Partly Cloudy

Partly Cloudy

max temp: 16°C

min temp: 11°C

Search

Ipswich: Smart421 parent group KCOM reports annual results in line with expectations

PUBLISHED: 10:09 06 June 2014 | UPDATED: 17:07 06 June 2014

Inside the Smart421 offices at the North Felaw Maltings in Ipswich.

Inside the Smart421 offices at the North Felaw Maltings in Ipswich.

Communications and systems group KCOM today reported a year of “progress in key strategic areas”, with profits and revenues in line with expections.

Revenue across the Hull-based group for the year to March 31 was 0.6% down at £370.7million, against £372.9m the previous year, for which figures have been restated in line with changed accounting standards.

Turnover within the group’s Kcom segment, covering its value-added communication and IT businesses, including Ipswich-based systems integration specialist Smart421, dipped to £270.9m, compared with £273.5m the previous year, while revenues from KC, the group’s original telecoms-based business in east Yorkshire, edged ahead, from £104.6m to £105m.

Headline earnings followed a similar trend, with those at Kcom easing from £29.4m to £28.7m while the KC figure rose from £54.5m to £56.2m, leaving the group figure, after central costs, 0.5% ahead at £75.3m against £74.9m.

After exceptional items including reduced restructuring costs compared with the previous year and a credit following the termination of a regional goverment contract group earnings were 4.6% ahead at £75.9m against £72.6m.

Pre-tax profit before exceptionals was 0.2% lower, at £49.9m against £50m, but the bottom line figure was 5.9% up, at £50.5m against £47.7m.

A strong second half cash performance left net debt of £75m, reprsenting a net debt to earnings ratio of 1.0 times, down from 1.2 times at the previous year end.

A proposed final dividend of 3.25p per share will make a total for the year of 4.88p per share, in line with the board’s commitment to increase the dividend by 10% a year until March 2016.

KCOM chief executive Bill Halbert said: “This set of results reflects the progress in key strategic areas being made across the group, underpinned by the highly cash generative nature of the business.

“That ability to generate cash results in net debt reducing during the period since March 2013, and is comfortably within our target gearing levels.”

He added: “In KC, there continues to be growing demand for our fibre services, with take-up rates remaining ahead of our expectations and above UK averages. The success to date and consequent uplift in ARPU (average revenue per user) for customers has helped shape our thinking as we begin to scope the next phase of deployment.

“Across the other areas of the group, we continue to build our reputation in the design, delivery and management of value-added services in the wider enterprise market.”

Looking ahead, KCOM said it was “well positioned to continue exploiting the opportunities that exist in its key markets”.

“We will continue to invest in expanding the reach of, and building consumer demand for, our fibre-based broadband services,” it said.

However, it added: “As we focus on the delivery of value added services to the enterprise market, we expect to see a continued decline in some traditional carrier revenue.”

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Ipswich Star visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Ipswich Star staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Ipswich Star account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

A 12-lane bowling alley, a laser quest arena and a ‘ninja warrior’ style assault course are among the exciting entertainment announced to open at the Buttermarket Centre in Ipswich this August.

A drug-driver who had six times the legal limit of cocaine in her system has been banned from driving.

A bigamist’s second ‘wife’ has pledged to stand by him after he admitted ‘marrying’ her without divorcing his first wife.

Despite having a fear of crowds, a Felixstowe woman is taking on one of the biggest public races in the UK to support the charity for which she works.

Donald Tusk has warned there is nothing to win in Breixt telling a press conference he would not pretend it was a happy day.

I did try, I honestly did but I couldn’t cope with the hot flushes and sweaty episodes and so I’m back on Hormone Replacement Therapy (HRT).

On 23 June last year, the people of the United Kingdom voted to leave the European Union. As I have said before, that decision was no rejection of the values we share as fellow Europeans. Nor was it an attempt to do harm to the European Union or any of the remaining member states. On the contrary, the United Kingdom wants the European Union to succeed and prosper. Instead, the referendum was a vote to restore, as we see it, our national self-determination. We are leaving the European Union, but we are not leaving Europe – and we want to remain committed partners and allies to our friends across the continent.

A young gambling addict cleaned out his 82-year-old grandmother’s bank account when taking £11,000 to feed his habit.

Friday is Wear a Hat Day for Brain Tumour Research. Lynne Mortimer looks at the joy of hats and the famous hat-wearers.

Police are appealing for witnesses after a teenage girl was assaulted in Great Cornard, near Sudbury.

Most read

Most commented

HOT JOBS

Show Job Lists

Topic pages

Newsletter Sign Up

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24