26th Nov 2013 08:37
LONDON (Alliance News) - Shares in KCOM Group PLC were trading down 3.3% Tuesday morning as it said pretax profit declined on falling revenues in the half year ended September 30.
The communications company also said it would split the role of chairman and chief executive.
KCOM posted pretax profit of GBP25.8 million, down from GBP26.2 million in the previous year. Revenue declined to GBP185.5 million from GBP188.7 million.
Despite lower results, KCOM raised its interim dividend to 1.63 pence, up 11% from 1.47 pence in the previous year.
In the company's KC segment, which operates telephony and broadband over its East Yorkshire network and provides publishing services, revenue declined to GBP53.3 million from GBP53.6 million in the previous year. Increases in consumer and contact centre revenue were offset by declines in business revenue and publishing.
In KCOM's business communications segment, revenue declined to GBP134.7 million from GBP137.5 million. Strong growth in the company's Smart421 consultancy service and Eclipse internet service was offset by weaker results from its Kcom communication services business.
However, KCOM said it expects its full-year results to be in line with market expectations. The company said that it would continue to focus on executing its profitable growth strategy by providing more value-added services to existing customers and winning new contracts.
In a separate statement, the company said it will be splitting the roles of chairman and chief executive. Current Executive Chairman Bill Halbert will take on the role of chief executive, and Graham Holden will be appointed non-executive chairman.
Holden has served as an independent non-executive director for six years. Additionally, Executive Director Kevin Walsh will retire from the board in the summer of 2014.
Shares in KCOM were trading down 3.3% at 101.50 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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