Overcast

Overcast

max temp: 12°C

min temp: 10°C

ESTD 1874 Search

Ipswich: Smart421 parent group KCOM reports annual results in line with expectations

10:09 06 June 2014

Inside the Smart421 offices at the North Felaw Maltings in Ipswich.

Inside the Smart421 offices at the North Felaw Maltings in Ipswich.

Communications and systems group KCOM today reported a year of “progress in key strategic areas”, with profits and revenues in line with expections.

shares

Revenue across the Hull-based group for the year to March 31 was 0.6% down at £370.7million, against £372.9m the previous year, for which figures have been restated in line with changed accounting standards.

Turnover within the group’s Kcom segment, covering its value-added communication and IT businesses, including Ipswich-based systems integration specialist Smart421, dipped to £270.9m, compared with £273.5m the previous year, while revenues from KC, the group’s original telecoms-based business in east Yorkshire, edged ahead, from £104.6m to £105m.

Headline earnings followed a similar trend, with those at Kcom easing from £29.4m to £28.7m while the KC figure rose from £54.5m to £56.2m, leaving the group figure, after central costs, 0.5% ahead at £75.3m against £74.9m.

After exceptional items including reduced restructuring costs compared with the previous year and a credit following the termination of a regional goverment contract group earnings were 4.6% ahead at £75.9m against £72.6m.

Pre-tax profit before exceptionals was 0.2% lower, at £49.9m against £50m, but the bottom line figure was 5.9% up, at £50.5m against £47.7m.

A strong second half cash performance left net debt of £75m, reprsenting a net debt to earnings ratio of 1.0 times, down from 1.2 times at the previous year end.

A proposed final dividend of 3.25p per share will make a total for the year of 4.88p per share, in line with the board’s commitment to increase the dividend by 10% a year until March 2016.

KCOM chief executive Bill Halbert said: “This set of results reflects the progress in key strategic areas being made across the group, underpinned by the highly cash generative nature of the business.

“That ability to generate cash results in net debt reducing during the period since March 2013, and is comfortably within our target gearing levels.”

He added: “In KC, there continues to be growing demand for our fibre services, with take-up rates remaining ahead of our expectations and above UK averages. The success to date and consequent uplift in ARPU (average revenue per user) for customers has helped shape our thinking as we begin to scope the next phase of deployment.

“Across the other areas of the group, we continue to build our reputation in the design, delivery and management of value-added services in the wider enterprise market.”

Looking ahead, KCOM said it was “well positioned to continue exploiting the opportunities that exist in its key markets”.

“We will continue to invest in expanding the reach of, and building consumer demand for, our fibre-based broadband services,” it said.

However, it added: “As we focus on the delivery of value added services to the enterprise market, we expect to see a continued decline in some traditional carrier revenue.”

shares

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Greene King apprentice Tamara-Leigh Kirkham.

Greene King has been named VQ Large Employer of the Year for 2015, in recognition of its support for members of its workforce undertaking vocational qualifications (VQs).

Sizewell A and B

Staff at the redundant Sizewell A nuclear power station will have to wait to find out if their jobs are safe from planned redundancies.

The opening of Precision Marketing's new headquarters in Bury St Edmunds.

An expanding marketing services firm celebrated the official opening of its new head office in Bury St Edmunds yesterday.

Abby Curtis who is opening Pump and Grind coffee shop in Great Colman Street with Tom Kerridge

The business team behind a new cafe have said they are disappointed they will not able to serve alcohol when opening for the first time on Saturday.

Arlingtons new art exhibition, Liz and Ken Ambler at the launch

Music, art, wine and a great deal more

Steven and Debbie Morgan pictured when they took over The Royal Oak earlier this year

Firefighters were called to a pub last night following a water leak which caused flooding.

Rachel Pearlman, Zoe Bradbury, Jack Northcott and Jordan Keeble of Ginger Nut Media team  at the OXO Tower in London, after being awarded as the best level of support during Advanced Apprenticeships.

A digital advertising firm is celebrating after scooping an award for its supportive training regime.

Royal Mail has seen a rise in annual profits.

Royal Mail today reported a rise in underlying annual profits as a squeeze on costs helped offset a lower than expected performance from its parcel business.

Bury Council Building Angel Hill.

The new chairman of Bury Town Council has said he intends to make the authority relevant after claiming it has done “almost nothing” for the last few years.

Tesco  Group Chief Executive Dave Lewis

Tesco paid £4.1 million to new boss Dave Lewis in his first six months after he was brought in from consumer goods group Unilever to turn around the embattled supermarket.

Most read

Most commented

Topic pages