Rural Broadband Sltn - Half-year Report
RNS Number : 2509B
Rural Broadband Solutions PLC
30 September 2022
 

Rural Broadband Solutions Plc

('RBBS' or the 'Company')

Interim Results

 

Continued strong operational performance focusing on the installation of fibre network and growth of Cadence Networks.

 

Rural Broadband Solutions Plc (AQSE: RBBS), a significant provider of high speed broadband to rural areas of Great Britain, announces its unaudited half year results for the six months ended 30 June 2022.

 

 

Financial Highlights

 

 

 

Operational Highlights:

 

 

 

 

Chairman's Statement:

 

In the Chairman's statement to shareholders in December 2021, I wrote that, since our Initial Public Offering in October 2020, we had invested the proceeds thereof and those of a subsequent secondary equity offering in December 2021, to build the foundations for a larger and stronger operating entity.  I discussed in that statement the opportunities your board identified as a result of the continuing trend towards fast connectivity in even the most remote areas of the UK becoming an increasingly essential utility.  In November 2021, the All-Party Parliamentary Group on the Rural Powerhouse warned that "Rural Britain is not a museum" and is being "held back" by, among other things, "slow" broadband connectivity.  Your company is one of those at the forefront of providing the information highways that can level up the great divide. 

 

The investment we have made in our dark fibre ring and backhaul capability, provided by the December 2021 acquisition of Cadence (CNL), gave RBBS a significant foundation upon which to build its own national data network and efficiently provide innovative connectivity to a wide range of rural towns and villages.  We have also invested in an experienced and enlarged executive management and board capability to provide the expertise to facilitate a step change in customer numbers.  The fund raising in December 2021 helped RBBS in achieving its strategic objective of becoming a major presence in the provision of broadband services to rural areas in the UK.  The acquisition of CNL has allowed RBBS to create its own national network to enable us to build our own fibre network.

 

Whilst implementing our growth strategy, it became clear that the rural broadband market was likely to develop more quickly and to a larger extent than anticipated when we embarked on this enterprise.  From our discussions with Analysys Mason, an experienced specialist consultancy in the field of digital infrastructure planning, it was apparent that there was an ever increasing demand within the UK for nationwide fast and reliable broadband. It was equally apparent the strategy on which we were embarked would require a further considerable deployment of capital.   

 

At this stage, the vision was clear, but the opportunity was immediate.  We had strengthened our executive team and Board and had developed our technology and accreditation relationships and were therefore well placed to capitalise on Project Gigabit, which was on the horizon, to pass 4,500 homes by the end of 2022. It was apparent that, with the opportunity ahead, we should seek to partner with an infrastructure fund with proven expertise, strong capital backing and a shared belief in our vision. 

 

In June 2022, we announced our Final Results for the year ended 31 December 2021.  In that announcement Chris New, our Chief Executive Officer, commented that we were looking forward to closing our infrastructure funding in support of our wider growth strategy.  This process is now at a very advanced stage.

 

 

 

Keith Harris

Chairman

29 September 2022

 

 

 

For further information, please contact:

Keith Harris

Executive Chairman

Rural Broadband Solutions Plc

Email: info@ruralbroadbandsolutions.com

www.ruralbroadbandsolutions.com

 

Jon Isaacs

AQSE Stock Exchange Corporate Adviser 

Alfred Henry Corporate Finance Limited

Tel: +44 (0) 203 772 0021

Email: jisaacs@alfredhenry.com

www.alfredhenry.com

 

Claire Louise Noyce

AQSE Stock Exchange Corporate Broker         

Hybridan LLP  

Tel: +44 20 3764 2341

Email: claire.noyce@hybridan.com

www.hybridan.com

      

Media contact:

Rachel Corner, sales director

Tel: 0333 700 0227

Email: rachel@swsbroadband.net

Facebook: https://www.facebook.com/swsbroadband

Twitter: @swsbroadband

https://www.swsbroadband.net

 

 
 

Consolidated Income Statement



(Unaudited)

Period from 1 January 2022 to 30 June 2022

(Unaudited)

