KCOM Group PLC (the Group) issues the following trading update ahead of its interim results for the half year ending 30 September 2011, which are due to be announced on 22 November.
The Group continues to trade in line with expectations. Strong cash generation has been maintained and leads to a further reduction in net debt. Net debt at the half year is expected to be approximately £76.0 million (31 March 2011: £82.0 million).
In enterprise and public sector markets, there has been further growth in Kcom's multi-year contracted order backlog and Smart421’s revenues continue to see strong growth.
There has been continued strong revenue performance in KC, driven in part by customers upgrading their KC Talk packages. This includes customers taking up our recently launched bundled packages.
Eclipse, our national internet services provider, has seen further success in the SME market, with positive net business broadband additions throughout the period and growth in non-broadband sales.
The initial phase of our super fast broadband deployment has seen the first customers connected, in selected areas of our Hull and East Yorkshire market. This fibre to the home deployment is delivering broadband speeds of around 100mbps. As stated, the committed investment required is within existing guidance.
KCOM Group began trading as part of the FTSE 250 index on 19 September, following its promotion from the FTSE Smallcap index, announced on 7 September.
The Board expects the Group to trade in line with expectations for the rest of the current financial year. The Group continues to exploit successfully its enhanced capabilities and strong track record in the provision of services to multiple-site, national organisations, and an update on recent contract wins will be included in the interims announcement scheduled for 22 November 2011.
The KCOM Group delivers communications services to a range of businesses and consumers, with an emphasis on exceptional service delivery.
Its Kcom business provides communications services for national multi-site enterprise and public sector organisations across the UK. As an independent provider of these services, supported by its BT Wholesale partnership, Kcom is able to offer advanced network capability and related added value services, coupled with a flexible approach to delivering its customers' requirements.
Its KC business provides a range of communications services to businesses and consumers in Hull and East Yorkshire. Eclipse Internet delivers a portfolio of internet based communications services. These are designed to help small businesses and home based workers to exploit the power of the internet to achieve business success.
For more information on the KCOM Group, please go to www.kcomplc.com
Bill Halbert, Executive Chairman / Paul Simpson, CFO
KCOM Group PLC
Tel: 020 7422 8707
Cathy Phillips
KCOM Group PLC
07778 335735
Jon Coles/Daniel Thole
Brunswick
020 7404 5959
1,812
Total employees within the KCOM Group
53%
Year on year improved free cashflow
107
Years of service to businesses and public
© KCOM Group PLC 2010
