Telecity Group plc ('TelecityGroup' or the 'Group'), Europe’s industry leading provider of premium network-independent data centres, today issues the following Interim Management Statement.
- Trading in 2010 has remained strong, with significant new order wins adding to TelecityGroup’s recurring revenue base
- Management is confident that the Group will deliver 2010 full year growth that is in line with market expectations
- A planned new 21MW customer power expansion of the Group’s flagship London data centre secures long-term capacity in that market to meet growing customer demand
Current trading and outlook
Trading in 2010 has remained strong across all of TelecityGroup’s markets. The Group achieved robust double-digit year-on-year revenue growth in the first quarter and has won significant new orders from a broad range of business sectors. Particular strength has been seen in the internet content, connectivity and systems integrator sectors.
TelecityGroup confirms its positive outlook for the full year. Thanks to a combination of the recurring revenue growth achieved to date and a healthy order pipeline, management is confident that the Group will deliver a 2010 full year performance that is in line with market expectations.
TelecityGroup’s financial position remains strong as the Group’s operations are highly cash generative. A combination of this cash generation and its 5-year, £220m debt capacity, gives TelecityGroup sufficient capital for continued expansion in its European markets in response to strong customer demand.
New capacity in London
TelecityGroup’s existing data centre portfolio in London is approaching full occupancy. Therefore, in order to continue to meet significant customer demand, TelecityGroup today announces its plans to build a 21MW, 10,000 sq.m expansion of its centrally located Powergate facility.
This represents an increase of over 90% in the Group’s total available customer power in London. It is planned to open in several phases from 2011 and will increase total capacity at the site to 29MW, providing for several years of growth in London at current fill rates.
Michael Tobin, CEO of TelecityGroup, commented:
“I am very pleased that TelecityGroup continues to capture the significant growth in demand for premium data centre services, which is driven by the expanding digital economy.
Given the barriers to entry surrounding the provision of premium data centre capacity in highly connected European city centre locations, I am especially pleased that we have been able to secure several years of further growth capacity in the key London market, which has one of the highest ongoing demand rates for premium data centres globally.
This capacity will allow our customers to continue growing with TelecityGroup and has the advantages of cost and connectivity synergies that are available from the expansion of an existing site.
Our total operational capacity has now increased to 54MW of customer power, up from 34MW 24 months ago. Including the plans announced this year for incremental capacity in London and Frankfurt, our total announced, fully financed, build programme will take Group capacity to 88MW. This underpins our strategy of continuing our controlled expansion programme in Europe in response to the ongoing growth in customer demand.”
For further information please contact:
Matthew Springett +44 (0)20 7005 6337
James Tyler +44 (0)20 7001 0076
Sarah West / James Olley +44 (0)20 7404 5959
Notes to Editors
Telecity Group plc
TelecityGroup is Europe’s industry leading provider of premium network-independent data centres offering a range of flexible, scalable data centre and managed services. TelecityGroup specialises in the design, build, and management of highly connected and secure environments in which customers can house their technical, web and internet infrastructure. Each of its data centres acts as a connectivity and content hub facilitating the storage, sharing and distribution of data, content and media. Headquartered in London, TelecityGroup operates 23 network-independent data centres across seven European countries. The data centres are located in prime positions for commerce and connectivity, including Amsterdam, Dublin, Frankfurt, London, Manchester, Milan, Paris and Stockholm.
TelecityGroup is listed on the London Stock Exchange (LSE: TCY)
Cautionary note regarding forward-looking statements
This announcement includes statements that are forward-looking in nature. The actual results, performance or achievements of the Group may be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements due to known and unknown risks, uncertainties and other factors. Except as required by the Listing Rules and applicable law, Telecity Group plc undertakes no obligation to update or change any forward-looking statements to reflect events occurring after the date such statements are published.