Yahoo Finance Loss-Making Bigblu Broadband plc (LON:BBB) Set To Breakeven
With the business potentially at an important milestone, we thought we'd take a closer look at Bigblu Broadband plc's (LON:BBB) future prospects. Bigblu Broadband plc provides satellite, and wireless broadband telecommunications and related products and services in the United Kingdom, Europe, and internationally. The UK£40m market-cap company posted a loss in its most recent financial year of UK£4.9m and a latest trailing-twelve-month loss of UK£1.2m shrinking the gap between loss and breakeven. As path to profitability is the topic on Bigblu Broadband's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Bigblu Broadband
Bigblu Broadband is bordering on breakeven, according to some British Telecom analysts. They expect the company to post a final loss in 2021, before turning a profit of UK£5.9m in 2022. The company is therefore projected to breakeven around a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 26% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Bigblu Broadband given that this is a high-level summary, however, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 40% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Bigblu Broadband, so if you are interested in understanding the company at a deeper level, take a look at Bigblu Broadband's company page on Simply Wall St. We've also put together a list of important aspects you should further research:
Historical Track Record: What has Bigblu Broadband's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bigblu Broadband's board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
