Cityfibre Infrastructure Holdings plc (CFHL)
CityFibre's Edinburgh contract extended
CityFibre, a leading designer, builder, owner, and operator of fibre optic infrastructure in UK towns and cities, has won an extension of its existing Gigabit City project in Edinburgh to an additional 294 council-owned sites in an agreement worth at least £5.6m.
The seven-year deal, with options to extend to a maximum of 19 years and a lifetime contract value of £16m, will be carried out in conjunction with national telecommunications provider Commsworld.
It will replace the expensive, capacity-constrained copper circuits provided as part of a long-term contract by BT.
The deal represents CityFibre's largest contract win to date and is one of the largest metro UK public services network awards in recent years.
On the basis of the initial seven-year term, this deal now takes total contract value (TCV) added in the current financial year to £15m, though on the full 19-year term of the deal this figure would exceed £25m. CityFibre added £11.1m in new contract value in financial year 2014. The TCV-to-capex ratio for the new contract is anticipated to be within previously stated guidelines.
At 8:42am: (LON:CFHL) CityFibre Infrastructure Holdings share price was +2p at 57.5p
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