Broadband ISP Airband Target Positive EBITDA for 2028 as Funding Concerns Loom UPDATE

Alternative rural UK broadband ISP Airband, which has built a full fibre (FTTP) and wireless (FWA) network that covers parts of Wales and South West England, has shared a copy of their latest group accounts with ISPreview and revealed that they expect to reach EBITDA positivity in 2028. But the provider is still facing a “material uncertainty” over its funding.

Just to put this into some context. Airband recently went through a period of restructuring, which resulted in a fair few jobs losses and a switch to focus on commercialising their existing network (as opposed to new infrastructure build). The situation reflected some of the same pressures as other operators have been facing (e.g. high interest rates, rising build costs and strong competition).

In terms of the provider’s current network reach, the new accounts, which aren’t yet public, don’t seem to provide any updated figures. But Airband has previously said that their UK broadband network now spanned “more than 440,000 premises in over 200 communities across 7 counties“ (here), which we were told breaks down as being 175,000 premises via “fibre” (FTTP) and 265,000 premises via wireless (FWA) – all Ready for Service. The operator did, however, inform ISPreview that they expected to end 2025 with 30,000 customers.

The new accounts for Airband Topco Limited typically start off by saying that they “present a compelling picture of a business that has not only weathered structural change but has emerged from it stronger, more focused, and better positioned for growth“. The operator then points to how the recent restructuring has resulted in a “reduction of legacy cost structures, simplification of internal processes, and consolidation of project delivery teams” that has delivered a “leaner and more agile organisation“.

The operator now promises to be sharply focused on accelerating the commercialisation of its business to “drive sustainable revenue growth” and work towards achieving EBITDA (i.e. earnings before interest, taxes, depreciation, and amortisation) positivity by 2028. Take note that while such a result, once achieved, would indicate that a company’s core operations are starting to become profitable (banks use this to help assess whether a company is able to pay off its debts), EBITDA itself doesn’t fully consider everything and there’s still a long road ahead.

Speaking of which, the group’s annual revenues to December 2024 increased by 37% of £6,667,000, while their total staffing count fell from 451 to 285. The operating loss increased to -£47.23m (2023: -£37.06m), which was due to “increased investment in staff to drive the growth of the organisation and increased depreciation of the growing network“. Otherwise, the company reported total assets of £179.81m and total liabilities of -£224.92m.

Despite the positive post-restructuring progress, Airband’s accounts do make reference to a “material uncertainty” that exists over the group’s ability to fund itself after a key deadline passed on 1st September 2025.

Airband’s Funding Statement

After the year end, to support the revised strategy the shareholders extended the convertible loan facility by a further £27.8 million (and further funding at the option of the shareholder). The convertible loan facilities drawn down as at the date of approval of the financial statements of £132.9 million are in place until 27 March 2027 and are secured by fixed and floating charges over the subsidiary’s assets.

The Group has prepared a cashflow forecast, including all subsidiary undertakings for a period of 12 months from the date of approval of these financial statements. The revised funding requirement of the business exceeds the current available facilities and new funding will be required from 1 September 2025. The base forecast shows the available convertible loans provide the cash required by the Group to operate and pay its debts as they fall due for payment in the period to 31 August 2025.

The Directors are confident that the operating expenditure can be managed within the funds available to 31 August 2025 and that further funding will be secured to allow the Group and Company to continue in operation for at least until 18 July 2026. On this basis, the Directors have concluded that it is reasonable to assume the Group and Company are able to adequately fund its operations for the foreseeable future, being 12 months from the date of approval of these financial statements.

As at the date of approval of these financial statements, as further funding required by the Group and Company from 1 September 2025 has not been identified and secured, including any additional funding from its major shareholder which may be needed in the period to 30 September 2026 has not been guaranteed. The Directors consider that these events and conditions indicate that there is a material uncertainty that may cast significant doubt about the Group’s and Company’s ability to continue as a going concern. The financial statements do not include the adjustments that would be necessary if the Group and Company are unable to continue as a going concern.

The caveat above is that Airband has made similar statements in past accounts and they usually do manage to find solutions, eventually. So, while the language may sound worrying, it’s worth not taking this too much at face value because the operator’s recent improvements suggest they may yet be able to find a solution for the next year.

UPDATE 11:16am

Airband informs us that their accounts were signed off on 18th July 2025 and “we have since secured additional funding which will be detailed in the 2025 statutory accounts“.