Period from 1 January 2021 to 30 June 2021

(Audited)

            Year ended          31 December 2021


Note

£'000

£'000

£'000






Turnover


688

395

887

Cost of sales


(278)

(149)

(333)

Gross profit


410

246

554

 





Other administration fees and expenses


(1,125)

(602)

(1,783)

Other operating income


1

25

26

Amortisation of intangible assets


(7)

(70)

-

Operating loss


(721)

(401)

(1,203)






Finance expenses


(7)

-

(8)

Net finance expense


(7)

-

(8)






Loss before income tax


(728)

(401)

(1,211)






Income tax expense


76

-

97

Loss for the period


(652)

(401)

(1,114)

 





Attributable to:





- Owners of the Parent


(652)

(401)

(1,114)

 


(652)

(401)

(1,114)

 





Basic and diluted loss per share (pence) attributable to the owners of the Parent during the period

3

(0.18)

(0.13)

 

(0.36)

  

 

Consolidated Statement of Comprehensive Income



(Unaudited)

Period from 1 January 2022 to 30 June 2022

(Unaudited)

Period from 1 January 2021 to 30 June 2021

(Audited)

            Year ended          31 December 2021


Note

£'000

£'000

£'000

Loss for the period


(652)

(401)

(1,114)

 





Other comprehensive expense


-

-

-

 


 

 

 

Total comprehensive expense for the period


(652)

(401)

(1,114)

 


 

 

 

Total comprehensive expense attributable to:


 

 

 

- Owners of the Parent


(652)

(401)

(1,114)



(652)

(401)

(1,114)

 

 

 

 

Consolidated Balance Sheet

 


(Unaudited)

As at  30 June 2022

(Unaudited)

As at 30 June 2021

(Audited)

As at 31 December 2021


Note

£'000

£'000

£'000

Assets





Non-current assets





Intangible assets


1,619

1,302

1,626

Right-of-use assets


13

24

17

Fixed assets


1,007

613

831

Subscriptions due


950

950

950

Total non-current assets


3,589

2,889

3,424

Current assets





Stock


322

234

223

Deferred tax


96

-

20

Trade and other receivables


84

92

177

Cash at bank


329

506

1,340

Total current assets

 

831

832

1,760

Total assets

 

4,420

3,721

5,184

 





Equity





Capital and reserves attributable to owners of the Parent:





Issued share capital


3,619

3,041

3,619

Warrant reserve


77

77

77

Share option reserve


301

-

257

Retained earnings


(120)

8

532

Total equity

 

3,877

3,126

4,485

Liabilities





Current liabilities





Bank loan


38

134

37

Lease liability


27

28

26

Trade and other payables


345

267

472

Total current liabilities

 

410

429

535

Non-current liabilities

 

 


 

Bank loan

 

100

31

119

Lease liability

 

33

57

45

Deferred tax

 

-

78

-

Total non-current liabilities

 

133

166

164

Total liabilities

 

543

595

699

Total equity and liabilities

 

4,420

3,721

5,184

  

Consolidated Statement of Changes in Equity

 

 

 

 

 

 


Attributable to owners of the Parent


 

 

Share capital

Share premium

Warrant reserve

Share

Option

Reserve

 

Retained earnings/ (deficit)

Total


£'000

£'000

£'000

£'000

£'000

£'000

Unaudited







Balance at 1 January 2021

3,041

-

77

-

409

3,527

Comprehensive expense







Loss for the period

-

-

-

-

(401)

(401)

Total comprehensive expense for the period

-

-

-

-

(401)

(401)

Balance at 30 June 2021

3,041

-

77

-

8

3,126








Audited







Balance at 1 January 2021

3,041

-

77

-

409

3,527

Comprehensive expense







Loss for the year

-

-

-

-

(1,114)

(1,114)

Total comprehensive expense for the period

-

-

-

-

(1,114)

(1,114)

Transactions with owners







Issue of shares

578

1,237

-

-

-

1,815

Share based payments relating to share options

-

-

-

257

-

257

Transfer to retained earnings

-

(1,237)

