Results round-up

Fibre optic infrastructure designer, builder, owner, and operator CityFibre announced the acquisition of the entire metropolitan local access duct and fibre network assets of Redcentric on Monday.

The AIM-traded firm said the acquired assets comprise 137 kilometres of duct and fibre networks serving 188 Redcentric customer connections, with principal footprints covering Cambridge, Portsmouth and Southampton, along with complementary incremental coverage in the existing CityFibre footprints of Nottingham, Derby and Northampton.

“With this agreement, CityFibre expands its metro fibre presence to 40 cities, including 25 of the top 30 cities outside Greater London,” the company’s board said in a statement.

The transaction structure follows CityFibre's standard anchor formula, with the group paying a cash consideration of £5.0m in return for a commitment from the vendor to a minimum revenue guarantee of £4.5m under a 10-year lease-back agreement for continued use of the network to serve its existing customer base.

“The expanded CityFibre footprint now addresses an estimated 28,000 public sector sites, 280,000 businesses, 7,800 cell sites and 4 million homes.”

At the same time, CityFibre posted its interim results for the six months to 30 June, with turnover up 147% year-on-year to £6.6m and a stable gross margin at 86%.

Adjusted EBITDA turned positive during the period, at £0.4m, compared with a £1.8m loss in the first half of 2015.

New contracts with initial contract value of £53.8m were added during the period, against £23.2m for the full 2015 financial year and £8.1m in the first half of last year.

At the period end cash, cash equivalents and short term deposits totalled £18.1m, with net debt of £26.7m.

“We have had a very strong six months underpinned by an excellent performance by our commercial and operations teams, in which we have amassed a significant new business pipeline,” said CityFibre CEO Greg Mesch.

AIM listed coloured gem stone miner Gemfields’ full year revenues and profits rose as it increased production at its Zambia and Mozambique emerald and ruby mines.

For the year ended 30 June, revenue increased by 12.6% to $193.1m, compared to the previous year, which resulted in a 91% rise in profit after tax of $23.5m.

Earnings before interest, tax, depreciation and amortisation rose 7.7% to $69.4m, while there was a 90% increase in post-tax profit year of $23.5m.

Though the cost of gemstones and Fabergé inventory rose 6% to $107.2m, Gemfields almost doubled operating cash flow to $64.1m so by the end of June had cash of $41.5m, a 48% increase, and had cut net debt to $10.00m from $16.7m.

Rough emerald and beryl production was maintained at 30m carats, though production of rough ruby and corundum rose 22.6% to 10.3m carats, which exceeded guidance.

Global imports of emeralds, rubies and sapphires rose 13% to $5.9bn.

Chief executive Ian Harebottle said the company’s strategy is to grow production over time from the Kagem and Montepuez mine, increase consumer demand and achieve higher prices for its rough gemstones year-on-year.

He added: “The company continues to see opportunities in new and existing markets for further price escalation. For the coming financial year Gemfields is targeting four emerald and beryl, two high and two commercial quality, auctions and two mixed quality ruby and corundum auctions.

“In addition, to meet the rising demand for coloured gemstones, the company secured financing in the year to realise its expansion programme which will see higher production at both the Kagem and Montepuez operations over the next three years."