UK Internet Service Provider (ISP) Spring Fibre is on course to enter administration.
As reported by The Telegraph, the Reading-based altnet (alternative network provider) has filed a notice of intention to appoint administrators after failing to find a new backer.
The company kicked off its fiber rollout back in 2021, starting in Lincolnshire.
Spring Fibre was initially backed by Kingsley Capital Partners and telecoms specialist Graphite Strategy.
Further investment was promised from the infrastructure division of River Global, the merchant bank, which also pledged to invest up to £155 million ($201m) to fund the buildout of its fiber network. The firm had plans to cover more than one million premises.
However, The Telegraph reported that Kingsley would pull out of funding the company's fiber build-out plus day-to-day operational costs.
The company's latest accounts reported a loss of £3.8m ($4.94m) in 2022 on revenues of just £325,000 ($442,000), while debts stood at as close to £11m ($14.29m).
The Telegraph reports that auditors said there was a “material uncertainty” over Spring Fibre’s ability to continue as a going concern given the lack of funding.
“While we can confirm we’ve had a significant level of interest, including indicative offers for the business, we don’t today have an offer that provides the necessary liquidity in the time we have available,” said Gareth Greppellini, the chief executive of Spring Fibre.
“Unfortunately, with this in mind, we have taken the difficult decision to file a notice of intention [to appoint administrators]," he added.
When a company enters into administration, it means that the business is put into the hands of an administrator, which can then decide how it can help the company continue to operate, or if it can sell the business.
Earlier this year, Spring Fibre announced a partnership with wholesale full fiber distributor Triangle Networks. The company noted at the time that the partnership would help it to provide solutions integration for its ISP partners and connect business customers to its ultrafast broadband network.
