Bigblu Broadband - H219 trading in line, confident in FY20
Bigblu’s trading statement confirmed an H2 performance in line with expectations. Actions to cleanse the customer base should yield operational benefits over time and the above consensus year-end net debt figure (£14m vs £9m) primarily reflected a Brexit-driven inventory build that should reverse in the next few months. Bigblu remains confident in FY20 consensus (see below), which implies an acceleration in revenue growth.
06 Dec 19
Bigblu Broadband - Funding to accelerate UK growth
Bigblu has secured £12m in funding to accelerate the growth of its UK Fixed Wireless Access (FWA) subsidiary QCL. By combining this money with grants from BDUK and investment from internal cashflows, QCL expects to quadruple its subscriber base to 30,000 by November 2022.
14 Aug 19
Bigblu Broadband - Need for broadband speed boosts H119 results
Bigblu Broadband’s (BBB’s) trading update flags good progress in H1, with l-f-l constant currency revenue and underlying EBITDA up 22% and 54% year-on-year, respectively. The completion of BBB's European footprint and the extension of the 50 Mbps offer across the European base helped the group to achieve record new customer additions in Q2, as well as increasing take-up of higher-value packages among existing customers. With the additional benefit of falling customer churn, the group was able to achieve a 6.3pp widening in gross margin to 43.7%. The expected launch of Eutelsat's Konnect satellite in December and the resultant launch of 100 Mbps packages to the group's core European base should add further impetus to revenue and earnings growth through end-2020.
01 Jul 19
Small Cap Feast
IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas w hich have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC
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25 Jun 19
Bigblu Broadband - Exponential increases in speeds widen market
In 2018, Bigblu Broadband (BBB) made substantial strategic progress, positioning itself at the forefront of the alternative high-speed broadband sector in Europe and Australia. With a completed European footprint, the group is now well-placed to profit from the abundance of faster, cheaper satellite capacity coming on stream in the coming years, which should enable it to take market share from ADSL and fibre to the cabinet (FTTC) and reduce churn. BBB trades at an FY1 consensus EV/EBITDA of 7.7x, a 34% discount to the UK small-cap telco sector.
04 Apr 19
'Fibre from the sky'
Bigblu Broadband has an enormous total addressable market across multiple geographies. It is at the forefront of facilitating a seismic shift in consumer and commercial consumption patterns as fast, reliable broadband is increasingly viewed as a utility due to the internet's omnipresence. The Group is to an extent technologically agnostic with its core focus on connecting customers unserved or underserved by fibre networks and connecting them to superfast alternative broadband technologies. A continued improvement in the marketable products as a result of new satellite launches in 2019 and 2021 should further increase an already sizeable target market. From 2021, we expect the Group to be able to advertise fibre-like download speeds and data allowance packages due to greater satellite economics for Viasat-3 and Konnect VHTS satellites. New fixed wireless technologies (mainly mmWave) and spectrum also mean the Group is already deploying gigafast networks (1 Gbps) in some areas backed by BDUK funding. Management have made 20 acquisitions since listing on AIM in 2015 and the core focus is now on capitalising on a vast opportunity, thereby driving organic growth as more customers subscribe to bigblu's product set. We initiate coverage with a 192p target price and Buy recommendation.
04 Apr 19
Bigblu Broadband - New partner, strong organic growth prospects
Bigblu Broadband (BBB) has established a strong position as an alternative and rural broadband provider across multiple geographies using satellite, fixed wireless and 4G/5G technologies. Its customers are homes and businesses unserved or underserved by fibre and the group is in a strong position to leverage the heavy investment made by satellite operators in high-speed broadband as well as its own selective roll-out of ultrafast and giga-fast fixed wireless services. With Bigblu set for strong organic growth and well established in key markets, the days of high M&A and equity issuance also appear to be over.
26 Feb 19
Small Cap Feast
PetroTal Corp is an oil and gas company whose shares are currently admitted to trading on the TSXV. The Company is focused on development of oil and gas assets in Peru and it currently has controlling interests in three onshore Peru license blocks. No new funds being raised. Due 21 Dec. Mkt cap c.£80m Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC. Due 18 Dec. Mkt Cap A$64m. Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is due to start trading on AIM 14 December. Raising £2m at 290p. Mkt cap at issue price £13.6m. Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected mid December.
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12 Dec 18
Small Cap Dinner
Litigation Capital Management—provider of litigation financing and ancillary services, moving from ASX (ASX:LCA) to AIM. Offer TBC. Due 18 Dec. Mkt Cap A$64m. Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is investigating the possibility of AIM admission. The Company is proposing to raise up to £2.25 million before the end of December, conditional on Admission. Manolete Partners—leading UK insolvency litigation financing business looking to join AIM raising £16.3m as a placing and £13.1 realised by the selling shareholder at 175p. Market cap £76.3m, expected 14 December Titon holdings—international manufacturer and supplier of ventilation systems and window and door hardware. No capital raise. Due 10 Dec. Mkt cap c.£22m. Greenfields Petroleum (TSX-V:GNF) production focused company with operated assets in Azerbaijan seeking AIM dual listing including $60m private placement. Mkt cap $12.6m CAD. Expected early December.
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06 Dec 18
Small Cap Breakfast
Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months. Path Investments (PATH) -RTO of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Offer TBA. Due late Aug. Kropz PLC-Intention to float by the emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa and exploration assets in West Africa
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30 Aug 18