KCOM Group PLC (KCOM) issues the following statement for the period up to 31 March 2011, prior to entering the close period for its preliminary results.
Current trading
Current trading remains in line with expectations and we have seen incremental growth in the multi-year contracted order backlog within Kcom during the second half of the financial year.
Group cash generation has remained consistently strong, as a consequence of the cash generative nature of our operations combined with excellent working capital performance and timing benefits associated with certain capital expenditure projects and will result in a group net debt position of below £85 million, significantly better than market expectations.
KCOM Group announces its preliminary results on 26 May 2011.
Forward-looking statements
Certain statements in this interim statement are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.
We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
Principal risk & uncertainties
The risks and uncertainties faced by the Group as disclosed on pages 22 and 23 of the Annual Report and Accounts to 31 March 2010 are still valid.
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
Paul Simpson, CFO (PA: Clair Morris)
KCOM Group PLC
020 7422 8707
Cathy Philips
KCOM Group PLC
07778335735
Jon Coles/Daniel Thole
Brunswick
020 7404 5959
53%
Year on year improved free cashflow
1,812
Total employees within the KCOM Group
107
Years of service to businesses and public
© KCOM Group PLC 2010
