TIDMBBB
RNS Number : 5490K
Bigblu Broadband PLC
29 August 2023
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
Trading in line with expectations, Operational Improvements
Bigblu Broadband plc (AIM: BBB.L), a leading provider of
alternative super-fast and ultra-fast broadband services, announces
its unaudited interim results for the six months period ending 31
May 2023 (the "Period"). The Company has operations in Australia,
Norway and a residual stake in Quickline Communications
("Quickline").
There was progress across the Company's business units in the
period, with the focus on the introduction of new products and
systems improvements. The Company is therefore well positioned for
the second half of the year.
Financial Highlights
-- Total revenue was GBP15.0m (1H22: GBP14.9m)
-- Adjusted EBITDA(1) increased 2.1% to GBP2.1m (1H22: GBP2.0m)
-- Like for like revenue(2) and adjusted EBITDA growth, on a
constant currency basis increased by 3.1% and 21.4%
respectively
-- Adjusted Free cash inflow(3) of GBP0.2m (1H22: inflow GBP0.4m)
-- Net debt(4) as at 31 May 2023 was GBP0.3m (1H22: Net Cash
GBP4.5m) following the Acquisition in Australia, as well as one off
restructuring payments made in Norway and Central.
Operational Highlights
-- SkyMesh completed the acquisition of the satellite operations
of Harbour ISP PTY LTD, a subsidiary of Uniti Group LTD in
Australia (the "Acquisition") at a cost of c.GBP2.7m which included
net 5.2k customers
-- Total customers at period end were 62.6k (1H22: 60.4k), including the Acquisition
-- The Company has pro-actively undertaken a reorganisation of
the Norwegian business and restructured the central costs within
the business. This has resulted in a reduction in the Norwegian
workforce of approximately 30%, and a reduction of c.75% of our UK
head office. Together bringing annual savings of GBP0.9m
-- In Norway we completed the planned separation of the business
into two legal entities, recognising the different attributes of
each being our satellite and 5G technology business, typically
lower capex, and our infrastructure business, typically higher
capex.
-- Quickline continues to be well supported by Northleaf with an
addressable base of over 350,000 premises at the half year, with
its hybrid Fixed Wireless (FWA) and Full Fibre infrastructure. The
Company retains a 3.1% stake holding following further investment
since the year end with a current carrying value of GBP5.9m.
Northleaf have invested GBP110m in total since they acquired the
majority stake.
1 Adjusted EBITDA is stated before interest, taxation,
depreciation, amortisation, share based payments and exceptional
items. It also excludes property lease costs which, under IFRS 16,
are replaced by depreciation and interest charges.
2 Like for like (LFL) revenue and EBITDA is adjusted for new or
divested businesses in both the current and prior year and adjusts
for constant currency.
3 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 and excludes items identified as
exceptional in nature. Adjusted Free cash flow being cash
(used)/generated by the Group after investment in capital
expenditure, servicing of debt and payment of taxes and excludes
items identified as exceptional in nature.
4 Cash / Net debt excludes lease-related liabilities of GBP0.9m
of under IFRS 16 (FY22 GBP1.4m).
Andrew Walwyn, Chief Executive Officer of Bigblu Broadband plc,
commented:
"The overall performance of the Group is in line with the
Board's expectations. We are carefully extending our product
offerings with our partners in each region, thereby increasing our
addressable markets, at the same time implementing new systems in
each territory and cutting central headcount / other costs.
We have reorganised our Norwegian business and our Australian
business has completed another important bolt on acquisition. We
continue to develop products and solutions with our network
partners that will enable customers to operate as effectively as
possible, particularly at a time where large numbers of customers
are likely to be working from home, whether full or part time.
Specifically, following the recent acquisitions by SkyMesh in
Australia, the Board believes that its strategy of organic growth
complemented by further bolt-on acquisitions should accelerate the
Company's presence across Australia with the potential to achieve
80,000 customers over the next three years. Furthermore, the Board
continues to assess all options to realise value for shareholders,
including a potential spin out ASX listing, as previously
announced.
The Board remains focused on maximising value and returns for
shareholders. The combination of market dynamics and opportunities
available to our business units provides a backdrop for delivering
enhanced shareholder value."
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
Marc Milmo / Simon Hicks / Charlie Beeson 0500
(Corporate Finance)
Tim Redfern / Harriet Ward (ECM)
About Bigblu Broadband plc
Bigblu Broadband plc (AIM: BBB.L), is a leading provider of
alternative superfast and ultrafast broadband solutions throughout
Australia and Norway. BBB delivers a portfolio of superfast and
ultrafast wireless broadband products for consumers and businesses
typically 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 500Mbps
for consumers, and up to 1 Gbps for businesses. BBB provides
customers with 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 services. BBB's alternative broadband
offerings present a customer experience that is broadly similar to
that offered by wired broadband and the connection can be shared in
the normal way with PCs, tablets and smart phones.
CHIEF EXECUTIVE'S REPORT
Overview
The first half of this financial year has been a further period
where we have had to contend with the challenges created by the
global economy and inflationary issues. In the context of these
global challenges, our long-term relationships with our network
partners were vital as we worked together to ensure we could deal
with the growing demand for rural and remote broadband
services.
