The fibre optic infrastructure provider for UK towns and second-tier cities has signed its largest ever deal.
Companies: Cityfibre Infrastructure
Cityfibre (LON: CITY), the provider of fibre optic infrastructure to UK towns and second-tier cities has penned a deal for its "largest project to date" to extend its existing Gigabit City Network in Glasgow.
The £15.7m, 19-year deal will see the Group work alongside Commsworld to construct 243km of fibre infrastructure to 506 Glasgow City Council-owned sites. This is an addition to the existing 50km network the Group constructed in central Glasgow in 2016.
The initial seven-year term is worth £6.4m to the Group, with the option to extend up to 19 years. The deal represents not only the Group's largest ever project but the "largest UK public services metro network award in 2017".
Key sites to benefit from CityFibre's investment will include "schools, libraries, leisure centres, arts venues and council offices" the update said.
Greg Mesch, CEO of CityFibre, commented:
"Following on the heels of our recent contract win in Aberdeen, today's agreement marks a strong end to a very eventful year for CityFibre and again underlines the ongoing robust demand from the public sector for world-class digital infrastructure to enhance economic development and competitiveness."
News of the deal sent shares in CITY up 4% in early trading, with shares down 1% on yesterday's price at the time of writing.
CITY shares have followed a similar pattern to today's fluctuations all year, hitting a low of 39p in September from a high of 70p in May. The Group is forecast to report a Net Loss of £9m from Revenues of £31m in its next full-year results, due in early 2018.
