TIDMBBB
RNS Number : 4467X
Bigblu Broadband PLC
30 August 2022
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
Bigblu Broadband plc
('BBB', the 'Group' or the 'Company')
Interim Results
Continued strong growth
Bigblu Broadband plc (AIM: BBB.L), a leading provider of
alternative super-fast and ultra-fast broadband services, is
pleased to provide a trading update for the six-month Period ending
31 May 2022 (the "Period").
There was good progress across the Company's geographies and
business units in the Period with double-digit revenue growth
achieved. Growth in Australia remains strong, there has been
encouraging early progress in New Zealand, and in the Nordics the
focus was on the introduction of new products following completion
of the upgrade program in the last financial year. The Company is
therefore well positioned for the second half of the year.
Financial Highlights
-- Total revenue increased 13.8% to GBP14.9m (1H21: GBP13.1m)
with like for like revenue growth(1) on a constant currency basis
of 11.5%.
-- Adjusted EBITDA(2) in the Period was GBP2.0m (1H21: GBP2.0m).
-- Adjusted Operating cash inflow(5) of GBP1.3m (1H21: inflow GBP1.3m).
-- Adjusted Free cash inflow(5) of GBP0.4m (1H21: inflow GBP0.3m).
-- Net cash(6) at 31 May 2022 was GBP4.5m (1H21: GBP4.1m) after
repayment of debt in full and the return of capital in the last
financial year.
Operational Highlights
-- The acquisition of customers and certain business assets of
Clear Networks (Pty) Ltd ("Clear") in Australia was completed in
January 2022. Clear is an Australian ISP based in Melbourne
offering a range of broadband services to 2.2k customers with over
3k connections, using both NBNCo's network and its own fixed
wireless network serving primarily the greater Melbourne area. This
acquisition has helped the Company strengthen its presence in
Melbourne as SkyMesh looks to grow its presence across Australia
and this, combined with the launch of new products, will further
accelerate Skymesh's growth.
-- The distribution agreement Bigblu Norge (rebranded Brdy.no)
entered with Telenor provides next generation ultrafast broadband
via Fixed Wireless Access using 5G technology ("5G FWA"),
delivering speeds up to 500 Mbps with unlimited data packages.
Although running six months behind schedule due to equipment
shortages, it has now reached 0.5k customers with month-on-month
growth and significantly lower annualised churn rates, reflecting
greater customer satisfaction with the products.
-- On 21 December 2021 the Company signed a Distribution Partner
Agreement with OneWeb, to distribute low Earth orbit satellite
based broadband services .
-- Total customers at the period end were 60.4k (1H21: 58.3k).
As previously announced, one of our satellite network partners with
customers in Ukraine was targeted by a cyber-attack. This attack
impacted c.3k of the Company's Norwegian satellite customers. With
the support of our network partner, the cyber-attack is now
materially resolved, although we lost approximately 0.8k customers
as a result.
-- We are pleased with the progress made in the New Zealand (NZ)
market with our Asia Pacific broadband satellite partner, Kacific
Broadband Satellites Group, and are delighted to report that NZ has
fully opened its borders after the long pandemic closure, which
will allow us to drive activity.
Quickline deferred consideration and rolled equity update
-- In June 2021, the Company completed the disposal of its
majority holding in Quickline (acquired in 2017 for GBP7m) to
Northleaf for a total cash consideration of up to GBP41.2m of which
up to GBP10.1m was deferred contingent consideration, plus a
minority stake in the ongoing business. The deferred cash
consideration was subject to certain performance conditions
("PC's") being met by March 22, extended to May 22 under certain
circumstances, as follows; PC1, to build 100 gigabit capable 5G FWA
masts passing 60,000 homes; and PC2, to secure over GBP10m of new
subsidies.
-- As previously disclosed, Quickline faced challenges in
securing 5G FWA equipment reflecting the global supply issues
affecting microchips and associated delays in the commercial launch
of stand-alone 5G FWA services. This impacted the timing of 5G FWA
being approved by the DCMS as a gigabit capable service. The
combination of which resulted in zero deferred consideration being
receivable by the Company.
-- More positively, supply issues have started to ease and both
5G FWA and FTTP build programmes are now accelerating, supported by
a headcount of over 100. Quickline is still targeting to pass
500,000 premises as per the original business plan. Northleaf has
provided GBP40m of additional capital to support the BDUK contracts
and accelerate the deployment of hybrid 5G FWA and FTTP
infrastructure with further capital committed. The Company retains
a 5.1% stake in this rapidly growing and well-financed alternative
network operator.
1 Like for like (LFL) revenue treats acquired businesses as if
they were owned for the same period across both the current and
prior year and adjusts for constant currency and business disposed
of in the period are excluded from the calculation.
2 Adjusted EBITDA is stated before interest, taxation,
depreciation, amortization, share based payments and exceptional
items. It also excludes property lease costs which, under IFRS 16,
are replaced by depreciation and interest charges.
3 Adjusted PAT represents adjusted EBITDA less interest,
taxation, depreciation, and amortization.
4 Adjusted EPS is adjusted PAT divided by the weighted average
number of shares over the period.
5 Adjusted Operating cash flow relates to the amount of cash
generated from the Group's operating activities and is calculated
as follows: Profit/(Loss) before Tax adjusted for Depreciation,
Amortisation, Share Based Payments and adjusting for changes in
Working Capital and non-cash items. Adjusted Free cash flow being
cash (used)/generated by the Group after investment in capital
expenditure, servicing of debt and payment of taxes. Both excludes
exceptional items.
6 Cash / Net debt excludes lease-related liabilities of GBP0.9m
of under IFRS 16 (FY21 GBP4.2m).
Andrew Walwyn, Chief Executive Officer of Bigblu Broadband plc,
commented:
"We are pleased with the continued progress shown by the Group
in the Period. Extensive effort has been made across the business
units to switch customers into more attractive packages at the
expense of net adds, with c4k migrations in the period and net adds
of 3.2k, of which 2.2k were associated with Clear acquisition. The
investment we have made to improve our offering in the Nordic
region provides us with optimism that this region can return to
growth. In addition, our Australian business continues to perform
strongly. We are seeing churn levels reduce, and ARPU's improve,
resulting in strong revenue growth.
