Manx Telecom says FY 2016 trading in line

anx Telecom confirms that trading during 2016 has been in line with management expectations with cash flow continuing to support a progressive dividend.

"The performance of the Company's core domestic business of Fixed Line, Broadband, Data and Mobile remained solid during the year," it said.

"Availability of high speed broadband services continues to grow, now reaching 93% of premises, and take up continues to expand with 40% of our broadband customer base now on VDSL or VDSL+.

"Our 4G network continues to perform well and mobile subscriber numbers are up year on year, with our promotions in the lead up to the Christmas period proving particularly successful.

"As anticipated by management and communicated in the interim results, revenue levels in our data centre business were lower than 2015 due to a decline in low margin kit sales and data centre usage driven by some customer consolidation.

"This revenue reduction was largely offset by a return to good levels of growth in our Global Solutions business. We continue to see growth across the product range, particularly in our Strongest Signal Mobile solution, branded Chameleon, M2M and international traveller propositions.

"In December 2016 we announced an agreement with China Unicom under which Manx Telecom will provide connectivity to facilitate China Unicom's UK mobile and roaming product.

"In October 2016 the Company launched a programme aimed at improving competitiveness and the customer experience by reshaping the organisation, streamlining processes and investing in supporting technology.

"We expect to incur exceptional costs of approximately £10m over a two year period with most of the financial improvements starting to accrue in 2018 and we will provide further detail at the full year results."

Preliminary results for the year ended 31 December 2016 are due to be announced on 15 March 2017.