-

-

1,237

-

Total transactions with owners

578

-

-

257

1,237

2,072

Balance at 31 December 2021

3,619

-

77

257

532

4,485








Unaudited







Balance at 1 January 2022

3,619

-

77

257

532

4,485

Comprehensive expense

 

 

 

 

 

 

Loss for the period

-

-

-

-

(652)

(652)

Total comprehensive expense for the period

-

-

-

-

(652)

(652)

Transactions with owners







Share based payments relating to share options

-

-

-

44

-

44

Total transactions with owners

-

-

-

44

-

44

Balance at 30 June 2022

3,619

-

77

301

(120)

3,877

 

 

 

 

Consolidated Cash Flow Statement



(Unaudited)

Period from 1 January 2022 to 30 June 2022

(Unaudited)

Period from 1 January 2021 to 30 June 2021

(Audited)

Year ended                31 December 2021


Note

£'000

£'000

£'000

 





Cash flows from operating activities





Loss for the period before tax


(728)

(401)

(1,211)

Adjustments for:





   Finance expenses


7

-

8

   Gain on sale of tangible fixed assets


-

-

(3)

   Depreciation and impairment of tangible fixed assets


160

112

245

   Amortisation of intangible assets


7

70

-

Share based payments relating to share options


44

-

257

Operating loss before changes in working capital


(510)

(219)

(704)

Increase in stock


(99)

(47)

(36)

Decrease/(increase) in trade and other receivables


93

54

(18)

(Decrease)/increase in trade and other payables


(127)

55

240

Cash used in operations

 

(643)

(157)

(518)

Interest paid


(7)

-

(8)

Net cash used in operating activities


(650)

(157)

(526)

Cash flows from investing activities


 

 

 

Purchase of intangible fixed assets


-

(114)

(43)

Purchase of tangible fixed assets


(330)

-

(359)

Sale of tangible fixed assets


-

-

8

Net cash on acquisition of subsidiary


-

-

(77)

Net cash used in investing activities


(330)

(114)

(471)

Cash flows from financing activities


 

 

 

Issue of shares


-

-

1,675

Principal paid on lease liabilities


(13)

(11)

(118)

Interest paid on lease liabilities


-

(1)

-

Repayment of loans


(18)

-

(9)

Net cash (used in)/generated from financing activities


(31)

(12)

1,548

Net (decrease)/increase in cash and cash equivalents


(1,011)

(283)

551

Cash and cash equivalents at beginning of the period


1,340

789

789

Cash and cash equivalents at end of the period


329

506

1,340

 

 

 

Notes to the Financial Statements

1              General Information

 

These interim financial statements do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the Group (RBBS and its subsidiary) as at and for the year ended 31 December 2021 which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as adopted by the European Union.

 

The interim financial statements for the six months ended 30 June 2022 are unaudited and have not been reviewed by the Company's auditors Jeffreys Henry LLP. The comparative interim figures for the six months ended 30 June 2021 are also unaudited.

 

2              Basis of preparation

 

The accounting policies applied by the Group in the preparation of these condensed consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended 31 December 2021.

 

3              Basic and diluted loss per share

 

(a)           Basic

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Group by the weighted average number of shares in issue during the period.






Period ended

30 June 2022 (Unaudited)

Period ended

30 June 2021 (Unaudited)

Year ended

31 December 2021 (Audited)

Loss attributable to equity holders of the Company (£'000)

(652)

(401)

(1,114)

Weighted average number of shares in issue (thousands)

361,926

304,092

305,836

Basic loss per share (pence per share)

(0.18)

(0.13)

(0.36)

 

(b)           Diluted

Diluted loss per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. The company has two categories of dilutive potential ordinary shares: warrants and share options.

 

As the Group is reporting a loss from continuing operations for the period, in accordance with IAS 33, the warrants and share options are not considered dilutive because the exercise of the warrants or share options would have an anti-dilutive effect. The basic and diluted loss per share as presented on the face of the Consolidated Income Statement are therefore identical.

 

 

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