In early 2023, our fully owned Australian business, SkyMesh PTY
LTD, completed the acquisition of the Satellite operations of
Harbour ISP PTY LTD, a subsidiary of Uniti Group LTD in Australia
(the "Acquisition"). The total cash consideration, including
deferred payments, was AUD$4.72m (GBP2.7m). The cash consideration
was satisfied from existing cash resources including our revolving
credit facilities with Santander. The satellite operations acquired
consisted of net 5.2k customers and in 1H23 contributed GBP0.9m of
revenue, GBP0.3m of EBITDA and GBP0.3m of cash generation. Post
this acquisition the Board continues to explore all options to
realise value for BBB shareholders from SkyMesh, which could
include an ASX listing of SkyMesh.
Key Financials for the continuing operations
Net customer growth after the Acquisition in the first half of
2023 was 3.6% to 62.6k (1H22: 2.6%). There was a big focus on
driving new products, with Telenor 4G/5G FWA in Norway and fixed
line in Australia together with continued marketing campaigns to
migrate c.1k customers to more suitable products which the Board
believe should help to reduce churn in the future.
Total revenue was GBP15.0m, up 0.5% (1H22: GBP14.9m). This
increase in revenue reflected a net increase in customers,
including the acquisition (GBP0.5m) and ARPU progression (GBP0.1m)
but reduced by impact of negative FX rates (GBP0.5m) in the period.
Recurring airtime revenue, defined as revenue generated from the
Company's broadband airtime, which is typically linked to
contracts, was GBP14.0m representing 93% of total revenue (1H22:
95%). Total like-for-like (LFL) revenue for the Continuing Group in
the period was GBP14.6m representing 3.1% growth on a constant
currency basis.
Gross profit margins reduced to 39.0% in 1H23 (1H22: 41.8%), 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, but which have a higher lifetime value,
as well as plan switching in Australia.
Overheads, before items identified as exceptional in nature,
reduced to GBP3.8m (1H22: GBP4.2m), representing 25.2% of revenue
(1H22: 28.3%) due in the main to reduced headcount costs of c.9 FTE
(GBP0.4m).
Consequently, adjusted EBITDA for the period increased 2.1% to
GBP2.1m (1H22: GBP2.0m), alongside an adjusted EBITDA margin of
13.8% (1H22: 13.6%). Total like-for-like (LFL) adjusted EBITDA for
the Continuing Group on a constant currency basis in the period was
GBP1.8m (1H22: GBP1.5m) representing 21.4% growth.
Australia
SkyMesh remains the leading Australian satellite broadband
service provider having been named Best Satellite NBN Provider for
the fifth year in succession (2019-2023). SkyMesh commanded a 55
per cent market share of net new adds under the NBN scheme in the
period to 31 May 2023.
SkyMesh ended the period with customer numbers at 55.1k - up
5.9% on the prior year (1H22: 52.0k), which includes the net
customers acquired from Uniti (5.2k) and revenues of GBP12.8m.
Gross margins were c.35% (down c.1% on 1H22) due to the slightly
lower margin from the Harbour customer base acquisition (34%) and
less data packs sold in the period. With new products being
implemented in the second half of the year, as well as price
increases, we expect gross margins to increase to around 36%.
Adjusted EBITDA was in line with prior year at GBP2.2m
supporting both a positive adjusted operating cash inflow of
GBP1.4m and generating a positive adjusted underlying free cash
flow before group transfers of GBP1.2m.
The acquisition of customers from Harbour continues SkyMesh's
strategy of expanding its presence across Australia.
The Board believes that it can continue to complement organic
growth opportunities by accretive acquisitions and partnerships
that could accelerate the Company's presence across Australia.
The emergence of 5G and LEO satellite technologies has
accelerated the uptake of non-fibre broadband internet services in
Australia. Starlink has continued to target our market with strong
promotional offers which continue to impact current churn rates,
and we are monitoring such promotion and marketing activity. We
believe we can counter such challenges to the business by expanding
our product offerings to increase our addressable market. In this
regard and working with our network partners, c.25% of the base has
been transferred to new product offerings from NBN Co, and although
early, we are seeing far higher customer satisfaction and reduced
churn.
Norway
Our Norwegian business ended 1H23 with customer numbers of 7.5k
(1H22: 8.4k) and underlying churn has reduced to 12.1% (1H22:
16.7%).
Revenues remained in line with prior year at GBP1.9m. Gross
margin decreased in line with expectations to a blended 55.0%
(1H22: 62.3%) with lower margins in our Satellite base of 46.2%
(1H22: 47.5%), our 4G/5G FWA base of 57.3% (1H22: 59.2%) and our
fixed wireless base of 66.0% (1H22: 67.2%). The 4G/5G FWA revenue
stream continues to strengthen and is now contributing in excess of
70% of net new customers and revenue on a monthly basis.
Adjusted EBITDA for Norway was GBP0.2m (1H22: GBP0.5m), Adjusted
operating cash was an inflow of GBP0.4m (1H22: Outflow GBP0.6m) and
adjusted underlying free cash flow was an inflow of GBP0.2m (1H22:
Outflow GBP1.1m) following capital expenditure of GBP0.2m.