Overall, with extensive experience in the sector and a proven
track record of building attractive businesses across UK, Europe
and Australasia, we remain confident in our ability to continue to
deliver attractive returns for shareholders from our operations,
together with the remaining stake in Quickline. In the second half
of the year, we will continue supporting customers unserved and
underserved in the digital divide, whilst at the same time
improving our product range thereby reducing churn. We are already
seeing increasing gross adds and reduced churn from the start of
the second half year. We will continue to consider all options in
respect of maximising shareholder value. Following typical seasonal
trends, we expect a strong second half and are comfortable with
market expectations for the current financial year."
For further information:
Bigblu Broadband Group PLC www.bbb-plc.com
Andrew Walwyn, Chief Executive Officer Tel: +44 (0)20 7220
Frank Waters, Chief Financial Officer 0500
finnCap (Nomad and Broker) Tel: +44 (0)20 7220 0500
Marc Milmo / Simon Hicks / Charlie Beeson
(Corporate Finance)
Tim Redfern / Richard Chambers (ECM)
About Bigblu Broadband plc
Bigblu Broadband plc (AIM: BBB.L), is a leading provider of
alternative superfast and ultrafast broadband solutions throughout
Australasia and the Nordics. BBB delivers a portfolio of superfast
and ultrafast 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 ultrafast broadband services
increases around the world.
BBB's range of solutions includes satellite, next generation
fixed wireless and 4G/5G FWA delivering between 30 Mbps and 150
Mbps for consumers, and up to 1 Gbps for businesses. BBB provides
customers a full range of services including hardware supply,
installation, pre-and post-sale support, billings and collections,
whilst offering appropriate tariffs depending on each end user's
requirements.
Importantly, as its core technologies evolve, and more
affordable capacity is made available, BBB continues to offer
ever-increasing speeds and higher data throughputs to satisfy
market demands for broadband and broadband services. 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.
CHIEF EXECUTIVE'S REPORT
Overview
The first half of this financial year has been a further period
where we have had to, like all businesses, contend with the
challenges created by the events of COVID-19. In the context of the
near-term global challenges created by COVID-19, our long-term
relationships with our satellite partners were vital as we worked
together to ensure we could deliver against the growing demand for
rural and remote broadband services.
In January 2022, we completed the acquisition of customers and
certain business assets of Clear. Clear is an Australian ISP
offering a suite of NBNCo broadband products, as well as a private
fixed wireless network serving primarily the greater Melbourne
area. This acquisition added 2.2k customers (3k connections),
helped the company strengthen its presence in Melbourne and
continued SkyMesh's strategy of growing its presence across
Australia.
Key Financials for the continuing operations
Net customer growth in the first half of 2022 was 2.6% to 60.4k
(1H21: 3.9%) despite having had to contend with a Cyber-attack in
the Nordics which impacted churn during the period as well as
product shortages which delayed the 4G / 5G FWA launch. There was a
big focus on launching new products in new territories, with
Telenor 4G/5G FWA in Norway and Kacific Satellite in NZ as well as
significant marketing campaigns to migrate c 4k customers to more
suitable products which the Board believe should help to reduce
churn in the future.
Total revenue including recurring airtime, equipment,
installation sales, network support and the Clear acquisition was
GBP14.9m, up 13.8% (1H21: GBP13.1m). This increase in revenue
reflected a higher number of customers, ARPU progression and
favorable FX rates in the period. Recurring airtime revenue,
defined as revenue generated from the Company's broadband airtime,
which is typically linked to contracts, was GBP14.2m representing
95% of total revenue (1H21: 93%). Total like-for-like (LFL) revenue
for the Continuing Group in the period was GBP14.6m representing
11.5% growth.
Gross profit margins reduced to 41.8% in 1H22 (1H21: 43.8%), due
to planned product mix changes with the increase in 5G FWA
customers being at slightly lower margins than existing recurring
margins for fixed wireless.
Overheads, before items identified as exceptional in nature,
increased to GBP4.2m (1H21: GBP3.7m) representing 28.3% of revenue
(1H21: 28.6%) due in the main to increased marketing costs and
headcount costs in the period associated with new product and
market launches.
Consequently, adjusted EBITDA for the period was GBP2.0m
representing an adjusted EBITDA margin of 13.6% compared to GBP2.0m
in 1H21 and an adjusted EBITDA margin of 15.2%.
Australasia
Our Australian business SkyMesh, is the leading Australian
satellite broadband service provider having been named Best
Satellite NBN Provider for the fourth year in succession
(2019-2022). SkyMesh commanded a 50 per cent market share of net
new adds under the NBN scheme in the period to 30 June 2022.
SkyMesh performed strongly during H1, with customer numbers at
52.0k - up 6.6% on prior year (1H21: 48.7k), which includes the
customers acquired from Clear (2.2k). This resulted in increased
revenues of GBP12.6m (LFL: GBP12.1m), up 20.7% (LFL: 15.6%) on
prior year, with constant gross margins c.35%. Adjusted EBITDA was
GBP2.2m, up 20.6% on prior year (1H21: GBP1.8m), supporting both a
positive adjusted operating cash inflow of GBP2.7m and generating a
positive adjusted underlying free cash flow before group transfers
of GBP2.2m.
The acquisition of customers and certain business assets of
Clear continues SkyMesh's strategy of expanding its presence across
Australia.
The Board believes that it can continue to complement organic
growth opportunities by acquisitions and partnerships that could
accelerate the Company's presence into the wider Australasia
region.
Nordics
Our Norwegian business, BB Norge (rebranded Brdy.no), ended 1H22
with customer numbers at 8.4k down on the previous year (1H21:
9.6k). Consequently, revenues for BB Norge were GBP1.9m, down 19.9%
on prior year (1H21: GBP2.4m), reflecting the decrease in customer
numbers associated with the demounting program as well as the
impact of the cyber-attack. Following the completion of the upgrade
program, churn has substantially reduced. The 4G/5G FWA revenue
stream has gone from strength to strength in 1H22 and is now
contributing a high percentage of new customers and revenue.
Gross margin slightly increased to 62.3% (1H21: 60.5%) with
strong margin in our Satellite base of 47.5% (1H21: 34.2%), our
4G/5G FWA contributing 59.2% (1H21: 0%) and our fixed wireless base
67.2% (1H21: 69.9%). Adjusted EBITDA for the region was GBP0.5m,
down 39.3% on prior year (1H21: GBP0.8m). Adjusted operating cash
was an outflow of GBP0.6m and adjusted underlying free cash flow
was an outflow of GBP1.1m following capital expenditure of GBP0.4m
and set up costs associated with the 5G FWA of GBP0.5m.
