KCOM profits swell despite group sales decline


KCOM profits swell despite group sales decline

Alex Scroxton

Unaudited annual pre-tax profit at KCOM Group has grown by more than 55% to £51.1m as a result of increased EBITDA and reductions in both exceptional costs and the overall cost of borrowing.

Group executive chairman Bill Halbert said this morning that the firm remained "focused on executing our growth strategy and we expect the performance of the Group to continue to reflect this during the current financial year."

KCOM booked a slight slip in overall sales, down 2% year-on-year to £387.3m, but said that it had anticipated this would happen as a result of residual decline in some areas.

In fact, the decline came entirely from its business comms division Kcom, which saw sales down 2.7% to £289.3m.

Though Kcom, which incorporates the Eclipse and Smart421 brands, saw plenty of growth in its pipeline and ended the year with a backlog of orders, a reduction in lower margin premium rate services and other non-core activities offset an otherwise strong performance.

The group's East Yorkshire-centric telephone and broadband services division KC grew sales 1.1% to £103.6m, reflecting growing demand for bandwidth from business customers and increased bundled services sales and upgrades on the consumer side.

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