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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Bigblu Broadband Plc | BBB | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 35.00 | 08:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 35.00 | 35.00 | 35.00 | 35.00 | 35.00 |
| Industry Sector |
|---|
| SOFTWARE & COMPUTER SERVICES |
| Top Posts |
|---|
Posted at 02/12/2024 11:20 by varies njb67I am still a little confused about the Revolving Credit Facility (RCF). BBB's interim report showed debts of about £5 million and this is the figure (more or less)that the Investors Chronicle seems to been using in its calculation of the asset value. The report mentions interest paid on the RCF but l cannot find any other reference to it. |
Posted at 03/9/2024 20:32 by value hound Write-up by Simon Thompson.FWIW, I decided to hang on to the ones I have - but wasn't feeling courageous enough to average down; will let it play out. Here's the article: --- Investors could double their money with this break-up An alternative broadband services provider has reined in guidance, but could this be the bottom? Aim-traded alternative broadband services provider Bigblu Broadband (BBB:28p) has released a mixed set of interim results. In May 2024, the group exited its Nordic business for a nominal sum, albeit the buyer assumed £1.3mn of net working capital creditors and liabilities and there is a contingent earn-out agreement. The disposal led to a £0.73mn below-the-line loss on discontinued operations. In addition, BigBlu incurred £1mn of exceptional charges relating to corporate activity, restructuring and the write-off of some development costs on a new fully integrated cloud-based Microsoft IT system for its Australian subsidiary, SkyMesh. The reported pre-tax loss of £2mn also included a £0.15mn foreign exchange currency hit. Adjust for these items and the group just about operated at break-even at the pre-tax level. Building a platform for SkyMesh to grow As previously reported, competition from Starlink, a wholly-owned subsidiary of American aerospace company SpaceX, has impacted SkyMesh's churn rates. In the six months to 31 May 2024, SkyMesh reported an underlying annualised churn rate of 32 per cent and only increased its customer base by 700 to 52,300 customers. So, to boost customer retention rates, SkyMesh has been working closely with its major satellite provider, NBN Co, to bring more affordable uncapped data packages to market. It’s working as a quarter of the customer base has now migrated to new deals, but it has led to lower average revenue per user, which impacts the gross margin SkyMesh earns. Sensibly, SkyMesh secured a distribution package with Starlink in December 2023 to provide high-speed internet to businesses and small office customers in Australia. BigBlu invested £2.1mn in Starlink stock to support future orders as it looks to scale this side of the business. Combined with reseller agreements with Optus for 4G/5G fixed wireless (launched in July 2024), Vocus for fibre and OneWeb, SkyMesh has doubled its total addressable market to more than 2mn potential customers. However, SkyMesh’s cash profits have been under pressure, falling from £2.2mn to £1.7mn (pre-central overheads of £0.6mn) in the latest six-month period. This explains why house broker Cavendish cut its full-year group cash profit estimate by 25 per cent to £3mn and now expects adjusted pre-tax profit of £2mn and earnings per share (EPS) of 2.8p, down from £3.6mn and 7.1p, in 2023. Also, BigBlu’s net debt has risen sharply from £0.3mn to £4.9mn due to the hefty investment in working capital and IT systems as well as the cash cost of the one-off charges. Share price at a nadir? The positive for shareholders is that the Australian business is now positioned to deliver growth. Cavendish's downgraded forecasts still point to SkyMesh’s annual cash profit rising 25 per cent to £4.5mn in the next financial year, an outcome that should drive pre-tax profit and earnings per share (EPS) up two-thirds to £3.2mn and 4.6p. BigBlu’s directors are also committed to maximising shareholder value, either through an IPO, trade sale, management buyout or private equity transaction of the business. It would undoubtedly release value as SkyMesh is in the price for only £15mn (25.6p) on a sum-of-the-parts basis, or 4.2 times depressed current-year cash profit estimates and only 3.3 times 2025 forecasts. Telco peers are rated on a multiple of 8-10 times cash profit. I have taken account of group net debt of £4.9mn (8.4p) and BigBlu's £6mn (10p) stake in Quickline, a company that is building fixed wireless access networks to address the ‘UK digital divide’, in my calculations. So, although BigBlu’s share price has fallen from 38.5p since I rated the shares a hold (‘Bigblu disappoints, but a break-up is highly likely 20 May 2024), the potential to more than double your money on a break-up makes them worth holding onto. Hold. |