During the Period the Group invested NOK 11m (GBP0.9m) to refine
and enhance the Company's service proposition in the Nordic market
to support the next generation ultrafast broadband via wireless 5G
FWA, delivering speeds up to 500 Mbps with unlimited data packages.
Although running six months behind due to equipment shortages, this
is beginning to show real momentum and growing traction in the
market with great customer satisfaction being reported.
The Board continues to evaluate the opportunity to refine and
enhance the Group's service proposition in the Nordic market.
Initiatives include the launch of new satellite offerings across
the region offering speeds of 50Mbps and unlimited capacity. The
Directors consider that the Group's ability to offer a combination
of services including our own Fixed Wireless network, 5G FWA via
Telenor and satellite solutions in the Nordics provides the Group
with potentially significant scope to expand its presence and reach
in this region and create shareholder value.
Despite the cyber-attack the Nordic region is showing underlying
encouraging results with lower churn and signs of customer
growth.
Strategy
The demand for our products continues to increase with an
element of home working in the countries we operate in being the
norm, and the consequential need for faster broadband solutions to
the home. Whilst recognising the pressure on individuals and
companies' disposal income and profits, we firmly believe that the
solution set the Group offers its customers is becoming more
important and a very necessary utility cost. The opportunity in the
super-fast broadband market remains extremely exciting across the
businesses as it is changing significantly and accelerating at
pace. Where in the past a service of 30Mbps was seen as an
appropriate solution to a typical customer, nowadays this is north
of 50Mbps and our satellite and fixed wireless solutions will
ensure that all unserved and underserved customers can receive an
appropriate solution.
The Directors consider that, given their respective strengths,
each of the remaining business units in Australasia and the Nordics
has potential opportunities to enhance shareholder value and
therefore the Board will be focused on ensuring that it can fully
capitalise on this opportunity.
For the SkyMesh business in Australia, the Board believes that
it could also complement organic growth opportunities by additional
acquisitions that could accelerate the Company's presence into the
wider Australasia region. As noted previously, the Board believes
the business has the potential to achieve 80,000 customers in the
region over the next three years through organic and acquisitive
growth.
In Norway, following the upgrading programme last year, the
launch of new products and the new Satellite offerings, we are
witnessing increased customer traction and churn showing early
signs of stabilising.
The Directors consider that the Company's ability to offer
improved fixed wireless, 5G FWA via Telenor and satellite solutions
in the Nordics means that there is potentially significant scope to
expand its presence and reach in this region. The suite of
competitive offerings and growing demand for working from home
solutions means that the target market continues to increase in
size. Market growth, alongside the operational investment outlined
above, provides the Directors with confidence of stronger demand
for its FWA solutions in Norway, whilst capital-light satellite
solutions are expected to be successfully deployed across the wider
Nordic region.
Marketing
We use a digital-first strategy to both acquire and retain new
and existing customers. For customer acquisition, we target
in-market prospects based on geography, broadband speed and
purchase intent. Channels used vary depending on in-country
results, blending Facebook, Google, Bing and lead-generation
partners in order to achieve our internal KPI's in terms of cost
per lead and cost per activation. We deploy a suite of engaging
content from ad copy, through to static display ads and video. Most
important of all is word of mouth or customer referral hence the
importance of looking after our existing customers as demonstrated
in our business.
Current Trading and Outlook
The Company has continued its successful positioning at the
forefront of the alternative super-fast broadband industry. During
the trading period to 31 May 2022, the Company continued to grow
its customer base while still benefiting from the strong visibility
afforded by the high percentage of recurring revenues. Our robust
model and infrastructure continued to underpin growth in customers
and revenues per user. This will prove to be key to the Continuing
Group as we seek to maximise shareholder value from our Nordic and
Australasian businesses.
The Board remains convinced that there is plenty of scope for
the Company to take advantage of growth opportunities. These
include, but are not limited to, capitalising on organic growth and
acquisition opportunities in Australasia to further solidify our
hold in the region and reigniting our Nordics operation with a
smaller, more profitable footprint, reduced churn and new product
offerings to our customers. In addition, the Board will look at all
opportunities to maximise shareholder value.
In the current environment, part of our continued growth, and
improvement year on year, is satisfying the increased demand for
high-speed broadband in rural areas as more and more employees work
from home. We also closely monitor a number of business KPIs daily,
to ensure that the economic pressures faced by our customers and
suppliers don't materially impact our operations and financial
performance. These KPIs include customer sales, activations, churn,
customers inflight, cash, and stock levels.
Following typical seasonal trends, we expect a strong second
half and are comfortable with financial market expectations for the
current year.
Andrew Walwyn
CEO
FINANCIAL REVIEW
This financial review describes the performance of the Company
during the Period.
Total customers at the Period end for the Group were c.60k
(1H21: c.58k). During the half year the Company had gross adds of
8.5k (1H21: 10.9k) and underlying churn of 7.5k (1H21: 6.5k) giving
c.1k net organic adds (1H21: c.4.4k). In addition, there were 2.2k
of customers acquired with the acquisition of Clear and c 4k
migrated customers. The exceptional churn (c.1.6k) results in the
main from demounting equipment on masts (c.0.8k), and the impact of
the cyber-attack (c.0.8k). This is summarised as follows:
Unaudited Unaudited Audited
As at As at As at
31 May 2022 31 May 2021 30 Nov 2021
000 000 000
Opening base 58.8 57.2 57.2
------------- ------------- -------------
Inflight customers(1) - - 1.3
Gross Additions (2) 8.5 10.9 19.1
Migrated / Switched
out(3) (4.0) - (1.0)
Migrated / Switched
in (3) 4.0 - 1.0
Churn - Underlying(4) (7.5) (6.5) (14.4)
------------- ------------- -------------
Underlying Net Additions 1.0 4.4 6.0
Acquisition 2.2 - -
------------- ------------- -------------
Net Additions 3.2 4.4 6.0
Churn - Exceptional(5) (1.6) (3.3) (4.4)
Net growth 1.6 1.1 1.6
------------- ------------- -------------
Closing Base 60.4 58.3 58.8
------------- ------------- -------------
(1) Customers where orders have been received but not
activated
(2) Customers who have taken a contract out and commenced
service
(3) Customers who have been specifically targeted to switch
their contract and renew with a new product and contract
(4) Underlying churn is where customers have cancelled their
contract
(5) Exceptional churn is where we or a customer cancels their
contract due to uncontrollable circumstances impacting their
service such as cyber event and demounting
Significant focus in 1H22 was on launching in NZ, launching
4G/5G FWA services in Norway and "right sizing" products for
customers across all territories. As a result, we are pleased to
report gross add have started increasing in the second half of the
year. Churn rates (defined as the number of subscribers who
discontinue their service as a percentage of the average total
number of subscribers within the period, including the exceptional
churn), decreased to an average annualised churn rate of 30.7% in
1H22 (1H21: 33.9%). The main areas of exceptional churn were the
cyber-attack affecting 3k customers in Norway (Impacting churn by
c.0.8K) and the demounting of loss making fixed wireless customers
in Norway 0.8k. On a like-for-like basis underlying churn was in
line with the previous year at c 25%.
