Bigblu Broadband swings to loss, CEO resigns upon Brdy buy-out

(Alliance News) - Bigblu Broadband PLC on Monday reported decreased revenue and a pretax loss for ...

Alliance News 20 May, 2024 | 10:11AM
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(Alliance News) - Bigblu Broadband PLC on Monday reported decreased revenue and a pretax loss for its latest year, and announced the sale of its Norway operations.

Shares in Bigblu traded 11% lower at 37.20 pence each on Monday morning in London.

The London-based broadband solution provider in the Nordic and Australasia regions said that in the year to November 30, for continuing operations, it swung to a GBP2.0 million pretax loss following the prior year's GBP453,000 profit.

Including the discontinued Norwegian operations, the post-tax loss widened to GBP4.7 million from GBP2.9 million.

Bigblu said revenue from continuing operations declined 4.8% to GBP25.9 million from GBP27.2 million. Revenue net of discontinued operations decreased 3.5% to GBP30.1 million from GBP31.2 million.

Bigblu declared no dividend for the year, unchanged from the prior period.

Looking ahead, Bigblu "is focused on continuously improving the underlying Australian business unit performance by addressing the challenges posed by Starlink and other LEO operators in the Australian market, hence the importance of the recently announced contract with Starlink".

In December, it had announced an approximate GBP2.0 million investment in a distribution contract with SpaceX business Starlink, helping it to "offer customers an extended suite of products covering all their needs".

Bigblu furthermore noted its focus on helping Quickline Communications Ltd, in which it holds a minority stake, "in realising its potential whilst at the same time reducing central plc costs to reflect the reduced size of the group".

Also on Monday Bigblu announced the buy-out of its Norwegian operations, comprising Oslo-based Brdy AS and Brdy Nordics AS with a GBP1.3 million enterprise value, by Group Chief Executive Officer Andrew Walwyn and the local management team. The new company, Brdy Holding AS, is currently under construction.

As a result, Bigblu said CEO Walwyn has resigned with immediate effect to prevent any perceived or possible future conflicts of interest. He remains a major shareholder of Bigblu, which he founded in 2008.

Bigblu has promoted Chief Financial Officer Frank Waters, who joined the firm in 2013, to CEO. He is supported by Ray Vaughan, who serves as the new CFO in Australia. Further, Vaughan is promoted to the role of CFO of Skymesh, BigBlu's only remaining trading operations.

By Emma Curzon, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Bigblu Broadband PLC 37.20 GBX -4.62 -

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