KCOM signs new contract

KCom also said its trading continued to be in line with expectations, with good cash performance, as it was benefited from improvement at its communications services business.

The company, formerly Kingston Communications, said its contract with Phones4U included the provision of a new wide area network for data for all the stores, Internet access and leased lines.

The group said it is benefiting increasingly from the improving performance of its managed communications business as it continues to strengthen customer relationships and margins by exiting lower value-add activities.

The group said the actions it has undertaken over the past 18 months will see continued improvement in the overall quality of its activities.

Executive chairman Bill Halbert said: "The group continues to make good progress, focusing on strengthening the profitability of the activities that we undertake and the delivery of higher value-added, recurring revenues.

"Our contract win with Phones4U is as an example of our strategy of focusing our managed communications services business

direct sales efforts on higher value added services, contracted on a multi-year basis. The contract illustrates the new

opportunities available to us following our agreement with BT."