KCOM Group PLC (“the Group”) issues the following trading update, ahead of its interim results for the half year ending 30 September, due to be announced on 27th November.
Also today, the Group will hold a sell-side analyst update on its Kcom brand.
During the first half year, despite prevailing market conditions, the Group has performed in line with expectations. As anticipated, first half net debt has increased, as a result, among other things, of share scheme purchases and planned increases in capital expenditure.
KC continues to make a strong contribution to Group results. The ability now to offer bundled services is allowing us to deliver more value to our customers and the response continues to be positive.
Kcom, our enterprise business, has delivered year over year growth in its multi-year order backlog, albeit lower than previously anticipated due to the uncertain environment for business investment decision making.
Commenting on trading, Bill Halbert, Executive Chairman stated, “I am pleased to report that, despite challenging market conditions, the Group continues to make progress towards achieving its longer term objectives. The continuing macro-economic uncertainty is resulting in slower new business investment decision making and this is likely to remain the case through the second half of the year. Nevertheless, we remain confident about the underlying strength and continuing cash generative capacity of the Group and are pleased to reconfirm our commitment to delivering a minimum 10% increase in full year dividend.”
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.
Bill Halbert, Executive Chairman / Paul Simpson, CFO
KCOM Group PLC
020 7422 8707
Cathy Phillips, Investor Relations
KCOM Group PLC
Matt Ridsdale/Lulu Bridges/Mike Bartlett
020 7920 3150
Trade time: 10:47 BST
Years of service to businesses and public
Total employees within the KCOM Group