Progress for Kcom despite dip in revenues
TELECOMS group Kcom said today that it is encouraged by a number of areas of the business showing growth despite a modest overall decline in revenues.
In its interim results to September 30, the East Yorkshire-based group reported that group revenue was 2% lower at £185.5m (2012: £188.7m).
Similarly, group EBITDA before exceptional items reduced 2% to £37.4m (2012: restated £38.1m), while group profit before tax and exceptional items stood at £24.7m (2012: restated £26.1m).
The group said: “These results provide evidence of the underlying strength of the group and the significant opportunities we see in the longer term. We remain focused on executing our strategy for profitable growth by providing more value added services to existing customers and winning new contracts across all our markets. Alongside this, we will continue our investment in those areas that support scalable and efficient delivery of services to our customers.”
Bill Halbert, executive chairman, said: “The half year position is encouraging and represents further good progress towards achieving our strategic ambitions. We continue to invest in support of the competitive position of our brands, our core IT applications and infrastructure and our broadband fibre deployment. While, as expected, this contributes to a short term decline in certain financial metrics, our strategy and plans continue to yield positive results. We remain confident about the group’s longer term prospects and success and expect the full year outturn to be in line with market expectations.”
The group also outlined its plans for prospective changes to its board and management structure.
It said, having reached this stage of its development, the group intends to split the roles of chairman and chief executive.
From April 1, Bill Halbert, currently executive chairman, will assume the role of group chief executive and Graham Holden, the role of non-executive chairman.
Kevin Walsh, executive director with responsibility for the KC brand, intends to retire from the board next summer after 14 years with the business.
The group said: “The board’s priority is to continue to push ahead with the execution of its strategy for sustainable, profitable growth, by focusing on the delivery of value added services across its target markets, with the aim of establishing strong and sustainable market positions.”
