KCom Group posts rise in profits

TELECOMMUNICATIONS provider KCom Group posted a higher first-half profit despite a fall in revenue as its overhead cost base dropped.
By The Newsroom
Published 23rd Nov 2010, 08:59 BST

It also said that it had secured a new 200m bank facility

The Hull-based company also forecast that it would continue to trade in line with market expectations through the second half of this year.

For the half year ended September 30, adjusted pre-tax profit was 22m, compared with 16.2m in the year-ago period.

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Revenue fell 7.6 per cent to 194.8m due to the decision to exit low-margin services and the disposal of certain break-fix activities to Phoenix IT Group.

Interim dividend rose to 1.1p from last year's 0.5p. The company said it was committed to a total dividend of 3.3p for the full year and forecast to grow dividend at a minimum of 10 per cent in each of the two subsequent years.

KCom also signed a revolving credit facility with a maturity in July 2015, replacing its existing 250m facility that was due in March 2012.