KCom to invest more “aggressively” after securing £200m finance package

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TELECOMS provider KCom plans to invest more “aggressively” in the business after securing a new finance package worth £200m.

The Hull-based group, which provides communications services for customers such as British Airways and Virgin Group, is currently considering where to spend money in the group.

Chief executive Bill Halbert said plans could include investing in faster deployment of fibre broadband and also in higher value added services such as developing IT services activity within the enterprise market.

“It gives us a little headroom to invest more aggressively,” he added.

Mr Halbert said that the group would also consider acquisitions. “The right acquisition would make sense if it was targeted in the right area,” he said.

The finance was secured from a banking syndicate comprising Lloyds Bank Commercial Banking, Barclays, HSBC, Santander and RBS. The group, which is over 100 years old, has also agreed an uncommitted accordion facility of £50m if required.

The announcement came as the group reported its financial results for the year ended March 31, 2014. KCom said pre-tax profit fell marginally to £49.9m for the year ended March 31, down from £50m a year earlier. Revenue fell slightly to £370.7m.

Mr Halbert said there continues to be growing demand for its fibre services in its KC division with take-up rates remaining ahead of its expectations.

Its KCom division, which serves medium to large businesses and organisations, is growing its enterprise customer base by offering multiple communications and IT services under one managed contract.

Mr Halbert said: “The refinancing of the business coupled with the underlying strength of the group, gives us the confidence and capacity to consider targeted investment in both organic and inorganic growth opportunities to strengthen our competitive position.”