Manx Telecom, the leading communication solutions provider on the Island, has announced its results for the year ended 31st December 2014.
Financial Highlights
- Revenue of ?79.3m, up 4.2% (2013: ?76.0m)
• Fixed line, Broadband and Data revenues grew 1.1% driven by good take-up of high speed broadband
• Strong growth in Global Solutions revenue with a 23% increase as a result of increased wholesale volumes, machine-to-machine (M2M) and Strongest Signal Mobile (branded Chameleon) services revenue
• Steady growth in Data Centre revenues, increasing 2.3%
• Decline in Mobile revenues of 4.4%, as expected, due to a reduction in mobile termination rates
- As expected underlying EBITDA decreased moderately year on year to ?27.1m due to the incremental costs of being a public company
- Continued strong cash generation with operational cash flow up 3.6% and cash conversion from underlying EBITDA greater than 100%.
- Net debt of ?53.7m, equivalent to net debt/EBITDA ratio of 1.98x
- Final dividend of 6.6p, making 9.9p for the full year, representing a 7% yield on the IPO price of 142p
Operational Highlights
- Phase I of Greenhill Data Centre completed in March 2014
- Successful launch of 4G for pay monthly customers in July 2014
- Defined benefit pension scheme closed to future accruals in August 2014
- Company share save scheme launched in December 2014 with 82% of the workforce joining
Post period events
- Contract extension with Isle of Man Government announced in February 2015
- Several new contracts won in 2015 for Phase I of the Greenhill Data Centre
o Isle of Man Government confirmed today as anchor tenant
- Agreement signed with anchor tenant for Phase II of Greenhill Data Centre
- 4G Pay As You Go launched to mobile customers in January 2015
- CEO Mike Dee to retire in H2 2015, recruitment of successor underway
Mike Dee, CEO of Manx Telecom, said:
“We have made good progress over the year, with revenue growth driven by strong sales in Global Solutions, as well as positive take-up of high speed broadband on the island. After a slower than anticipated start the Greenhill Data Centre now has a number of new local customers ready to move in. This, and the continuing success of 4G, gives us confidence that the underlying strength in the business will continue in the year ahead.”
Kevin Walsh, Non-Executive Chairman, added:
“The company remains committed to creating shareholder value through our dual strategy of defending our significant on-island presence, whilst seeking off-island opportunities to exploit and leverage our data centre and mobile infrastructure. During 2014, we successfully followed this strategy and will strive to do the same through 2015.
“We are delighted to be paying a final dividend of 6.6p, meeting the commitment given when the Company was admitted to AIM in February 2014. Together with the interim dividend, this constitutes a 7% yield for the full year based on our IPO placing price of 142p.
“Following the recent announcement of Mike Dee’s intention to retire in H2 2015 I wish to thank Mike for 31 years’ service and commitment to Manx Telecom. He will leave the company well positioned for the future and recruitment for his successor has commenced.”
