Finance Update

Financial-Update

​Revenue

  • We added £12.0m of revenue in October, so year-to-date, after 9 months of trading (i.e. from February 2019 – October 2019) we have accumulated a total revenue of £106m.    
  • This is £11.5m more than the same point in time last year (i.e. October 2018).   
  • On the positive side, this represents growth versus last year of 12.1%, of a pure organic nature, in a challenging market.    
  • As you can see in the chart below, the blue bar which represents this year's performance, i.e. FY20 is taller than the orange bars, the orange bar representing last year's performance, i.e. FY19.   
  • On the negative side, this is a performance that is considerably below the business plan we set at the beginning of the year, when we set a stretch target to close the year on £150m.   
  • Our latest forecasts suggest we will finish the year around the £142m mark.

Capex Investments

Last month I made the point that we invest considerable amounts to employ great people. This month, I want to underline our investment into technology, which you can break down into three parts:

  1. To meet our customers' demand
  2. To feed and water our existing infrastructure… making the necessary enhancements and upgrades to future proof our customer offering
  3. The new investments which open up new markets or give us new assets.

This year we have invested £1.5m every month into technology, so year-to-date, that makes a total of £13.5m.

Where does this money go?

To meet Our Customers' Demand

  • We have invested £9m (67%) into buying the necessary technology solutions to support the delivery of new services for our customers.Broadly, you can split this investment into thirds:
    • £3m for tail circuits
    • £3m for network hardware
    • £3m for cloud/UC /security hardware and software

Feed and Water the Existing Infrastructure

  • £3m (22%) is spent to deliver business as usual core engineering capacity projects such as:
    • Network future-proofing/capacity upgrades
    • The LD1 migration from the DC closure
    • Cloud compute and storage capacity
    • UC BroadSoft software licenses

New Investments

  • The remaining £1.5m (11%) represents investment expenditure across many projects:
    • The facilities works to upgrade 5th floor
    • Research and development- the engineering costs associated with the design of new products
    • Software defined data centre- the foundation of SD-WAN
    • DDOS toolsets for core security offering
    • New PoPs (not cafes) to expand geographic reach