Rural Broadband ISP Voneus Secure UK Funding to 2030 as More Job Cuts Loom

Alternative UK broadband network Voneus has today officially confirmed what we touched on last month (here), which reveals that they’ve strengthened their position for “long-term growth” with a business reorganisation and have secured funding through to 2030 (i.e. renegotiation of an existing £70m debt facility). But more job cuts are set to follow.

Just to recap. Voneus, not unlike many other altnets, has been struggling a bit recently with redundancies and a slowdown in their network build (here). This came after the operator also found itself having to withdraw (here) from their publicly funded Project Gigabit broadband build contract for Mid West Shropshire (Lot 25.01), which has since been picked up by Openreach (here).

The company’s most recent accounts, which cover the year to 31st March 2024, revealed that their turnover had increased by 34% to £4.417m, while gross profit shrank by -17% to £768.6k and total employees grew from 156 to 238. But Voneus’ loss before tax has also more than doubled to £36.65m (up from £14.83m), although their net assets have grown to be worth £93.43m (up from £23.32m).

However, the latest announcement confirms our earlier report of a revised funding deal (including some unspecified new funding from existing investors), which will see them through to 2030 and reveals that their mixed wireless (FWA) and full fibre (FTTP) broadband network is now home to 26,000 customers.

The provider further states that they’ve also implemented “several key operational improvements“, including the creation of a new cross-functional commercial team that more closely aligns its marketing and sales activities. In addition, they’ve set up a hybrid tech support hub that handles all support levels for wireless as well as tech support for fibre, allowing for more efficiencies.

As part of its strategic review, Voneus added that they will now “undertake a business reorganisation to ensure operational efficiency and future scalability“. This process is expected to include the “outsourcing of some business functions” and may result in a “limited number of redundancies“. The company will now begin individual consultation with those roles potentially at risk.

A spokesperson for Voneus said:

“Voneus has made excellent progress in connecting rural Britain, achieving some of the highest penetration rates in the sector. These changes are about building on that success ensuring we remain agile, efficient, and positioned for long-term growth. While any potential redundancies are deeply regrettable, this reorganisation is necessary to secure our continued investment in people, technology, and the rural communities and customers we serve.”

Otherwise, the company plans to continue its organic growth strategy, whilst also continuing to “actively explore” mergers and acquisition opportunities.