Inflight numbers remain consistent and are typically only
adjusted at the end of the financial year.
Total revenue increased 13.8% to GBP14.9m (1H21: GBP13.1m). This
reflects the higher like for like customer numbers and increased
ARPU year on year of 6.8% (from GBP38.07 to GBP40.64). Like for
like revenue in the period was up a healthy 11.5% to GBP14.6m.
Underlying ARPU, calculated by dividing total revenues from all
sources by the average customer base, increased in the first half
to GBP40.64 per month (1H21: GBP38.07) as we sought to offer better
packages to customers, more appropriate to increasing demands for
speed and data, with increased revenue from services and
installations.
The sales revenue mix across the Company at the end of the
period was c.76% Satellite, c.22% Fixed Wireless and 2% 4G / 5G FWA
(1H21: c.75% Satellite, c.25% Fixed Wireless and 0% 4G / 5G
FWA).
The increased gross margin from the 13.8% increase in revenue
was GBP0.5m (up 8.6% on 1H22). The gross profit was lower due to
the product mix associated with the introduction of 5G FWA products
in the Nordics and promotion activity in Norway satellite following
the cyber-attack. Overheads increased GBP0.5m (12.4% on 1H22), due
to increased marketing costs to support new launches of 5G FWA in
Norway and Satellite in New Zealand (GBP0.35m) and associated
increased staff costs for New Zealand operations (GBP0.15m).
Depreciation increased to GBP1.0m in the first half of the year
from GBP0.6m in 1H21 following the investment in Norway on
upgrading their estate of towers in FY21 (GBP0.3m) as well as an
increase in the right of use assets recognised in line with IFRS 16
(GBP0.1m). Amortisation of intangible assets increased to GBP0.2m
(1H21: GBPnil), due to the customer contracts acquired with Clear
being amortised over 24 months (GBP0.2m).
The Company incurred charges identified as exceptional in nature
during the period, including costs related to internal
restructuring (GBP0.1m), legal and related costs associated with
acquisition and disposal activities (GBP0.5m) and other costs
deemed exceptional to ordinary activities (GBP0.2m).
Interest costs reduced during the period to GBP0.1m (1H21:
GBP0.3m) as a result of the repayment of the GBP8.4m revolving
credit facility with Santander in 2H21.
Unaudited Unaudited Audited
As at As at As at
31 May 31 May 30 Nov
2022 2021 2021
GBP000 GBP000 GBP000
Underlying Interest 18 230 709
Interest element of lease
payments 34 45 89
Reported Interest 52 275 798
---------- ---- ------- ---------
Statutory Results and EBITDA Reconciliation
Adjusted EBITDA (before share based payments and exceptional
items) for the half year increased 1.4% to GBP2.0m (1H21: GBP2.0m).
A reconciliation of the adjusted EBITDA to statutory operating loss
of GBP0.2m (1H21: GBP0.2m profit) and to adjusted PAT of GBP0.5m
(1H21: GBP0.9m profit) is shown below:
Unaudited 6 months to 31 Unaudited 6 months to 31 Audited 12 months to 30
May 2022 May 2021 November 2021
GBP000 GBP000 GBP000
Adjusted EBITDA 1 2,020 1,992 4,577
Depreciation 2 (979) (630) (1,390)
Amortisation 3 (188) - -
--------------------------- --------------------------- ---------------------------
Adjusted EBIT 853 1,362 3,187
Share based payments (154) (75) (163)
--------------------------- --------------------------- ---------------------------
Continuing Operations
operating profit -
pre-exceptional items 699 1,287 3,024
Exceptional items 4 (830) (1,079) (3,922)
--------------------------- --------------------------- ---------------------------
Continuing Operations
Statutory operating
profit - post exceptional
items (131) 208 (898)
--------------------------- --------------------------- ---------------------------
Adjusted EBIT 853 1,362 3,187
Underlying interest (52) (275) (798)
Tax (charge)/credit (330) (228) 76
--------------------------- --------------------------- ---------------------------
Continuing Adjusted PAT 471 859 2,465
--------------------------- --------------------------- ---------------------------
Company
1) Adjusted EBITDA (before share based payments, depreciation,
intangible amortisation, impairment of goodwill, acquisition,
employee related costs, deal related costs, and start-up costs) was
GBP2.0m (1H21: GBP2.0m).
2) Depreciation increased to GBP1.0m in 1H22 from GBP0.6m in
1H21, due to investment in Norway on upgrading their estate of
towers in FY21 (GBP0.3m) as well as an increase in the right of use
assets recognized in line with IFRS 16 (GBP0.1m).
3) Amortisation of intangible assets was GBP0.2m (1H21: GBPnil)
following the acquisition of Clear. No impairment of intangible
assets was charged during the period (1H21: GBPnil).
4) The Company incurred expenses in the period that are
considered exceptional in nature and appropriate to identify. These
comprise:
a. GBP0.1m (1H21: GBP0.1m) employee termination and redundancy
costs where internal restructuring has occurred
b. GBP0.5m (1H21: GBP1.0m) of net acquisition, deal, legal and
other costs relating to M&A activities and fundraising during
the period. These costs comprise mainly professional and legal
fees.
c. GBP0.2m of other one-off costs primarily related to launch of 5G in Norway.
Total Revenue and Adjusted EBITDA in 1H22 and the comparative
period is analysed as follows:
Revenue Adjusted EBITDA(2)
----------------------------------------- ----------
Unaudited Unaudited Audited Unaudited Unaudited Audited
6 months 6 months 12 months 6 months 6 months 12 months
to to to to to to
31 May 31 May 30 Nov 31 May 31 May 30 Nov
2022 2021 2021 2022 2021 2021
GBPm GBPm GBPm GBPm GBPm GBPm
Australia 12.6 10.5 21.8 2.2 1.8 4.0
Norway 1.9 2.4 4.6 0.5 0.8 1.9
------------------- -------------------- ----------- ---------- ---------- -----------
Pre-Central 14.5 12.9 26.4 2.7 2.6 5.9
Central Revenue
and Costs(1) 0.4 0.2 0.7 (0.7) (0.6) (1.3)
Total 14.9 13.1 27.1 2.0 2.0 4.6
------------------- -------------------- ---------- ----------
(1) Central costs include finance, IT, marketing and plc
costs
(2) Adjusted EBITDA includes the impact of adoption of
IFRS16
The Company's total customer base of c.60k as at 31 May 2022
(1H21: c.58k) was split as follows: Australasia: 86% (1H21: 83%),
Norway: 14% (1H21: 17%).
