Telecoms firm’s performance in line with expectations

YORKSHIRE telecoms firm Kcom anticipates that its performance will be in line with expectations, according to its latest trading update.

The Hull-based company said that its performance has complemented the continued resilience of its Kingston Communications business.

The group expects to exit the financial year with significantly reduced bank debt and a net debt to EBITDA ratio of below two times.

The company has also confirmed the completion of its agreement with Phoenix IT Group, resulting in Phoenix acquiring certain field maintenance and support contracts and creating another key partnership, whereby Phoenix provides national coverage for those activities on behalf of Kcom Group.

Kcom’s agreement with BT has seen the first significant milestone in the transformation of the Kcom network taking place in March.

Executive chairman Bill Halbert said: “The group continues to make encouraging progress, focusing on strengthening underlying business fundamentals, while at the same time positioning the business competitively to exploit the growth opportunities that are now available to us.

“We close the year with a strengthened overall financial position, as evidenced by the progress we have made in reducing the group’s net debt, whilst importantly also having significantly enhanced the capability of our business through the strategic relationships we have entered into with Phoenix and BT.”

The company’s preliminary results for the year ending March 31 will be announced on May 25.