(ASX:FSG) Annual Report and CEO Message
Sydney, Aug 19, 2021 AEST (ABN Newswire) - Field Solutions Holdings Ltd (
ASX:FSG) participated in and was awarded project funding for several significant government backed programs, totalling $35M during FY21. We received the 2nd largest funding allocation behind NBN Co from the Federal Governments' Regional Connectivity Program Round 1. The grants have fundamentally acknowledged and reinforced our medium to long-term business strategy and focus.
We also launched our Regional Australia Network (RAN).
The RAN is the 2nd generation of FSG's 100% owned, regional telecommunications network. This network is based on the LTE standard and will deliver 4G services across regional Australia. Additionally, FSG invested in securing 5G spectrum licenses covering the whole of regional Australia, ensuring FSG has the ability to deliver 5G services where demand exists.
Our Western Australia expansion was supported by funding from the Western Australian State Government to deliver a new network across the state's wheatbelt. FSG is now either operating, or building telecommunications networks in New South Wales, Victoria, Queensland, Northern Territory, Tasmania, and Western Australia. When completed, these networks will cover some 83,165 square kilometres of Australia, reach over 146,000 individuals and 16,700 business.
Diversifying revenue streams across our regional network, FSG also began adding managed services and wholesale services offerings. On the back of this strategy, we won several new government and enterprise contracts. Of note, FSG won a six-year wholesale supply contract with MyRepublic, enabling connectivity across all 121 NBN points-of-interconnect and the FSG Regional Australia Network (RAN).
FY21 Financial Performance
Our FY21 financial performance reflects FSG's "coming of age", delivering existing and new revenue streams and improved operational efficiency as we grow into a full-service telecommunications company. Revenue for the year was $18.8M, representing a 77% increase on the previous year (FY20: $10.6M). EBITDA increased 485% to $2.2M (FY20: $0.4M).
FY21 delivered our 4th year of positive cashflow from operations of $2.3M (FY20: $2.2M). This highlights the growth of our underlying regionally focused business and the introduction of complementary products and services.
We continue our financial investment in building new networks across Australia. Our $3.4M investment in infrastructure this year will continue to deliver high margin revenues on our own network and is the foundation for new additional wholesale and managed services businesses and revenue streams.
At the close of the FY21, FSG has approximately $40M of executable project backlog to deliver in the next 24 months.
The Year Ahead
As I have stated each year, and restate again, FSG listed because there is something special and challenging about our business model. This year, the group's effort, dedication, and hard work over the past four years has been rewarded.
We start FY22 with 16 new networks to build across rural, regional, and remote Australia. Once built, our networks will cover over 170,000 square kilometres, cementing FSG as owning and operating the largest non-NBN fixed wireless network in Australia.
FY22 will see FSG commence the rollout of the Regional Australia Network (RAN) which further distinguishes FSG's position as the leading mobile phone carrier, and fixed wireless service provider, totally focused on rural, regional, and remote Australia.
Leveraging the momentum of FY21, our partnership with the Australian Federal Government and Optus entered an exciting new phase. FSG was awarded $7.6M of funding under the first Neutral Host Trial in Australia.
Optus has again confirmed its participation in this trial alongside FSG and work continues to encourage participation by both Telstra and TPG/Vodafone.
The Neutral Host model enables FSG to deliver both our Regional Australia Network (RAN) network and wholesale mobile phone services for rural, regional, and remote Australia. Fundamental to this model, is the importance of providing shared services across each telecommunications tower deployed by FSG. Each tower and its electronics can be utilised by all mobile phone operators. This is an incredible win-win for all involved, delighting customers, reducing costs for mobile phone operators, eliminating infrastructure duplication, and realising more value from Federal and State Government investment.
We look forward to sharing the growth in our business with you, as we develop the scale and maturity to deliver on these programs.
To view the Annual Report, please visit:
https://abnnewswire.net/lnk/1NO860QI
About Field Solutions Holdings Limited
Field Solutions Holdings Limited (ASX:FSG) is dedicated to provide connectivity to Rural and Regional Australia where other providers simply cannot. We employ innovative technologies and a community focused approach which engages local government, businesses and residents to ensure we build where it is most needed. FSG provides, builds, and operates "true broadband networks" specifically for rural, regional, and remote Australia. FSG is a licensed Australian telecommunications carrier and a retail service provider (trading under the brands 'JustISP,' TasmaNet and Ant Communications), and a NBN Co Retail and Business Service Provider.
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