The year-on-year analysis from both a revenue and EBITDA
perspective is explained as follows:
Australia
-- The increase in revenue was due to continued growth of the
customer base (GBP1.3m), the customer acquisition from Clear
(GBP0.5m), as well as ARPU progression (GBP0.3m). EBITDA improved
following the increase revenue and the cost control actions
subsequently taken.
Nordics
-- Revenue in satellite reduced due to the cyber-attack
(GBP0.3m) and revenue in fixed wireless decreased mainly due to the
demounting of identified loss making masts in last financial
year.
-- EBITDA decreased due to churn in the period relating to the
demounting program and the impact of the churned customers relating
to the cyber-attack.
Cash Flow Analysis:
Underlying Cashflow performance of continuing group
The underlying cash flow performance analysis seeks to clearly
identify underlying cash generation within the Company and
separately identify the cash impact of M&A activities,
identified exceptional items and the treatment of IFRS 16 and is
presented as follows:
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
31 May 2022 31 May 2021 30 Nov 2021
GBP000 GBP000 GBP000
Adjusted EBITDA 2,020 1,992 4,577
Underlying movement of working capital 1 (1,314) (691) 1,742
Forex and non-cash 2 595 22 (1,085)
------------- ------------- -------------
Underlying operating cash flow before interest, tax, Capex and
exceptional items 3 1,301 1,323 5,234
Tax and interest paid 4 (382) (262) (906)
Purchase of Assets 5 (526) (732) (2,208)
------------- ------------- -------------
Underlying free cash flow before exceptional and M&A items 393 329 2,120
Exceptional items 6 448 (1,022) 27,119
Investing activities 7 (1,192) - -
Movement in cash from discontinued operations 8 - 1,067 (2,209)
Movement in working capital from discontinued operations - - (2,339)
Financing activities 9 (308) (320) (34,796)
------------- ------------- -------------
(Decrease) / Increase in cash balance (659) 54 (10,105)
------------- ------------- -------------
1) Underlying movement in working capital was an outflow of
GBP1.3m (1H21: outflow GBP0.7m) as a result of the payments
associated with the stock for the 5G FWA revenue stream (GBP0.8m),
a slight increase in Trade Receivables (GBP0.2m) and other working
capital movements.
2) Forex and non-cash inflow of GBP0.6m (1H21: inflow GBP0.0m)
relate to the exchange movement in the Consolidated Statement of
Comprehensive Income and the Consolidated Statement of Financial
Position (GBP0.5m), as well as costs/income which have no impact on
operating cashflow (GBP0.1m).
3) This resulted in an underlying operating cash flow before
Interest, Tax, Capital expenditure and Exceptional items of GBP1.3m
(1H21: GBP1.3m inflow) and an underlying operating cash flow to
EBITDA conversion of 64.4% (1H21: 66.4%).
4) Tax and interest paid was GBP0.4m (1H21: GBP0.3m). Tax paid
relates to the prepayment in Australia on the monthly revenue
(GBP0.3m), with the interest element being the fee on the undrawn
funds from the RCF.
5) Purchases of assets were GBP0.5m (1H21 GBP0.7m). These relate
to improvements in the Nordic fixed wireless infrastructure
(GBP0.2m), Norwegian 5G FWA stock capitalised (GBP0.2m)and NZ
rental stock capitalised GBP0.1m.
This resulted in an underlying Free Cash inflow before
exceptional items, M&A activities and financing activities in
the period of GBP0.4m (1H21: inflow GBP0.3m).
6) Exceptional items of GBP0.4m (1H21: Outflow GBP1.0m) covers
completion payments of GBP2.8m received in respect of earlier
M&A activity less GBP0.1m of related expenses. Payments
associated with New Zealand set up costs (GBP0.2m), 5G FWA set up
costs in Norway (GBP0.5m), staff restructuring costs in Norway
(GBP0.3m), disposals and acquisitions (GBP1.2m) and others
(GBP0.2m). Excludes non-cash exceptional items including provisions
made in accordance with IAS 37.
7) Investing activities included the purchase of Clear Networks of GBP1.2m
8) There were no operations discontinued during 1H22. The
movement in cash from discontinued operations of GBP1.1m in 1H21
represents the increase in cash balances recognised in the accounts
of Quickline during 1H21.
9) In 1H22 the financing activities related to the principal
element of lease payments of GBP0.3m (1H21: GBP0.3m principal
element of lease payments).
Statutory Cash flow Analysis
Underlying operating cashflow was GBP1.3m in 1H22 (1H21: Inflow
of GBP1.3m), which resulted in an operating cashflow to adjusted
EBITDA (pre IFRS 16 adjustment) conversion of 64.4% (1H21:
66.4%).
Tax and interest paid increased to GBP0.4m in 1H22 from GBP0.3m
in 1H21, covering the monthly corporation tax payments on account
in Australia.
The net summary of the above is an equity free cash inflow of
GBP0.4m in 1H22 (1H21: GBP0.3m inflow) which is summarised as
follows:
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 May 31 May 30 Nov
2022 2021 2021
GBP000 GBP000 GBP000
Underlying Operating Cash Flows(1) 1,301 1,323 5,234
Purchase of assets (526) (732) (2,208)
Interest and Tax (382) (262) (906)
------------- ------------- --------------
Equity free cash flow (outflow)/inflow 393 329 2,120
------------- ------------- --------------
Underlying Operating cash flow analysis - Underlying Operating Cash
Flow /Adjusted EBITDA 64 .4% 66.4% 114.4%
(1) Underlying Operating Cash flows is before interest, tax and
exceptional items relating to M&A, integration costs and
investment in network partnerships
Net Cash / (debt) comprises:
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 May 31 May 30 Nov
2022 2021 2021
GBP000 GBP000 GBP000
Cash 4,542 12,084 5,201
Debt - (7,945) -
------------- ------------- --------------
Net Cash / (Debt) 4,542 4,139 5,201
------------- ------------- --------------
In the last twelve months (LTM) period, comparing 1H22 with
1H21, cash decreased by cGBP7.5m and debt decreased by GBP7.9m,
resulting in an increase in net cash of GBP0.4m to GBP4.5m from net
cash of GBP4.1m, excluding IFRS 16 liabilities.
