Kcom Group delivers increased profits

HULL-based telecoms firm Kcom Group today revealed that it had recorded an increase in half year revenue and profits after securing new contracts.

In the half year ended September 30 2011, the company achieved revenue of £198m, an increase on the £194.8m recorded in the same period the year before.

Profit before tax and exceptional items rose by 22.7 per cent to £27m.

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The company has been appointed as preferred bidder for a contract at Calderdale Council in West Yorkshire.

Bill Halbert, the company’s executive chairman, said: “We are pleased to report half year results showing continued progress across the group. Strong growth in earnings and resultant conversion into cash emphasises the robust foundation on which the group is building its growth strategy.

“As previously stated, we are committed to delivering a minimum 10 per cent per annum dividend growth in this and the subsequent financial year, reflecting our confidence in maintaining current performance. Accordingly, we have increased the interim dividend per share to 1.33p.”

Commenting on outlook, the statement added: “The group continues to deliver growth in profits and excellent cash conversion, strengthening its balance sheet whilst investing in growth.

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“Our focus for the Kcom brand continues to be on securing recurring revenue and driving long term sustainable growth. The contracts won in the period will strengthen further the contracted order backlog within Kcom and underpin multi-year revenue.”