13 Jan 2017 07:00
13 January 2017
Manx Telecom Plc
Pre-Close Trading Update
Manx Telecom Plc (AIM:MANX; the "Company"), the leading communication solutions provider on the Isle of Man, is pleased to announce its pre-close trading update.
The Board confirms that trading during 2016 has been in line with management expectations with cash flow continuing to support a progressive dividend.
The performance of the Company's core domestic business of Fixed Line, Broadband, Data and Mobile remained solid during the year. Availability of high speed broadband services continues to grow, now reaching 93% of premises, and take up continues to expand with 40% of our broadband customer base now on VDSL or VDSL+. Our 4G network continues to perform well and mobile subscriber numbers are up year on year, with our promotions in the lead up to the Christmas period proving particularly successful.
As anticipated by management and communicated in the interim results, revenue levels in our data centre business were lower than 2015 due to a decline in low margin kit sales and data centre usage driven by some customer consolidation. This revenue reduction was largely offset by a return to good levels of growth in our Global Solutions business. We continue to see growth across the product range, particularly in our Strongest Signal Mobile solution, branded Chameleon, M2M and international traveller propositions. In December 2016 we announced an agreement with China Unicom under which Manx Telecom will provide connectivity to facilitate China Unicom's UK mobile and roaming product.
In October 2016 the Company launched a programme aimed at improving competitiveness and the customer experience by reshaping the organisation, streamlining processes and investing in supporting technology. We expect to incur exceptional costs of approximately £10m over a two year period with most of the financial improvements starting to accrue in 2018 and we will provide further detail at the full year results.
Preliminary results for the year ended 31 December 2016 are due to be announced on 15 March 2017.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/ 2014.
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For further enquiries, please contact:
Manx Telecom plc | +44 (0) 1624 636400 |
Gary Lamb, CEO Danny Bakhshi, CFO
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Liberum Capital (Nominated Adviser and Corporate Broker) | +44 (0)20 3100 2000 |
Steve Pearce Steve Tredget
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Oakley Capital (Financial Adviser) | +44 (0) 20 7766 6900 |
Christian Maher Victoria Boxall
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Powerscourt Group (Public Relations) | +44 (0) 20 7250 1446 |
Simon Compton Hattie O'Reilly |
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About Manx Telecom
§ Manx Telecom is the leading communication solutions provider on the Isle of Man, offering a wide range of fixed line, broadband, mobile, and data centre services to businesses, consumers and the public sector on the Isle of Man as well as a growing portfolio of innovative hosting and "Smart SIM" solutions to off-Island customers.
§ Manx Telecom has a record of innovation, being the first European operator to launch a 3G mobile service and the first in the world to launch a 3.5G mobile service. 4G service launched in the summer of 2014, and it is now available to contract and pre-pay customers with 99% population coverage. The Company's high speed VDSL broadband service (Ultima) is available to 93 per cent of homes on the Island. A VDSL Plus service launched in February 2015.
§ The Company has three data centres (two of which are Tier 3 designed) plus international connectivity and its operations are business-critical to the economic strategy of the Isle of Man.
§ One of the largest employers on the Island, Manx Telecom employs approximately 300 people. The company plays a major role in the wider community through a range of activities, including charitable donations, sponsorships, and corporate social responsibility initiatives.
§ The company is proud to sponsor the Manx Telecom Parish Walk, Tough Mann Adventure Challenge, Manx Telecom End2End Mountain Bike Challenge, Team Manx Telecom (Manx Road Club), and Royal Manx Agricultural Show as well as other smaller events. Manx Telecom also donates annually to local causes through the company's "It's our Community" programme.
§ The Isle of Man has a resilient and growing economy which has experienced 31 years of unbroken GDP growth. Unemployment is low at 1.3 per cent, and there is a zero per cent corporate tax rate which applies to the vast majority of Manx Telecom's business and means that the Group currently pays no corporation tax on its annual profits.
§ Manx Telecom is listed on the Alternative Investment Market of the London Stock Exchange with the ticker MANX.