The Company has pro-actively undertaken a reorganisation and
restructuring of our Norwegian business and consequently reduced
the workforce by approximately 30%, with an annualised cost saving
going forward of c.GBP0.5m
The Directors consider that each of the remaining business units
in Australia and Norway are progressing in line with expectations;
product offerings are being widened, increasing the addressable
markets, and costs reduced. The Directors are carefully balancing
new initiatives with the desire to realise shareholder value.
Specifically
Strategy
The demand for our products has increased with an element of
home working in the countries we operate 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 believe that the solution set the
Group offers its customers is important and a necessary utility
cost.
The Directors consider that, each of the remaining business
units in Australia and Norway are progressing in line with
expectations in terms of, carefully widening product offerings and
therefore addressable markets, reducing costs. The Directors are
carefully balancing new initiatives with the desire to realise
shareholder value. Specifically
-- For the SkyMesh business in Australia, the Board believes
that it could complement organic growth opportunities by additional
acquisitions that could accelerate the Company's presence across
Australia's addressable market. 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. Post the recent acquisition the Board continues
to explore all options to realise value for BBB shareholders from
SkyMesh including an ASX listing.
-- Norway is showing early signs of stabilising, but we
recognise the importance of limiting further cash requirements.
Current Trading and Outlook
During the period to 31 May 2023, the Company continued to grow
its customer base while still benefiting from the strong visibility
afforded by the high percentage of recurring revenues. This will
prove to be key to the Group as we seek to maximise shareholder
value from our Australian and Norwegian businesses.
The Board will continue to consider such opportunities as they
arise including, but not limited to, capitalising on organic growth
and considering acquisition targets in Australia to further
solidify our position in the region, create scale and at the same
time reigniting our Norway operation with a smaller, more
profitable footprint, reduced churn and new product offerings to
our customers.
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 closely monitor a number of KPIs daily that impact on
the businesses, 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, FOREX, cash and stock
levels.
Following typical seasonal trends, we expect a positive second
half and remain 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.62.6k
(1H22: c.60.4k). During the period the Company had gross adds of
7.5k, (1H22: 8.5k) and underlying churn of 8.2k (1H22: 7.5k) giving
c.0.7k net organic churn (1H22: net organic adds c.1.0k). In
addition, there were net 5.2k customers acquired with the
acquisition of Harbour satellite customers. The exceptional churn
c.1.3k (1H22: c.1.6k) resulted in the main from demounting
equipment on Norwegian masts that are no longer profitable. This is
summarised as follows:
Unaudited Unaudited Audited
As at As at As at
31-May-23 31-May-22 30-Nov-22
Opening base 59.4 58.8 58.8
---------- ---------- ----------
Gross Additions (1) 7.5 8.5 16.7
Churn - Underlying
(2) (8.2) (7.5) (16.5)
Migrated / Switched
out (3) (1.0) (4.0) (9.0)
Migrated / Switched
in (3) 1.0 4.0 9.0
---------- ---------- ----------
Underlying Net Additions
/ (Churn) (0.7) 1.0 0.2
Acquisition 5.2 2.2 2.2
---------- ---------- ----------
Net Additions 4.5 3.2 2.4
Churn - Exceptional(4) (1.3) (1.6) (1.8)
Net growth 3.2 1.6 0.6
---------- ---------- ----------
Closing Base 62.6 60.4 59.4
---------- ---------- ----------
(1) Customers where orders have been received but not activated
(0.5k) and Customers who have taken a contract out and commenced
service (7.0k)
(2) Underlying churn is where customers have cancelled their
contract
(3) Customers who have been specifically targeted to switch
their contract and renew with a new product and contract
(4) 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 1H23 was on launching 4G/5G FWA services in
Norway and "right sizing" the business across all territories.
Total Churn (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),
increased slightly to an average annualised churn rate of 32.3%
(Excluding exceptional churn 28.3%) in 1H23 from 30.7% in 1H22
(Excluding exceptional churn 25.3%). The main areas of exceptional
churn were the continued demounting of loss making fixed wireless
customers in Norway.
Total revenue increased 0.5% to GBP15.0m (1H22: GBP14.9m). This
reflects the higher customer numbers (GBP0.5m) and increased
underlying ARPU (GBP0.1m), reduced by currency movement (GBP0.5m).
ARPU improved from GBP40.64 to GBP40.88 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. Importantly Like for like revenue in the period
increased 3.1% to GBP14.6m (1H22: GBP14.1m).
The sales revenue mix across the Company at the end of the
period was c.75% Satellite, c.21% Fixed Wireless and 4% 4G / 5G FWA
(1H22: c.76% Satellite, c.22% Fixed Wireless and 2% 4G / 5G
FWA).
Gross margin was lower due to the product mix associated with
the introduction of 5G FWA products in Norway and the gross margin
from the Harbour acquisition slightly lower than the existing run
rate in Australia. Overheads reduced GBP0.4m (10.4%) on 1H22, due
to lower staff costs following the Group restructuring.
Depreciation reduced in the period to GBP0.7m (1H22: GBP1.0m)
following the write down of fixed assets in Norway at last year
end.
Amortisation of intangible assets increased to GBP0.8m (1H22:
GBP0.2m), due to the customer contracts acquired with Clear
(GBP0.3m) and Harbour (GBP0.5m), which are being amortised over 24
months.
