Kcom’s full year profits rise

TELECOMS provider Kcom Group’s full-year pre-tax profit rose 55 per cent, helped by an increase in sales at its KC business and a reduction in operating costs.
By The Newsroom
Published 22nd May 2012, 09:52 BST

Kcom, which provides communications services for enterprise and public sector organisations across the UK, raised its full-year dividend.

Kcom’s customers include City of London Corp, Dorset County Council, Bradford-based retailer WM Morrisons, car insurer Admiral and consumer goods group Reckitt Benckiser.

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Pre-tax profit for the year ended March 31 rose to £51.1m ($80.8m) from £32.9m a year ago.

Revenue fell two per cent to £387.3m, reflecting a 2.7 per cent decline in the company’s Kcom segment.

The KC brand, which operates telephony and broadband over the company’s East Yorkshire network and publishing services, grew 1.1 per cent.

Hull-based Kcom increased the full-year dividend to 4 pence from last year’s 3.6 pence and reiterated its commitment to deliver minimum growth of 10 percent in dividend in the coming financial year.

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The company also said that following consultation with its largest shareholders, Bill Halbert would continue as its executive chairman.

Kcom shares, which have risen more than eight per cent in the past year, closed at 69 pence on the London Stock Exchange on Monday, valuing the company at about £356.5m.

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