KCOM Group enjoys '˜encouraging' start to financial year

The company issued a trading update on the same day as its annual general meeting in Hull.

KCOM said its fibre deployment in Hull and East Yorkshire remained on schedule to reach 150,000 premises, representing approximately two-thirds of its “addressable” market, by December 2017.

The group said it was continuing to see high levels of customer take-up.

The statement added: “In enterprise, having strengthened our sales, delivery management and technical capability, we are able to respond quickly to customer demand using a scalable operating model that can expand as demand grows.”

The board said it was confident the transition of KCOM into a provider of regional fibre-based services and complex IP (internet protocol) services to the enterprise market will, in time, lead to a re-rating of the company’s valuation.

The statement added: “As previously indicated, whilst we expect to make further progress in both Hull and East Yorkshire and Enterprise, as we transition away from commoditised services, we expect there to be a decline in revenues and margins associated with our legacy activities.”