21 Dec 2017 07:00
For immediate release | 21 December 2017 |
CITYFIBRE INFRASTRUCTURE HOLDINGS PLC
('CityFibre' or the 'Group' or the 'Company')
MAJOR PSN CONTRACT WIN
CityFibre signs 19 year framework agreement with Commsworld for Glasgow City Council
CityFibre (AIM: CITY), a leading designer, builder, operator and owner of fibre optic infrastructure in UK towns and cities, is pleased to announce its largest public sector award to date, extending its existing Gigabit City network in Glasgow to 506 Glasgow City Council ('GCC') owned sites in an agreement with a lifetime value of £15.7m over 19 years.
The initial seven-year term carries a minimum initial contract value ('ICV') of £6.4m, with options to extend to a maximum of 19 years, and will be delivered in conjunction with national telecommunications provider Commsworld. The deal represents CityFibre's largest project to date and the largest UK public services metro network award in 2017.
The construction of an additional 243km of new core network infrastructure will be required to connect the 506 sites across the GCC estate, along with 15 BT exchange-to-exchange links. This will supplement the 50km of existing core metro infrastructure in Central Glasgow built to satisfy existing contracts with HighNet, Capita and Commsworld in the enterprise and public sector market verticals.
The combined network, designed and deployed under CityFibre's Well Planned City methodology, will provide the backbone for transformative digital initiatives across further enterprise FTTP, as well as FTTT for mobile operators, and lay the groundwork for a potential extensive FTTH build across the city in future.
Key sites to benefit from CityFibre's investment will include schools, libraries, leisure centres, arts venues and council offices. The network will also be open to CityFibre's 1500 ISP channel partners to provide next generation connectivity to over 17,000 businesses throughout the city.
Greg Mesch, CEO of CityFibre, commented:
"This award demonstrates the potential for forward-thinking local authorities to attract the private investment in their digital infrastructure that is so critical to their future success.
"The city's full-fibre spine will be built with the future in mind, capable of supporting 5G mobile networks and laying the ground-work for an inevitable roll-out of fibre to every home and business in the city.
"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.
"This will be the largest public-sector project in our history and makes us the leading digital infrastructure provider to the public sector in Scotland. We look forward to working with our partners, Commsworld and CGI, to usher in a full-fibre future to even more Scottish cities."
For further information, please contact:
CityFibre Infrastructure Holdings plc | www.cityfibre.com |
Greg Mesch, Chief Executive Officer | Tel: 020 3510 0602 |
Terry Hart, Chief Financial Officer | Tel: 020 3510 0602 |
James Enck, Investor Relations Morten Singleton, Investor Relations | Tel: 0333 150 6283 Tel: 0333 150 6270 |
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finnCap (Nomad and Joint Broker) | www.finncap.com |
Stuart Andrews / Christopher Raggett (Corporate Finance) | Tel: 020 7220 0500 |
Simon Johnson (Corporate Broking) |
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Liberum (Joint Broker) | www.liberum.com |
Steve Pearce / Richard Bootle | Tel: 020 3100 2000 |
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Vigo Communications | www.vigocomms.com |
Jeremy Garcia / Fiona Henson | Tel: 020 7830 9701 |
About CityFibre:
· CityFibre is the national builder of Gigabit Cities. The Company's strategy is to establish CityFibre as a leading alternative wholesale full fibre network provider to Openreach in its chosen markets. It has metro duct and fibre footprints in 42 towns and cities across the UK and a long distance network that connects 22 towns and cities to data-centres in London and the UK regions.
· The Company has an extensive customer base spanning service integrators, enterprise and consumer service providers and mobile operators providing a portfolio of active and dark fibre services. The Company estimates that CityFibre's networks have an addressable market of approximately 43,820 public sites, 7,300 mobile masts, 349,400 businesses and 4.383 million homes.
· CityFibre is based in London, United Kingdom, and its shares trade on the AIM Market of the London Stock Exchange (AIM: CITY). Further information on the Company can be found at www.cityfibre.com
The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.