Gigaclear secures £7.75m to fund next phase of growth

2nd July 2014

Filed Under: Announcements

  • Growth funding secured from both new and existing investors
  • CF Woodford Equity Income Fund becomes Gigaclear’s first institutional investor, investing ...

OXFORDSHIRE, 2 July 2014: Gigaclear (the “Company”), the UK’s leading provider of fibre networks to rural communities, is pleased to confirm the successful completion of a new round of equity financing. The funds, totalling £7.75m have been raised from both new and existing private investors in addition to Gigaclear’s first institutional investor: the CF Woodford Equity Income Fund, managed by high-profile fund manager Neil Woodford.
Gigaclear is a provider of ultrafast pure fibre broadband, focused solely on bringing high-quality, dependable broadband connectivity to the UK’s rural communities. Offering speeds up to a symmetric 1Gbps (1000Mbps), Gigaclear currently owns and operates eight rural fibre networks across Oxfordshire and Rutland. The Company has the ambition to own and operate 25 networks by the end of the year, of which six more are already under construction in Kent and Oxfordshire. Gigaclear has recently announced plans to construct further superfast networks across Peterborough and Northamptonshire.

Gigaclear is already part way through the construction of new networks in Oxfordshire and Kent which, once complete, will mean 5,000 rural homes and businesses across Britain will be benefitting from ultrafast broadband: many of which were unable to receive broadband of any kind before Gigaclear’s arrival in their village or town. The additional £7.75m funding confirmed today will enable Gigaclear to commence the roll-out of several additional new networks, increasing its market lead and bringing the target of serving 10,000 homes and businesses by the year end ever closer.

Today’s funding has been secured from both new and existing shareholders via two separate funding rounds. The Company first raised over £2.75m in April this year via an Enterprise Investment Scheme (“EIS”), raising more than double its original minimum target. Shortly after the close of this EIS round, the company agreed in May to an additional investment of £5.0m from the CF Woodford Equity Income Fund, managed by high-profile fund manager Neil Woodford, which was launched on 19 June. Taken together, these two funding rounds transform Gigaclear from a firm backed solely by a small number of private individuals in to one backed by over 70 committed private and institutional shareholders.

Matthew Hare, Chief Executive of Gigaclear said “I am delighted by the continued strong support shown by our shareholders and by the faith our new private and institutional investors have placed in us. The demand for better broadband from homes and businesses in rural communities continues to rise. With every network we build, Gigaclear is able to show beyond doubt that we can build, operate and monitise new FTTP networks that deliver real returns for their users and for our shareholders. With fresh funding secured, we can now forge ahead with our plans to bring reliable, ultrafast and very cost effective broadband to the underserved and often forgotten rural communities across Britain.”

Gigaclear has been advised in its financings by Cameron Barney LLP.

About Gigaclear
Gigaclear is a private and institutional investor backed communications operator dedicated to building and operating Ultrafast fibre to the premises broadband networks in rural communities. With pure fibre connectivity to every property in a community, delivering open, ultrafast broadband access, customers have complete control over the choice of services they wish to use. The company was founded in December 2010 by its chief executive, Matthew Hare. For further information about qualifying communities see www.gigaclear.com/can-i-get-it

About the CF Woodford Equity Income Fund
The CF Woodford Equity Income Fund was launched by Woodford Investment Management LLP on June 19 2014 and is managed by Neil Woodford, one of the best known fund managers in the UK investment management industry. Woodford Investment Management LLP is authorised and regulated by the Financial Conduct Authority.

PR Contacts:

Joe Frost
 Gigaclear +44 7887 955093 joe.frost@gigaclear.com
Chris Lane at F T I Consulting on +44 20 3727 1303 Chris.Lane@fticonsulting.com