Glossary
Financial
Amortisation
The allocation of cost of intangible assets to the Income Statement over time.
Auditor
An independent individual qualified to examine and provide an opinion on a Company’s financial and accounting records and supporting documents.
Balance sheet
A statement of the assets and liabilities of an organisation at a point in time (the year end of KCOM Group PLC is 31 March).
Cash flow statement
A summary of the money received and spent by the Group during the year.
Capital expenditure (capex)
Money spent to purchase new or upgrade existing physical assets such as equipment or property.
Company
KCOM Group PLC (formerly Kingston Communications (HULL) PLC).
Current assets
Assets held by the Group other than for long term use such as stocks, debtors and cash.
Depreciation
The allocation of cost of an asset to the Income Statement – such as equipment or property – because of general wear and tear over time.
Dividend
The income from a share investment that is given to shareholders out of a company’s retained earnings.
Earnings/(loss) per share
This figure is calculated by dividing profits or losses attributable to members of the Company by the number of shares in issue.
EBITDA (earnings before interest, tax, depreciation & amortisation)
A measure of profitability, favoured by companies undergoing major investment programmes. It shows the profits before interest, tax, depreciation and amortisation are deducted.
Goodwill
The difference between what a company pays for another company and the fair value of the acquired assets of that company.
Group
KCOM Group PLC (formerly Kingston Communications (HULL) PLC) and all its operating businesses.
Income statement
A financial document showing the income, expenses and net profit or loss generated by an organisation over a given period of time.
Intangible assets
Items of value that cannot be physically touched, such as software, patents, licences or specific development costs.
Investments
Ownership interests held in other companies either for income or capital appreciation.
Ordinary shares
The principal type of shares bought by investors, and representing part ownership of a company.
Operating assets
Items of value owned by a company that contribute to the regular income from its operations.
Payables
Amounts payable to suppliers and other organisations providing services to the Group.
PBTA (profit before tax & amortisation)
A measure of profitability which excludes from profit before tax the impact of amortisation charges on intangible assets arising on acquisition.
Property, plant & equipment
A long term asset held for business use such as property, network and exchange equipment.
Receivables
Amounts which we have billed customers but not yet received.
Retained earnings
The final result for the year, after deducting tax, minority interests and dividends, which is then added to (or taken away from if it is a loss) total equity at the end of the year.
Turnbull Report
A Report giving guidance to Company Directors on implementing Stock Exchange rules on internal controls and risk management.
Technology
Backbone network
A major transmission path that can carry a very high volume of traffic. It ensures that all smaller networks that are connected to the backbone are also connected to each other.
Broadband
Network technology that allows the transmission of large amounts of data.
Broadband internet
Technology that enables faster internet access, and as a result allows services such as interactive digital TV, video conferencing and video.
Converged communications
Data and voice communications carried over a single IP network.
Data
Information sent across communications networks from computer to computer.
IN (Intelligent network)
A network that allows the fast and flexible introduction of new services and customisation capabilities for users of that network.
IP (Internet Protocol)
A standard specification for transmitting voice and data over the internet.
ISP (Internet Service Provider)
A company which provides users with access to the internet.
Leased line
A reliable, dedicated network connection offered at various speeds depending on the customer’s requirements.
Voice
Fixed line or mobile telephone calls.