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KCOM Group PLC (KCOM.L) Interim Management Statement 2011

KCOM Group PLC ("the Group") today publishes its Interim Management Statement.

KCOM Group PLC ("the Group") today publishes its Interim Management Statement.

Current trading

KCOM Group's trading is in line with market expectations. 

Customer contracts

During  a quarter which saw a strengthened multi-year order backlog within Kcom, the Group won an important new contract to design and deliver Staffordshire County Council‘s Public Sector Network (PSN). The agreement will see Kcom provide the Council with a county-wide network designed to allow any public sector body in Staffordshire access to the PSN and the ability to exploit its benefits. The PSN approach is a key public sector initiative that will result in several similar PSN opportunities around the country.

Other contracts secured in the quarter include the delivery of an applications integration programme for Virgin Atlantic Airways, new contracts with Sky Bet and Volkswagen and the renewal and extension of managed services provided to Admiral Insurance.

Further PSN developments across the country, and the continued extension of existing customer relationships, are among the key market opportunities for Kcom. 

Outlook

The Board expects the Group to continue trading in line with current market expectations, through the final quarter of this financial year.  The previously announced commitment to medium term dividend progression underlines the Board’s confidence in ongoing cash generation and earnings.

Recent customer wins in Kcom and Smart421 and the introduction of new services within KC demonstrate our increasing strength and competitiveness in our chosen markets. Our ability to build strong relationships and help our customers exploit the power of communications to deliver tangible benefits, underpin our positive outlook for future years.

Bill Halbert
Executive Chairman

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. 

About KCOM PLC

KCOM Group PLC is a leading provider of communications services to organisations and consumers, serving customers through four market focused brands.

KC provides a range of telephony and broadband services to consumers and businesses in Hull and East Yorkshire. Our other three brands serve organisations throughout the UK. Eclipse provides communications services to small and medium businesses across the UK, connecting them to customers, partners and suppliers and improving their productivity and flexibility, and helping them to grow. Kcom works with some of the UK’s biggest names, delivering communications services that enable them to be flexible, efficient and more responsive to their customers. Smart421 delivers high-end consultancy, integration and management of business-critical systems for enterprise customers.

We apply the collective knowledge and expertise of our people and our partners to help our customers harness the power of communications. Our focus is on the delivery of inspiring customer experiences, and finding new and better ways to connect people.

For further information please contact:

Paul Simpson, CFO (PA: Janet Blackburn)
KCOM Group PLC
01924 882801

Cathy Philips
KCOM Group PLC
07778 335735

Jon Coles/Daniel Thole
020 7404 5959