The Company incurred charges identified as exceptional in nature
during the period of GBP2.3m (1H22 GBP0.9m), including costs
related to internal restructuring/redundancy (GBP1.3m), legal and
related costs associated with acquisition and disposal activities
(GBP0.4m), system costs (GBP0.5m) and other costs deemed
exceptional to ordinary activities (GBP0.1m).
Interest costs increased during the period to GBP0.1m (1H22:
GBP0.1m) as a result of a draw down of the revolving credit
facility in 1H23 of GBP2.1m to support M&A activity, working
capital and the restructuring costs.
Unaudited Unaudited Audited
As at As at As at
31 May 31 May 30 Nov
2023 2022 2022
GBP000 GBP000 GBP000
Underlying Interest 100 18 78
Interest element of lease
payments 17 34 46
Reported Interest 117 52 124
---------- ---- ------- ---------
Statutory Results and EBITDA Reconciliation
Adjusted EBITDA (before share based payments and exceptional
items) for the half year increased 2.1% to GBP2.1m (1H22: GBP2.0m).
A reconciliation of the adjusted EBITDA to statutory operating loss
of GBP1.7m (1H22: GBP0.1m loss) and to adjusted PAT of GBP1.2m
(1H22: GBP0.5m profit) is shown below:
Unaudited 6 months to 31 Unaudited 6 months to 31 Audited 12 months to 30
May 2023 May 2022 November 2022
GBP000 GBP000 GBP000
Adjusted EBITDA 1 2,062 2,020 5,101
Depreciation 2 (688) (979) (2,076)
Impairment of Fixed Assets 2 - - (966)
Amortisation 3 (808) (188) (702)
--------------------------- --------------------------- ---------------------------
Adjusted EBIT 566 853 1,357
Share based payments - (154) (309)
--------------------------- --------------------------- ---------------------------
Continuing Operations
operating profit -
pre-exceptional items 566 699 1,048
Exceptional items 4 (2,272) (830) (2,707)
--------------------------- --------------------------- ---------------------------
Continuing Operations
Statutory operating loss
- post exceptional items (1,706) (131) (1,659)
--------------------------- --------------------------- ---------------------------
Adjusted EBIT 566 853 1,357
Underlying interest (117) (52) (124)
Tax charge (91) (330) (1,031)
Impairment of Fixed Assets - - 966
Amortisation 808 - 702
Deferred taxation
adjustment in Norway - - 714
--------------------------- --------------------------- ---------------------------
Continuing Adjusted PAT 1,166 471 2,584
--------------------------- --------------------------- ---------------------------
Company
1) Adjusted EBITDA (before share based payments, depreciation,
intangible amortisation, acquisition, employee related costs, deal
related costs, and start-up costs) was GBP2.1m (1H22: GBP2.0m).
2) Depreciation reduced to GBP0.7m in 1H23 from GBP1.0m in 1H22,
following the impairment of fixed assets in Norway at the year
end.
3) Amortisation of intangible assets increased to GBP0.8m (1H22:
GBP0.2m), due to the customer contracts acquired with Clear
(GBP0.3m) and Harbour (GBP0.5m) being amortised over 24 months.
4) The Company incurred expenses in the period that are
considered exceptional in nature and appropriate to identify. These
comprise:
a. GBP1.3m (1H22: GBP0.1m) employee termination and redundancy
costs where internal restructuring has occurred.
b. GBP0.4m (1H22: GBP0.5m) 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
associated with the Harbour acquisition.
c. System development related costs of GBP0.5m (1H22: GBPnil).
d. GBP0.1m of other one-off costs (1H22: GBP0.2m)
Total Revenue and Adjusted EBITDA in 1H23 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
2023 2022 2022 2023 2022 2022
GBPm GBPm GBPm GBPm GBPm GBPm
Australia 12.8 12.6 26.5 2.2 2.2 5.0
Norway 1.9 1.9 4.0 0.2 0.5 1.0
------------------- -------------------- ----------- ---------- ---------- -----------
Pre-Central 14.7 14.5 30.5 2.4 2.7 6.0
Central Revenue
and Costs(1) 0.3 0.4 0.7 (0.3) (0.7) (0.9)
Total 15.0 14.9 31.2 2.1 2.0 5.1
------------------- -------------------- ---------- ----------
(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.62.6k as at 31 May 2023
(1H22: c.60.4k) was split as follows: Australia: 87% (1H22: 86%),
Norway: 13% (1H22: 14%).
