Alternative broadband operator Spring Fibre, which has been in the early stages of rolling out a new 10Gbps capable wholesale full fibre (FTTP) broadband ISP network since 2021 – starting in Lincolnshire (here), are on the hunt for new funding after their principal investor said they “will not continue to fund its network construction plan“.
The operator, which was initially backed by Kingsley Capital Partners and telecoms specialist Graphite Strategy, is known to have originally secured an investment of “up to” £155m from R&M’s (River and Mercantile) infrastructure business to support their aspiration of covering 1 million premises in England (here).
However, despite the fact that Spring Fibre first cropped up several years ago, we still know very little today about their current progress, ISP availability or future roll-out plans (not for lack of asking) – except that they originally appear to have started building in Lincoln city, as well as the small towns of Mablethorpe and Louth, earlier in 2023 (here). But we’ve yet to see any retail broadband packages going live.
The company’s most recently published accounts, which run to 31st December 2023, have at least revealed that their focus on build has delivered a net deficit on their balance sheet of £13.69m (vs £2.734m in 2022), which is to be expected from an altnet that is in the early phase of their roll-out. But more worrying is the loss, at such a critical stage, of support from their principal investor.
Statement from Spring Fibre’s Accounts
At the time of approving the financial statements, the directors have received a notification from the principal investor in the company that they will not continue to fund its network construction plan and meet its continued operational expenditure.
According to the update, Spring Fibre’s Directors are now hunting for a “new investor” in order “to be able to finish the construction phase and fund its short term debt as it falls due“. The operator claims to be confident in finding such an investor, although this is certainly not the most ideal timing to go on such a hunt.
All of this is occurring during a period where many fibre builders (altnets) are under pressure from issues related to rising build costs, high interest rates (i.e. making harder to secure fresh investment / pay debts) and the difficulties of growing consumer take-up in such a competitive market. We have asked Spring Fibre to comment and hope to report back shortly.