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KCOM Group PLC trading statement 2011

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.

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.

Current trading

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.

Super fast broadband update

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.

Corporate update

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.

Outlook

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. 

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. Eclipseprovides 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:

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