The year-on-year analysis from both a revenue and EBITDA
perspective is explained as follows:
Australia
-- Revenue increased from GBP12.6m to GBP12.8m and is analysed as follows
o increase in revenue following customer acquisition from
Harbour - GBP0.9m
o decrease in revenue from net underlying Churn - (GBP0.2m)
o impact of currency reduced revenue - (GBP0.5m)
-- Adjusted EBITDA remained constant year-on-year at GBP2.2m and is analysed as follows
o Increase following acquisition - GBP0.3m
o Reduced GM% from 36% to 35% - (GBP0.4m)
o Cost reductions positive impact GBP0.1m
Norway
-- Revenue is in line with prior half year at GBP1.9m and is analysed as follows
o decrease due to the cyber-attack last year impacting 1.3k
customers - (GBP0.3m)
o fixed wireless decreased by mainly due to the demounting of
identified loss-making masts in period - (GBP0.1m)
o Revenue in 5G increased - GBP0.4m
-- Adjusted EBITDA decreased from GBP0.5m in 1H22 to GBP0.2m in
1H23 and is analysed as follows
o Reduction following cyber-attack and demounting -
(GBP0.3m)
o Increased from 5G - GBP0.1m
o Reduced GM% from 62% to 55% - (GBP0.5m)
o Cost reductions positive impactGBP0.4m
Central
-- Revenue reduced from GBP0.4m to GBP0.3m
o Due to a reduction in services to third parties -
(GBP0.1m)
-- Adjusted EBITDA improved from a loss of GBP0.7m to a loss of GBP0.3m
o Reduced from impact of lower revenue - (GBP0.1m)
o Cost reductions with positive impact GBP0.5m
Cash Flow Analysis:
Underlying Cashflow performance
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 2023 31 May 2022 30 Nov 2022
GBP000 GBP000 GBP000
Adjusted EBITDA 2,062 2,020 5,101
Underlying movement of working capital 1 (870) (1,314) 777
Forex and non-cash 2 (556) 595 (113)
------------- ------------- -------------
Underlying operating cash flow before interest, tax, Capex and
exceptional items 3 636 1,301 5,765
Tax and interest paid 4 (208) (382) (663)
Purchase of Assets 5 (216) (526) (1,432)
------------- ------------- -------------
Underlying free cash flow before exceptional and M&A items 212 393 3,670
Exceptional items 6 (1,500) 448 (2,707)
Investing activities 7 (2,621) (1,192) (1,154)
Movement in cash from discontinued operations 8 - - (120)
Proceeds from Loans 9 2,100 - -
Financing activities 10 (634) (308) (695)
------------- ------------- -------------
Decrease in cash balance (2,443) (659) (1,006)
------------- ------------- -------------
1) Underlying movement in working capital was an outflow of
GBP0.9m (1H22: outflow GBP1.3m), an improved working capital
position of GBP0.4m due in the main to
o an decrease in Trade & Other Receivables GBP0.6m
o a reduction in Trade Payables (GBP1.1m)
o lower inventory GBP0.6m
o and improved working capital movements GBP0.3m
2) Forex and non-cash outflow of GBP0.6m (1H22: inflow GBP0.6m)
relate to the exchange movement in the Consolidated Statement of
Comprehensive Income and the Consolidated Statement of Financial
Position (GBP0.5m) where AUD and NOK values are translated to GBP
for the Group reporting currency, 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 GBP0.6m
(1H22: GBP1.3m inflow) and an underlying operating cash flow to
EBITDA conversion of 30.9% (1H22: 64.4%).
4) Tax and interest paid was GBP0.2m (1H22: GBP0.4m). Tax paid
relates to the prepayment in Australia on the monthly revenue
(GBP0.1m), with the interest element being the fee on the undrawn
and drawn funds from the RCF
5) Purchases of assets were GBP0.2m (1H22 GBP0.5m). These relate
to Norwegian 5G FWA stock capitalised (GBP0.2m).
This resulted in an underlying Free Cash inflow before
exceptional items, M&A activities and financing activities in
the period of GBP0.2m (1H22: inflow GBP0.4m) and an underlying free
cash flow to EBITDA conversion of 74.4% (1H22: (10.0%)). Excluding
the currency translational impact this would have been an
underlying operating cash flow to EBITDA conversion of 95.1% (1H22:
34.9%).
6) Exceptional items of GBP1.5m (1H22: Inflow GBP0.4m) covers
completion payments (GBP0.1m) in respect of earlier M&A
activity, staff restructuring/redundancy costs in Norway (GBP0.4m)
and central (GBP0.5m), disposals and acquisitions (GBP0.2m) and
others (GBP0.3m).
7) Investing activities included the purchase of Uniti of
GBP2.7m (1H22: purchase of Clear Networks for GBP1.2m)
8) There were no operations discontinued during 1H23 (1H22: GBPnil).
9) Proceeds from the RCF facility with Santander.
10) In 1H23 the financing activities related to the principal
element of lease payments of GBP0.6m (1H22: GBP0.3m).
Statutory Cash flow Analysis
Underlying operating cash inflow was GBP0.6m in 1H23 (1H22:
Inflow of GBP1.3m).
Tax and interest paid increased to GBP0.2m in 1H23 from GBP0.4m
in 1H22, covering the monthly corporation tax payments on account
in Australia as well as interest payments.
