Telecoms group to accelerate investment plans

A STRONG balance sheet and “good progress” made throughout the year will see Hull-based communications and IT firm KCOM accelerate its investment strategy.

Updating the markets on its performance for the year to March 31, the group reported a rise in revenue at £349.2m from £348m the year before, and pre-exceptional EBITDA rose from £74.3m to £74.9m.

Chief executive Bill Halbert said: “We have made important progress with our strategic objectives in the current year, including the consolidation of our activities under a single brand, KCOM.  

“In Hull and East Yorkshire, we continued our fibre to the premises deployment, reaching 78,000 premises by 31 March 2016 and committing to reach 150,000 premises by December 2017. Level of take-up remains high with 26,000 premises connected by March 2016. We had a very successful year with our enterprise customers, developing our existing relationships as well as securing new contracts; of particular note are BUPA, ATOC and Shoosmiths (preferred supplier). The disposal of our national network assets has strengthened our balance sheet and advanced very substantially our options for longer term transformation.  

“The combination of the strength of our balance sheet and the progress we have made this year will see us accelerate investment over the course of the next few years. Alongside acceleration of our fibre programme, we will invest in new services and capabilities, in particular to support our enterprise customers.”

KCOM also announced that Paul Simpson, its chief financial officer, will be leaving the business later this year.

Chairman Graham Holden added: “Paul has been a member of the board since 2004 and has played a key role in the successful development of the business over that time.  On behalf of the board, I would like to thank Paul for his invaluable contribution and to wish him all the best for the future.” 

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