KCOM Group shows its fibre as it maintains profit levels in tough conditions
COST-CUTTING at KCOM Group enabled it to slightly increase its pre-tax profits to £25.4m in the six months to September 30.
The Hull communications firm saw revenues fall by £12.5m to £173m but this sluggish performance is not expected to deflect from the group’s stated policy of increasing the full-year dividend by 10% with the group continuing to be “highly cash-generative”.
KCOM’s chief executive Bill Halbert said: “The group continues to make progress in terms of its strategic objectives, in spite of overall revenue performance continuing to be challenged in some specific activities.
“Overall Group revenue outlook has seen a decline as a result of insufficient new business order intake in the Kcom brand.
“Cost reduction actions have been taken, in order to support full-year earnings within the current range of expectations and plans are in place to accelerate further the change in the nature and mix of services and revenues, within this part of the business.”
Consumer sales under the KC brand and fibre services were singled out for praise, but cloud-based service provider Smart421 is proving slow at turning its maturing relationships into significant revenue growth.
KCOM Group operates from nine locations including Hull – also Wakefield, Brighton, Exeter, Hemel Hempstead, Ipswich, London and Reading – and employs more than 1,800 people.
