KCOM pre-tax profits tumble for financial year


KCOM pre-tax profits tumble for financial year

Alex Scroxton

KCOM has seen pre-tax losses mount for its financial year ended 31 March and indicated that it will keep a focus on driving costs down.

The telecoms group saw pre-tax losses of £113m from a positive position of £4.4m for the same period last year. Revenue also dropped by 8% to £$72.4m from £517.3m.

The pre-tax losses included restructuring charges that included the decision to axe 150 staff in January.

KCOM has also shuffled its management team appointing Bill Halbert to the role of executive chairman after Michael Abrahams decision to retire following the next general meeting for a two year period to oversee a "Group transformation".

"The group has made considerable progress in addressing its strategic and operational challenges. We have identified further opportunities to reduce significantly the Group's ongoing fixed costs and capital vase," said Halbert.

The group has access to a bank facility that is in place until March 2012 but also managed to reduce its net debt to £157.9m from £168.9m a year before.

The telecoms group was linked with outsourcing its national network to BT yesterday in a bid to save money.

In a statement accompanying the results the company stated that its ambition in the year ahead was to "achieve a reduction in the ongoing capital investment and fixed cost requirements of the business".

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