Posted at 13/6/2023 15:34 by value hound Sorry, didn't realise the rise had been caused by Simon Thompson's re-tip today.FWIW, he concludes with: "Expect the share price fall to reverse quickly when the penny drops with investors. A likely IPO of SkyMesh could well bring FinnCap’s 90p target into play. Buy." |
Posted at 27/9/2021 18:35 by idiotsinthe darkrizandlintard I see significant upside here. Income investors are getting ever more involved. Buys to pile in over the week. Well done to all holders. Killing to be made here. |
Posted at 23/9/2021 21:04 by idiotsinthe darkrizandlintard Prices usually rally strong into a big distribution as income investors get involved. On a pure financial theory level the stock should fall by the amount of the divi on the ex date but companies with strong potential that investors like will go ex div well. IG group today is a case in point.However if a stock underperforms into a distribution that implies that general consensus is that it will go ex div badly and it will weaken further after the ex date. Hence you want to see BigBlu go into its distribution with a strong price action so today was a good day but you want that to continue to the 135 level by then. In terms of small number of customers that is irrelevant. This is a growth company and is valued by the market on future growth expectations as opposed to the current company dynamics. Remember that a share price is not indicative of the present performance but of future expectations. Currently I am holding strong in this stock. Good luck all. |
Posted at 20/9/2021 15:49 by idiotsinthe darkrizandlintard No - MMs are only execution traders now following the financial crash. Hedge funds can take a position but the price is now only based on orders and MMs no longer have capital in big banks to build their own position.Currently MMs do not even want to carry any inventory if possible into the next trading session so they will call other banks to offload asap if a big seller appears which can push the price down. Hence unless a hedge fund is going short aggressively the MM manipulation is unfortunately the excuse retail investors hold on to try to explain either a fundamental change which they do not understand or a real "flow" situation which they cannot see. |
Posted at 20/9/2021 13:18 by idiotsinthe darkrizandlintard It seems that the seller that I mentioned on the 15th is still around which again makes me concerned as to the reason an investor sells in size going into a 36% pay out!!! |
Posted at 15/9/2021 14:40 by idiotsinthe darkrizandlintard The ex date is 5 October. It will be very interesting to see how the stock trades into it. I would expect strength and if not then it will go ex badly as the weakness into the ex date implies into that investors are concerned that the drop will be greater than the divi amount.However share consolidation for a strong company usually is beneficial to investors. So strength into 5th October bodes well for a few % gain on the ex date. On another point, stock is readily available in the market currently which makes me think for whatever reason a reasonable size holder is selling out. GL all and see you nearer to the 5th - Hopefully around that 135p mark. |
Posted at 02/8/2021 20:02 by tole Hi Sphere. Looking at the significant holders list it appears to be Canaccord ditching the last of their holding imv. They had 3.99% at end of March. On the company investors website they quote Canaccord holding 3.05% (1,755,000) at end of May. So clearly been reducing.The two trades totalling 1,800,000 reported today should be them clear now. |
