CityFibre sees sales rise 115 per cent

CityFibre, which designs, builds, owns and operates wholesale fibre optic infrastructure enabling gigabit connectivity in UK towns and cities, said turnover was up 115 per cent to £2.7m.

The firm also said it narrowed losses, with adjusted EBITDA loss reduced 8 per cent year-over-year to £1.8m, leaving it on track to meet market expectations.

CityFibre said it added total contract value (TCV) of £8.1m, versus £11.1m for the full financial year of 2014, and that gross margins had expanded.

Greg Mesch, CEO of CityFibre, said: “We are delighted to report a strong six months trading for the group, as demonstrated by the nearly equal contributions made to TCV growth from new anchor contracts and incremental sales on existing assets.

“Our ability to further expand our UK footprint has been clearly demonstrated so far this year by our two anchor contract wins in Edinburgh, which together are the equivalent value of more than two of our previous city projects combined.”

The group also highlighted record incremental sales in York, bringing the total cumulative TCV on the network to £8m, an increase of 88 per cent over the original anchor.

Mr Mesch said: “Our other projects continue to exceed expectations in terms of incremental business added on top of anchor contracts, with both Peterborough and Hull already demonstrating a faster rate of commercialisation than expected.

“Alongside this growth we expanded gross margin by a further one percentage point over financial year 2014’s level, and four percentage points year-over-year, demonstrating our commitment to a disciplined approach to new business.

“We continue to see strong demand for our services and remain well-positioned to deliver further growth and gain ongoing market traction during the remainder of 2015.”