Manx Telecom PLC Pre-Close Trading Update (6751B)
January 12 2018 - 2:00AM
UK Regulatory
TIDMMANX
RNS Number : 6751B
Manx Telecom PLC
12 January 2018
12 January 2018
Manx Telecom Plc
Pre-Close Trading Update
Manx Telecom Plc (AIM: MANX; the "Company" or "Group"), 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 2017.
The Board confirms that trading during 2017 was in line with
management expectations, with strong underlying cash flow
continuing to support our progressive dividend policy. Both
underlying EBITDA and underlying FCF returned to solid growth in
the second half of the financial year.
The Company's core domestic business was stable during the year.
High speed broadband services are available to 93% of customer
premises on the island and coverage is expected to grow further as
the Company continues to invest in its network. Take up of high
speed broadband continues to increase, with 52% of our broadband
customer base now on VDSL or VDSL+, up from 40% at the end of
December 2016, whilst we are encouraged by our early stage progress
with regards to our FTTP ('Fibre to the Premise') rollout. As
expected, fixed voice saw moderate decline for the 12-month period,
whilst mobile performed solidly for the year as a whole.
As previously communicated, Group revenue for the year has been
impacted by the consolidation of customers in our data centre
business, which occurred during 2016, and the rescheduling of the
directories publication. These effects have been partially offset
by continued strong growth in Global Solutions and some recovery in
data centre revenues in the second half of 2017, resulting in
broadly flat Group revenues year on year.
Cash performance was particularly strong in H2, aided by tight
control of working capital and capital expenditure, resulting in
closing net debt being lower than market expectations. This cash
performance has triggered provision for incentive payments which
will result in a moderately lower underlying EBITDA than last
year.
Progress at Vannin Ventures, our business incubator, has been
encouraging, and we remain particularly excited by the medium-term
growth opportunity represented by Goshawk Communications, in which
we took a majority stake during 2017.
The execution of the transformation programme which was launched
in October 2016, remains on track. As previously communicated, we
will continue to incur some exceptional costs in 2018, with the
associated benefits starting to accrue in 2018. A more detailed
update on the programme will be provided in the full year
results.
Preliminary results for the 12 months to 31 December 2017 will
be announced on 15 March 2018.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/ 2014.
For further enquiries, please
contact:
+44 (0)1624
Manx Telecom plc 636 400
Gary Lamb, CEO
Paul Tierney, Interim CFO
Liberum Capital (Nominated +44 (0)20 3100
Adviser and Corporate Broker) 2000
Steve Pearce
Joshua Hughes
Oakley Advisory (Financial +44 (0) 20 7766
Advisor) 6900
Christian Maher
Victoria Boxall
+44 (0) 20 7250
Powerscourt Group (Public Relations) 1446
Celine MacDougall
Andreas Grueter
About Manx Telecom
-- Manx Telecom is the leading communication solutions provider
on the Isle of Man, offering a wide range of fixed line, broadband,
mobile, and data centre services to businesses, consumers and the
public sector on the Isle of Man as well as a growing portfolio of
innovative hosting and "Smart SIM" solutions to off-Island
customers.
-- Manx Telecom has a record of innovation, being the first
European operator to launch a 3G mobile service and the first in
the world to launch a 3.5G mobile service. 4G service launched in
the summer of 2014, and it is now available to contract and pre-pay
customers with 99% population coverage. The Company's high speed
VDSL broadband service (Ultima) is available to 93 per cent of
homes on the Island. A VDSL Plus service launched in February
2015.
-- The Company has three data centres (two of which are Tier 3
designed) plus international connectivity and its operations are
business-critical to the economic strategy of the Isle of Man.
-- One of the largest employers on the Island, Manx Telecom
employs almost 300 people. The company plays a major role in the
wider community through a range of activities, including charitable
donations, sponsorships, and corporate social responsibility
initiatives.
-- The company is proud to sponsor the Manx Telecom Parish Walk,
Tough Mann Adventure Challenge, Manx Telecom End2End Mountain Bike
Challenge, Team Manx Telecom (Manx Road Club), and Royal Manx
Agricultural Show as well as other smaller events. Manx Telecom
also donates annually to local causes through the company's "It's
our Community" programme.
-- The Isle of Man has a resilient and stable economy.
Unemployment is low at 1.8 per cent, and there is a zero per cent
corporate tax rate which applies to the vast majority of Manx
Telecom's business and means that the Group currently pays no
corporation tax on its annual profits.
-- Manx Telecom is listed on the Alternative Investment Market
of the London Stock Exchange with the ticker MANX.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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