Posted at 02/7/2021 12:24 by sev22 I thought I would re-circulate Simon Thompson's article dated 26th April 2021 highlighting what an under priced opportunity BBB was then and even more so today.I always carry out sum-of-the-parts valuations during my research on a company to ascertain whether there is a pricing anomaly to exploit. I also try and identify share price catalysts to narrow the valuation gap, and assess when they are likely to materialise. BigBlu Broadband, a provider of alternative superfast broadband products, is a prime example. Last autumn, Christopher Mills, founder of Harwood Capital and non-executive director of BigBlu, splashed out £2.26m buying shares in the company, almost all of which was on behalf of North Atlantic Smaller Companies Investment Trust, the fund he runs. Harwood owns a 27.7 per cent interest in BigBlu’s shares. At the time, I suggested that the growth in BigBlu’s Quickline subsidiary was being seriously underpriced and the stake had potential to be worth as much as the company’s own market capitalisation (‘Exploiting valuation anomalies’, 15 October 2020). That prediction was not far off the mark following BigBlu’s disposal this week. Moreover, it follows last summer’s sale of BigBlu’s UK and European satellite broadband businesses for £37.8m – a 50 per cent premium to the prices paid the company. Even though BigBlu’s share price has risen 30 per cent in the past six months, investors have yet to fully factor in the financial implications of both transactions. BigBlu Broadband’s eye-catching disposal: Disposal of Quickline stake for up to £48.6m. Ongoing interest in Quickline through convertible loan notes. Expansion in Australasia and Nordics. Aim-traded BigBlu Broadband (BBB:122p), a provider of alternative superfast satellite, fixed wireless and 4G/5G broadband products, has announced the disposal of its 52.7 per cent-owned Quickline subsidiary for a maximum consideration of £48.6m. That sum equates to 5.8 times the company’s investment, a return that has been produced in less than four years. Quickline is building its own fixed wireless access networks, supported by increasing amounts of fibre infrastructure, to address the ‘digital divide’ in the UK. The fast-growing business targets poorly served parts of Lincolnshire and Yorkshire and its investment prospects are attractive enough for private equity group Northleaf Capital Partners to pay a multiple of 23 times forecast cash profit to enterprise valuation. On completion BigBlu will receive £31.1m cash and £5.6m convertible loan notes (CLNs) yielding 4.5 per cent in the acquisition vehicle. In addition, the company is expected to receive a cash earn-out of £10.1m and a further £1.8m in CLN’s based on Quickline’s financial performance in the 12 months to 31 March 2022. Post completion, BigBlu’s cash and cash equivalents of £32.8m will equate to 48 per cent of its own market capitalisation. The combined £7.4m CLNs can convert into 8 per cent equity in the acquirer’s holding company, thus offering potential for further value accretion to BigBlu’s shareholders. BigBlu focus is now on its two overseas businesses: SkyMesh, a leading Australian satellite broadband provider with 45,000 customers; and a Nordic satellite and fixed wireless broadband business that aims to expand its geographic footprint into Sweden and Finland. In Australia, SkyMesh targets customers in rural areas outside of the fibre footprint, who only receive a low-speed and low-quality service from traditional fixed telecom broadband suppliers. The aim is to grow the customer base by 10,000 per year through organic channels, and expand the offering into New Zealand. The operation is forecast to report both cash profit and operating free cash flow over £3m this year and has potential for an IPO or disposal, too. In the Nordics, BigBlu is investing £2m upgrading its fixed wireless network (8,900 subscribers), and should benefit from greater satellite capacity (currently 2,300 subscribers) from the world's leading satellite operators Eutelsat (NYSE /Euronext: ETL) and ViaSat (NSQ: VSAT) to support expansion into Sweden and Finland over the next two years. The Nordics operation is forecast to report a cash profit of £2.2m in the 2021 financial year. BigBlu’s share price is up 11 per cent since my last buy call (‘Three high growth small-cap plays’, 11 January 2021), and there is still compelling value on offer. Adjusting for cash on the balance sheet and the deferred cash and VLN earn-outs, BigBlu’s enterprise valuation equates to only eight times finnCap’s operating profit estimate of £3.1m for the 2021 financial year. I am raising my target price from 165p to 175p. STRONG BUY. |
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