CityFibre Infrastructure Hldgs PLC 2016 Trading Update (5244V)

TIDMCITY

RNS Number : 5244V

CityFibre Infrastructure Hldgs PLC

31 January 2017

 
  For immediate release    31 January 2017 
 

CITYFIBRE INFRASTRUCTURE HOLDINGS PLC

('CityFibre' or the 'Group' or the 'Company')

2016 Trading Update

Transformational year delivers threefold growth in new orders and connected premises

CityFibre (AIM: CITY), a leading designer, builder, owner, and operator of fibre optic infrastructure in UK towns and cities, announces a preliminary trading update for the year to 31 December 2016.

Financial results are expected to be in line with expectations, with revenue in excess of GBP15.0 million and Adjusted EBITDA of approximately GBP2.5 million*.

The Group delivered a record performance in the period, adding 5,063 new connections**, with initial contract value ('ICV') of GBP75.5 million. This compares to 1,100 connections and ICV of GBP23.0 million in the year to 31 December 2015. Of the connections added in the period, 58% were organic new sales.

The Company also significantly increased the number of connected premises served to 3,962, from 1,200 in the prior period.

At period end the Group had 3,383 kilometres of network assets in use, up from 743 kilometres at the end of 2015.

Service provider relationships totaled 54 at period end, up from 41 at the end of 2015.

Orders signed in late 2016 principally include:

-- a 25-year national dark fibre core network migration for Gamma, utilising the Company's national long-distance network and metro interconnects to provide a 1,300 kilometre national route connecting 15 major data centres and BT exchanges in London and major regional hubs;

-- a five-year, 63-site contract on its existing Coventry network with partner Pinacl Solutions on behalf of the Coventry Clinical Commissioning Group;

-- a seven-year, 33-site public services network in Stirling in partnership with MLL Telecom, establishing CityFibre's 41(st) city via 20 kilometres of new network build (previously announced on 17 January 2016).

-- a five-year, 150-site commitment from partner BtL on existing assets in Maidenhead and Slough. The deal establishes Maidenhead as our 42(nd) city;

The Group will report full year financial results on Tuesday, 25 April 2017.

* These figures remain subject to audit and are based on the management accounts to 31 December 2016.

**Connections include those acquired from KCOM and Redcentric.

Greg Mesch, Chief Executive of CityFibre, commented:

"2016 was a transformational year for CityFibre. Having started the year with a step change acquisition which significantly scaled our operational footprint across the UK, we followed up by rolling out a commercialization campaign which delivered over 1,700 connections on the acquired assets. The acquisition of the Redcentric network assets in September and further organic development takes our UK city footprint to 42 as we begin 2017. We are now strongly positioned as the largest wholesale infrastructure provider next to Openreach, which provides us with a great platform for future growth, including significant upsides in Fibre-to-the-Tower and Fibre-to-the-Home."

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

For further information, please contact:

 
  CityFibre Infrastructure Holdings         www.cityfibre.com 
   plc 
  Greg Mesch, Chief Executive Officer       Tel: [phone] 
                                             0602 
  Terry Hart, Chief Financial Officer 
  James Enck, Head of Investor Relations    Tel: [phone] 
                                             6283 
 
  finnCap (Nomad and Joint Broker)          www.finncap.com 
  Stuart Andrews / Christopher Raggett      Tel: [phone] 
   (Corporate Finance)                       0500 
  Simon Johnson (Corporate Broking) 
 
  Liberum (Joint Broker)                    www.liberum.com 
  Steve Pearce / Steven Tredget /           Tel: [phone] 
   Richard Bootle                            2000 
 
  Vigo Communications                       www.vigocomms.com 
  Jeremy Garcia / Fiona Henson              Tel: [phone] 
                                             9700 
 

About CityFibre:

CityFibre is the national builder of Gigabit Cities, as the UK's largest alternative provider of wholesale fibre network infrastructure. It has major metro duct and fibre footprints in 42 cities across the UK and a national long distance network that connects these cities to major data-centres across the UK and to key peering points in London.

The company has an extensive customer base spanning service integrators, enterprise and consumer service providers and mobile operators. Providing a portfolio of active and dark fibre services, CityFibre's networks address 28,000 public sites, 7,800 mobile masts, 280,000 businesses and 4 million homes.

CityFibre is based in London, United Kingdom, and its shares trade on the AIM Market of the London Stock Exchange (AIM: CITY). Further information on the company can be found at www.cityfibre.com

This information is provided by RNS

The company news service from the London Stock Exchange

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January 31, 2017 02:00 ET (07:00 GMT)