its shareholders
whilst providing a key asset for Eutelsat to solidify its position
in the European Satellite market. With the remaining businesses,
BBB is extremely well positioned to continue growing as it targets
customers that are trapped in the 'digital divide' with limited
fibre broadband options.
BBB provides customers ongoing services including hardware
supply, installation, pre and post-sale support billings and
collections, whilst offering appropriate tariffs depending on the
requirements of each end user.
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