The net summary of the above is an equity free cash inflow of
GBP0.2m in 1H23 (1H22: GBP0.4m inflow) which is summarised as
follows:
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 May 31 May 30 Nov
2023 2022 2022
GBP000 GBP000 GBP000
Underlying Operating Cash Flows(1) 636 1,301 5,765
Purchase of assets (216) (526) (663)
Interest and Tax (208) (382) (1,432)
------------- ------------- --------------
Equity free cash flow inflow 212 393 3,670
------------- ------------- --------------
Underlying Operating cash flow analysis - Underlying Operating Cash
Flow /Adjusted EBITDA 30.9 % 64.4% 113.0%
Underlying Operating cash flow analysis - Adjusted for currency -
Underlying Operating Cash
Flow (currency adjusted) /Adjusted EBITDA 95.1 % 34.9% 115.2%
Underlying Free cash flow analysis - Adjusted for currency -
Underlying Free Cash Flow (currency
adjusted) /Adjusted EBITDA 74.4 % (10.0%) 74.1%
(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
2023 2022 2022
GBP000 GBP000 GBP000
Cash 1,752 4,542 4,195
Debt (2,100) - -
------------- ------------- --------------
Net Cash / (Debt) (348) 4,542 4,195
------------- ------------- --------------
In the last twelve months (LTM) period, comparing 1H23 with
1H22, cash decreased by cGBP2.8m to GBP1.8m, from GBP4.5m,
excluding IFRS 16 liabilities. Along with the drawdown from the RCF
this results in a net debt position of GBP0.3m (1H22: GBPnil).
In the LTM period, we generated cash inflows of GBP5.1m, and
this was utilised as follows;
- investment in fixed assets of GBP1.1m
- purchase of intangibles GBP2.7m
- interest and tax GBP0.5m
- and other working capital elements GBP0.8m.
The table above excludes the lease liabilities of GBP0.9m
relating to IFRS 16 (1H22: GBP1.4m). Including this amount would
give a total net debt of GBP1.2m (1H22: net cash GBP3.1m).
Balance Sheet
Non-current assets have decreased in the last 12 months by
GBP1.1m to GBP17.1m (1H22: GBP18.2m) and are analysed as
follows
- Increased due to the acquisition of customer contracts from Harbour (Uniti) GBP2.7m
- Decreased by depreciation in the year (GBP2.7m)
- Decreased by amortisation in the year (GBP1.3m)
- Increased due to currency translation GBP0.2m
Capital expenditure in 1H23 was GBP0.2m (1H22: GBP0.5m) relate
to Norwegian 5G FWA stock capitalised.
Intangible Assets of GBP8.7m comprise Goodwill and other
intangibles (1H22: GBP7.9m). Of the increase of GBP0.8m,
- GBP2.7m relates to the customer acquisition by SkyMesh of the Harbour customer base,
- offset by a reduction in deferred consideration payments of GBP0.5m and
- amortisation of GBP1.4m.
Working Capital
Inventory days decreased to 19 days (1H22: 31 days) due to stock
sold to support the increasing 5G FWA sales in Norway.
Debtor days increased to 14 days (1H22: 10 days) due to delayed
collections associated with the Harbour acquisition and transfer of
base.
Creditor days decreased to 64 days (1H22: 87 days) due to cash
being used to improve our credit position with our suppliers,
specifically in our Norwegian business.
Total net debt, excluding lease liabilities, increased in the
year to GBP0.3m (FY22: Net cash GBP4.5m) 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 increased to 3.3p from 1.1p.
Statutory EPS Pence
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 May 31 May 30 Nov
2023 2022 2022
Basic EPS attributable to ordinary shareholders (3.3) (1.1) (5.0)
Diluted EPS from continuing operations (3.3) (0.9) (4.8)
Statutory basic EPS shows a loss of 3.3p (1H22: Loss 1.1p).
Diluted EPS increased to a loss of 3.3p (1H22: Loss 0.9p).
Frank Waters
CFO
Bigblu Broadband plc
Consolidated statement of comprehensive income
6 months ended 31 May 2023
Note
Unaudited Unaudited Audited
6 months 6 months to 12 months
to 31 May to
31 May 2022 30 Nov
2023 2022
GBP000 GBP000 GBP000
Revenue 14,965 14,894 31,220
Cost of goods sold (9,131) (8,662) (18,121)
------------ -------------- ------------
Gross Profit 5,834 6,232 13,099
Distribution and administration expenses 2 (6,044) (5,196) (11,014)
Depreciation (688) (979) (3,042)
Amortisation (808) (188) (702)
Operating Loss (1,706) (131) (1,659)
Interest Payable (117) (52) (124)
Loss before Tax (1,823) (183) (1,783)
Taxation charge (91) (330) (1,031)
------------ -------------- ------------
Loss from continuing operations (1,914) (513) (2,814)
Loss from discontinued operations - (101) (120)
------------ -------------- ------------
Loss for the period (1,914) (614) (2,934)
Foreign currency translation difference (570) 226 206
------------ -------------- ------------
Total comprehensive expense for the period (2,484) (388) (2,728)
------------ -------------- ------------
(Loss) / Profit per share
Total - Basic EPS 3 (3.3p) (1.1p) (5.0p)
Total - Diluted EPS 3 (3.3p) (1.1p) (5.0p)
Continuing operations - Basic EPS 3 (3.3p) (0.9p) (4.8p)
Continuing operations - Diluted EPS 3 (3.3p) (0.9p) (4.8p)
Discontinued operations - Basic EPS 3 - (0.2p) (0.2p)
Discontinued operations - Diluted EPS 3 - (0.2p) (0.2p)
Adjusted earnings per share from continuing operations
