KCOM's decision to exit low margin business has hit its revenues but appears to have delivered the required results on the profit front.
The comms provider issued preliminary results for its year ended 31 March showing a 4.2% decline in revenue to £395.4m but pre-tax profits increased by 40% from £29.4m to £41.2m.
The numbers were better than expected and was a warm reception from investors with several share specialists recommending customers buy KCOM.
Bill Halbert, executive chairman at KCOM, said that the results were ahead of expectations and the moves it had made in the last year were delivering.
"Recent contract wins show the Group beginning to deliver on its return to growth strategy. They underline our growing reputation and recognition in our chosen markets," he said.
The last two years have seen a fair amount of restructuring with the company focusing on reducing its debt levels as well as moving away from commoditised business.