Bigblu Broadband Share Discussion Threads

[typo56] 13/9/2021 14:36

The RNS of 6th Sept talks of the Return of Capital and the Share Consolidation.

Often returns of capital are accompanied by share consolidations, in order to maintain a similar market price. As it stands at the moment a consolidation would be about 16 new shares for 25 existing shares.

However, in spite of the RNS saying the Circular provides further information on the share consolidation, I can't see it mentioned anywhere in the circular. Also, the circular talks about the rebasing of the share options, reducing the targets by 45p. If there were to be a share consolidation they'd surely be no need to reset the targets?

Is mention of a 'share consolidation' in the RNS just a sloppy mistake?

[dogwalker] 09/9/2021 10:38

Oh. Am I wrong in the post above about the date? I've now seen the 'entitlement date' as being 5th Oct, rather than 28th Sep..

[dogwalker] 08/9/2021 10:42

Actually probably before 28th of this month, the date to be an owner if you want the 45p/share ?
I don't expect the shares will sit around 125 p until then , & then drop on the 29th to just 80p. That would be silly! Still, this is AIM....

[cravencottage] 06/9/2021 20:19

My thoughts entirely..

We should see some traction towards October in lieu of capital return.

[dogwalker] 06/9/2021 16:30

It's not being considered a divi. As capital, as it leaves the company the company is less valuable by the same amount.
The issue here is why the company's value has been as low as it is all this while. Maybe it'll rise from here now the details of the return of capital are being defined.

[cravencottage] 06/9/2021 15:26

Does anyone know why the company has flagged an expectation the share price will drop by the same amount of divi they are awarding?

This just doesn't make any sense to a mere mortal like myself...

[p1nkfish] 06/9/2021 10:30

see the rns.
seller may have been removed, was at least 61K share overhang.

[sherifff3] 06/9/2021 10:05

when do we need to have the shares held by?? when is the announcement come on BBB update us!

[p1nkfish] 06/9/2021 06:16

20th Oct for 45p p.s.

[cravencottage] 02/9/2021 14:47

The Market likes certainty...

Once we get an RNS detailing dates for xdivi/ bonus shares date in theory we should see further traction in share price

We know it's sometime in October...Watch this space!

[p1nkfish] 02/9/2021 14:03

Under researched. Therein lies opportunity.

[weatherman] 02/9/2021 11:59

The market is saying the remainder is worth 76p, or about £42m - which is far too low imo.

[apshire2308] 02/9/2021 11:34

Assuming a 45p per share return on a current price of ~120p then it's a 37.5% easy uplift. I don't understand why people would not be piling in to buy. This 45p return all seems a bit too good to be true but possibly the market just needs to wake up to this ??

[cravencottage] 01/9/2021 20:41

Apshire

Allegedly October is payday so you will need to be a shareholder in advance..

[p1nkfish] 01/9/2021 14:38

Not yet from the reading I have done but was targetted by end of this FY.

[apshire2308] 01/9/2021 13:50

Has anyone any idea roughly when the cut off date would be for owning the shares to get the 45p per share (or whatever it ends up) being returned to shareholders.

[cravencottage] 01/9/2021 09:31

45p per share bonus..

Plenty of gas left in the tank here..

[babbler] 01/9/2021 09:18

Nice finally been noticed

[weatherman] 31/8/2021 20:46

Growth in Oz over last last five half-years, after they got rid of some low margin services - H1 is usually a quieter period.

19 H1 7.1m(£)
19 H2 7.8m
20 H1 7.4m
20 H2 9.2m
21 H1 10.5m

They have also now cut some low margin services in Nordic and addressing churn, which will have benefit in the med term.

[weatherman] 31/8/2021 19:45

From the statement. "With regard to the Company's continuing businesses, the Board remains very 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 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 the return to shareholders."

[cravencottage] 31/8/2021 17:17

Targeting sky high returns

A provider of alternative superfast satellite, fixed wireless and 4G/5G broadband products, is returning cash to shareholders and is delivering eye-catching growth from operations Down Under
August 31, 2021
By Simon Thompson
Cash return of £25.9m in October from £33m net cash pile
52.7 per cent-owned Quickline subsidiary sold for maximum consideration of £48.6m, or 5.8 times cost of investment
Deferred consideration of £10.1m cash and £1.8m loan notes subject to Quickline’s performance in 12 months to 31 March 2022
8 per cent equity stake worth £5.6m retained in Quickline
Australian SkyMesh business delivers 50 per cent cash profit growth in first half
Aim-traded BigBlu Broadband (BBB:116p), a provider of alternative superfast satellite, fixed wireless and 4G/5G broadband products, is returning 45p a share to shareholders following the disposal of the group’s 52.7 per cent stake in Quickline to private equity group Northleaf Capital Partners.

Funded by government grants, Quickline is building its own fixed wireless access (FWA) networks, supported by increasing amounts of fibre infrastructure, to address the ‘digital divide’ in the UK. It’s a fast-growing business which is why BigBlu achieved an exit price of 23 times forecast cash profits. Sensibly, BigBlu has retained an 8 per cent equity stake worth £5.8m to benefit from further capital upside.

The focus now is on the group’s two international businesses: SkyMesh, an Australian satellite broadband provider that targets customers in rural areas outside of the fibre footprint; and a Nordic satellite and FWA broadband business that has been restructured and is now planning expansion into Sweden and Finland.

In the first half, SkyMesh’s cash profits surged by 50 per cent to £1.8m on 42 per cent higher revenue of £10.5m, buoyed by 5,700 new customer additions (to 48,700). They are more profitable, too, as 70 per cent of new take-ups are opting for A$100-per-month unlimited data tarrifs, says chief executive Andrew Walwyn. Skymesh had a 36 per cent share of the market and the aim is to increase the user base to 80,000 over the next three years through organic growth – it has delivered double-digit growth for the past three years – and regional expansion. For instance, SkyMesh will launch a service next month in New Zealand with Asia Pacific broadband satellite operator Kacific. Bolt-on acquisitions are also being considered. SkyMesh delivered free cash flow of £1.4m in the six-month period and house broker finnCap expects both free cash flow and cash profit to exceed £3m in the full year.

Churn was high in the Nordic business after BigBlu took the decision to dismount lossmaking masts, which cut the user base by 3,300 customers. However, finance director Frank Waters says that the customer base has stabilised around 9,500 and with a network upgrade programme due to complete shortly and new satellite offerings to be launched in November, then the streamlined infrastructure-light business is poised to return to growth. In addition, next year’s copper switch-off across Norway will add 200,000 addressable households to BigBlu’s 5G FWA target market.

The investment opportunity here is being seriously undervalued. Deduct the £33m cash pile, £5.6m equity stake in Quickline and £11.9m deferred consideration from BigBlu’s £66.8m market capitalisation and the Nordic and Australian businesses are being valued at £16.3m (28p a share), or 5.5 times finnCap’s full-year operating profit estimate. SkyMesh has to be worth £36m (62p), and considerably more to a bidder, given its robust growth prospects. My target price is 175p. Buy.

[sev22] 31/8/2021 16:20

'Targeting sky high returns'

Tipped by Simon Thompson in the IC tonight.

Says the investment opportunity here is being seriously undervalued.

Target price is 175.00p.

Confirms that BBB are returning 45p a share to shareholders in October 2021.

[p1nkfish] 31/8/2021 08:56

"· The Board has undertaken to review the steps needed to return any surplus cash to shareholders within the current financial year;"

[p1nkfish] 31/8/2021 08:32

From memory, and older release said cash return before end of current FY. Memory only but I have had Nov latest in mind because of that statement.