Total - Basic EPS 3 2.0p 0.8p 4.4p
Total - Diluted EPS 3 2.0p 0.8p 4.4p
Bigblu Broadband plc
Consolidated statement of financial position
As at 31 May 2023
Note Unaudited Unaudited Audited
As at As at As at
31 May 31 May 2022 30 Nov
2023 2022
GBP000 GBP000 GBP000
Non-Current Assets
Intangible assets 8,730 7,880 7,433
Property Plant and Equipment 2,209 3,879 2,881
Investments 5,911 5,750 5,830
Deferred Tax asset 282 717 303
---------
Total Non-Current Assets 17,132 18,226 16,447
---------- ------------- ---------
Current Assets
Inventory 937 1,577 1,142
Trade Debtors 1,215 851 773
Other Debtors 431 1,354 1,562
Cash and Cash Equivalents 1,752 4,542 4,195
Total Current Assets 4,335 8,324 7,672
---------- ------------- ---------
Current Liabilities
Trade Payables (3,242) (4,364) (4,223)
Recurring Creditors and Accruals (2,326) (2,958) (2,363)
Other Creditors (54) (991) (534)
Payroll taxes and VAT (587) (359) (924)
Lease liabilities (633) (487) (795)
Provisions for liabilities
and charges (685) (685) (685)
Total Current Liabilities (7,527) (9,844) (9,524)
---------- ------------- ---------
Non-Current Liabilities
Loans and debt facilities (2,100) - -
Lease liabilities (300) (865) (559)
Deferred taxation (601) (288) (646)
---------- ------------- ---------
Total Non-Current Liabilities (3,001) (1,153) (1,205)
---------- ------------- ---------
Total Liabilities (10,528) (10,997) (10,729)
---------- ------------- ---------
Net Assets 10,939 15,553 13,390
---------- ------------- ---------
Equity
Share Capital 8,777 8,755 8,763
Share Premium 8,608 8,589 8,589
Other Reserves 4 19,777 20,178 20,347
Revenue Reserves (26,223) (21,969) (24,309)
---------- ------------- ---------
Total Equity 10,939 15,553 13,390
---------- ------------- ---------
Bigblu Broadband plc
Consolidated Cash Flow Statement
6 months ended 31 May 2023
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
31 May 2023 31 May 2022 30 Nov
2022
GBP000 GBP000 GBP000
Loss after tax from Continuing operations (1,914) (513) (2,814)
(Loss)/Profit after tax from Discontinued
operations - (101) (120)
------------ ------------ ------------
(Loss)/Profit for the year including
Discontinued operations (1,914) (614) (2,934)
Interest 117 52 124
Taxation 91 330 1,031
Amortisation of intangible assets 808 188 702
Depreciation of property, plant and
equipment - owned assets 424 699 2,281
Depreciation of property, plant and
equipment - ROU assets 264 280 761
Share based payments - 154 309
Foreign exchange variance and other
non-cash items (556) 595 (102)
Movement in working capital (217) (2,879) (2,021)
------------ ------------ ------------
Operating cash flows after movements
in working capital (983) (1,195) 151
Interest paid (117) (52) (124)
Tax paid (91) (330) (539)
------------ ------------ ------------
Net cash generated/(used) in operating
activities (1,191) (1,577) (512)
Investing activities
Purchase of property, plant and equipment (216) (526) (1,191)
Purchase of intangibles and investments (2,621) (1,091) (1,452)
Payment of deferred consideration (310) - -
Proceeds from sale of subsidiary - 2,843 2,843
------------ ------------ ------------
Net cash generated / (used) in investing
activities (3,147) 1,226 200
------------ ------------ ------------
Financing activities
Proceeds from issue of ordinary share
capital 36 6 14
Loans drawn down 2,100 - -
Principal elements of lease payments (241) (314) (708)
------------ ------------ ------------
Cash generated/(used) from financing
activities 1,895 (308) (694)
------------ ------------ ------------
Net increase / (decrease) in cash and
cash equivalents (2,443) (659) (1,006)
Cash and cash equivalents at beginning
of period 4,195 5,201 5,201
Cash in disposal group held for sale - - -
------------ ------------ ------------
Cash and cash equivalents at end of
period 1,752 4,542 4,195
------------ ------------ ------------
Bigblu Broadband plc
Condensed consolidated Reserves Movement
6 months ended 31 May 2023
Share
Capital Share Premium Other Reserves Revenue Reserve Total
GBP000 GBP000 GBP000 GBP000 GBP000
Note 4
--------- -------------- --------------- ---------------- -----------
At 31 May 2022 8,755 8,589 20,178 (21,969) 15,553
--------- -------------- --------------- ---------------- -----------
Profit for the
period - - - (2,320) (2,320)
Issue of shares 8 - - - 8
Share option
reserve - - 155 - 155
Foreign Exchange
Translation - - 14 (20) (6)
At 30 November
2022 8,763 8,589 20,347 (24,309) 13,390
Loss for the
period - - - (1,914) (1,914)
Issue of shares 14 19 - - 33
Foreign Exchange
Translation - - (570) - (570)
--------- -------------- --------------- ---------------- -----------
At 31 May 2023 8,777 8,608 19,777 (26,223) 10,939
--------- -------------- --------------- ---------------- -----------
Bigblu Broadband plc
Notes to the financial statements
For the period ended 31 May 2023
1. Presentation of financial information and accounting
policies
Basis of preparation
The condensed consolidated financial statements are for the half
year ending 31 May 2023.