In the LTM period, we generated operating cash outflows of
GBP2.8m and received proceeds from the sale of subsidiaries of
GBP33.9m and proceeds from the issue of shares of GBP0.4m, and this
was utilised as follows; cash returned to shareholders GBP26.1m,
investment in fixed assets of GBP2.9m, purchase of intangibles
GBP1.1m, repayment of debt of GBP8.4m and capital element of lease
payments GBP0.7m.
The table above excludes the lease liabilities of GBP1.4m
recognised for the first time in 2019 after the adoption of IFRS 16
(1H21: GBP1.9m). Including this amount would give a total net cash
of GBP3.1m (1H21: net cash GBP2.2m).
Balance Sheet
Non-current assets have increased in the last 12 months by
GBP7.9m to GBP17.5m (1H21: GBP9.6m) primarily as a result of the
receipt of equity and loan notes as part consideration for the
disposal of Quickline, together valued at GBP5.7m, and the goodwill
on the acquisition of customer contracts from Clear Networks
(GBP1.6m).
Actual capital expenditure in the Continuing business in 1H22
was GBP0.5m (1H21: GBP0.7m), primarily in the Nordic
infrastructure.
Intangible Assets of GBP7.9m comprises the Goodwill and other
intangibles (FY21: GBP5.6m). Of the increase of GBP2.3m, GBP1.8m
relates to the customer acquisition by SkyMesh of the Clear
Networks business and GBP0.5m is capitalised system
development.
Working Capital
Inventory days increased to 31 days (1H21: 18 days) due to
increased stock to support the 5G FWA sales growth in Norway.
Debtor days decreased to 10 days (1H21: 12 days) following
improved debt collections due to system improvements.
Creditor days decreased to 87 days (1H21: 113 days) due to our
stronger balance sheet being used to improve our credit position
with our suppliers.
Total net cash, excluding lease liabilities, increased in the
year by GBP0.4m to GBP4.5m (FY21: GBP4.1m) and is explained further
in the Cash Flow Analysis section.
Statutory EPS and Adjusted EPS for total company including
discontinued operations
Statutory EPS loss per share decreased to 1.1p from 1.3p.
Statutory EPS Pence
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 May 31 May 30 Nov
2022 2021 2020
Total basic EPS attributable to ordinary shareholders (1.1) (1.3) 46.9
Basic EPS from continuing operations (0.9) (0.5) (2.8)
Statutory basic EPS from continuing and discontinued operations
shows a loss of 1.1p (1H21: Loss 1.3p). Statutory basic EPS from
continuing operations increased to a loss of 0.9p (1H21: Loss
0.5p).
Frank Waters
CFO
Bigblu Broadband plc
Consolidated statement of comprehensive income
6 months ended 31 May 2022
Note
Unaudited Unaudited Audited
6 months 6 months to 12 months
to 31 May to
31 May 2021 30 Nov
2022 2021
GBP000 GBP000 GBP000
Revenue 14,894 13,092 27,067
Cost of goods sold (8,662) (7,353) (14,899)
------------ -------------- ------------
Gross Profit 6,232 5,739 12,168
Distribution and administration expenses 2 (5,196) (4,901) (11,676)
Depreciation (979) (630) (1,390)
Amortisation (188) - -
Operating (Loss) / Profit (131) 208 (898)
Interest Payable (52) (275) (798)
Loss before Tax (183) (67) (1,696)
Taxation (330) (228) 76
------------ -------------- ------------
Loss from continuing operations (513) (295) (1,620)
(Loss) / Profit from discontinued operations (101) (664) 28,373
------------ -------------- ------------
(Loss) / Profit for the period (614) (959) 26,753
Foreign currency translation difference 226 (9) (355)
------------ -------------- ------------
Total comprehensive (expense) / Income for the period (388) (968) 26,398
------------ -------------- ------------
Owners of Bigblu Broadband Plc (388) (741) 26,682
Non-Controlling Interests - (227) (284)
---------------------------------------------------------- ----- ------------ -------------- ------------
(Loss) / Profit per share
Total - Basic EPS 3 (1.1p) (1.3p) 46.9p
Total - Diluted EPS 3 (1.1p) (1.3p) 45.6p
Continuing operations - Basic EPS 3 (0.9p) (0.5p) (2.8p)
Continuing operations - Diluted EPS 3 (0.9p) (0.5p) (2.7p)
Discontinued operations - Basic EPS 3 (0.2p) (0.8p) 49.7p
Discontinued operations - Diluted EPS 3 (0.2p) (0.8p) 48.3p
Adjusted earnings per share from continuing operations
Total - Basic EPS 3 0.8p 1.5p 4.3p
Total - Diluted EPS 3 0.8p 1.5p 4.2p
Bigblu Broadband plc
Consolidated statement of financial position
As at 31 May 2022
Note Unaudited Unaudited Audited
As at As at As at
31 May 2022 31 May 2021 30 Nov 2021
GBP000 GBP000 GBP000
Non-Current Assets
Intangible assets 7,880 5,591 5,576
Property Plant and Equipment 3,879 3,527 4,090
Investments 5,750 - 5,672
Deferred Tax asset 717 503 709
-------------
Total Non-Current Assets 18,226 9,621 16,047
------------- -------------- -------------
Current Assets
Inventory 1,577 680 699
Trade Debtors 851 806 802
Other Debtors 1,354 1,740 4,115
Cash and Cash Equivalents 4,542 12,084 5,201
Assets classified as held for - 20,109 -
sale
------------- -------------- -------------
Total Current Assets 8,324 35,419 10,817
------------- -------------- -------------
Current Liabilities
Trade Payables (4,364) (3,252) (4,496)
Recurring Creditors and Accruals (2,958) (2,847) (3,253)
Other Creditors (991) (725) (82)
Payroll taxes and VAT (359) (670) (966)
Lease liabilities (487) (823) (623)
Provisions for liabilities
and charges (685) (1,468) (685)
Liabilities associated with assets - (6,258) -
classified as held for sale
Total Current Liabilities (9,844) (16,043) (10,105)
------------- -------------- -------------
Non-Current Liabilities
Loans and debt facilities - (7,945) -
Lease liabilities (865) (1,053) (835)
Deferred taxation (288) (119) (13)
------------- -------------- -------------
Total Non-Current Liabilities (1,153) (9,117) (848)
------------- -------------- -------------
Total Liabilities (10,997) (25,160) (10,953)
------------- -------------- -------------
Net Assets 15,553 19,880 15,911
------------- -------------- -------------
Equity
Share Capital 8,755 8,638 8,749
Share Premium 4 8,589 34,180 8,589
Other Reserves 4 20,178 3,862 20,154
Revenue Reserves (21,969) (32,719) (21,581)
------------- -------------- -------------
Capital & Reserves attributable
to owners 15,553 13,961 15,911
Non-controlling interests - 5,919 -
------------- -------------- -------------
Total Equity 15,553 19,880 15,911
