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Monday, October 09, 2006

A slightly positive update on Invox

I wrote on Invox/Brightview, a small AIM quoted UK company, when they were in trouble back in August and this attracted attention in the bulletin board world, so I feel it is necessary to issue an update because positive information has been released. Invox announced today they had sold their home gaming division in exchange for £1m shares and a promise for more and would now rename the company to Brightview plc and focus on broadband.

No cash changed hands and they are still renegotiating their overdraft with Barclays:
'Given the aim of continuing growth in its broadband subscriber base, we are in negotiation with Barclays Bank plc to secure facilities consistent with that goal. This may involve deferral of repayments envisaged under the existing agreement.'
As part of the deal, they now have a little collateral to cover part of the overdraft and the management must be feeling that they can now see the light at the tunnel. On a more positive note they announced they had added net 5k broadband customers in the quarter to Sept ’06 to bring the base to 45k with hopes of 50k by Christmas. I think Barclays will be focussing on cashflows and asset backing rather than customer adds for the loan, but growth in the current ultra-competitive environment must count for something.