KCom posts higher profit

HULL-based telecommunications service provider KCom Group posted a 64 per cent rise in full-year adjusted pre-tax profit, helped by lower operating expenses.

KCom raised its final dividend by 25 per cent to 1.25 pence a share, taking the full-year dividend to 1.75 pence, compared with 1.50 pence a year ago.

For the year ended March 31, the company posted an adjusted pre-tax profit of 29.4m, compared with 17.9m in the year-ago period.

Pre-tax profit was 19.2m, compared with a pre-tax loss of 111.3m last year.

Revenue fell 12.6 per cent to 412.8m, reflecting the decision to exit low-margin services, the company said.

Operating expenses fell 32.4 per cent to 386.3m, while finance costs declined nearly 40 per cent to 7.4m.

Net debt was 116.8m, down from 157.9m last year.

"Our aims for this coming year are to return to growth and to provide medium-term certainty around our pension funding position," KCom said.

The company's shares closed at 42.25 pence on Monday on the London Stock Exchange.