------------- -------------- -------------
Bigblu Broadband plc
Consolidated Cash Flow Statement
6 months ended 31 May 2022
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 May 2022 31 May 2021 30 Nov
2021
GBP000 GBP000 GBP000
Loss after tax from Continuing operations (513) (295) (1,620)
(Loss)/Profit after tax from Discontinued
operations (101) (664) 28,373
------------- ------------ ------------------------
(Loss)/Profit for the year including
Discontinued operations (614) (959) 26,753
Interest 52 326 852
Gain on disposal of subsidiaries - - (28,942)
Gain on disposal of fixed assets - - (8)
Taxation 330 228 (76)
Release of grant creditors - (1,626) (285)
Amortisation of intangible assets 188 20 21
Depreciation of property, plant and
equipment - owned assets 699 1,314 1,834
Depreciation of property, plant and
equipment - ROU assets 280 524 836
Share based payments 154 75 163
Foreign exchange variance and other
non-cash items 595 (146) (332)
Movement in working capital (2,879) 781 (1,550)
------------- ------------ ------------------------
Operating cash flows after movements
in working capital (1,195) 537 (734)
Interest paid (52) (160) (411)
Tax paid (330) (102) (495)
------------- ------------ ------------------------
Net cash generated/(used) in operating
activities (1,577) 275 (1,640)
Investing activities
Purchase of property, plant and equipment (526) (3,655) (6,009)
Purchase of intangibles and investments (1,091) - (53)
Cash transferred out of group in disposed
of subsidiaries - - (2,533)
Proceeds from sale of property, plant
and equipment - - 92
Proceeds from sale of subsidiary 2,843 - 31,094
------------- ------------ ------------------------
Net cash generated / (used) in investing
activities 1,226 (3,655) 22,591
------------- ------------ ------------------------
Financing activities
Proceeds from issue of ordinary share
capital 6 - 435
Return of capital to shareholders - - (26,120)
Proceeds from bank revolving credit
facility - 2,000 2,000
Investment by non-controlling interest - 2,000 2,000
Loans paid - - (8,400)
Principal elements of lease payments (314) (566) (971)
------------- ------------ ------------------------
Cash generated/(used) from financing
activities (308) 3,434 (31,056)
------------- ------------ ------------------------
Net increase / (decrease) in cash and
cash equivalents (659) 54 (10,105)
Cash and cash equivalents at beginning
of period 5,201 15,306 15,306
Cash in disposal group held for sale - (3,276) -
------------- ------------ ------------------------
Cash and cash equivalents at end of
period 4,542 12,084 5,201
------------- ------------ ------------------------
Bigblu Broadband plc
Condensed consolidated Reserves Movement
6 months ended 31 May 2022
Share Share Other Revenue Non-controlling
Capital Premium Reserves Reserve interests Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Note 4
--------- --------- ---------- --------- ---------------- ----------
At 31 May 2021 8,638 34,180 3,862 (32,719) 5,919 19,880
--------- --------- ---------- --------- ---------------- ----------
Profit for the
period - - - 27,769 (57) 27,712
Adjustment to
NCI - - - (3) 3 -
Disposal of subsidiary - - - (5,865) (5,865)
Issue of shares 111 324 - - - 435
Share option
reserve - - 88 - - 88
Foreign Exchange
Translation - - 127 (346) - (219)
Return of capital - (25,915) 16,077 (16,282) - (26,120)
At 30 November
2021 8,749 8,589 20,154 (21,581) - 15,911
Loss for the
period - - - (614) - (614)
Issue of shares 6 - - - - 6
Share option
reserve - - 154 - - 154
Foreign Exchange
Translation - - (130) 226 - 96
--------- --------- ---------- --------- ---------------- ----------
At 31 May 2022 8,755 8,589 20,178 (21,969) - 15,553
--------- --------- ---------- --------- ---------------- ----------
Bigblu Broadband plc
Notes to the financial statements
For the period ended 31 May 2022
1. Presentation of financial information and accounting
policies
Basis of preparation
The condensed consolidated financial statements are for the half
year ending 31 May 2022.
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.
Under IFRS 5, assets held for sale (including disposal groups)
are classified as discontinued operations and should be presented
separately in the income statement. Even though the sale of
Quickline was a post-balance sheet event the Company opted to show
this as discontinued operations as at 31 May 2021 as laid out by
IFRS 5.
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 Company's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Chief Executive Report. The financial position
of the Company, its cash flows and liquidity position are described
in the Finance Review.
As at 31 May 2022 the Company generated an adjusted EBITDA
before a number of non-cash and start-up costs expenses in the
Consolidated statement of financial position, of GBP2.0m (1H21:
GBP2.0m), and with cash inflow from operations of GBP3.1m (1H21:
inflow of GBP0.3m) and a net increase in cash and cash equivalents
of GBP0.4m in the year (1H21: increase GBP0.1m). The Company
balance sheet showed net cash at 31 May 2022 of GBP4.5m (1H21: net
cash GBP4.1m). Having reviewed the Company's budgets, projections
and funding requirements, and taking account of reasonable possible
changes in trading performance over the next twelve months,
particularly in light of the continued COVID-19 risks and counter
measures, the Directors believe they have reasonable grounds for
stating that the Company has adequate resources to continue in
operational existence for the foreseeable future.
The Board has concluded that no matters have come to its
attention which suggest that the Company will not be able to
maintain its current terms of trade with customers and suppliers or
indeed that it could not adopt relevant measures as outlined in the
Strategic report to reduce costs and free cash flow. The latest
management information in terms of volumes, debt position and ARPU,
are in fact showing a positive position compared to prior year and
budget. The forecasts for the combined Company projections, taking
account of reasonably possible changes in trading performance,
indicate that the Company has sufficient cash available to continue
in operational existence throughout the forecast year and beyond.
