A good start but AIM administration costs added to CityFibre losses

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Network specialist CityFibre’s losses mounted last year following flotation costs although the group reported a good start to 2015.

Revenue surged 105 per cent in 2014 to £3.8m, but the group reported a pre-tax loss of £7.1m, up from £6.2m, following a near doubling of administration costs as a result of its listing on AIM last January.

The firm, alongside joint venture partners Sky and TalkTalk, has unveiled plans to turn York into the UK’s first Gigabitcity with the fastest broadband speeds in the UK.

The group is the UK’s largest independent provider of fibre infrastructure, with a focus on mid tier cities such as York, Doncaster and Hull.

CityFibre’s CEO Greg Mesch​ said: “2014 was a truly transformational year for CityFibre in which we secured four new city project wins, a landmark joint venture with Sky and TalkTalk, a national framework agreement with two leading mobile network operators, and £46.5m of additional equity funding.”

He added that the group has started 2015 well, with £6m in new contracts added so far.

Analyst Andrew Darley at FinnCap said: “Preliminary results are in line with expectations, after a successful year which proved every aspect of the aims set out at IPO. The city projects now underway in York, Peterborough, Coventry, Aberdeen, Edinburgh, Hull, Kirklees, and Newport offer examples of anchor relationships with all four styles of service provider. Management has proved the model.”

Earlier, CityFibre raised concerns about BT’s acquisition of EE after a call for comments from the Competition and Markets Authority.