KCOM reveals profits on track but revenues down

KCOM expects to hit profitability targets this year but has seen its revenues drop after offloading some contracts to Phoenix IT. In a trading update issued this morning the tone was upbeat over the prospect of delivering net profitability at the half year stage above the position of last year but

KCOM expects to hit profitability targets this year but has seen its revenues drop after offloading some contracts to Phoenix IT.

In a trading update issued this morning the tone was upbeat over the prospect of delivering net profitability at the half year stage above the position of last year but there was a warning revenues would be lower.

"As previously indicated, and as a direct result of the disposal of certain customer contracts to Phoenix IT and our exit from lower value activities, revenue for the first half of the year will be lower than that for the same period last year," it stated.

KCOM offloaded the contracts held by its network maintenance arm for £1.8m to Phoenix IT back in February as part of a cost cutting drive.

"The Group continues to build on progress made during the last two years, as well as securing future growth by exploiting core strengths and capabilities and leveraging strategic partnerships which extend the reach and range of our communications services," stated the update.

The update also revealed KCOM is close to securing new banking arrangements, which it stated as an aim for this fiscal year back at its AGM in July.

KCOM's half year results are due out in November for the half year ending 30 September.

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