The report doesnt say - just this
Two years ago B4RN confidentially told me that they would make a profit in 2017 and this would continue in 2018. They were wrong. They continue to expand the business and increase the losses. In financial circles, this is defined as “Over trading” and is the reason many businesses declare Creditors Voluntary Liquidation.
They are continuing to expand although coverage in the North appears to have slowed and they appear to now be concentrating on the Suffolk area. I'm not sure if that would be covered by a separate set of accounts or not. It continues to gain investment (£1,441,749 from share capital last year) so possibly that is investment is from the South?
However if as pointed out, shareholders capital is continuing to be absorbed by losses, then B4RN are in the fortunate situation whereby unlike in the real financial world some of those shareholders may be getting a bit edgy about that and would expect to see at least some headway on ROI. Certainly when it comes to business lending you would expect a company to start showing more of a swing towards profit before you would consider any further increase in lending. Again because of their unique situation, these particular shareholders are the ones doing the lending and they are far less likely to be demanding returns like in the real business world. I'm not knocking B4RN, they have done some incredible work, but they are in several very fortunate & unique situations that just would not apply to a normal Telco.
Also thought that the author makes a valid point that if they have not increased their £25 subscription since 2012, then it would not harm if they increased their charges to similar industry rates. After all they are able to provide a much faster alternative, so if I were a subscriber I don't think I'd mind too much if my monthly bill increased in order to give them more room to manoeuvre.