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 UK. The financial statements have been prepared on the
historical cost basis, except for the revaluation of financial
instruments.
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 2023 the Company generated an adjusted EBITDA
before exceptional items in the Consolidated statement of financial
position, of GBP2.1m (1H22: GBP2.0m), and with cash inflow from
operations of GBP0.6m (1H22: inflow of GBP1.3m) and a net decrease
in cash and cash equivalents of GBP2.8m in the year (1H22: increase
GBP0.4m). The Company balance sheet showed net debt at 31 May 2023
of GBP0.3m (1H22: net cash GBP4.5m). 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 current global economy
situation 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 showing a positive position compared to prior year and current
forecasts. 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.
As a consequence, 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 2022.
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 2023 31 May 2022 30 Nov 2022
GBP000 GBP000 GBP000
Employee related costs 2,160 2,608 5,164
Marketing and communication
costs 720 711 1,339
Finance, Legal, IT, banking,
insurance, logistics, domains
AIM and Other costs 892 893 1,495
--------------------------------------- ------------ ------------- -------------
Underlying costs 3,772 4,212 7,998
% of Revenue 25.2% 28.3% 25.6%
--------------------------------------- ------------ ------------- -------------
Share based payments - 154 309
Professional and legal related
costs associated with corporate
activity and restructuring /
redundancy costs 2,272 830 2,707
Identified Exceptional Costs 2,272 984 3,016
% of Revenue 15.2% 6.6% 9.6%
Total 6,044 5,196 11,014
---------------------------------- ----------------- ------------- -------------
% of Revenue 40.4% 34.9% 35.2%
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 and weighted average number of shares
used in the calculation are set out below:
Unaudited Unaudited
6 months 6 months Audited
to to 12 months
31 May 31 May to 30 Nov
2023 2022 2022
GBP000 GBP000 GBP000
----------- ----------- -----------
Loss for the period (1,914) (614) (2,934)
----------- ----------- -----------
Loss for the period from
continuing operations (1,914) (513) (2,814)
Loss for the period from
discontinued operations - (101) (120)
----------- ----------- -----------
Loss attributable to shareholders (1,914) (614) (2,934)
Add exceptional items 2,272 830 2,707
Add Share Based Payment - 154 309
Add loss from discontinued
operations - 101 120
Impairment of Fixed Assets - - 966
Amortisation 808 - 702
Deferred taxation adjustment
in Norway - - 714
----------- ----------- -----------
Adjusted profit attributable
to shareholders 1,166 471 2,584
------------------------------------ ----------- ----------- -----------
EPS Pence
Basic EPS(1) (3.3p) (0.9p) (4.8p)
Basic EPS from discontinued
operations(2) - (0.2p) (0.2p)
----------- ----------- -----------
Total basic EPS attributable
to ordinary shareholders(3) (3.3p) (1.1p) (5.0p)
----------- ----------- -----------
Adjusted basic EPS(4) 2.0p 0.8p 4.4p
----------- ----------- -----------
Diluted EPS from continuing
operations(1) (3.3p) (0.9p) (4.8p)
Diluted EPS from discontinued
operations(2) - (0.2p) (0.2p)
----------- ----------- -----------
Total diluted EPS attributable
to ordinary shareholders(3) (3.3p) (1.1p) (5.0p)
----------- ----------- -----------
Adjusted diluted EPS(4) 2.0p 0.8p 4.4p
----------- ----------- -----------
Weighted average shares 58,505,079 58,352,525 58,376,211
Weighted average diluted
shares 58,874,820 59,880,537 58,828,959
------------------------------------ ----------- ----------- -----------
(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 Reverse exchange Share Capital Total
Cost acquisition translation option redemption capital
Reserve Reserve reserve reserve reserve reserves
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 31 May 2022 (219) (3,317) (2,560) 154 26,120 20,178
-------- ------------ ------------ -------- ---------- ---------
Foreign Exchange
Translation - - 14 - - 14
Equity settled Share
based payments - - - 155 - 155
-------- ------------ ------------ -------- ---------- ---------
At 30 November
2022 (219) (3,317) (2,546) 309 26,120 20,347
Foreign Exchange
Translation - - (570) - - (570)
At 31 May 2023 (219) (3,317) (3,116) 309 26,120 19,777
-------- ------------ ------------ -------- ---------- ---------
-- Listing cost reserve
-- The listing cost reserve arose from expenses incurred on AIM listing.
-- 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 differences 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.
-- 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. Intangible assets recognised in a business combination
Intangible assets acquired in a business combination and
recognised separately from goodwill are initially recognised at
their fair value at the acquisition date.
Amortisation is charged to profit or loss on a straight-line
basis (Within administration expenses) over the estimated useful
lives of the intangible asset unless such lives are indefinite.
These charges are included in other expenses in profit or loss.
Intangible assets with an indefinite useful life are tested for
impairment annually. Other intangible assets are amortised from the
date they are available for use. The useful lives are as
follows:
-- Customer Contracts - 2 years
-- Intellectual Property - 3 years
7. 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.
A copy can also be downloaded from the Company's website at
https://www.bbb-plc.com
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END
IR DBGDILBDDGXI
(END) Dow Jones Newswires
August 29, 2023 02:00 ET (06:00 GMT)
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