The Board has considered various alternative operating strategies
should these be necessary and are satisfied that revised operating
strategies could be adopted if and when necessary.
Furthermore, the continuing arrangements with key banking
partners gives the Board further comfort on the going concern
concept.
Consequently, the Board believes that the Company is well placed
to manage its business risks, and longer-term strategic objectives,
successfully.
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 this 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
financial statements for the year ended 30 November 2020.
Basis of consolidation
The condensed consolidated financial statements comprise the
financial statements of Bigblu Broadband 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:
Unaudited Unaudited Audited
As at As at As at
31 May 2022 31 May 2021 30 Nov 2021
GBP000 GBP000 GBP000
Employee related costs 2,608 2,281 5,103
Marketing and communication
costs 711 552 1,119
Finance, Legal, IT, banking,
insurance, logistics, domains
AIM and other costs 893 914 1,369
--------------------------------------- ------------ ------------- -------------
Underlying costs 4,212 3,747 7,591
% of Revenue 28.3% 28.6% 28.0%
--------------------------------------- ------------ ------------- -------------
Share based payments 154 75 163
Professional and legal related
costs associated with corporate
activity and restructuring 830 1,079 3,922
Identified Exceptional Costs 984 1,154 4,085
% of Revenue 6.6% 8.8% 15.1%
Total 5,196 4,901 11,676
---------------------------------- ----------------- ------------- -------------
% of Revenue 34.9% 37.4% 43.1%
3. Earnings per share
Basic (loss)/profit per share is calculated by dividing the loss
or profit 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 (loss)/profit and weighted average number
of shares used in the calculation are set out below:
Unaudited Unaudited Audited
6 months 6 months 12 months
to 31-May to 31-May to 30-Nov
2022 2021 2021
GBP000 GBP000 GBP000
Loss for the period from
continuing operations (513) (295) (1,620)
----------- ----------- -----------
(Loss)/profit for the period
from continuing and discontinued
operations (614) (959) 26,753
Adjustment for non-controlling
interest share of losses - 227 284
----------- ----------- -----------
(Loss) / Profit attributable
to shareholders (614) (732) 27,037
Adjusted profit attributable
to shareholders from continuing
operations(4) 471 859 2,465
------------------------------------ ----------- ----------- -----------
EPS Pence
Basic EPS from continuing
operations(1) (0.9p) (0.5p) (2.8p)
Basic EPS from discontinued
operations(2) (0.2p) (0.8p) 49.7p
----------- ----------- -----------
Total basic EPS attributable
to ordinary shareholders(3) (1.1p) (1.3p) 46.9p
----------- ----------- -----------
Adjusted basic EPS(4) 0.8p 1.5p 4.3p
----------- ----------- -----------
Diluted EPS from continuing
operations(1) (0.9p) (0.5p) (2.7p)
Diluted EPS from discontinued
operations(2) (0.2p) (0.8p) 48.3p
----------- ----------- -----------
Total diluted EPS attributable
to ordinary shareholders(3) (1.1p) (1.3p) 45.6p
----------- ----------- -----------
Adjusted diluted EPS(4) 0.8p 1.5p 4.2p
----------- ----------- -----------
Weighted average shares 58,352,525 57,589,857 57,697,017
Weighted average diluted
shares 59,880,537 58,027,855 59,251,343
------------------------------------ ----------- ----------- -----------
(1) Basic and diluted EPS from continuing operations is the loss
for the period divided by the weighted average shares and weighted
average diluted shares respectively. None of these losses are
attributable to non-controlling interests
(2) Basic and diluted EPS from discontinued operations is the
(loss)/profit for the period less the amounts attributable to
non-controlling interests divided by the weighted average shares
and weighted average diluted shares respectively. The loss incurred
in 1H22 of GBP101k was in relation to the costs incurred with the
Eutelsat claim, which is classified as exceptional in nature and
specific to the discontinued business.
(3) Total basic and diluted EPS attributable to ordinary
shareholders is the sum of (losses)/profits from continuing and
discontinued operations less the amounts attributable to
non-controlling interests, divided by the weighted average shares
and weighted average diluted shares respectively.
(4) Adjusted basic and diluted EPS is the loss for the period
from continuing operations before exceptional expenses, exceptional
interest and share based payments, divided by the weighted average
shares and weighted average diluted shares respectively. None of
these losses are attributable to non-controlling interests. This is
a non-GAAP measure.
4. Other capital reserves
Foreign
Listing Merger Reverse Other exchange Share Capital Total
Cost Relief acquisition equity translation option redemption capital
Reserve reserve Reserve reserve reserve reserve reserve reserves
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 31 May 2021 (219) 5,972 (3,317) 1,294 (2,557) 2,689 - 3,862
Foreign Exchange
Translation - - - - 127 - - 127
Return of capital - (5,972) - (1,294) - (2,777) 26,120 16,077
Equity settled
Share based
payments - - - - - 88 - 88
-------- -------- ------------ -------- ------------ -------- ---------- ---------
At 30 November
2021 (219) - (3,317) - (2,430) - 26,120 20,154
Foreign Exchange
Translation - - - - (130) - - (130)
Share based
payments - - - - - 154 - 154
At 31 May 2022 (219) - (3,317) - (2,560) 154 26,120 20,178
-------- -------- ------------ -------- ------------ -------- ---------- ---------
-- 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 was settled in December 2019 due to the debt
restructure
-- 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(1)
-- The merger relief reserve relates to the share premium
attributable to shares issued in relation to the acquisitions. The
prior year adjustment relates to the treatment of share capital
issued in connection with previous acquisitions made during the
year ended 30 November 2018. From a review of the Company's
distributable reserves, it was identified that the Merger Relief
did not apply to the allotment of shares where consideration was
settled in cash. As a result, the premium arising on these
allotments of GBP10.3m (stated net of the relevant apportionment of
attributable issue costs) should have been credited to the Share
Premium account at the time.
-- Capital Redemption reserve
-- The capital redemption reserve relates to the cash redemption
of the bonus B shares issued in order to return c.GBP26m to
ordinary shareholders.
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. Availability of the Half 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
weekday. The Company's registered office is at 60 Gracechurch
Street, London, EC3V 0HR. The Company is registered in England No.
9223439.
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https://www.bbb-plc.com
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END
IR DQLFLLVLLBBE
(END) Dow Jones Newswires
August 30, 2022 02:00 ET (06:00 GMT)
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